Never thought this would happen to me....help!

youknowthis123

...just realised I missed something out here, which may change things slightly.

Now I've come a long way in the past couple of months. I wasn't always so optimistic (or sensible)! When I was at my lowest, I called Churchwood Finance (if you know my story you'll know that I eventually cut ties with them and went through PayPlan. Anyway, I had all my money taken from account just before speaking to Churchwood, and said to them, 'great, DMP sounds good, but I have no money for this month, what shall I do'. Anyway, they advised me to take out another PayDay Loan to get through the month (isnt that UNBELIEVABLE!). However, my stupid old self saw that this may be the only way to get through the month. So I took one out, and chose not to tell them (QuidMarket) that I had other PayDay loans. They stated in the Default notice that as a result of this, I am being referred to their Legal team. Now I completely take on board that I wasn't compeltely honest, but surely the PDL companies have a moral obligation to thoroughly check affordability of their customers (whilst realising that some who are desperate enough, will not be 100% honest)

Anyway, interested to hear your views on this. I completely realise how idiotic this was of me !

Thanks,

YKT

bargainbetty

When you take out a PDL you effectively sign a notice confirming that you believe you have the means to repay it, and if their terms state that you cannot have other PDLs then saying otherwise is fraud. If you lie anywhere on a legal application, it is fraud.

If you take out other lines of credit while on your DMP, the entire plan can be scrapped and all your creditors can take you to court. Please be aware of this once the DMP starts.

Moral obligation? No. You have a legal obligation not to lie on a legally binding contract.

I wish you all the luck in the world, but step about from that thought process - you will want to see what the legal team comes up with before seeking advice.

CFC

Their legal team can't get blood out of a stone, whatever happens. And they'll know that.
As for them threatening police etc, as they'll doubtless say anything to get you to pay up, ignore it, just another baseless threat. But do NOT borrow any more money from anywhere!

Lucy5781

Other more informed individuals my need to correct me but to my knowledge, being in a DMP will not affect your credit rating in itself as it is an informal arrangement, and making payments avoids defaults.

Defaulting on payments to debts can be marked on your credit file though.... I have been making some kind of payment (originally token payments, self arranged and latterly via my PayPlan DMP) for about five years or more, so, apparently, due to the large amount of credit I had been allowed in the past and the fact that I had been maintaining some form of payment the whole time my credit was still in effect, 'good'.

I got my new tenancy here without a problem last year, which included a credit check.

As of 30th Sep this year though, I am now in a DRO (also via PayPlan), which will go on file. Though with a little bit less of an impact than IVA or Bankruptcy.

I agree, I'm 32 and I only understand all this money stuff from reading things here on MSE, nothing at school, college or uni....

Good Luck
Lxx

youknowthis123

Thanks all for your advice, I guess I'll wait and see what the legal team comes back with. At the end of the day its 250 ish quid. If it gets too messy I'll just pay up. Anyway, PayPlan say they are dealing with it so we shall see...

Also wanted to just clarify something, I HAVE NOT taken out any credit whilst being on my DMP. The QuidMarket loan was taken out before I'd set up my DMP.

thanks,

YKT

youknowthis123

Hi everyone!!

So it's been a long old trek, and here I am giving the first update in a long time. I guess some people on here like to log in every couple of days and post updates, however I needed to step away and sort myself out before letting you all know how I'm doing (hopefully with some positive news)!

So DMP has been up and running since October last year. and thus far I am down to 9.6k from a 10.8k debt. Certainly progress, and have been managing okay to keep my head above water from month to month.

There have been other developments. I remember a reply to this thread from ''ilovelondontown''. Explaining how he/she worked in a similar industry to me, and to not count out getting a payrise or moving jobs to better my situation. In fact this user told me that by doing this they were 8k better off a year. (I am getting to my point)

Amazingly, I was promoted last month, and what did my salary go up by? 8k! An amazing coincidence, and of course great news for my debt situation.

I have a couple of questions going around in my head

What do I do with the extra 8k per year. Do I up my monthly payment to payplan (currently 228 pounds per month)? Do I make the odd lump sum payment every few months? Or do I continue on my current payment and enjoy the extra cash until I review my budget with payplan?

Once again, thank you to all of you for your support since early September 2013, my life is 100% better since I joined this site (when I was at my wits end sat on my own in a pub in Westminster on my phone!) I hope my situation, although not the worst debt crisis in the world, can offer some hope to people reading who are experiencing similar issues.

Comments and thoughts welcome as always!

YKT

Puzzcat

Hi,


Well done on your journey so far, you are doing very well. Can you just reassure me that you are checking your balances with your creditors and not just going by what payplan say you owe?


As for you whopping rise.. well done you... Its up to you I guess, you could stash the extra for now and then up your payments at review time? This could then be your emergency fund/be available for full & finals further down the line.


well done and thank you for coming back with an update..


Puzz.

youknowthis123

ahhh...I knew things were going to smoothly!

I am going by what I see on my Paypal account yes. What would you advise? Contact each creditor for an up to date balance?

Thanks for your reply!

YKT

eyeopener2

Personally I'd whack up the payments

You have £9.6k to go and an £8k pay rise, say £400ish a month on top of your current £220ish.

I guess that you could be debt free in under 2 years or less. If you go down the enjoying the extra cash route your just delaying being debt free for a short term money fix.

Get that debt paid off and your free, forever.

Puzzcat

youknowthis123 wrote: »

ahhh...I knew things were going to smoothly!

I am going by what I see on my Paypal account yes. What would you advise? Contact each creditor for an up to date balance?

Thanks for your reply!

YKT

Assuming you are not getting statements, then yes I would call them for balances. Dmp's are informal and creditors do not have to freeze interest, if yours haven't you will need to write to them. A letter is on the dmp mutual support thread page 115. Hope this helps.