DMP Mutual Support Thread (Part Three)

Just_Me_4

OK today's topic - paying your creditors before your DMP starts! I have just been paid. We have enough to pay our monthly charges but it doesn't leave us much to live off. Maybe just enough but not much. Should we just pay half of each charge and phone/write to them to warn them? How do we go about this.

loopylu36

Just_Me wrote: »

OK today's topic - paying your creditors before your DMP starts! I have just been paid. We have enough to pay our monthly charges but it doesn't leave us much to live off. Maybe just enough but not much. Should we just pay half of each charge and phone/write to them to warn them? How do we go about this.

Have you had your pack from CCCS yet (or Payplan not sure who you are using?). If so just photocopy the letter that they have sent and send it to your creditors with £1.00 token payment. If you haven't had your pack yet, I still wouldn't be minded to make the minimum payments that anyone wants - just cancel all your dd's and if anyone does call in the next couple of weeks (it takes a a couple of weeks for them to notice that you haven;t paid) then just explain that you are seeking help and are sending a token payment. They will probably just ask for your DMP client reference. That will give you the buffer you need to survive the next month and hopefully put a little by for any future emergencies. HTH x

Just_Me_4

DH has just rung CCCS and they said basically the same thing. Our DMP is starting from 1st July so its where we are right now that is the confusing thing.

The woman on the phone said she couldn't advise us how much to pay. We can afford more than £1 so should we do what I said and pay half or even a third?

loopylu36

Just_Me wrote: »

DH has just rung CCCS and they said basically the same thing. Our DMP is starting from 1st July so its where we are right now that is the confusing thing.

The woman on the phone said she couldn't advise us how much to pay. We can afford more than £1 so should we do what I said and pay half or even a third?

It's fair to say that they can't tell you how much to pay, but they usually suggest just sending £1.00 token payment. That is what you need to do. If you have standard letter from CCCS copy it and send it to everyone with £1.00. The letter advises them that your DMP payments will start on 1 July. Obviously it is up to you if you want to pay more, but remember that you won't have any form of credit to fall back on if you have an emergency so a lot of us have put the money that we would have used to repay debts, in the month before DMP actually starts, into savings.

louietudor

loopylu36 wrote: »

It's fair to say that they can't tell you how much to pay, but they usually suggest just sending £1.00 token payment. That is what you need to do. If you have standard letter from CCCS copy it and send it to everyone with £1.00. The letter advises them that your DMP payments will start on 1 July. Obviously it is up to you if you want to pay more, but remember that you won't have any form of credit to fall back on if you have an emergency so a lot of us have put the money that we would have used to repay debts, in the month before DMP actually starts, into savings.

great advice and i would also worry that your creditors will think you can pay more than you DMP payments - i would send a token payment and build up a reserve as loopylu says - if your uncomfortable with £1 send £5

rayday2

Just make sure whatever you send is less than what the offer will be to them hence the £1 suggestion it shows you are in difficulties and usually gives a nice boost to your new bank accounts or start emergency saving.

I think my first few months on a DMP seemed ridiculous the amount of money I had spare but that just highlighted what a slave I had been to credit and now I post it away in several savings accounts etc and have found I have needed the extra. Just think of all the things we used to put on cards etc and now you don't have them but still have some of the same needs!

wen3

Hi all I have been a bit quite as well. We sent £1 token payments our DMP starts 1st June. We have had a few calls and so far everyone has been okay.

Just_Me_4

OK well sending a small amount is the thing to do so we may send them £5. Thanks for the advice.

Salazar_2

Hi folks. I just joined today after lurking around for about a month to pick up some tips and to make myself feel a little more positive about things. I have decided to start a DMP with PayPlan and it starts in July. I'm glad I found this thread as I'm in limbo at the moment, between bank accounts, trying to transfer/cancel direct debits and was confused as to what to pay to my three credit card lenders who are the subject of the DMP this month as I'm paid tomorrow into my new Barclays account. I was going to pay them the combined minimum payment of £285 but having read this thread I will go for the £5 a head with a covering letter explaining that PayPlan will be in touch. The extra £270 is better in my bank account than theirs as I've pretty much decimated my savings trying to keep up with repayments. That money will help restart my nest egg.

One thing that maybe someone can answer: due to my heavy outgoings one of the conditions of my recent remortgage was that I use the surplus £2000 to pay off one of my RBS card within 30 days. I was prepared to do so when I got the money until I got a large bill in for repairs and maintenance to my flat which was completely unexpected, then my central heating went on the blink and, of course, we needed money to live on as there was nothing left. The result is that I've only got about £500 left to pay to RBS. Are my new mortgage lender the Woolwich likely to check my credit file to see if this card has been repaid and if so what action can they take against me?
Thanks in advance.

GOLDGPR

Hello all :hello:

Well i have been reading through some of the past threads (quite a few pages worth!) and decided to join so i think that i will be number 202 now i had found the CCCS website prior to finding this forum but looks to be a great place for support and knowledge.

I have just sent all my paperwork off yesterday with token payments as payment was due on the 1st so sent off £10 by Postal Order to each of Mine and my Partners Creditors overall we owe £49,426 and it will take 5yrs and 9 months to pay off so here for the long haul!

Couldnt rate CCCS highly enough they have been excellent answering all my questions and completing the on-line application.

Just awaiting for the phone calls now that everyone else seems to have experianced fingers crossed it wont last long.

Just one question springs to mind anybody who has completed a DMP could you tell me if you had trouble obtaining a Mortgage once you had paid it all off. - We currently rent but would look to buy once we have some savings for depsit and paid off our creditors - any advice/experiances welcome.

Thanks.