DMP Mutual Support Thread (Part 4)

2spicy

Well, on the weekend, after a series of letters from the bank saying they had made payments but as the account was over the agreed limit, charges would be applied, we contacted PayPlan.

Went through the incommings and outgoings with the advisor on the phone last night (almost 2 hours!).

anyway, it transpires that what comes into the house on a monthly basis.... goes right back out!.

We have debts totalling £50,000 and, after the conversation with PayPlan, they have given us an aproximate guide of 3 years, 6 months to be debt free.

The embarrising thing is I earn in excess of £50,000 a year, my wife £20,000 and cannot believe we have finally got to this situation.

So ... DMP has been started, we have an idea of our budget, now we have been advised to obtain a new bank account, and move our salary's into it to draw a line under our existing OD.

Between us, we have 3 loans and 5 credit cards that have built up over the years due to unforseen house purchases, hospital bills and general living beyond our means.

We have some questions..

How did you contact your creditors to tell them you wer ein financial difficulty ?
What was the response from the companies involved ?
Our Mortgage comes off its standard rate next year. does a DMP impact your ability to obtain a better rate mortgage ?


We hope to be debt free by summer 2011

Kudox

Hi Honky Tonk
I cant remember the name of the person who gives out the numbers but maybe they have'nt been around for a while so thats why you have'nt got one. Theres loads of different names on here from when I first found the thread back in August so maybe one of the original posters will know.

Sunshine I hope you manage to get things sorted with the cccs, as someone else pointed out you have to be able to live your life on a DMP otherwise whats the point, had to laugh about your bogof comment about a better life, I second that!:rotfl:

Kudox

2spicy wrote: »

Well, on the weekend, after a series of letters from the bank saying they had made payments but as the account was over the agreed limit, charges would be applied, we contacted PayPlan.

Went through the incommings and outgoings with the advisor on the phone last night (almost 2 hours!).

anyway, it transpires that what comes into the house on a monthly basis.... goes right back out!.

We have debts totalling £50,000 and, after the conversation with PayPlan, they have given us an aproximate guide of 3 years, 6 months to be debt free.

The embarrising thing is I earn in excess of £50,000 a year, my wife £20,000 and cannot believe we have finally got to this situation.

So ... DMP has been started, we have an idea of our budget, now we have been advised to obtain a new bank account, and move our salary's into it to draw a line under our existing OD.

Between us, we have 3 loans and 5 credit cards that have built up over the years due to unforseen house purchases, hospital bills and general living beyond our means.

We have some questions..

How did you contact your creditors to tell them you wer ein financial difficulty ?
What was the response from the companies involved ?
Our Mortgage comes off its standard rate next year. does a DMP impact your ability to obtain a better rate mortgage ?


We hope to be debt free by summer 2011

Hi,
Payplan will most likely include a letter in your pack to photocopy and send to your creditors re your financial difficulties. Thats what happens with cccs, I imagine its similar. And payplan will contact them as well.
As for the response expect a bumpy ride at the begining, it goes without saying that creditors won't like it, you may get contacted by phone and they may try to bully you into paying more than agreed or taking out further credit etc:eek:
The point is to stick to your guns and if the calls all get too much ask to be contacted from now on by letter.It can be rough at first but it usually does all settle down after a few months.
Good luck with it all and welcome to this wonderful thread:beer:

craigp_2

I have just phoned my creditors to tell them about my situation and my dmp I am hopefully starting with payplan.

Aqua where brilliant and couldnt help enough,next where understanding but couldnt help until I had missed 2 payments,Vanquis where not helpfull and said if I couldnt meet my £40 monthly payment I would have to pay £10 pound a week which I explained is the same!If I cant pay £40 at the beginning of the month how can I pay £40 through the month by paying £10 weekly!!!

Citicard was a complete disaster,firstly I couldnt hear the Indian women as the line was bad and her accent was strong,secondly the best she could do was instead of my £58 pound payment was a £62 payment! :rolleyes:

Then onto my loan with citibank, The lady on the other end of the line was rude and arrogant and wouldnt accept my reasons for missing the payment and said she would be putting me down for an immediate default and wouldnt accept my offer of a token payment :mad: thanks! I explained that I phoned up a few months ago and asked for help only to be told that they couldnt do anything until I was in arrears and now I am there is still nothing they can do!

Not spoke to HSBC yet about my loan as my wages for this month are going into my HSBC account but after next month they will go into my new nationwide account So more fun and games next month lol! :rotfl:

2spicy

Thankyou for the prompt response.
Just spoke to my financial advisor who gave me a verbal ticking off to have put myself in this situation and not contacted him sooner.

