DMP Mutual Support Thread (Part Three)

skibadee

skibadee wrote: »

Have just spoken to Payplan as requested last week to talk to someone about IVA as an alternative to my current DMP.....[ I know I said yesterday I wouldn't consider this....when I was in my forthright mood!!].....well I'm definetly not convinced now.....total debt is £55,000 approx.,....if I paid into IVA for 60 - 72 mths there would be an amount of approx £8000 which is in joint names still to be settled after.......going back to my previous post...with my health record and the current financial climate I still don't feel this is the right move somehow.....trouble is I think when you speak to these people they tell you how much of a better option it would be and how creditors wouldn't be able to hassle you.....main hassle at moment is 1st Credit and the fact Citi financial still haven't accepted....all other approx., 9 creditors have accepted....the thought of not being hassled is appealing....but do I really want to enter into this at the moment.....My gut feeling tells me '' no''!

Well back to my logical thinking tonight....I hope!!!.....I always say go with your gut feeling!
Expect I'm still going to get more hassle from 1st Credit though.....just looked on-line an they recieved recorded delivery letter I sent them last friday on monday....so am expecting either a visit from their door-step collector or letter from court......both are what they have threatened to do.
e-mailed the man from Payplan and told him that I didn't want to enter into IVA at the moment.

skibadee

loopylu36 wrote: »

H Skiabadee

I think there are three points to consider with an IVA:

Firstly, as you say, if you default on it then you go b/r. And who knows what your financial position will be in 1, 2 or 5 years' time? At least on DMP you can reduce payments if absolutely necessary. I am worried about making my dmp payments at the moment as I have just lost my job, but I would be a hell of a lot more worried if I was on an IVA and missing a payment would result in b/ruptcy.

The second point to consider is that your creditors don't have to agree to your IVA. If your creditors are being difficult at the moment, then I can't see them accepting/agreeing to an IVA either. They will get less money back via an IVA than on your DMP afterall, so why would they? That's just my opinion tho (whether they would accept or not).

Thirdly, an IVA is a lot more damaging than a DMP - not just from a credit point of view, but for some jobs, becoming a parent governer, things like that, so you should make sure you look into these consequences.

I'm sure you have already thought of these things, but hope it helps to have another opinion.

Loopy x

Thank you for your reply.
you are right......that is why I want to avoid IVA if possible.
The man from Payplan did say that you are not automaticlly made bankrupt if you default on IVA..........they go for another creditors meeting to see if they'll accept reduced payment......not too sure how right this is as my son-in-law was in an IVA and after a year was struggling to maintain payments....consequently one of his creditors served bankruptcy order on him......he doesn't recommend it as it is difficult to get payment adjusted when the cost of some things on your expenditure form go up...ie., council tax, rent, gas, electric.....I mentioned this to man from payplan he said we take into consideration the fact that things go up...yet he said my payment would be the same as I'm paying on DMP, which is obvious, and they do an annual review, but if at that review my rent etc has gone up are they going to call a creditors meeting every year or to get payment reduced...bearing in mind rent goes up every jan., and council tax every april.... I said what if I had to stop work through ill health....his answer well we can extend the IVA for another year, taking it to 72mths...not quite the answer I was looking for...as if I wasn't working I wouldn't be able to maintain payments.

Jvic28

Reformed_Shopaholic wrote: »

Welcome Jvic I'm sure the guys will be on to post some helpful info. soon. In the meantime, well done for taking the first important step :T

I can't offer too much info I'm afraid except to say this site is an absolute lifeline and a goldmine (not cash but can save you lots of cash!) of knowledge, advice and support.

I'm making my first cccs payment in next few days and have had a couple of letters from some of the creditors saying my offer of payment (made through cccs) isn't enough, but I will stick at it..keep in contact with CCCS and everyone on here and hopefully come out the other side...a well quoted phrase on here "you cannot pay what you haven't got" is very true and as long as you have support from CCCS or whoever you take you DMP out with and the lovely people on here you'll be fine.

Creditors won't be happy but you will start to take control back of your debts and your life.

Am sure you'll get some useful info and support soon

Thanks for the advise.

As it turns out, when I got home after work yesterday the pack had arrived from CCCS. I have photocopied the letter and will send that off to all my creditors today. It was so nice to read in the letter to cancel all direct debits and standing orders to them. Although I've already done this it was such a relief to have someone tell me it was Ok to do it. What a relief.

Hopefully I can begin to live again. For about 5 months now I haven't had a penny to my name. I have been attempting to repay my debts and at the ned of that I've had no money left. My poor boyfriend has been buying all the groceries and he didn't even get a Xmas present. He must be a keeper.

What did the rest of you tell your creditors when they were calling at the beginning of all of this? I'm sure they will be calling soon as I am behind with my payments but obviously they will not have got my notices yet.

Thanks again for your comments everyone. It's such a weight off my shoulders knowing that I'm not the only one in this state and that it can be sorted. I know it's silly but I have felt so alone in this problem even though there are so many people out there with the same worries.

Marru

Marru wrote: »

I am doing my own DMP and would be grateful for advice as just finding my way around it. I sent letters end of January to all creditors to inform them that I am seeking advice and asking to hold action. End of February I sent letters to offer token payments of £1 each which I paid 1st of March and 1st of April. Now in the end of April I sent letter offering pro rata payments of £110 (for £37k loan in total). This is what the creditors have sent me:

NW cc, default notice dated 28th March, required action within 17 days, no other correspondence since except statement 15th April where interest and late payment fee were added

Lloyds cc, have stopped calls, no letters except normal statement mid April where interest and late payment fee had been added

M&S cc, 18th of April letter where they had reduced my credit limit by £400, statement where interest had been added and today I got default notice (that they are going to charge £12 of) requiring action within 14 days

NW peronal loan, no correspondence or calls, had added quarterly interest in 31st of March, today got default notice requiring action by 13th of May and kindly telling that interest will continue to be applied

NW od, same as personal loan but in addition they have added a fee of £30 charge for sending me the notice.

