Debt plan help

stewallsend

Hi all

After receiving a demanding letter from the DWP for a over payment from years ago and been behind in other payments on top of having £1800 in payday loans i have contacted Greg Pennington for a DMP however i am unsure on some things.

can a creditor refuse the plan and if so what happens?
Can a creditor refuse payment from myself?7

In total £13000 in debt and have £127 income excess to go between lenders.

mum2one

1st thing is - YOU NEVER PAY FOR DEBT ADVICE / DMP ETC, contact Stepchange / national Debt line - they both have advisors who work this site,

Close your enquiry and go for free one -

I'm with stepchange - when I first started my plan, I was having probs with one creditor thinking there better than another, they shout louder - they should have more money.... one creditior I offered £10 pm, no not good enough they wanted £200 pm.... with stepchange sorted the budget, they arranged the division of funds - the creditior that wanted £200 - got £10 and accepted it.

sourcrates

stewallsend wrote: »

Hi all

After receiving a demanding letter from the DWP for a over payment from years ago and been behind in other payments on top of having £1800 in payday loans i have contacted Greg Pennington for a DMP however i am unsure on some things.

can a creditor refuse the plan and if so what happens?
Can a creditor refuse payment from myself?7

In total £13000 in debt and have £127 income excess to go between lenders.

Hi,

Ok, stop right there, you are about to make the single biggest mistake someone entering a DMP for the first time, can make.

Gregory Pennington are a fee charging debt management company,

DO NOT USE THEM !!!!!

From there website :

"Plan fees
A management fee will be charged of 18.5% of your regular payment to the Debt Management Plan (DMP) (this could be every four weeks or monthly depending what suits you best and when you receive your regular income), and is subject to a minimum of £38.50 and a maximum of £90. This fee covers the month-to-month running of your DMP, including negotiating with your lenders, distributing payments and taking care of correspondence between you and your lenders."

Please go to one of the free debt charities, stepchange are one of the best :

http://www.stepchange.org

They will organise and set up your DMP for free, and with no charges, ever.
Fee charging companies can and do go bust, when that happens you lose all your money, and it's common for your creditors to not be paid either.

Please check out stepchange, they have a debt remedy tool on there website, you enter your details and it pops out suggested solutions, if you are not a homeowner, maybe a debt relief order would work better for you.

HappyMJ

stewallsend wrote: »

Hi all

After receiving a demanding letter from the DWP for a over payment from years ago and been behind in other payments on top of having £1800 in payday loans i have contacted Greg Pennington for a DMP however i am unsure on some things.

can a creditor refuse the plan and if so what happens?
Can a creditor refuse payment from myself?7

In total £13000 in debt and have £127 income excess to go between lenders.

Yes a creditor can refuse to accept your offer of payment.

The creditor can go to court and get a CCJ against you.

Once they have that CCJ they can get a charge against your property securing the debt.

Once the debt is secured you cannot get out of paying it.

If you don't own property then I would consider a DRO writing off all of your debts and allowing you to start again.

lynnejk

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Lx

stewallsend

I dont have any assests i rent my property, the main debts that i am struggling with is the payday loans and now the DWP overpayment. The other debts are from 4 year ago which GP want to include in the plan.

sourcrates

stewallsend wrote: »

I dont have any assests i rent my property, the main debts that i am struggling with is the payday loans and now the DWP overpayment. The other debts are from 4 year ago which GP want to include in the plan.

Please ditch Gregory Pennington.

A standard debt management plan from a fee-charging company could cost you an extra £4,000 !!!!

Try here for free :

http://www.stepchange.org

HappyMJ

stewallsend wrote: »

I dont have any assests i rent my property, the main debts that i am struggling with is the payday loans and now the DWP overpayment. The other debts are from 4 year ago which GP want to include in the plan.

If you've got no assets then why are you not considering a Debt Relief Order?

I would never recommend a DMP if it takes longer than 5 years and especially if you have no assets.

If you have assets then extending a DMP to 10 years may be needed...

Your plan looks like it will take in excess of 15 years with the fees that GP charge.

But...you own nothing. So GP is ripping you off as much as they can and you'll still be in just as much debt as you are now.