DMP Mutual Support Thread (Part Three)

yellowmonkey

Lostalot

Try something like "Financially over comitted". Thats what I put and I know other people have used it as well

Good luck.

YM

10past6

lostalot wrote: »

can someone help me to word it a bit better than than please. Thanks

Hi lostlot

Just explain that with the increase in utility bill / petol / general cost of living, etc, etc, this has had a knock on effectt on meeting your agreement with your creditors.

jenevieve

yellowmonkey wrote: »

Hi jenevieve

Dont panic.Having a quick glance at your post I think you have more than enough surplus to service your debt on a DMP. Post an SOA(Statment of affairs) http://forums.moneysavingexpert.com/showthread.html?t=806277

My SOA
Income: 1840

Outgoings:
Rent (inclusive all bills):415
Mobile:30
Contact lens plan:11
Car insurance:14
Gym:35(cancelling when contract ends July)
Food:(rough estimate as share food costs with housemate but think it is approx 125 monthly
Petrol:40 - 60
Lots of waste on lunch at work, magazines, papers, snacks, chocolate, starbucks lattes!

Debts:
Northern Rock Loan - 36242 paying 346 monthly
Alliance & Leicester CC - 2503 paying 50 monthly (above minimum)
MBNA CC 6089 - paying 200 monthly (above minimum)
Barclaycard CC 5813 - paying 140 monthly
RBS CC - 2088 - paying 46 monthly
Next - 585 - paying 60 monthly
A&L overdraft - 800 - not actively paying this off at the moment - monthly charge of 5.

God it looks really grim up there like that doesn't it?:o :eek:

tinkerbell12

Hi Jenevieve,

You sounds like you are in a similar boat to me in some ways - our debt is similar and so are our earnings. However, mine is a joint debt with Hubby which means we also have his earnings (and a stonking mortgage though!!)

We were paying over £1000 a month into our debts and spending on CCs to live hence the problem. We didn't default on anything but there seemed no way out and I was really worried.

We are 2 months into a DMP with CCCS and it has been great. Now pay just under £1000, all creditors have temporarily stopped interest and we are now sticking to a budget but not in our o/d or using CCs! It is soooo great seeing a positive number in your account! PLUS, our loan is with NR and they have been brilliant - sent a letter accepting our lowered payment (was only about £40 less p/month) and nothing since.

Our once good credit rating is now shot to pieces of course but I see that as a small price to pay....

I would go to the CCCS website and have a go at the online tool - we found it very useful and they suggested a DMP through this.

Good luck and keep us posted!

loopylu36

tinkerbell12 wrote: »

PLUS, our loan is with NR and they have been brilliant - sent a letter accepting our lowered payment (was only about £40 less p/month) and nothing since.

Hi Tinkerbell

Can't beleive someone has a POSITIVE experience with NR. They told me today it is absolutely not their policy to accept ANY reductions in contractual amount - not very consistent are they?:D Is your loan a very large one? Asking us it may assist me in the very snotty letter that will be going to Mr Sand's office!

BTW Jenevieve, (hello and welcome ) how did you end up with an unsecured loan of £36K? Not critisising the debt in any way (i'm in no position beleive me!) but just wondered how it was possible to have personal loan for this sum? I thought even their together unsecured loans were a max of £30k?

jenevieve

[
BTW Jenevieve, (hello and welcome ) how did you end up with an unsecured loan of £36K? Not critisising the debt in any way (i'm in no position beleive me!) but just wondered how it was possible to have personal loan for this sum? I thought even their together unsecured loans were a max of £30k?[/quote]

Hi loopylu,
Thank you for the welcome.
NR were actually my consolidation demons. I already had one loan with them that took care of my first consolidation loan (with HSBC) and then credit card balance. When things spiralled out of control (again! - isn't hindsight a wonderful thing??!!), I rang them for a loan extension which they agreed to. The loan itself is for £25000 but with interest on it is £36K - and that is after paying a year of it off.
God knows how or why they agreed it as an unsecured loan - can't criticise them but it clearly did me no favours in the end!

loopylu36

Hi loopylu,
Thank you for the welcome.
NR were actually my consolidation demons. I already had one loan with them that took care of my first consolidation loan (with HSBC) and then credit card balance. When things spiralled out of control (again! - isn't hindsight a wonderful thing??!!), I rang them for a loan extension which they agreed to. The loan itself is for £25000 but with interest on it is £36K - and that is after paying a year of it off.
God knows how or why they agreed it as an unsecured loan - can't criticise them but it clearly did me no favours in the end![/quote]


Well my loan was originally part of a together mortgage and was for £27k. It's been running for 6 years and I STILL owe them £27K! I've paid about £20k in interest so far, so god knows what the "total repayable" is - I don't even want to think about it! I am sure this is tantamount to loan sharking!!

carlos700

One of my loans are with northern rock i owe them £4000 they have actually been really great with me too they accepted my reduced payments straight away for 12 months and immediatly stopped all interest .I was surprised that people are having problems with them i thought they have accepted because they know what it is like to be in dept .
I rang NR to ask whether they had received my token payment and i asked why i was on would they accept my plan i was pleased when he said they would accept for 12 months as Lloyds have only accepted my reduced payments for 6 months .

rayday2

Hi Jenevieve - Sorry only just got your PM!

I would say if a DMP is right for you if you are using credit every month, and if your credit balances are nearing the tops. Some people have the strength of character to pay bits off extra and work at it, some it feels too daunting to do that and easy to slip into "bad" ways. If the latter is you then a DMP will sort you out as you won't be able to get credit for a while. It is not a light step to take but can be a godsend if you feel you are drowning in debt. If a DMP is right for you then you must try not to get into the mindset of not worrying what credit companies will say - thats there job! Your job is to give all the facts to whichever DMP arranger you go to (CCCS, National Debt Helpline, Payplan or if you like face to face support your local CAB) and try not to worry overly - worrying does not stop things happening it just makes the wait for a possibilty more miserable and can be a complete waste of time if it never happens!

Can't really top the advice others have given!

WhoopieDoodle

Rayday is absolutely correct - do not worry about something that may not happen! I know this is easier said than done (I spent a month convinced we would be made to go bankrupt, lose our home etc) but finally I have realised that it is best to take each day as it comes and deal with any problems if and when they arise.

Try to concentrate on your life as a whole and not purely on the debt - I push it to one side now and get on with everything else. If we get letters or phone calls from creditors, we deal with them, then put it to one side again.

For example, NW rang OH yesterday stating they had received nothing from Payplan. This went on for around 10 minutes despite OH telling them that they recently received a payment from Payplan. He gave up in the end, ended the phone call politely, we discussed it for about 5 minutes then moved on.

Please, to those of you worrying yourselves to distraction, life is too short