Confused and worried about DMP. :(

continualdiamond

lisa-r wrote: »

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.

With regards to this, just wanted to point out a few things.

1. You could go on holiday again, but you'd need to save for it. For myself and my OH we have never been on holiday since we've been together and that since 2003. Its a luxury and something we cannot afford.

2. Nights out, bday pressies etc ARE included in your DMP. If you'd like i can copy my DMP budget and send it to you so you can see what the break down actually is. You need a life and they take this into consideration.

For us our DMP with payplan is the best thing we ever did. No more letters/phone calls from creditors, each one agreed to the payments and stopped interest. Our circumstances at the min has my OH unemployed and some creditors aren't liking the £1 payments a mth and are adding on charges, but not one has hassled us yet, which is such a relief.

Never pay a creditor when they ring or send a letter. I just used to tell them that i am dealing with payplan and have been advised not to pay until my DMP was set up. If they kept going on at me over the phone for a payment, i just used to hang up, which is actually what payplan told me to do, you tell them once what the situation is and then 'bye bye' with the phone.

Take care, its stressful setting it all up, but once its done, its a great feeling.

itsnowtime

Just wanted to pop by and say its okay to consider whether you are doing the right thing.

I went through the exact same emotions as you - can I afford to go on holiday / birthday pressi's etc...

I've been on my DMP since July of last year when things began to get really tough - yes at times its hard as you don't have the drastic plastic to fall back on but i Know I've learnt the hard way - and now if I can't afford it, I don't have it!!

I've made people aware that I don't have lots of money (although they make think I have) and that makes it easier and I now consider whether I'd want to spend my money on doing certain things and can I justify it - or more to the point is it worth it.

Going on a DMP was the best thing I ever did - I now have a positive balance once all my bills have been paid - and I have enough money to live with throughout the month. I'm not extravagant and sometimes I get frustrated that I can't have what I want - but I am so proud of what I've achieved!!!

Definitely open yourself another bank account - it definitely puts you back in control.

Good luck and we're all here to help.

scooterwife

Just wanted to say hello and welcome.
We are also on a dmp with cccs and its the best thing we ever did :j

Definitely open an account with a different bank (make sure it's not one connected to any of your debts though) and arrange for wages to go into it.

You can include your overdraft in your DMP if thats the way you decide to go.

I would also agree, send a letter to creditors saying you are in talks with cccs and that you enclose a token payment (there are templates for this on National Debtline website) and then repeat that to them like a mantra (!!!!!) if/when they ring you.

holidays etc can be saved for if you are careful with spending (Old Style board is good for ways to save money on food etc)

presents etc, look on 'moneysaving for special occasions' board, think special offers, gift baskets, freebies. It can be done, and looking on the bright side, you've got loads of time to start looking for Xmas pressies:rotfl:

Good Luck

lisa-r_4

((((HUGS to everyone))))


Thanks so much for all your replies guys, you've really helped put my mind at ease about everything! My emotions are like a rollercoaster at the moment - one minute i'm relieved that i'm doing something positive about my debts by hopefully going on a DMP and feel positive and excited about the future...then the next i'm thinking maybe my business will grow and I won't need one/beating myself up about needing to go on a DMP in the first place/worrying what my parents would think etc etc etc! I lost my internet connection yesterday, and couldn't wait to get it back this morning so I could read your lovely comments and advice.

I've just applied for a new bank account with Lloyds (thanks Poppy!), cancelled my existing DD's, and will look into organising token payments/letting my creditors know about my CCCS appointment. I've also pulled out my telephone socket as it's starting to ring constantly. Everyone important has my mobile number anyway.

Sorting - you sound just like me! When I look back, I now realise that i've been struggling with my debts for YEARS, constantly thinking things would get better, and that 'stealing from Peter to pay Paul' was no big deal, because it would only be short-term. Head in sand syndrome strikes again! I only wish i'd found Martin Lewis and had my LBM 5 years ago! It's really encouraging to see you've came through the other side with a similar debt amount, and our now enjoying a much better quality of life as a result. Wish I could put the clock forward a few months so I could be in the same boat as you today!

Continualdiamond/Itssnowtime/Scooter - phew, what a relief! I was under the impression you were only allowed money for rent/council tax etc while on a DMP, so it's great to hear that i'm still allowed to have a social life and Xmas etc! I was even worrying that I might never be able to start a family in the future because I wouldn't have any money left over to provide for them! Right now starting a family is the last thing on my mind, but my mind keeps bombarding me with future scenario after future scenario at the moment. I was even DREAMING about this last night - though I must admit it made a nice change to not be dreaming about my dreaded debts for once!

Continual that would be great if you could send me your breakdown, if you don't mind. Then I would have a rough idea of how much I can afford to pay to a DMP etc too. Thanks so much for that.

Krasnoludek

Hi Lisa-R

I have just started a DMP with CCCS and they are so brilliant!
If your interview is not till the end of the month, you can call every day or so to see if they have have cancellations, I did this and got an interview the same afternoon so it might be worth a try.

Re Holidays and social life, I have only just started my DMP and so not really into it yet but I am learning that if I cant pay for it I cant have it really, also learning to stash money here there and everywhere and am selling lots of old things on ebay and making a few quid here and there for if I want something.
I wish I had been this frugal before :j I probably wouldnt be a DFW

Take care

K x

lisa-r_4

Thanks K, i'll definately do that. I must say the end of the month seems an eternity away right now!

I'm looking forward to being able to budget again too, with "real" money opposed to plastic all the time! I was terrified for the future before I found this messageboard, but now i'm becoming more and more optimistic about everything. It's such a relief.

scooterwife

The other way I deal with birthdays/ christmas etc is to use as many cashback/ survey sites as I can.
See the top of the board for details but I use Quidco for Insurances etc and have got approx £400 back since last year. (cars, house cont, buildings etc)

Survey sites are such as Lightspeed, valued opinions, toluna and also pigsback.

I find I make £5 - £10 a month over the lot just for answering questions - and chances are I'm sat at computer anyway:j

They mostly pay out in vouchers which you can give as gifts, or buy gifts with.

poppyg_2

I know my brother's DMP with payplan allows for one night out per week, no way he was giving up his nights in the pub, he just has to be a bit more careful about what he spends whilst he's out now but he usually has enough left for a kebab or curry after the pub
Well done on contacting Lloyds about the new bank account :T

I am also a member of a few survey sites - Valued Opinions, Yougov, IPSOS and find them all pretty good, have had a few vouchers for shops which I've used for food, very handy x

angeldiva

Hi Lisa

About this point...

lisa-r wrote: »

will any extra amount I earn be automatically taken from me to pay my creditors?

Im with paypal and found that its a standing order - they cant go into my account and take money therefore extra is not automatically taken. My budget was set for a year and then at the end of the year I had a review and was able to tell them if I was earning extra or not. Then we reset the budget, sorry...I hope that all makes sense.

I did change bank accounts as advised like you, so well done with setting up a new one. Just a quick point, make sure that your new one isnt connected to any of your creditors, for example I was with Abbey who is connected to Cahoot (my loan) so I had to go to a bank that was independent of the two.

Dont worry, holidays, b-days, xmas will all be fine, just save and plan. You will be fine.

Angel_Cake_3

Hi there, I have just joined this forum and already have had loads of help and advice, suddenly feel i am not alone!

Like you, have a pile of CC and loans and was robbing peter to pay paul each month. I work full time (not bad pay) hubby is on a good salary and I also have a small business that can bring in between £400 - £800 per month. Sounds OK? but most of it is going of debt repayments! We both work really hard long hours and with this and the pressure of owing money, had taken its toll. We have no spare money at all - in fact once everything paid are in negatvie figures!

I was worried that Payplan may look at earnings etc and not be able to help. I called them last Wednesday and has a phone interview Friday just gone. They have suggested a DMP and are sending me through all the paperwork and will contact all my creditors to explain the situation and work out payments and hopefully get interest forzen so money paid back, pays the debt and not the interest.

Payplan (so far) have been great and there seems to be lots of postive comments about them on this site.
They have worked out our income V spend and from there worked out payments for us. For once we will have money left over each month, they have even budgeted for hair cuts and dentist, something I have never done.

I have spent the whole weekend sorting out my life. I have got a new bank account, am transferring DDs over and have started to plan forward with a budget, something I have never done, as I knew it would make ugly reading! I have sent all my credit card bills a £1 payment with a covering letter explaining the situation and giving them my PayPlan ref number.

I feel a huge weight has been lifted, coupled with discovering this site. The advice and support given over the last few days has made me feel so much more positive.

Like you, one minute I am up and feeling good about things, the next really down, thinking how on earth I have I got to this situation? I just remind myself, what would the alternative be!!?? At least now I have confornted this and am doing something about it.

I know the next couple of month may be stressful with calls, especially as I have always kept (I have no idea how) my payments up to date, and it will be a big shock for my creditors. Also, my credit rating will be badly effected, but I never want any ever again!

Hope this helps, even if it lets you know you are not alone. I will keep you updated and would love to hear how you are getting on.

Go girl and be strong, you are doing something about it !!!! :A

Angel Cake xxxx