DMP with Payplan? - Im a NEWBIE - HELP!!!

Culater_2

Anybody???

continualdiamond

Your starting off like i did, i am also with payplan and had the exact same thing, i needed to let 1 debt mature for 3 months and keep paying them the set amount.

What i did with payplan was they worked out a pro rata payment for all my other creditors for those 3 months, so i didn't actually send them £1 token payments. Ie barclays got £9, argos £6.50 etc etc.

Problem i had for those 3 mths, is 99.9% of my creditors were useless, no matter how many letters or phone calls i told them i was dealing with payplan they didn't like it that nothing was offical. Out of 11 creditors, captial one were the only ones to accept my offer of repayment.

My creditors even got a letter with my offer of repayment created by payplan to say they'd help me create my expenditure sheet etc and they just didn't care.

Im now past my 3 month mature debt thing and payplan are acting for me 100% and presto, letters and phone calls have stopped and most seem to have agreed to the repayment offer. A few in those 3 months ended up sending default letters and some try and scare you by saying if you dont pay in 48 hours a debt collector will be at the door etc.

Payplan have been great and we also opted for my cover my payments, which where glad we did, as 2mths into DMP and OH is unemployed, where currently claiming on it.

In terms of payslips to payplan or creditors, nope, i didn't have to provide any at all.

Also just read your bit about the big bill coming in. Payplan said to me in the beginning to always be honest with them, if suddenly my DMP amount (£250) can't be met because of a bill or an applicance breaks etc, thats a priority and comes 1st. I would just need to contact them and explain why and then they'd let the creditors know.

Culater_2

Well thank you so much kind sir that has answered my question - :-)

Culater_2

OK Update time... Payplan are dealing with my stuff I have 2 debts that need to mature until they can go ahead properly which will be next month. I have sent letters to my creditors with £1 token payments last month and this month and now the letters are flooding in!!

I have one from a Goldfish saying that if I dont pay them they will issue a default notice against me! - I have looked on the internet and this is NOT GOOD i think??? But what can I do.

I have asked all my creditors to freeze interest ahead of payplan taking the reigns and nope no one will do it yet so the charges keep mounting, not that I am bothered about this as they will no doubt come to their senses soon?!

So any help on this DEFAULT thing would be great.... Thanks everyone!

dancingfairy

Surely all your accounts willgo into default eventually? When you miss a payment you are breaking the trerms that they supplied you with the credit so it is counted as a default - even if you are on a dmp and making the payments you will still not be paying according to the original terms so will be in default on all of them. Not sure what that will be mean apart from the fact you can't get any more credit but hey you don't want/need any more credit do you? Hopefully someone with more knowledge will be along soon but I wouldn't worry too much.

Culater_2

I wont get a court order or anything will I??? This is the first time so I take it that my credit file will be full of defaults eventually and shot to pieces?!!

On another note - I have my nortgage with Halifax which the fixed rate runs out in May 2009 - what would be my chances of staying with Halifax (Obviously) but getting them to do me a deal on a better rate? Will I be refused because of DMP and have to pay the SVR??

Miss_Marple_2

Culater wrote: »

I wont get a court order or anything will I??? This is the first time so I take it that my credit file will be full of defaults eventually and shot to pieces?!!

On another note - I have my nortgage with Halifax which the fixed rate runs out in May 2009 - what would be my chances of staying with Halifax (Obviously) but getting them to do me a deal on a better rate? Will I be refused because of DMP and have to pay the SVR??

Goldfish also threatened me with a default , but they never went through with it. Only one of my many creditors did - which was Egg - which was funny as they were my lowest creditor and the amount I would be paying them wasn't that different that the minimum payment - they just said it was their policy. With other creditors, some seemed to say that provided the amount I offered was over 50 % of the minimum payment I would have been making, they would not issue a default.

I know it's all a bit scary - but creditors do calm down after a while. I haven't heard from mine (except for a monthly statement) for over 2 years - but it does take a few months to get everything sorted.

As for freezing interest, I found that after I had been paying into the DMP for about 3 months, that's when all the interest was frozen (i.e. when they were sure that I would be paying regularly)

Culater_2

ahh ok! what about the mortgage...

10past6

Culater wrote: »

ahh ok! what about the mortgage...

You may get a better reply in the mortgage forum, post again here