Payplan - Advice please?

dee342

Hi Everyone,

I'm not sure if this is the right place to be posting this but I'm after a bit of advice regarding Payplan.

I have 4 credit cards which I'm only managing to pay the minimum payment each month and I want to change this. Does anybody have advice on the first steps to take? Should I contact Payplan to see I can put a payment plan in place? Will this affect my credit history?

HELP PLEASE!!!!

*Foolish*

What you're referring to is a debt management plan (DMP) first steps to take would be to contact PayPlan, if that is who you've decided to go with. They will discuss everything with you and explain the plan. A DMP will wreck your credit report because you will be breaking your contract with your creditors by paying less than the minimum payment, so eventually they will default you. A default stays on your credit report for 6 years.
Hope this helps.

dee342

Thanks for your response!

Is there a step before a payment plan?

Thanks

Sazzie23

dee342 wrote: »

Hi Everyone,

I'm not sure if this is the right place to be posting this but I'm after a bit of advice regarding Payplan.

I have 4 credit cards which I'm only managing to pay the minimum payment each month and I want to change this. Does anybody have advice on the first steps to take? Should I contact Payplan to see I can put a payment plan in place? Will this affect my credit history?

HELP PLEASE!!!!

Advice from Foolish is perfect summary, maybe you could consider posting an SOA to see if there are suggestions for you on how/where you can release more cash to increase payments. There is something called snowballing to help pay off quicker, and remember those 0% deals are always advised by Martins team to help release cash to get the other debts down quicker.

Hope this helps, plenty more advice if you have time to read through some of the forum threads

antonic

I`m a satisified (former) client of PayPlan following me clearing £24k of debt with them in 90 months.

Defaulting on my credit cards was the best thing that I could have done, because like you, I was just existing after making my minimum payments.

Defaulting trashed my credit file for 6 years (defaults drop off in Dec 2014), but it enabled me to live.

Think of it this way (as I did), would you prefer to continue to just exist making the minimum payments OR bite the bullet, suffer a trashed credit record for 6 years with the knowledge that at the end you will be debt free ?.

I chose the latter and never regretted it and I paid everything off in full.

(The only problem you may have is if you have a mortgage and look to change your provider - I dont have a mortgage as I rent).

Good luck with what you decide to do, but I can recommend PayPlan wholeheartedly !.

abbylou

Does the default stay on your file for 6 years after the date it was applied or for 6 years after the whole debt is cleared?

antonic

abbylou wrote: »

Does the default stay on your file for 6 years after the date it was applied or for 6 years after the whole debt is cleared?

Date it was applied.

In my case, I defaulted Dec 2005 and my CC defaulted me in May 2008 ( one) and Dec 2008 the other two.

Which means the defaults will drop off in May 2014 and Dec 2014.

I could have argued to have the defaults backdated to Dec 2005, but I wasnt bothered and I`m not after credit so I left it.

Hope this helps.