So, what should be my plan of action now? I was going to send them letters asking again to stop the interest but should I do something more now that 4 out of 5 have defaulted me?

The added interest is killing me but I am trying to stay calm and take it as it is and just go step at the time.

Marru

Hi,

I would be grateful if someone could help me with this please. This morning post brought default notice from Lloyds so that is five out of five now. My question is that I was going to send letters about the interest charges but should I do something else/something more? What should me my plan of action now?

Any advice would be appreciated,

Marru

WhoopieDoodle

Good morning everyone. I can't believe it is Saturday again! The postman hasn't been yet, so I''m waiting with excitement to see what lands on the doormat today! Not!

Jvic - if the creditors ring you, explain you are entering into a DMP and they will be hearing from CCCS regarding this. You may find yourself having to repeat yourself, but stick to your guns and don't agree to anything!

Marru - I can't really help although we have had a Default Notice from Lloyds. I replied (as there is a timescale to respond) stating the circumstances had not changed etc and asking them again to stop interest. We haven't heard anything from them since (this was two weeks ago) but Payplan say they will be passing us onto their DCA. So just sitting tight to see what happens.

OH and I are working today and tomorrow, sigh. However, I am going to take a break and bake a nice big Victoria Sponge to cheer us up! I love Saturdays as it's my "no counting calories today" although it takes two days to burn off all the naughty food I eat!

Jvic28

WhoopieDoodle wrote: »

Good morning everyone. I can't believe it is Saturday again! The postman hasn't been yet, so I''m waiting with excitement to see what lands on the doormat today! Not!

Jvic - if the creditors ring you, explain you are entering into a DMP and they will be hearing from CCCS regarding this. You may find yourself having to repeat yourself, but stick to your guns and don't agree to anything!

OH and I are working today and tomorrow, sigh. However, I am going to take a break and bake a nice big Victoria Sponge to cheer us up! I love Saturdays as it's my "no counting calories today" although it takes two days to burn off all the naughty food I eat!

Thanks, I am feeling more confident about talking to the creditors now. I have been ignoring the phone calls for months now and am looking forward to getting things sorted.

Enjoy your Victoria Sponge :j

xxx

Jvic28

Just a quick question.

I received my first pack of CCCS yesterday (Friday 25th) and it says that my payments will be due 1st of the month. I take it that my first payment will be due 1st of June then. Is that right? I am sending of all the notices today and returning the statements etc to CCCS.

I am also opening up a new bank account today (hopefully). Does anyone have any ideas where to open up? I was thinking Lloyds as my partner banks there. I am cureently abandoning ship with Natwest. Will my debt problems cause any problems opening an account with Lloyds (obviously I won't be requiring and overdraft etc) or will I have more luck opening an account with someone like the Post Office.

xxx

rugby6ft8

Hi all,
Just checking in now its Saturday. Had loads of post and bills this week, but obviously they were generated before I sent off my token payments. My Justabank account is now set up and I'll be making my first DMP payment on the 1st of May, so its been really quick to sort out, less than a month!

I've received 2 letters from Lloyds TSB loans saying that they've received my £1 payments for my loans so I know they've received the letters explaining my current situation. HFC bank have just got off the phone to me as they are chasing last months full payment for my Credit Card - I explained that I was on a DMP and he took the details down, I had to make him repeat himself three times as I couldn't understand what he was saying.

I am so surprised at how I feel now compared to a month ago. I felt so awful and nervous, now, I'm not fussed at all. I couldn't care what happens to my credit score and if/when I get defaults/CCJ's I couldnt give a flip! (I did however get my free Experian Credit Check through on Wed and it was unmarked and really clean lol). It feels so nice to be in control of things and actually knowing whats going on with my money.

Hope you've all had a nice week

Rugby

itsnowtime

Jvic28 wrote: »

Just a quick question.

I received my first pack of CCCS yesterday (Friday 25th) and it says that my payments will be due 1st of the month. I take it that my first payment will be due 1st of June then. Is that right? I am sending of all the notices today and returning the statements etc to CCCS.

The payments do get taken from your account on the 01st of the month when paying by Direct Debit but they often ask for the first payment to be made through the post office or by direct transfer to their bank account. Best thing to do would be to give them a bell on Monday and just check how they would like June's payment sending and if they have everything set up for you.

itsnowtime

rugby6ft8 wrote: »

Hi all,

I am so surprised at how I feel now compared to a month ago. I felt so awful and nervous, now, I'm not fussed at all. I couldn't care what happens to my credit score and if/when I get defaults/CCJ's I couldnt give a flip! (I did however get my free Experian Credit Check through on Wed and it was unmarked and really clean lol). It feels so nice to be in control of things and actually knowing whats going on with my money.

Hope you've all had a nice week

Rugby

Being in control is one of the best experiences I've had the other was having money in my account once all the bills were paid - oh and that being a positive balance and not an overdrawn one!!!

I know I've still got a long way to go and yep I've just had a CCJ - but defended the collection charges (and won :T - unless they contest :rolleyes: ) but when I think defaults / CCJ's last 6 years - that really isn't a long time - particularly as the years seem to be getting quicker - or is that just my age :rotfl:

Well done for tackling it head on! It's worth it. :j