Beginning the DMP and advising creditors.

esj13

I am just filling out my DMP forms now and also writing the letters for my creditors to advise them of what I am intending to happen.
I am under the impression that because I have not yet defaulted (I will have done by next week) that they are less likely to accept the DMP?
This doesnt make much sense to me, that they would rather arrears start to build up before they will work with me to take steps to clear a debt that I cannot currently manage?

Even so I am going to stop the payments (a thought I hate because not paying is something that makes me feel bad) and write to them and offer this token payment. How much should these payments be? I have 5 creditors in total and I have decided that I should take control now while I can clear the debts within 6-8 months and live stress free again.

So my questions mainly are: How much token payment should I offer?
How many arrears need to build up before they will accept a DMP?
And how likely are they to accept it in the current state of not having defaulted?
And once the DMP is running can the creditors who might theoretically refuse at this point be added later when defaults have begun?

*Foolish*

I'd pay £1 each. I think it depends on the creditors, I had 19 in total and other than my PDL's none of them were in default, or arrears and all accepted.

happy_bunny_2

Hi there,

Offer them £1 a month til up and running.

Are you doing a self managed one?

Is a DMP the right answer as 8 months does not seem long? Did you try the stepchange online advice to see what it recommended?

HB

esj13

*Foolish*
These are all PDLs as we've mentioned and none are in default yet. So lets hope and see. Hopefully they'll see the initiative in taking preemptive action and agree to it.

happy_bunny
yeah it was stepchange who advised the DMP for this preriod of time given what I owe.

*Foolish*

SC will do all the communicating for you. Chances are you'll miss the required payments before the DMP starts, despite offering your token payment, so even if they wanted to wait until you default, it wouldn't take long, but SC will do everything on your behalf.

happy_bunny_2

Ok, makes sense now.

Pay them £1. Tell them you are talking to stepchange and in theory they are supposed to leave alone for a month to get advice. So when the ignore this and hassle you,make notes of times and what they say etc. might come in handy for a complaint down the line.

esj13

Well that's the CPAs cancelled. Now just waiting for one more email with my reference number and all good to go.
I felt embarrassed on the phone to the bank doing that