DMP Mutual Support Thread (Part 4)

Tigert

Hi Pinksparkle,

Phonecalls and letters lasted 3 months for me, then all just suddenly stopped. Get the odd letter now and then usually when a payment has been transferred to a DCA as sometimes it takes longer to get through so they moan, but they always go away again as soon as the payment turns up.

I'm sure there will be the odd problem now and then but generally it's fine now.

pinksparkle_2

kpwll wrote: »

Went and bought my £1.00 postal orders this morning, was shocked to find they each cost an extra 46p, so I only bought 2nd class stamps to save a little bit.

I shall be purchasing my £1 postal orders tomorrow and sending them off for the 2nd and last time...!!!

Woo Hoo...Cant wait to make my first payment to payplan as that is when the real stuff starts..!!!

Pinksparkle
x

Jvic28

ANY_CHANCE wrote: »

Thanks Rayday this is encouraging to know,

i was wondering if we apply to our bank for a mortgage they might be able to help?

I'm not sure of anyone else's experiences but I don't think high street banks are very forgiving to those with bad credit history. Rayday has got a very good deal there. I think I had a good offer of Chelsea but they retracted it when they realised my building is over 5 floors. Gutting! Now I'm on over 7% (not sure what exactly) I hope when I remortgage I can find just as good a deal.

x

itsnowtime

Starting to feel a little frustrtated!!

I've made such good progress with my Debts but I'm now in a position where I'm beginning to struggle again.

If i could sell my car I should be okay - but I need to reduce my payments to CCCS to cover my increase in mortgage etc...

Has anyone reduced their DMP amount before? - It will only be temporary until the car is gone but I'm wondering how my creditors may react?

rayday2

The very first payment review I did I had to reduce the amounts and they were OK really. I think companies realise that everyone is struggling bad credit or not with living costs and would much rather get something than whole months being missed.

pucked

Hi all - I have just registered on the forum and have a phone call interview with PP this Saturday.

I have worries that PP may not be able to arrange a suitable DMP - not for any particular reason, its just that this is probably my last chance to sort my mess out.

I have £97k debts and my wife as no idea. I've been hoping that this and that would happen and before I knew it several years have passed by - and things have only got worse. Any way I have a few questions that perhaps some people may be able to comment on:

1. Will PP take into account my wife's earnings. Currently she pays for all household bills and food. I just pay the mortgage and my debts. I would rather that all calculations were based on my earnings and claim that I am paying for the some of the household bills so that my payments are minimised.


2. I bank with Lloyds (£16k overdraft) + mortgage + secure loan (I think its secured). Now I really don't want Lloyds included in all this. Reason is that my fixed rate mortgage expires feb 2010. I don't want to upset lloyds because when the time comes they may not give me a mortgage - considering I would have a bad debt history as a result of the DMP. I have never been in arrear on the mortgage. Is this a sensible approach?

3. Assuming ALL creditors (CCards + Loans) agree to freeze interest it will take 5 years to clear the debt. Would creditors see this as a reasonable length of time.

4. What are the chances of a interest freeze especially for 5 years.

5. If the DMP is setup would it be possible to lump pay off a single creditor. Scenario is if I get a bonus then I would like to pay off a debt and release further monthly funds to pay off the overdraft.

6. What is meant by 'default' - seen this in a few posts.

PP will probably advise but I thought I'd try to be a little more prepared.

Thanks

Tigert

Hi Pucked - Welcome,

I'm also with Payplan and although my debts aren't as high as yours, they aren't that far off.

1) Sorry - Don't know this one.

2) You have to include all unsecured debt. (Which will include your overdraft). It's unfair to the other creditors if you don't and they are less likely to accept a DMP. If you don't declare it in your DMP then your other creditors could find out from your credit file.

3) Yes - Some people DMPs are a lot longer.

4) The one thing about creditors is how inconsistent they are. Some will Freeze interest some won't, some for a fixed period of time some for as long as it takes.

5) Again I think you have to treat creditors equaly. Though ther is something called a Full & Final Offer - i'll leave someone else to explain that.

6) A default notice is a legal notice that you are in arrears. It has to be issued for the creditor to take any further action.

One thing you will need to do is change your bank account to one that isn't connected to any of your creditors. If you are in a DMP, Lloyds could possibly take any money paid in to your account as a payment off your debt.

rayday2

Hi Pucked

I really think you need to tell your wife she will feel so betrayed its more than about the debt she will honestly wonder what else you have managed to keep from her. Also you are going to ruin her financial history as well as your own (assuming the bank account and mortgage are in both names) it is simply not fair to do this to her without her knowledge.

If all the debts including Lloyds are just in your name then you can just go on your earnings - but if some are joint then its a joint venture.

You have to include all your creditors otherwise its not fair, but the whole point of a DMP means that when your fixed rate deal ends you will be able to afford your mortgage payments as your DMP can be adjusted so you should not worry too much about this aspect.

It is very hard for us to say what creditors will do as creditors don't seem to have a set approach, example, I am with Lloyds all interest suspended but others here are with Lloyds with a lowered interest rate.

You must look into an unconnected bank account, and please consider telling your wife you have the solution now so its not like you are dumping it all on her. I have read so many stories on here of people keeping debt quiet and its the deceit bit that gets to them, afterall most the time they have benefited without knowing to the spending but they hate the thought of something so big being kept from them.

newlywed

Hi Pucked,

Is the debt all in your name then? My debt is all in my name and I arranged a DMP with CCCS taking into account my wages only. I put down half of all the household bills (as though we don't pay half of each bill, that's how it works out by the time he pays rent, I pay food etc). They did query a couple of things - like a half amount for tv licence and sky but just put a note saying it was my "contribution" and no-one has questioned it with me. I pay all the car costs and so the full amount of those went down and again, no questions have been asked.

So assuming PP work on the same basis as CCCS, yes you can have it worked out on just your wages with just your expenditure put down.

My DMP should be clear in just over 5 years. So far all except one has stopped interest and charges (and that other one is only charging 6% interest instead of 19%). My reasoning was that even if I could have obtained a loan to consolidate it all (30+k) then it would have taken 5 or 6 years to pay off in any case, so I figure that must be acceptable to them.

andytwonames

That's it. I've started my DIY DMP

Letters to all creditors done and ready to post today (recorded - I'm no fool)

I've told MBNA that my offer is conditonal on them responding to my CCA and stopping RMA from calling me.

I have written 2 letters to Lloyds and had no answer. I went into a branch the other day and someone there got on the phone to several departments and got some answers for me. My letter to Lloyds today is going in the post but I am also going to hand deliver a copy to a branch.

I have also just made a big saving on mobile phones. Because I am a broadband customer with Virgin, I get a good deal. £15pm for 400 mins and 400 text for Mrs 2names and £10 pm for 200 mins and 200 text for me (I say less). It was subject to credit check and I still got it!

So, a trip to the post office at lunchtime and hold my breath waiting for the responses.