DMP pro's and con's????

TwistedPsycho

yellowmonkey wrote: »

Hi. I am on a DMP and have been for over a year now. As IA says a DMP is not legally binding but as long as you keep the payments every month your creditors are normally happy to recieve something as opposed to nothing. They do not have to stop interest or charges but,speaking personally,my 3 creditors have stopped charges so my monthly payment actually goes to reducing my debt. It is the best thing I have done to keep myself sane and also take responsibility for my debts and try to pay them off.

To be honest I think that the mentality of "they would rather receive something" is starting to fail.

I am on a DMP with 5 creditors including a personal loan from Nationwide. They have been nothing but trouble from the start and now they have decided that the monthly payment equating to approximately 2/3rd's of the original payments is no longer suitable. They have since started to phone me on average twice to three times a week and have now told me that it has been sent to their legal department for a CCJ and suggesting only one course of action.... the sale of my flat to pay my debts.

All of my other creditors appear satisfied that I am paying them something. Nationwide appear to have a real bugbear. They phoned me on three occasions offering me a full&final settlement starting at £10k and then RISING on each occasion, obviously giving me an offer I could not afford.

BUT - There are some realistic creditors out there...

yellowmonkey

TwistedPsycho wrote: »

To be honest I think that the mentality of "they would rather receive something" is starting to fail.

BUT - There are some realistic creditors out there...

And there in lies the hope. Without hope you have nothing. At least some of your creditors see sense

ym

rayday2

I think most the bad stories I have heard have concerned Nationwide. They don't seem a very "patient" creditor.

If you want to keep your flat don't let them scare you. Even if they get a CCJ and a charging order the flat is still yours. They are quite bad bullies from the sound of it.

If you get chance read through this link http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf if you find Nationwide have broken any of the guidelines set out in there write a formal complaint to them. Sometimes it helps to fight fire with fire rather than just sit back and let them treat you appallingly.

Also have a look at National Debt Helpline website I believe it is possible for you to take to Nationwide to court to stop them from charing interest and agree a payment. Brave thing to do but there is a template letter you can send to the companies see how they like it!

Miss_Marple_2

I think the phone calls come when people miss payments - either before you go on a DMP, or missing payments once DMP is in place. If you haven't missed any payments yet, and your DMP gets agreed by your creditors quickly, you shouldn't be subject to a whole load of calls. Since being on a DMP, I have not received any nasty calls - a couple of creditors called after the 1st 6 months to see if all was OK - but haven't heard anything from most of them in over 3 years

I had a loan, CC & OD with LloydsTSB (amongst other creditors, but they were my biggest) and it was all fine. They had me on a DMP for a couple of months. Once they saw I was paying, the interest was frozen on my CC for the next 2 and a bit years (starting again now, but can't complain as I paid off a big chunk in that time) and my loan & OD were converted to a very low interest loan, the repayments being the amount I was paying them from the DMP against those debts, whilst I would have preferred a zero interest loan (which another creditor did), I cant really complain and I will have paid it off with in the next year which I would have had no chance of doing if I hadn't got my DMP - plus they didn't default me - in fact my credit files as far as lloyds are concerned look very healthy

loopylu36

TwistedPsycho wrote: »

To be honest I think that the mentality of "they would rather receive something" is starting to fail.

I am on a DMP with 5 creditors including a personal loan from Nationwide. They have been nothing but trouble from the start and now they have decided that the monthly payment equating to approximately 2/3rd's of the original payments is no longer suitable. They have since started to phone me on average twice to three times a week and have now told me that it has been sent to their legal department for a CCJ and suggesting only one course of action.... the sale of my flat to pay my debts.

All of my other creditors appear satisfied that I am paying them something. Nationwide appear to have a real bugbear. They phoned me on three occasions offering me a full&final settlement starting at £10k and then RISING on each occasion, obviously giving me an offer I could not afford.

BUT - There are some realistic creditors out there...

It's not just Northern Rock then? How do these people sleep at night?:mad:

sparklygal123

Thanks to all of your for your replies-very informative!!!

Does anyone think that it would be worth just consolidating my debts as opposed to going through a DMP?

yellowmonkey

NO. (Thats a big no). I think that we have all done it and got the T Shirt. I consolidated and spent more. If you have amazing restraint and can manage your finances with no spending then Perhaps it would work. I think the general opinion on here is we have nearly all consolidated and still got into debt.

Just my opinion mind.

ym

loopylu36

yellowmonkey wrote: »

NO. (Thats a big no). I think that we have all done it and got the T Shirt. I consolidated and spent more. If you have amazing restraint and can manage your finances with no spending then Perhaps it would work. I think the general opinion on here is we have nearly all consolidated and still got into debt.

Just my opinion mind.

ym

YM is right. I am living proof! Consolidated I don';t know how many times, and STILL in A LOT of debt! Unless you really really have the will power, don't do it! You will simply feel as tho you have plenty of money with "one low monthly repayment" and start spending again - I know, I did it! I think I need to go through the DMP process to teach myself a lesson - and so far - it's working! My posts have been a little dramatic today as I,m having a bad one,(day that is!) but don't let that you put you off - it's a hard decision to make, I ummed and ahhed for ages about what to do, but deep down I know it was the right (and only) thing to do.

Good luck

sparklygal123

yellowmonkey-you are right!!I have gone down that route before and have ended up in worse debt!im just scared of going down the dmp route and am a little scared!

also,even though i dont currently live with my OH,its on the cards for the future and am scared that we wont be able to get a mortgage together because of this(i currently have had a m'gage for a year and a half and have never defaulted on a payment)also i want to start a family in a year and am generally worried about it.my oh is so lovely and understanding and would support me,but im so ashamed of the situation I have gotten myself into!

yellowmonkey

Sparkly
You have done so well in facing up to your debts. Of course it is scary and we all feel the same but with time and the support on here you WILL be successfull in your quest. There is always someone on here to listen and lend a shoulder

Good luck.

Hey I came on here to sort out my money and now I have given up smoking and am going to knock the booze on the head as well. How good is that.

ym