urgent answer needed

thepinkladez_2

hi all, really need a quick answer to this:

currently setting up dmp with cccs and recieved the next step today with letter to write to creditors with and agreement etc to sign.
it says while we are setting everything up to make a token gesture to each company, but not sure how much to pay?we have 11 creditors and £457 left over to pay them a month now do i just divide this equally between the 11?
most worried about egg as they have been pretty horrid so far! in a nutshell we have been a bit late paying the last few months but have always paid the monthly amount each month until the last couple of months when we have really struggled, they basically turned round and sent us a letter saying pay us i think it was £700ish pound now or pay the lot on 28th feb.when we contacted them and said we couldn't do either and we could most of the £700 the women said no way!either the full £700 or the full debt.now as the 28th looms i really dont know what to do??cal them tell them we are with cccs and give them a token amount (although they probably wont take it) or just send them the letter and a cheque like all the other creditors?
sorry bit of a ramble but getting all stressed out about it!also hubbys birthday on the 28th so trying to sort it so he doesn't have to worry about it too much.

thepinkladez_2

sorry just realised in my haste and stress i didn't say my please and thank you's! sorry didn't mean to sound sooo rude.

chevalier

you can do one of two things.
1) Send the letter that CCCS has provided, to each creditor. Include your CCCS number and say you are going onto a DMP. Then enclose a token amount say £5 in each letter, and send them off recorded. I bet even Egg will cash the cheque.
2) you have £457 left a month to pay creditors, well done! So you could still send the letter and then send prorata payments instead of the token £5. Ie
creditor 1 you owe £500 to
creditor 2 you owe £1000
If you had £100 to split between them then you would pay creditor 1 £33 and creditor 2 £66.

This will be what CCCS do with your £457 they will prorata it between your creditors, so that they proportionately get an equal amount.

One thing though is that many people about to go on DMP's get a new bank account that is not tied to any of their current creditors. In this way any overdraft just becomes another debt to pay back over time, and not something that sucks up all of your wages each month.

best of luck
chev
ps have you posted your SOA on here to see if there is anything that can be trimmed?

jillie1974

when we did ours, they suggested a token gesture of £5 per creditor. it is just a token payment to kind of say... yes we are in trouble heres a samll payment and you will get more when plan is fully set up.
the worst thing egg can do is turn it into a ccj against you,but if you are worried speak to cccs and they will tell you what to say.
hope this helps

immoral_angeluk

Generally a token payment is something like £1 per creditor.

sammyjammy

Might I suggest that you make the token payment as above and put the rest of the money into a separate account and keep it to use as an emergency fund. Your SOA will deal with all the year to year expenses and the emergency fund will give you a back up for real emergencies like boiler blowing up, ill relative at other end of country etc.

Sam

CCCS_Matthew

Hi there,

It's really up to you how much you want to offer as a token payment to your creditors, as it is simply just a way of acknowledging some sort of payment to your debts in the month your DMP is being set up. With you having quite a large surplus, I would suggest maybe £5-£10 per creditor

What you have to bare in mind is that your first DMP payment is normally made on the 1st of the month so try not to over commit yourself otherwise you may struggle to keep up with your priorities and also make payment to your DMP.

I would send the letter and a cheque to every creditor including Egg as it's important that all creditors get treated fairly.

Hope this helps,
CCCS

thepinkladez_2

thank you all for your helpful answers. ok after taking my little girl to the park for some fresh air feel much more focused, will print off letters and include £5 payments to all creditors today. I realise now Egg are just using bully boy tactics to try and freak us out and get what they want, and force us to pay them and then struggle else where, but thats not going to happen they will just have to accept that we are dealing with our debt and everyone is being treated fairly.oooh i feel all calm and rather matter of fact now. Thank you :T

tylersbabe

Good luck there are lots of lovely people on here who offer great advice.

I know what you mean about the relief tho it's a great feeling knowing things can and will be sorted somehow.

Keep posting I am sure more will be along soon to offer support.
Sorry of no practicle help, and, hope hubby has a lovely birthday

thepinkladez_2

tylersbabe wrote: »

Good luck there are lots of lovely people on here who offer great advice.

I know what you mean about the relief tho it's a great feeling knowing things can and will be sorted somehow.

Keep posting I am sure more will be along soon to offer support.
Sorry of no practicle help, and, hope hubby has a lovely birthday

thank you your very kind

Fairycake_2

Hi there

I had two debts with Egg for a loan and credit card and had no trouble from them when setting up my DMP but kept getting calls from their collection agency, Moorcroft, every two weeks asking if I could pay more, pay off the debt in full etc. I just told them that I was with Payplan, an payment had been agreed and if they continued to call me I would take legal advice as I considered them to be harrassing me. Needless to say I haven't had this problem from them since!!

Good luck with the DMP, once it's set up you'll feel like a weight has been lifted.

Regards