How do you convince someone to do a DMP?

MonicaGeller

Sourcrates - True. Thank you.

BlisteringBlue - Yes he recognizes the problem and tries to pay more on the cards that have the highest interest etc.. We've done the snowballing calculator hence the previous comment.
This weekend could be the turning point. Something we need to talk about.

Thank you both. I have to go out now but will check back later for any replies.

MonicaGeller

blisteringblue wrote: »

Just had that very thing happen this month, it is easy to pay less to the debts at this point too. I've dropped my payments by 75% this month but it is a one off. Most won't even bat an eyelid.

Some people at the start of the DMP process pay token £1 payments for a few months, they then save up an emergency fund which is always advisable.

The DMP Support Thread[/URL] is the place to be for all your answers

I've read the DMP threads quite a lot and noticed a few things like the £1 token payments.

We both like to pay promptly for things and the thought of missing payments or making token payments really scares us!
*really going out now!*

National_Debtline

Hi Monica

MonicaGeller wrote: »

I've read the DMP threads quite a lot and noticed a few things like the £1 token payments.

We both like to pay promptly for things and the thought of missing payments or making token payments really scares us!
*really going out now!*

Would it scare you any less to know that you would be far from alone in doing so? The posters you see on here talking about token payments represent the tip of the iceberg. We probably deal with >100,000 households having to take similar steps every year, and the figure will no doubt be even greater for other services such as Citizens Advice.


Dennis
@natdebtline

sourcrates

MonicaGeller wrote: »

I've read the DMP threads quite a lot and noticed a few things like the £1 token payments.

We both like to pay promptly for things and the thought of missing payments or making token payments really scares us!
*really going out now!*

As Dennis says, there are many thousands of individuals and families that cant afford the debt they have, its a bit of a modern epidemic, you are certainly not alone in this.

What exactly do you believe will happen if you miss your monthly payments ?
or, you only pay £1 to each one ?

I will tell you what will happen, absolutely nothing, that's what.

Yes you will get calls, and letters, these are easily dealt with, you may get defaults on your credit file, not the end of the world.
As long as you keep your creditors informed about what your doing, most will be fine with that.

If you do enter a DMP, then apart from the odd check on your income/expenditure, things will just tick along as per normal, and you wont notice any difference from paying contracted payments, except you will be paying less, hopefully with interest frozen.

Little_Miss_Sunshine

We were in exactly the same situation as you just before Xmas. On 2 Dec I came home from worked and sobbed to my oh that we needed to do something drastic - a DMP. We're in our late forties ( me nearly 50 ) and I want / need to retire at 60 from the job I do. Oh said said exactly the same as yours - what about emergencies. We've only made token payments since December and so far we've saved £2250. We won't start our DMP until July and by then we'll have £8k saved. Things I wish I'd known on 2/12
1. Nothing bad has happened - we've had letters ( fair enough) and a couple of phone calls and texts which I've blocked. I'll only deal in writing.
2. Cca requests - £22k of our debt is unenforceable. I felt uneasy at first about this but then I thought about all the interest I've paid and the fact the law is there to protect debtor and creditor.
3. Full and final settlements. I'd never heard of these. Again it will reduce our debt.
4. How good it feels not to use a cc and to have savings.

The only thing we worry about - not having a cc - is possibly hiring car if we go on holiday in the next 6 years but we've a way around that we think.

It has genuinely changed our lives for the better. But take your time and don't rush into repayments. Build up a decent emergency fund.

MonicaGeller

Good luck Little Miss_Sunshine, it's sounds like the right step for you and your OH is also on board which is helpful. We too have thought about times we *could* need a CC for something (as a security measure, like hiring a car etc..).

It all sounds positive but I have yet to convince my OH. I don't know what else to do. I can't make him do it, as he's the main earner and most debts are in his name (although jointly built up, I take full responsibility for that).

I have said if we're not doing a DMP we need to go through everything with a fine tooth comb and actually take action on any spending we make and reduce payments. We have to do something and I will give him a time limit if that's what it takes. I know a time limit isn't ideal but if it works (either way) I will be happy. He is very concerned with the emergency cost side of things and I have told him multiple times about the emergency fund, 3/4 months minimum, which would be about £3000.
Not much else I can do if he's against it. I know he's anxious about going the DMP route and not having access to credit for any emergency and that's the stumbling block. *sigh*

MonicaGeller

I'm concerned with the defaults side of things. I've heard that some don't actually default you on your credit file even after the DMP is started (like Barclaycard, which we have).

sourcrates

MonicaGeller wrote: »

I'm concerned with the defaults side of things. I've heard that some don't actually default you on your credit file even after the DMP is started (like Barclaycard, which we have).

There are ways and means of dealing with creditors such as Barclaycard.
There Buisness model is fairly unique in that they can take a very long time to default you, this is because they realise people's finances go through ups and downs, and the hope is you will still retain your account once the current financial problems are solved, it's how they keep customers, because once defaulted, that's it, account closed.

People on here find the best way to deal with BC is to pay £1 a month for 6/8 months, or pay nothing, until they do default you, which they will, eventually, do, some posters have had to wait 2 years or more for this to happen.

MonicaGeller

Feeling really low today. Actually most days. I keep reading the debt-free wannabe board and seeing the success stories, wondering if we'll ever have one. So far I'm doubting it.
There's no point in telling him how I feel as even if he agrees to go on with a DMP, if he's not fully on-board then it won't work and will build up/cause resentment. I just don't see any way out with it. I know a DMP won't be easy but it will give us an end to this mess. Right now there is no end.

The budgeting idea sounds like it *could* work in principal, but reality is far different and he's not been good in the past with sticking to it. Neither have I, I admit. He took over doing the finances a long time ago but won't check things unless I ask him. I do check the bank account but without knowing what's yet to go out I can't be sure the total is right.
Sorry, just a vent. His car is in the garage - again - and all I can see is a debt wall in front of me.

Scottishmummy

Reading through, his biggest concern seems to be the emergency occurrences. Eventually if you carry on the way you are you will not have any credit left anyway to pay for that emergency. At least with a few months of token payments on a dmp you will be able to save an emergency buffer. Has he read any of these threads?