Confused and worried about DMP. :(

lisa-r_4

Hi again,

I posted last week about my £60k debt problem, and am thinking after speaking with CCCS that I would like to go on a DMP if they'll have me. I'm worried about doing so though, as it sounds like i'll never be able to go on holiday again, nights out, buy birthday presents for family members etc etc while i'm on it, which could be years and years! From what I can gather i'd only ever be entitled to earn money to pay for rent, council tax and food. Is this true, and if hopefully my business grows over the years, will any extra amount I earn be automatically taken from me to pay my creditors? I'm really confused and anxious about it all, and my interview with CCCS isn't until the end of the month, so would really appreciate your views. I'm also unsure if I should be paying my creditors in the meantime etc, or if I should just ignore their calls and letters. Help!

poptart1_2

HI, I would personally NOT talk to them on the phone, as they will try to talk you into something you cant really afford and may intimedate you, also I would not pay them anything but a token payment of £1 untill I had my interview with ccs,try not to worry, it can all be sorted slowly and surely and the great folks on here will be of great help.I am walking in your shoes, you are not alone ,I am on a dmp myself and once it falls into place you will feel much better. The letters and phone calls get less as so do the sleepless nights and worry. Take care, keep us informed.xxxxxxxx

lisa-r_4

Thanks PopTart, and i'm glad to hear you got everything sorted out with your DMP. It must be great to have that weight lifted from your shoulders.

I'm worried because by the time I have my appointment i'll be 2 months in arrears, and as 3 of my debts are with the same bank my bank account is linked to, that they might arrest my wages. Would they not do that if I made token payments as you suggest then?

poppyg_2

Lisa, can you not open a basic bank account to get put your wages into so that your current bank cannot do this?

lisa-r_4

Hi Poppy,

Should I do that straight away then? I thought that was only to happen when I signed up to a DMP. Will that not make my bank suspicious if all of a sudden I cancel my DD's with them, don't have any money in the account to pay my overdraft and don't have any money going on though?

lisa-r_4

Sorry - going in, not on!

Jvic28

What have your bank got to be suspicious of. You're clearly in trouble and you cannot have them taking all your wages. Which will end up happening. Only last week my bank froze my current account as I was 1 month in arrears with my personal loan. I am currently in the process of starting a DMP. So am keeping all my cash out of my bank account and trying to set up a new one. I was advised to do this by CCCS and to cancel all my DD's. I haven't needed an interview yet though, it's all been done via email and post.

poppyg_2

Hi Lisa, I don't know for definite, there's people a lot more knowledgeable them me on here but I think it's a good step to make, I'm not on a DMP but am trying to sort out getting my current bank to freeze interest on a loan and overdraft and I have been advised to open a new bank account straight away so that they cannot take money away from me without my permission so it might be worth opening one even if you don't transfer the DDs etc straight away. I got mine with Lloyds

lisa-r_4

Thanks Jv, i'll cancel all my DD's tomorrow. I currently have a few hundred (which is only there because I haven't paid my usual debt bills) in my account, so i'll withdraw it then too. Because i've had the account for years I wanted to keep it, (i've heard having a bank account for a number of years can help with getting a mortgage later on) and that's why I thought I should at least pay the overdraft on it. Sorry, i'm so anxious at the moment i'm not thinking clearly at all.

chevalier

First of all I would make a list of your creditors. Then write a load of £1 cheques and send them off to the creditors, with a letter stating you are in fincancial difficulty and are waiting on a phone interview with CCCS at x date. Then they can't say that you abandoned the debt. Yes they will right pains in the mean time, but it will give you some breathing space. The only things you MUST continue to pay is any mortgage/secured loan, and council tax
regards
chev

SortingIt_2

Hi,

Just wanted to say I had over £60K of debt and decided to take a dmp with Payplan. I now have under £60K and so far so good. All my creditors have stopped interest and the debt now goes down by £787 per month!! It's a great feeling.

I would advise to open a bank account and transfer your wages asap just to ensure that your personnel department make the changes before your payday and do actually pay them in as mine didn't but thankfully my dmp was not set to go on that pay. It's best to be safe than sorry.

As for creditors - just send them a token payment advising that you are liasing with CCCS and will be in contact etc. I am sure that CCCS have a standard letter that you can send to them. If not I am sure someone on here knows of one. There is a DMP mutual support thread which is great for advice and help. They guys there are lovely :-)

It's best to get yourself sorted and settled for your dmp so you know where you are from day one. As for your current bank account - I included mine on my dmp but only because I had a credit card and loan with the same bank.

Wishing you lots of luck. It really was the best thing i ever did after many long years struggling. My only problem was that I wished I had done it sooner as would probably be debt free by now :-(