DMP Mutual Support Thread (Part Three)

Tigert

Hi Ben79 and welcome.

The first thing you want to do (and CCCS will probably advise you of this) is to open another bank account. You will then include your overdraft as part of your DMP. HSBC will probably stop you using your account but even if they do demand payment, then you can't afford it. An overdraft is unsecured so don't worry about it. It's not safe to carry on using your existing account as HSBC could grab any money that you pay in.

I had a much bigger overdraft with Lloyds and although they weren't happy about it, they have accepted the fact that I'm on a DMP and now get monthly payments pro rata with the rest of my creditors.

The new account that you open needs to be one that isn't related to any of your creditors.

Toffee_Penny

Hi guys!

I changed my phone number just after I had contacted CCCS so I have had no phone calls whatsoever from my creditors. I know it seems a bit cowardice but I don't want to reveal all to some young kid over the phone, its too much hassle and I'd rather have letters to deal with.

I'm just waiting for my DMP pack to come through so I can make the first payment on July 1st, just can't wait to get started really. I sent the template letter to all my creditors with a £2 postal order as a goodwill gesture whether their bil was due or not just so they were informed of what was going to happen.

I received a letter from my bank loan saying thank you for my payment and if I ever needed any information/help then don't hesitate to call them, yeah right like I'm going to fall for that, they'll either want to go through a loan application with me or arrange a higher payment, they did this when I called them last year asking if they would lower my payments. Shame I didn't find this site back then I could have had my LBM a tad bit earlier tut tut!

I also received a normal looking bill from my credit card with my £2 showing as a payment on the statement but still asking for a minimum payment as usual. I will just send another £2 postal order to them. My catalogues haven't even acknowledged the template letter yet and I wondered if this is normal? I have always been a good payer, on time, right amount etc so I don't think companies really bother until you start to default on your accounts do they? Oh well I suppose I should enjoy the peace why it lasts, no doubt the letters will start coming through soon! :eek:

I wanted to say 'welcome' to new members who have joined up here, I am addicted to this site always checking out others posts and advice in between watching Big Brother (hangs head in shame, yes I am a fan!! ), it sort of gets me prepared to face what's to come.

ben79

Tigert wrote: »

Hi Ben79 and welcome.

The first thing you want to do (and CCCS will probably advise you of this) is to open another bank account. You will then include your overdraft as part of your DMP. HSBC will probably stop you using your account but even if they do demand payment, then you can't afford it. An overdraft is unsecured so don't worry about it. It's not safe to carry on using your existing account as HSBC could grab any money that you pay in.

I had a much bigger overdraft with Lloyds and although they weren't happy about it, they have accepted the fact that I'm on a DMP and now get monthly payments pro rata with the rest of my creditors.

The new account that you open needs to be one that isn't related to any of your creditors.

Thanks very much for your post Tigert.

I've just completed an application for a basic Natwest account I cant help but feel its a step backwards though! I had a solo card 10 years ago!

I may be being overly paranoid, could HSBC still refuse the DMP? How would that work with being an overdraft? Could they try and issue a CCJ and obtain a court order demanding immediate repayment? Are they likely to do this seeing as its only for 2k? I really don't want the mess I'm in at the moment to hamper the next forty years of my working life!

I know everyone had differing reasons for being in the position of needing a DMP. I just find it really annoying. Its my own fault I'll admit, all through Uni credit was so easy to obtain and I was constantly offered deals for student borrowing also with the promise of graduate loans by HSBC! Fast forward to now, and although when I sat down with an Advisor in my branch, she could reduce my payment by £400 per month! But the loan was rejected! I know everyone says this - but I'm not a risk! Its frustrating that I have to go down this path when in twelve months or so I'll be in a much better position financially. I guess that's when I increase the DMP and hopefully move forward.

I'm also not looking forward to default notices, I hadn't considered that that would be an outcome until I started reading these threads. I guess there goes my chance of getting on the property ladder in the next few years!

Tigert

Hi Ben79,

Any creditor can refuse a DMP, but that doesn't mean you shouldn't set one up. You can't pay what you haven't got! So just pay them what you can afford.

