DMP Mutual Support Thread (Part 4)

longforthesun

Afternoon all. What a lot going on this morning not had a chance to read it all. Brstoldebt welcome I am in the early stages of setting up a DMP with CCCS and this forum has been a great source of support and advice.

Had a letter from Abbey re our loan and they have accepted our DMP:j :j :j we have had no calls from them and only 2 system generated letters regarding our late payment. Can't tell you how happy this has made me one down nine to go.

newlywed

dumb_luck wrote: »

Thanks Newlywed, I think it was the interest of 333% APR that'll turn ino 1000%APR on the orginal loan of 800 pounds that's been really getting me down. I paniced completely when I worked it out- I'd end out worse off rather then better if I do the DMP and this interest actually happens.

I just wish I had some advice for you on payday loans - sorry
Mine were all credit cards who increased the interest to nearly 30% just before the DMP - but thankfully nothing that bad :eek: - though I did owe over £30k

At one point though I had problems with a catalogue debt and CCCS suggested that if they started charging interest, and as it was a smaller amount, to reduce my DMP payments to try and pay that off. So perhaps there will be something they can suggest later?

Rayday had a good - stop interest coz you're penalising me for trying to pay off my debts letter.

If it does eventually go to a debt collection agency - at least that will mean interest will stop - fingers crossed

newlywed

I've taken a bit more to yellow monkey's theory - it will be paid off when it's paid off.

I have to live, feed a family, have petrol to get to work, and have clothes to wear (though most are from charity shops and ebay now )

The DMP will allow me to do that (just had to reduce payments due to all the increases in food, fuel, rent, gas etc).

The creditors can wait for their money, if I can't eat, or have no petrol then I can't work so they won't get any money at all.

I will pay it all off, but I have to be more reasonable with myself and not try and pay it all off instantly - took about 12 years to get into this mess so it's bound to take a bit of a while to get out of it

andytwonames

GhostHunter wrote: »

What might happen if my creditors saw I had no surpless money to even feed myself before dealing with them?

Have thought about calling National Debtline to ask them but it seems like a question they cant answer so wondered if anyone out there can speak from experience?

I recall reading in the NDL pack somewhere that if you have no income and no prospect of an improvement, you could write to your creditors asking them to write-off the debt.

Don't sit and wonder if NDL will be able to help, call them. They're good people.

dumb_luck

newlywed wrote: »

At one point though I had problems with a catalogue debt and CCCS suggested that if they started charging interest, and as it was a smaller amount, to reduce my DMP payments to try and pay that off. So perhaps there will be something they can suggest later.

If it does eventually go to a debt collection agency - at least that will mean interest will stop - fingers crossed

I think that to pay it off before the others would be the ideal- but with inters of 300 last month and 400 this month I don't see it working out for me. I wish they'd follow through on their initial threat to hand this over to a DCA, they seem to have dropped this idea completely now and seem to think adding interest is the way to go. Still as there's nothing I can do about it.

andytwonames

GhostHunter wrote: »

with the mobile they sometimes hang up or leave a message which costs me 10p to delete (as I have to retrieve it first)

Here's what I did when RMA were calling on a regular basis... The mobile rings, answer the call, say nothing and hang up. I have one of those 'slidy' phones so it was very easy. ....

Phone rings
get phone out of pocket
look at display
see it's RMA (or whoever)
Slide the phone open (answer the call)
Slide the phone shut (hang up)
Put phone back in pocket
Get on with my life

This assumes of course that you recognise the number calling you!

GhostHunter_3

Hi

Ok so so far I have figured it like this:

Income

Tax Credit 317.52

IB Benefit 300.00

Total income 617.52

Expenditure


Rent 85.00
Council Tax 64.00
Water rates 38.15
Contents Ins 20.12
Gas 66.50
Electric 66.50
TV License 11.95
Phone and mobile 31.85
other
Broadband 14.63
Sky 31.00
Pet Insurance 25.49 (2 dogs)

Total expenditure - £455.19

Priority debts

Gas 151.50 (cant say how much extra payment to clear is)
Electric 151.50 (cant say how much extra payment clear is)

Total priority debts

£303.

Creditor Debts

Aqua CC 1,147.
Cap 1 CC 802.
Nationwide CC 1,603.
Skycard CC 625.
HFC loan 255.
HFC loan 635.
HFC loan 84.
BPF loan 167.
Lloyds TSB loan 4,900.

Ttal creditor debts - £10,218


617.52
455.19 -
______
162.33
______

£162.33 left from which I have to take food, priority debt repayments and creditors out of.

I cant show that we currently dont pay any rent can I (so really I have a surpless of £247.33).

The recomended discretionary expenditure for housekeeping is £314. per childless couple or £191. per single person per month (*taken from the info Ray provided earlier). Although there is no mention of fuel (gas & electric) so does this come under 'housekeeping'? Either way would still leave me either in minus £151.67 per month (couple allowance) OR minus £28.67 per month in debt.

* www.hmrc.gov.uk/manuals/dmbmanual/DMBM800120.htm


In reality I have £162.33 a month surples with which to feed me, hubby and 2 dogs (or if I include the rent we dont pay I am left with £247.33 to feed us. Surely I dont have any chance of a DMP now?


No wonder im feeling _pale_ today
Im getting there thanks to you helpful lot

Ossireo

newlywed wrote: »

I've taken a bit more to yellow monkey's theory - it will be paid off when it's paid off.

I have to live, feed a family, have petrol to get to work, and have clothes to wear (though most are from charity shops and ebay now )

The DMP will allow me to do that (just had to reduce payments due to all the increases in food, fuel, rent, gas etc).

The creditors can wait for their money, if I can't eat, or have no petrol then I can't work so they won't get any money at all.

I will pay it all off, but I have to be more reasonable with myself and not try and pay it all off instantly - took about 12 years to get into this mess so it's bound to take a bit of a while to get out of it

Hear hear :beer:

It does take a while for this to sink in, but once it starts to then it daily removes a huge weight from your shoulders.

Ossireo

GhostHunter wrote: »

I cant show that we currently dont pay any rent can I (so really I have a surpless of £247.33).

Why do you think this? It can be shown as Income HB £x.xx and Rent £x.xx and both figures can match and cancel each other out.

If you are not paying the excess rent then there is no need to show it as in effect your rent is matching the HB amount

GhostHunter_3

Ossireo wrote: »

Why do you think this? It can be shown as Income HB £x.xx and Rent £x.xx and both figures can match and cancel each other out.

If you are not paying the excess rent then there is no need to show it as in effect your rent is matching the HB amount

Thanks
Thats true but I already receive housing benefit and the £85 is what I pay in addition to what HB we are entited to.

I think I am just getting myself so worked up over all this because I dont want to end up being caught out if they ever ask for evidence. Unlikely maybe but I cant help but want to be certain I can afford to live as well as responsibly pay back my DMP, at least for now until income changes either for the better or I fear soon for the worst.

Beleive me if it were not for you kind folk on here I wouldnt have even known about DMP's!
:eek: