To DMP or not to DMP?

tishywish

Did I really just use that as a title?! :rolleyes:

This might get a bit rambling, sorry.

I've been speaking to Pay Plan today as, although I'm up to date with most of my debts there are two that I'm having problems paying. One of those - MBNA - I'm hoping to get back on track soon but the other I can't see me managing for some time. So, I contacted Pay Plan who have given me some information, worked out a budget and given me a payment amount of under £200 :T (provisionally). Currently, apart from the one problem debt, I'm paying £350+ per month so this is a huge improvement.

But looking through some of the other threads, there seem to be a couple of people who have Together mortgages with Northern Rock and who have a loan taken out with the mortgage. Pay Plan wanted me to include this as part of my debts, but I'm wondering whether I should separate this and continue to pay it with the mortgage? I don't want any hassle from NR over the mortgage but if I carry on paying this out with the mortgage payment it's going to mean I'm paying out approximately £80 per month more than PP worked out.

Another question is should I put every single debt (with/without the NR loan) on the DMP or just the one I'm having problems paying? Total amount owed apart from the NR loan is around £27k but the biggest two debts are £9.5k and £6.5k.

Finally, I'm hoping to sell something which would pay the arrears off on the two accounts. Should I do this anyway, before I finalise anything with PP, or should I wait until I have a DMP set up? That's assuming what I'm trying to sell, goes soon

It seems a huge step to take, going down the DMP route, but at least I feel better for speaking to PP.

mummytofour

You are supposed to put ALL debst togther even OD and you will not be able to take out any credit once on DMP. For the first 2 months after talking with cccs we sent token £1 payments to all our creditors this gave us ley way to save up a cusion on money so we would be able to pay for any nasty bills that came up. I am glad I am on a DMP as I now have better grip of my money and debts as well as not paying out as much, having some savings also helps. I sleep better to and the end of the months is no longer lean with beans on toast for 3 weeks per month¬

Sea78

Hi

I'm with CCCS - they were very clear that all debts needed to be involved in the DMP or it could end up working against you if the other creditors find out and therefore don't stop interest/charges etc. Might be worth discussing your concerns with Payplan?

Sea xxx

chappers

You must include all your debts I would be pretty pi55ed off if I agreed to reduce your payment amounts to me and froze the interest only to find out you were servicing someone elses debt in full.

tishywish

Tha's great, thanks. It's what I thought TBH and all debts have been included initially including my overdraft. I will also ask about the £1 token payments for a month or two which would mean I can save some money to start with. I'm due to speak to Pay Plan again early next week to finalise this.

Thanks again for your advice