Going insane with DMP

seanavfc92

Iwanttobefree wrote: »

What we need to do is get the creditors to agree a minimum payment of about £100 a month between them all for say 12 months, with the assurance that some months they will get more.

What will cause us the biggest problems is if every 6 months or a year, we start getting charges etc again.

At the end of the day, they can't have what you don't have. You need to prioritise paying your mortgage, council tax, utility bills, etc and putting food on the table before you consider paying the unsecured debts off.

A DMP allows this to happen; paying your creditors what you can afford to over a longer period.

Iwanttobefree wrote: »

Sourcrates suggestion of simply not paying is an interesting one, if things are handed over to debt collectors, does this mean that the bill they present me with is a final bill that the DMP can then start working to pay off and it's never going to increase?

The former. Debt Collection Agencies DO NOT add interest and charges on to the outstanding balance. They will buy the debt at a fraction of the price, hence why you see them offering "reduced settlement offers", because even though they're knocking £1000 off the balance, for example, they'd still be making a profit from your full and final settlement amount.

This is why it's not necessarily a bad thing if a DCA takes over a debt from a creditor who is still adding interest and charges on.

National_Debtline

seanavfc92 wrote: »

The former. Debt Collection Agencies DO NOT add interest and charges on to the outstanding balance.

That's not strictly true. Depending on the terms of the original contract, and how the debt has been assigned, it is very possible for a DCA to apply interest and charges. That said, if someone is using a recognised process to deal with their debts - such as a DMP or self-managing via a comprehensive financial statement - there is a large onus on DCAs to not do so. Many seem to comply very quickly.

Very best wishes,

David @ National Debtline.

longtermplanner

It's good that your mortgage will finish in 10 years and that soon you may youirself be able to earn something.

I don't agree with the suggestion to stop paying anything. Sometimes that can work well, but with a lot of equity in yoiur house I wouldnt do it.

There is no merit in trying to set up two sepearte plans.

You didn't comment on my suggestion of getting a lodger. I am sure you would rather not do this, but is it a possibility? A couple of years of this nuisance now could make a real dent in your debts and make the rest of your lives a lot easier.

seanavfc92

National_Debtline wrote: »

That's not strictly true. Depending on the terms of the original contract, and how the debt has been assigned, it is very possible for a DCA to apply interest and charges. That said, if someone is using a recognised process to deal with their debts - such as a DMP or self-managing via a comprehensive financial statement - there is a large onus on DCAs to not do so. Many seem to comply very quickly.

Very best wishes,

David @ National Debtline.

Don't DCA's only buy the ownership of the debt, not the terms and conditions of the agreement?

sourcrates

Iwanttobefree wrote: »

Sourcrates suggestion of simply not paying is an interesting one, if things are handed over to debt collectors, does this mean that the bill they present me with is a final bill that the DMP can then start working to pay off and it's never going to increase?

Usually yes, as David says, it depends on the original contract, but 9/10 that will be the case.
And of course just because they may add interest does not mean you have pay it, any unfair charge can be challenged as unfair.

National_Debtline

seanavfc92 wrote: »

Don't DCA's only buy the ownership of the debt, not the terms and conditions of the agreement?

Hello there,

If a DCA purchases the debt, they would generally assume all rights and duties. As such, any contractual terms (such as interest) can be exercised by the DCA in the same way as the original creditor. Imagine that they 'step into the shoes of the original creditor'.

I should say that DCAs can get involved in a variety of ways, and it's not always easy to know if a debt has been purchased or if the DCA is simply acting for the original creditor.

It's also worth knowing that some DCAs seem to freeze interest and charges when the debt is passed over - or that they'll continue to keep interest frozen if the original creditor has already agreed to do so.

All DCAs (and creditors) should consider freezing interest and charges if it is clear that someone is having financial difficulties.

Hope this helps!

David.

Iwanttobefree

Many thanks all

I sent a message to Payplan cancelling my DMP and they phoned me up and have changed my opinion of them completely.

I think part of the problem is every time I speak to them or message them, a different person responds.

They have put my mind at rest and are phoning next week to go over my income and outgoings again.

I shall see how it goes this time and will keep you all informed.