Have a meeting next week to move the mortgage onto a 4 or 5 year plan before we take the DMP route

He rekons we should beable to free up a few pennies to go into the pot too plus fix the mortgage so that any marks on our credit file donot affect it and are cleared by the time it comes to renew / move the mortgage.

cloudnine_2

2spicy wrote: »

Well, on the weekend, after a series of letters from the bank saying they had made payments but as the account was over the agreed limit, charges would be applied, we contacted PayPlan.

Went through the incommings and outgoings with the advisor on the phone last night (almost 2 hours!).

anyway, it transpires that what comes into the house on a monthly basis.... goes right back out!.

We have debts totalling £50,000 and, after the conversation with PayPlan, they have given us an aproximate guide of 3 years, 6 months to be debt free.

The embarrising thing is I earn in excess of £50,000 a year, my wife £20,000 and cannot believe we have finally got to this situation.

So ... DMP has been started, we have an idea of our budget, now we have been advised to obtain a new bank account, and move our salary's into it to draw a line under our existing OD.

Between us, we have 3 loans and 5 credit cards that have built up over the years due to unforseen house purchases, hospital bills and general living beyond our means.

We have some questions..

How did you contact your creditors to tell them you wer ein financial difficulty ?
What was the response from the companies involved ?
Our Mortgage comes off its standard rate next year. does a DMP impact your ability to obtain a better rate mortgage ?


We hope to be debt free by summer 2011

Hi 2Spicy. I'm in a similiar position to yourself with combined debts of £57K. I am still reeling from both the realisation and yes, embarrassment at having accumulated so much debt. Having said that..'What is...is' and we can't change reality.
I'm now twelve months into my dmp via CCCS with eight creditors and yes, things have settled down with the exception of one creditor who sold my debt on to an agressive DCA. So, the bumpy ride starts all over again. Thats the way really. We all want our creditors to accept our dmp offers and then relax whilst we take how long it takes to settle the debt, Doesn't work that way, not in my case anyway. You have to just continue paying via your dmp and in a way, that gives you confidence that you're doing something positive and responsible about clearing your debts.
As regards your question about obtaining a new mortgage. I'm afraid that might also become a bumpy ride, as when the lender looks over your credit history they are going to see the problems you've been having with other creditors. This is especially the case should you receive default notices which, and this might sound strange, you actually want issued earlier rather than later, as they stay on your credit file for six years.
You're in great company on this site, and will receive sound advice from those who are in the same position as yourself. Onwards and upwards !!!

Darth_chaffinch

All my creditors have accepted the plan- but Lloyds (current account) keep putting a default mark on my credit history each month, which will mean my credit history's screwed for ~3 yrs PLUS 6 years! How can I make them stop this please?!?? (I have asked them!)

Rabbit-in-headlights

Kudox wrote: »

Hi Honky Tonk
I cant remember the name of the person who gives out the numbers but maybe they have'nt been around for a while so thats why you have'nt got one. Theres loads of different names on here from when I first found the thread back in August so maybe one of the original posters will know.


I think it's usually Rayday2 who gives out the numbers, but I've not seen her on here since last month...maybe she's on holiday? Rayday, we miss you, please come back!!:D

Rabbit

rob.be

Hi guys my wife is entering into a DMP and I have a few questions you seasond pros might be able to help with. She own £35k to 16 creditors ranging from a 9k overdraft to £300 payday loan, plus I have a loan in my name for £18k which she pays which was a previous attempt to clear her debts, plus she had about £3k on her mums credit card. Very complicated. So she has declared her normal income to pay off her dmp and now also has a weekend job to pay my loan and he mum which she has not declared? Apart from the loan in my name im almost debt free. CCCs say it will take 5years 6 months to pay mack at £650 per month.
She has been under guidance from the CCCS but wants to administer it herself as we can then hide our finincial situation. She sent out letters explaining the situation in October and have just sent out offer letters. She changed our phone number and her mobile was cut off so she tries her hardest not to talk to them. She recieved initial responces from around 50% of creditors, is this normal? What happerns if a couple of creditors refuse reduced payments? Are creditors happy to only communicate by mail? If the dect is sold to debt collectors does this mean visits from the bailiffs?
Im worried that we will never get out of this situation. Plus i may be made redundant next week, but thats another story, and I have totally cancelled Christmas. Bah humbug

Kudox

Rabbit-in-headlights wrote: »

Kudox wrote: »

Hi Honky Tonk
I cant remember the name of the person who gives out the numbers but maybe they have'nt been around for a while so thats why you have'nt got one. Theres loads of different names on here from when I first found the thread back in August so maybe one of the original posters will know.


I think it's usually Rayday2 who gives out the numbers, but I've not seen her on here since last month...maybe she's on holiday? Rayday, we miss you, please come back!!:D

Rabbit

Thanks Rabbit, now you've said the name I remember.
Hello Rayday:hello: