DMP Mutual Support Thread (Part Three)

rugby6ft8

I've just written the 7 letters to my creditors and once again it made me realise what i'm doing, its so scary the unknown. I am really annoyed as i've nearly paid off a loan and the balance is £1400, so 6 payments left - but as it is part of the reason i'm skint its going on to the 5 year plan. I wish I could pay it off and remove it, but I cant lol.

I've just worked out roughly how my monthly payments will be shared amongst my creditors. Can someone who has a DMP set up see if this looks about right please.

Payment to Payplan £593.31

Creditor 1 Owed £11132.34 so £185.54 a month.
Creditor 2 Owed £6511 - £108.52
Creditor 3 Owed £5900 - £98.33
Creditor 4 Owed £5520 - £92.00
Creditor 5 Owed £2800 - £46.67
Creditor 6 Owed £2300 - £38.33
Creditor 7 Owed £1435.34 - £23.92

I think its about that, do you think it seems about right? What are the chances of crediotrs turning it down? On the largest amount I currently pay £250 a month, so it £65 less. Are these good amounts and will a creditor demand more?

I'm getting quite confused and random in my thoughts as its all consuming - DEBT. I feel like once i send the letters out i'll get call after call and they'll want answers and they'll slaughter me. The thing is, I love to talk and I'll end up in a huge dialogue and go through stuff they don't need to know. Any ideas how to combat this? When i'm nervous, which I feel regarding debt, i spout utter rubbish.
Can someone slap me and tell me to pull myself together please!!!!

carlos700

I always pay my house insurance & car insurance monthly and always swap it after the 12 months for a better qoute through quido i am wondering now i am on a DMP will companys let me pay monthly or will i have to pay premiums all at once ?

shinyhead

That's a good question C700, I went for cheaper deals a couple of years ago and pay monthly, not long after starting my DMP -I haven't changed my insurers yet. As my credit rating is probably by now just a blob of black ink I'd also like to know- Anyone out there know?

cloudnine_2

Hi Carlos700. I'm on a dmp with CCCS and have several DD's for house, car , life, gas, electric etc. I haven't had any knock backs as yet. Its a good question though. I reckon the providers always prefer up front annual premium payments , but a DD is the next best bet. After all, if you don't settle your DD each month, they can simply cancel your policy. I also can't remember any insurance provider asking me if I was on a dmp or, had any defaults against me. Not sure eitherif they would do a credit check, as it isn't a loan and, as I said, they can cancel your policy easily with previous DD payments having brought you up to date.

loopylu36

rugby6ft8 wrote: »

I've just written the 7 letters to my creditors and once again it made me realise what i'm doing, its so scary the unknown. I am really annoyed as i've nearly paid off a loan and the balance is £1400, so 6 payments left - but as it is part of the reason i'm skint its going on to the 5 year plan. I wish I could pay it off and remove it, but I cant lol.

I've just worked out roughly how my monthly payments will be shared amongst my creditors. Can someone who has a DMP set up see if this looks about right please.

Payment to Payplan £593.31

Creditor 1 Owed £11132.34 so £185.54 a month.
Creditor 2 Owed £6511 - £108.52
Creditor 3 Owed £5900 - £98.33
Creditor 4 Owed £5520 - £92.00
Creditor 5 Owed £2800 - £46.67
Creditor 6 Owed £2300 - £38.33
Creditor 7 Owed £1435.34 - £23.92

I think its about that, do you think it seems about right? What are the chances of crediotrs turning it down? On the largest amount I currently pay £250 a month, so it £65 less. Are these good amounts and will a creditor demand more?

I'm getting quite confused and random in my thoughts as its all consuming - DEBT. I feel like once i send the letters out i'll get call after call and they'll want answers and they'll slaughter me. The thing is, I love to talk and I'll end up in a huge dialogue and go through stuff they don't need to know. Any ideas how to combat this? When i'm nervous, which I feel regarding debt, i spout utter rubbish.
Can someone slap me and tell me to pull myself together please!!!!

Hi Rugby

How did you do your calculations? Apparently CCCS have sent proposals of to my creditors, but I haven;'t had my welcome pack yet, so I don't know what they've offered everyone. I'm desperate to know cos I think it will giv me a better idea of whether they will accept it.

I was a bit lax with my creditors actually (cos there are so many of them LOL) I just sent the CCCS photocopy proforma and a postal order. But any creditors that i have received letters or phone calls from I have phoned to explain the situation.

I don't think your creditors will "slaughter you" . The calls that I have had so far have actually gone quite well - whether creditors are under more pressure to help people cos of the current climate I don't know, but there are so many people in this situation and we can't all just be stupid idiots (ok well yes we can!) that borrowed too much - the banks do have to take their share of the blame for irresponsible lending, I know that's why I'm in such deep doodoo -if they had stopped lending to me it would have forced me to have sorted it out sooner, rather thinking I would just "muddle through" til I won the lottery! :rotfl:

rugby6ft8

Hi Loopy,
When I spoke to my Payplan advisor she told me that I would be able to pay off my debt in 5 years. So I took what I owed to each creditor and divided it by 60months and it all balanced. I know its not exact but I think its about right ish.

