DMP Mutual Support Thread (Part 4)

Lodge

rayday2 wrote: »

If they are passed to a DCA that is a good thing, I wish Lloyds would pass mine over. So don't worry about that one and they would be a lot more likely to agree to smaller payments.

I run my own DMP, do you use the National Debtline for the budget calculator? If you do then just show your bills etc as going up, if you don't use that and make sure you are a tad over generous on things as you should be putting money away on savings not just managing just in case you need urgent repairs etc. In the template letter offering payments just mention you have had to do a review as you are struggling to live day to day due to the esculating cost of living.

Many, Many thanks rayday2!!

Could you point me in the direction of a template letter to write to my creditors saying I need to make lower payments for a while due to the increased cost of living?

Has anyone else here successfully reduced their monthly payments?

Thanks

rayday2

I reduced mine a year ago and they didn't bat an eyelid, its well publicised now how people are struggling.

There isin't a review letter (I don't think) I just use the offer of payment letter but edit it a bit to reflect the fact I have done a review (if payments are going down) if after a review they are going up I don't tell them anything!

Lodge

WhoopieDoodle wrote: »

Hello Lodge. If you have higher bills and the payments on your DMP need to be reduced, then there isn't a lot the creditors can do about this.

I would send them a new I&E sheet, showing the higher bills so they can see exactly what the situation is.

I wouldn't worry about debts being passed to DCA. You will negotiate with them in exactly the same way. And as Jvic says, they can't have what you haven't got!

Thanks for the support!

The only worry I have about the debts being passed onto a DCA is that I'm worried it's more likely I will be taken to Court???

Lodge

rayday2 wrote: »

I reduced mine a year ago and they didn't bat an eyelid, its well publicised now how people are struggling.

There isin't a review letter (I don't think) I just use the offer of payment letter but edit it a bit to reflect the fact I have done a review (if payments are going down) if after a review they are going up I don't tell them anything!

Thanks again!

Out of interest what were your payments before and what did you reduce them to?

newlywed

Lodge wrote: »

Has anyone else here successfully reduced their monthly payments?

I've just been through my I&E with CCCS to reduce mine from next month - so have yet to see what creditors will do

However, with my budget the CCCS adviser felt that as rent, council tax, food, gas, electric and petrol were the things that had increased (along with some slight increase in insurance policies) then they would have to accept this because increases are happening country-wide on those ESSENTIAL things. In addition I reduced my "hobbies", "clothing" etc slightly and they seemed to feel this would go in my favour too as I am trying to decrease my non-essential outgoings If I suddenly wanted to add in an expensive Sky subscription or extra hobbies/entertainment money then it would be a different case apparently

Tweak your figures

rayday2

They will sound pitiful now I think I had about £36 to go round all my creditors and it reduced down to £24 and that was on about £16k total between 10 creditors. So the majority ended up dropping to a £1.

rayday2

Lodge wrote: »

Thanks for the support!

The only worry I have about the debts being passed onto a DCA is that I'm worried it's more likely I will be taken to Court???

I think you are less likely to end up in court!

Its the original creditors who push it the most (which is why I would love Lloyds to pass it over - even though I haven't seen anyone on a payment plan with a CCJ from Lloyds)

Remember most the bad stuff you see about DCA on the boards is people who have ignored the debt you are negotiating and paying them - they like that!

There will be the odd case, very few creditors go for a CCJ but even fewer DCA do (when on a payment plan!)

newlywed

Lodge wrote: »

The only worry I have about the debts being passed onto a DCA is that I'm worried it's more likely I will be taken to Court???

One of mine has been passed to a DCA. They just say carry on paying. I even reduced one payment one month (due to MOT costs) and let them know and they said it was fine.

It's been with a DCA for a year now - no threats of court at all - most of them seem to just want a regular payment from you and are then fairly happy.

Lodge

Another question for you all if I may:

Even though my creditors are accepting reduced payments, most are still charging a nominal amount of interest (ie: I pay 50 quid and aboutt 30 quid is interest) is this normal? Or should I ask for interest to be stopped? Would they do this..........??

rayday2

Do you mind telling us which ones are and an approximate total debt just a rough guide so we can share experiences. None of my creditors charge interest but then again all of mine bar Lloyds are with DCA (another good thing about them lol)

Its hard for us to judge without some small details, for example, none of my creditors get over £26 so that sounds huge to me, its all relative to what we owe though.