DMP not quite set up and I have more questions please....

rubydoiwannabee

Morning everyone
I have now received my paperwork from the NDL to sign and complete regarding the set up of a DMP with payplan. The thing holding it up is that I have applied for a new bank account online and it is taking an age to come through with papers to sign etc.

The trouble is whilst I have this time to think, I am just becoming more and more scared. Now I know that by starting the DMP we will for once start decreasing the amount we owe, but I am so scared of the nasty letters, credit reference information etc. it will leave us with. Also we have a fixed rate mortgage coming to an end in 2010 and having read through other threads it looks like we won't get another easily, in fact will our current lender even want us??

I am really scared of authority and know that letters from debt collection agencies or any sort of threatening letter will freak me out. I don't have a good enough understanding of how I stand legally either, obviously the debts are ours and we therefore should pay them, but if we can't what happens???

Sorry to ramble, but these thoughts are just going around and around.

Also worth mentioning our budget has been agreed with NDL and we have only £105 a month to pay to our 26K debt, so we will be doing this for a long time.....

I feel scared and anxious and all the positive feelings from the last week or so when I initiated this seem to have gone!!

Any support or advice will be welcomed.

ships-cat

Know how you feel, I'm sitting on the fence over starting a DMP, got £19,000 worth of debt and an ever decresing bank balance.

Worried about what happens to my fixed rate mortgage in two years time when it finishes and worried about my work finding out.

Trying like mad to find another option, selling everything, cost cutting etc, going to give it another month and see how I'm doing then.

Hope you get your answer.

churchrat

hi
nasty letters should not be a problem. Once they know you are on a dmp with payplan the letters will stop, in the meantime hand them to payplan(once its set up)
the mortgage could be difficult, we have been doing a dmp for about 6yrs and although in thoery we could get another, in practice it would be difficult.. we are wth c&g and they have told us that they will look at individual circumstances, but I think it unlikly they will give us one at a lower rate. you can always try tho. Providing you are paying your mortgage on time your lender will have no reason to "call in" your exsisting mortgage.

It is very difficult at the start of a dmp to see any of the good points. It is not a quickfix and you will be here for the long term. Have you looked at the longhaulers thread?? there are lots of people in your position, and it will end one day. we have been on a dmp for about 6yrs, and although we have nearly finished it has become a way of life for us now. Strangly, there are benefits to being in this financail position, altho I bet they are hard to see right now!!
goodluck, and keep us up dated on your progress
churchrat

rubydoiwannabee

thanks to both.
churchrat - have you told c&g you are on a dmp?

caz876

Hi,

I to am in a similar posisition to yourselves, but unfortunately owe a considerab le amount more. I started on my DMP with payplan about three weeks ago and although I have had a few phone calls, I have just given them my payplan account number and the telephone number for creditors to ring them and they have all accepted this and updated my files to say what is happening. Whilst im sure this will not be the case if some of them do not accept my proposals and get nasty, I will just post on the forum and contact payplan for advice.

I wish you luck on your journey..

rubydoiwannabee

Hi Caz, thanks for your reply. How are you finding living on your budget 3 weeks in?
Also if it isn't too personal a question, did you set up a basic bank account? If so, who with and was it quick. The reason I ask is because I have done one online with AN and realised it isn't a basic one, which is probably why they are taking so long.

Please don't share anything you don't want to and I hope you don't mind me asking. It is nice to see someone in a similar situation now.

newlywed

Hi, I've been on a DMP for a year now. Although my case is slightly different as I don't have a mortgage (we rent). My credit rating is marked with a couple of defaults, and an "arrangement to pay" as well as a "DMP" comment on. The defaults will take 6 years to drop off the file and the rest will probably be there until 6 years after the debt is settled. In my case, I don't care as I don't want any more credit for a very long time - it got me in such a huge mess :rolleyes:

Living on the DMP budget is strange as to start with you have "extra" money left for haircuts, clothes etc that you didn't have before so you feel like you're rich! But a few months in, when unexpected expenses turn up (like car repairs) you realise how you should have been more strict with your spending . You do have to save and try to anticipate things that will come up in the future, which can be difficult.

On the other hand, you know exactly how much money you have available to spend each month and can easily skip haircuts, new clothes etc to make up for any problems.

I was worried about phone calls and letters but they were very few, to be honest. And the only phone calls I got I told them about the DMP and gave my reference number and they were fine. I was seriously worried over nothing much at all

The debt does go up a bit initially as it takes them a few months to stop interest and charges, whilst you are paying a reduced amount. I think they like to see a few actual payments before they believe you are serious about the DMP.

It is a little frustrating that I can't splash out on a holiday abroad like I did before (just chucking it on the plastic) but that's what got me into problems in the first place. I just feel a bit jealous when people start going on about their holidays they are planning and then say - where are you going this year? It will be the UK for a weekend if anywhere, because I can't justify the £70+ for my passport renewal at the moment.

It isn't a quick fix, but it's a huge relief knowing that my interest and charges have stopped, there's no huge bills dropping through the door for credit card purchases I forgot about and most of all, my debt is now decreasing.

newlywed

Oh, and I didn't get a basic account - I got an A&L premier account with visa debit and cheque book - but I specifically requested NO overdraft to make sure there was no additional credit being offered (terms of the DMP).

rubydoiwannabee

Thanks Newlywed, that is a real help. I have done that with AN asked for an account with a cheque book and debit card, but no overdraft. I know what you mean about it feeling like you have extra money, when OH and I sat down and worked through the budget it felt strange allocating money to MOT and servicing etc. when we don't now and when we owe so much. Have you opened a savings account as well? I think I might.

My faith is restored, thanks to your post and those of churchrat and cax876. I feel sure my PMT (pre-menstrual tourettes, as my OH likes to call it, because I seem to swear at this time of the month) is making me feel down and have extra anxiety. In my heart I know we have to do this because we have been consolidating for too long and it has just made matters worse. thanks again.
x

newlywed

Yes I actually have a few online savings accounts with A&L and shuffle money round continually

I have emergency savings, car savings (tax and MOT) as well as "my money" - which is haircut, clothes, prescription, money for presents etc and where my ebay money goes into

This month has worked slightly better as I moved all my money out into those accounts as soon as I was paid and so what was left was for bills, food, petrol, gas and elec (prepay). I've found it easier to look at that bit left and work out how much food money I can spend, rather than spending it all including my prescription etc money and then getting annoyed at not being able to afford hayfever tablets :rolleyes:

newlywed

After I found this site, I tried for nearly a year to reduce my debts on my own - just couldn't do it. The DMP was completely the right decision for me and I only wish I'd done it sooner