I do agree with you about the banks lending me the money, I know I have to take responsibility too, but get this ........

When I had graduated in 2002 I needed a car so I bought on for 7k. I then was offered a graduate loan of 10k to help me relocate to Bournemouth, which I accepted and paid off the 7k loan with as it was a better rate. After I moved South I went over my overdraft and was finding it difficult on an NQT salary with rent and bills etc, so instead of helping me out with the overdraft Lloyds TSB offered me another graduate loan of 10k, even though I only needed about 1k. Now, stupidly I thought how wonderful, i'll be able to pay this, that and the other off and i'll get rid of the overdraft problem. I really regret taking that loan as it was the start of my troubles. I could have said no, I could have not been so greedy, but the bank could have realised I didnt need the money - they just wanted to make their commission. Lloyds TSB have made a fortune out of me and my inability to control money. But, I'm re-educating myself now using this website and the only person who will get their hands on my money is me (and payplan for 5 years lol).

loopylu36

rugby6ft8 wrote: »

Hi Loopy,
When I spoke to my Payplan advisor she told me that I would be able to pay off my debt in 5 years. So I took what I owed to each creditor and divided it by 60months and it all balanced. I know its not exact but I think its about right ish.

I do agree with you about the banks lending me the money, I know I have to take responsibility too, but get this ........

When I had graduated in 2002 I needed a car so I bought on for 7k. I then was offered a graduate loan of 10k to help me relocate to Bournemouth, which I accepted and paid off the 7k loan with as it was a better rate. After I moved South I went over my overdraft and was finding it difficult on an NQT salary with rent and bills etc, so instead of helping me out with the overdraft Lloyds TSB offered me another graduate loan of 10k, even though I only needed about 1k. Now, stupidly I thought how wonderful, i'll be able to pay this, that and the other off and i'll get rid of the overdraft problem. I really regret taking that loan as it was the start of my troubles. I could have said no, I could have not been so greedy, but the bank could have realised I didnt need the money - they just wanted to make their commission. Lloyds TSB have made a fortune out of me and my inability to control money. But, I'm re-educating myself now using this website and the only person who will get their hands on my money is me (and payplan for 5 years lol).

Lloyds def feature heavily in my debt too (about £50k) and that AFTER we have actually already repaid a significant amount to them!. They do seem to be a major player in the "irresponsible lending" game. Most people who have consolidated (that's most of us!!) always regret it, so it stands to reason that if the banks had said "no" we wouldn'tbe where we are today. Oh well, you live and learn (apparently:rolleyes: )

I guess that caculation is easy enough - didn't think of doing it that way, but then I'm not a teacher! LOL!

yellowmonkey

Rugby. Figures look OK to me.

For anyone else a basic formula to work out how to pay your creditors is

Add up all the individual debts to find out how much you owe in total.

Divide each individual debt by your total.

Multiply that figure by your money left each month to find out how much you should pay each creditor.

Example below

£500...CC

£500...OD

Total = £1000

Spare per month for debt payment £150.00


500 (cc) divided by 1000(debt total) x 150( money spare for debt per month) = £75

500(Od) divided by 1000 x 150 = £75

That is a basic example but hope it helps

ym

rugby6ft8

Loopy, we should form a united front against Lloyds TSB. We'll certainly have to share our experiences over the months with each other. I'm more concerned with how the bank will react than the credit cards. I think its because i've got a face/faces who i relate to when I think of the bank, whereas with a credit card its just a voice in India.

Tigert

Hi All,

Hope everyones having a good weekend.

Loopy & Rugby count me in on the "United Front against LloydsTSB" they account for a 3rd of my debt and looking back they contributed to the start of my slippery slope - they virtually forced me ito a consolidation loan without fully explaining and I really struggled with it - I was desperate at the time and they know it. Despite that being paid off, I still have a large overdraft and credit card balance with them - They aren't being very co-operative at the moment :mad:

This weeks had it's ups and downs for me the usual round of letters, though I have to say I'm getting less stressed by them now. Was even quite happy with one of them, a very nasty letter from GE Money (My most vicious creditor by far) but at the end it said they were now passing the debt on. Well good - they've been horrible and now perhaps they'll pass it on to someone that will listen instead of a call centre voice that can't cope without a script.

Away from my DMP I initially got turned down for the promotion I went for but felt it was slightly unfair, so my manager queried it and at our company party yesterday they told me they'd changed their minds :T. It'll be a month before it's confirmed but I'm happy anyway. Certainly made it a good party!

Enjoy the rest of the day.