It does seem like a backward step, I used to have debit cards and credit cards now I have neither. But believe me if you've realised that you can't afford your current level of debt then it really is a big step forward. I wish I'd taken it earlier. I just used credit to pay off credit and it doesn't work, I've ended up with a horriffic amount of debt just because I was scared to admit the problem. You always think it will get better but it rarely does.

You've taken the right steps contacting CCCS.

On the subject of CCJ's - Yes they can go for them and quite often threaten to do so, but even if they are granted, you can submit to the court that you can't afford to pay and they will set what they believe you can afford, which if you've already worked out that with CCCS then it will more than likely be that amout.

Some creditors will make a lot of fuss with phone calls and letters when you start a DMP, but I promise you that it dies down - I'm 4 months into mine now and get very little hassle from my 15 creditors.

There are loads of people in here with lots of experience, they are all so helpful, so keep posting with any questions.

ben79

Again, thanks for the reply.

One last silly question for the evening. - Another step forward, saving money by not going out!

Is there any benefit to using CCCS over someone like Payplan? Do creditors prefer dealing with one over the other?

Tigert

No. I don't think there is a lot difference either way,

Both Payplan and CCCS are recommended on here because neither charge any fees. They both provide the same services.

I'm with Payplan and very happy with them. Lot's are with CCCS.

There are a lot of others out there that will also provide these services for a fee. These aren't recommended because they are effectively taking money away from the creditors.

I can only speak from personal experience and have found Payplan to be brilliant - very supporting, always quick to reply to emails and although I was a little frustrated at the start (I'm quite impatient) they have after 3 months got all my creditors to agree my DMP. However I'm pretty sure others have been in a simialr situation and found CCCS to be just as good.

Ex-Spendaholic

Hi Ben

I'm with CCCS. I chose them because they seemed to be mentioned on here so much. I'm sure they and Payplan are pretty similar.

simbalou

Evening all,

Just got back from doing an Ann Summers party (made £50!) husband is out with his band so he should bring home another £50 later. We are hoping to live off our extra money and not touch our bank account for a while. CCCS factored in our outside earnings but anything extra we make is a help! I was wondering that if we had for example £500 saved from extra things we do like ebaying and parties would we be able to give it to cccs to reduce our debt or should we just save it?

While the idea of having savings is lovely I think I would like to reduce our dmp term even more and wondered what other people had/have done.

We're still waiting for creditors to acknowledge our dmp but I'm trying to think ahead so any advice would be appreciated.

Yummy-mummy

Hi. I'm new to all this chat forum stuff so bear with me please!!

OH and me have spent the last few years paying bills and debts and having nothing left to live on, no treats for the kids and a very basic shopping list.

Have been reading the threads on this site and decided to go on a DMP. I'm at the stage where the letters have been sent out to the creditors. The phone calls and letters that I'm likely to get does worry me but after reading about other peoples experiences I feel a lot more positive. At the end of the day, if its not there, they can't have it.

We've never defaulted on any of our loans or credit cards so after emptying what was left in the bank account and transferring it to the new one and cancelling all the direct debits makes me feel a bit scared to say the least.

Anyway just wanted to thank all the guys who've posted on here because its reading your comments that keeps me thinking positive.

simbalou

hi yummy-mummy,

We are in same position as you, our kids had no treats, days out etc and it was the guilt of that that made me go on a dmp along with the tiredness of constantly fighting credit companies. We've never missed a payment and I was also so scared cancelling direct debits and actually felt guilty while I was doing it.

I'm glad you found this board, it was also the thing that gave me the courage to call cccs because I knew I wasnt alone. Some times I get down because I know it's going to get worse before it gets better but like other people have said, if you havent got the money then you cant pay. We were constantly scrapping money together to get in the bank for the next debit to go out but now that worry has gone I'm a different person/parent.

My son gets a magazine every week which we couldnt afford before and it's those little things that make all the difference to me.

Stick around and read everyones comments because it gives you the strength to keep going!