DMP with payplan

continualdiamond

I've been in contact with payplan the past few weeks and they just got back to me and told me 'we' cannot enter into an IVA because we don't have the min surplus a month to offer. So our only option is a DMP, the only thing im affraid of, is they told me it's not legally binding, so crediors can take legal action and force us to sell our house.

What is the likely hood of that? We haven't missed any payments on anything yet, where simply thinking ahead before things get into a bad state of missed payments and threatening letters.

I would of thought our creditors would see this as a good thing, us thinking and planning before things get bad.

Anyone have experience of payplan and DMP??

dollindebt

I have been on a DMP with Payplan for just over 2 years--I originally owed £37,000 t0 9 different creditors and I have paid off £9,500 during this time. I pay Payplan £366 a month, on payday, by standing order, and it is satisfying to see the debt going down.

Since my DMP has been up and running, I have not had any hassle from my creditors after the first few months (I was issued with all the defaults, and several of the debts have been sold on to other debt management companies, but the payments have transferred over with no problems).

If I do get phone calls from creditors now, it is to remind me that a 6-monthly payment review is due, and I am always polite and refer them back to Payplan. Payplan have been brilliant.

Two years ago, I was really frightened, depressed and anxious (that they'd take my house etc), but once the creditors agree to the DMP and this can take several months, and you make payments to Payplan as agreed (and on time), things should be OK.

The important thing is to stick to your DMP and don't ignore contact from your creditors; my impression is that when this happens, the creditors start to take other steps to recover the debt.

I have found a DMP with Payplan to be a huge relief!

Flossie

Just wanted to add to that. I have been with Payplan on a DMP since Sept 2004 and they have been great. It does take a little time to get all the creditors sorted out etc, but once you are up and running it is all pretty smooth. I too get reminder letters from Creditors about payment reviews, but I driect them to Payplan.

The only thing about Payplan is that they are so busy. Trying to get through on the phone takes ages. I suppose that goes to show how many people are in a similar position to us and need help!

Once you are on a DMP you feel a great sense of relief. Although your debts are not paid off, they are at least under conntrol and you can start the long journey to a debt free life!

dollindebt

Also, to add to what Flossie said, Payplan are extremely busy--I have had problems getting through to them on the phone as well.

However, once your DMP is up and running for a few months, you can access their "Justabank" website. Essentially you can manage your Payplan account online, and get in touch with your case coordinator that way, and they will email you back. I have found it very useful.

It is also really thrilling to see the balance of my debts go down each month, by looking at it online It helps to keep me motivated to stick to it, and my budget.

sira_2

I'm about to do a DMP with CCCS the thing that worries me when reading everyones comments is that they seem to be makine a signifcant payment per month mine is only £92 over 35yrs!!!! I'm just so worred things wil go wrong & i'll end up losing my house!! Im doing everythng i can to get more income and i will be able to make a significant payment next year and again in 5yrs but im so worried!

dollindebt

Hi Sira,

If the CCCS has suggested you do a DMP, they must be fairly confident that your creditors will accept the amounts. There are others on this board who have posted who also have DMPs which will run for many years too, so it is not that unusual.

There is also a CCCS representative (Matthew) who has a link on this board who may be able to help. He posted yesterday--have a look through the postings.

Cheers,
Doll

sira_2

Thanks for your advice Doll, think everything is going around in my head like a spin dryer at the moment & im panicking about everything. Managed to sort a bank account out & attempting to get everything e.g wages etc transferred before i stop using my bank account & send out my letters that sit here ready. Just darent send anything case they keep my wages!!! Will be glad when i have everything set up & the plan has started until then think i will continue panicking!! My main worry is now that ive started to collect last statements & some of the amounts im a little out on & im scared to ring CCCS in case they say go bankrupt!

dollindebt

Hi Sira,

It's also normal to be out slightly on the amounts. You are taking all the right steps to getting this sorted, so well done! You can ring CCCS and they can adjust it if necessary.

Try not to panic (I know, easier said than done). If the CCCS suggested a DMP, they must feel that is the best and most realistic option for you

I still felt panicky for the first few months after my DMP started, but it does calm down with time. Just stick with it and don't ignore any contact from creditors--you can give them your case number from the CCCS if they phone you.

Have a good weekend, and sleep well knowing that you are on your way to becoming debt-free, even if it does take a while

RAS

Sira

this is not helping Contunualdiamond make a decision. Could you start your own thread. And BTY, there are people paying £1 a month!

dollindebt

Sorry, just realised about "hijacking" a thread! Thanks for bringing this to our attention.

Continualdiamond, RAS, I would just like to reiterate that my experience with my DMP with Payplan has been extremely positive over the past two years. I hope this helps.

Good luck,
Doll

shayshay

I think it is hard for anyone to tell you what will happen. I would however be surprised as at the end of the day these debt management companies have a much stronger tie in with creditors than we think, hence if after all the letters and phone calls they accept £1 from some then goes to show they will take whatever is on offer.

of course getting to the point will mean going through lots of letters and phone calls but with the likes of payplan helping your chances are much better than without.