Sazzie23

Iwanttobefree wrote: »

Many thanks all

I sent a message to Payplan cancelling my DMP and they phoned me up and have changed my opinion of them completely.

I think part of the problem is every time I speak to them or message them, a different person responds.

They have put my mind at rest and are phoning next week to go over my income and outgoings again.

I shall see how it goes this time and will keep you all informed.

Hi I wanttibefree

Just been reading your thread, I'm pleased you've been able to take some action and contact PP. It is in their interest to make sure your repayments are manageable, otherwise you'll defaukt which costs a whole lot more.

I'm not sure if you've found the DMP mutual support thread, its a an informative and non judgemental thread offering plenty of support and ideas for DMPers.

I think part way through, especially if you find you're struggling with the repayments but the interest is still being added, it gets really hard to continue. Completely understand about the house, ours is in a similar state and I looked round the other day at all the household items that need replacing, the bed, sofa, non working cooker, washer with door taped on, etc etc and still at least 4 years to DFD, I did feel a bit low. But on the otherhand I looked at what I had paid off (33% although some of that was PPI refund) and that I'm not accumulating more debt, and I though YES i can do this:o

Let us know how you get on with PP but its is all informal and you can go to SC or some other fee taking organisation but for the most part they will deal with creditors the same way, as DMPers will tell you, they handle the repayments but the debt is still yours.

p.s. some paid debt management companies have gone bust in the past, another reason they are best avoided.

Good luck & one step at a time

Iwanttobefree

Me again.

I have my appointment with them booked for Friday, but am on their list to get a call if they get a cancellation.

So they just phone up, and I get excited that it's going to be all sorted.

No, they just want to know what company my life insurance is with and whether it just covers my mortgage.

All this is my own words, not an exact quote but is as close as can be

I politely say it's with Zurich but I don't' want to change.

They tell me they also use Zurich and maybe could get me more insurance for my money

I say no thank you, I'm happy to leave it

They ask if I can tell them why.

I tell them that the whole thing is too stressful, I have bad health and it took months to arrange last time, with nurse coming out to my home, letters from doctors etc and the whole thing was a nightmare I have no intention of repeating it.

She says , "so we can arrange for a chat to see if you can benefit from it then"


I mean really???????????????????????????????

I remained calm but felt like shouting, I firmly said "no thankyou I am not interested, the whole thing is simply too stressful for me" before she finally got the message.

After that, I'm not sure I want them dealing with it.
.

hohum

Iwanttobefree wrote: »

Me again.

I have my appointment with them booked for Friday, but am on their list to get a call if they get a cancellation.

So they just phone up, and I get excited that it's going to be all sorted.

No, they just want to know what company my life insurance is with and whether it just covers my mortgage.

All this is my own words, not an exact quote but is as close as can be

I politely say it's with Zurich but I don't' want to change.

They tell me they also use Zurich and maybe could get me more insurance for my money

I say no thank you, I'm happy to leave it

They ask if I can tell them why.

I tell them that the whole thing is too stressful, I have bad health and it took months to arrange last time, with nurse coming out to my home, letters from doctors etc and the whole thing was a nightmare I have no intention of repeating it.

She says , "so we can arrange for a chat to see if you can benefit from it then"


I mean really???????????????????????????????

I remained calm but felt like shouting, I firmly said "no thankyou I am not interested, the whole thing is simply too stressful for me" before she finally got the message.

After that, I'm not sure I want them dealing with it.
.

I get you on this - not with a DMP provider, but my bank. I owe them money in the form of an overdraft which is one of the main reasons I'm staying put until I pay it off. Anyway, my bank went through a phase of being 'helpful' and bugging me for an appointment so they could be 'helpful'.

I found that the following response was quite 'helpful' for me

'Does the help you are offering involve trying to sell me financial products? because I am not interested in buying any further financial products from you. My trust in you as a provider of financial services is is extremely low from my experiences as a customer of 10 years, and for this reason I will not be purchasing any products from you'

Or:

'No. I do not have to provide you with a reason why I don't want to use your services.'

ETA my bank have just been fined £14.5million for their 'helpful' advice re mortgages. I am becoming of the opinion that it's in my interest to do the opposite of any 'advice' offered to me by this bank!