DMP Mutual Support Thread (Part 4)

GhostHunter_3

Hi

I have been considering whether to continue with my DMP via CCCS or by myslef.

I thought I had it all worked out and was just about to send off the Income and expenditure forms that I have received from the companies I owed money to. However something someone pointed out to me over the weekend has been concerning me, I didnt give it a thought that way until they brought it up, which if its true then I am glad they pointed it out - rather be hindered now than have them recall the whole lot in 1 go :eek:

Basically I have 5 loans (4 are for items purchased from an Curry's store, 1 is a consolidation loan in joint names, yet I am responsibe for repaying, consolidating 'unauthorised' overdrafts we had). I also have 4 credit cards that I am struggling to repay.

I am managing to keep up repayments on the 4 loans but struggling to repay the minimum of each 4 credit cards. Will they accept the DMP based on the inability to repay the Credit Cards only if I show I cam still managing to repay the loans via DD?

I thought there wouldnt be a problem if I set up my own DMP agreement with the Credit Cards but as I said somebody pointed out they wouldnt accept the fact that I can keep up repayments on the loans and not the cards, even though the loans are priority debts. Is this true or do I carry on as planned?

Hope that makes sense?

Thanks
H.

rayday2

If you are struggling with any of your debts then a DMP should be for you. I started mine after meeting all the payments on my financial commitments but that was because I was shopping off cards and using my overdraft.

The only prority debts are ones you have to pay by law, council tax, TV Licence etc and anything secured on your home, mortgages or secured loans. After that there is no pecking order.

If I read your post right you have struggled on the card but met your loan repayments - so simplfying it basically you are struggling on living and meeting credit payments hence the need for a DMP.

And now I hope I have made sense!

GhostHunter_3

rayday2 wrote: »

If you are struggling with any of your debts then a DMP should be for you. I started mine after meeting all the payments on my financial commitments but that was because I was shopping off cards and using my overdraft.

The only prority debts are ones you have to pay by law, council tax, TV Licence etc and anything secured on your home, mortgages or secured loans. After that there is no pecking order.

If I read your post right you have struggled on the card but met your loan repayments - so simplfying it basically you are struggling on living and meeting credit payments hence the need for a DMP.

And now I hope I have made sense!

Hi thanks for reply.

Yes you are spot on, I think.

I am managing to keep up repayments on the 5 loans as I work these in with the household bills in my SOA which are paid via DD. I had been able to keep up payments on credit card until a few months ago when my 'savings' ran out (I am currently on Incapacity Benefit and unable to work at the present time). However what I am paying out doesnt include money for such things as food and other essentials, it does include the household bills such as council tax, rent, water, tv license etc and of course the 5 loans. I have little funds left after all these DD go out to repay my 4 credit cards based on what they ask for each month.

By the way I chopped up my credit cards a long time ago and the companies are aware of this, as I mentioned I was able to keep up repayments from savings I had put aside but these are now depleted 2 months (or so) ago.

I am happy to divide up what I have left between outgoing and income and divide this up between the 4 credit cards an the monthly food allowance and do my best from there.

CCCS want to break everything down yet my thinking is if I do my own DMP and approach the 4 cards as I said with what I have left (after subtracting a food allowance) are they all likely to accept I am repaying the loans at their current rate yet requesting to reduce their repayments?

Many thanks

H

rayday2

Hmm its tricky the whole ethos of a DMP is treating all your creditors fairly, for example, I included a catalogue with only £80 left on it. It is designed to make life passed just survivng to getting a better quality of life.

I understand what you want to do but I am not quite grasping what you see are the benefits to doing what you propose.

You do run the risk if the companies are related as well of maybe them finding out and I am never convinced if companies check credit histories or not.

Maybe if you tell us why your propose leaving cards and paying the loans then we can maybe give another perspective.

If you want to weigh out the idea a little more take a look at the national debtline website which has fantastic advice and a payment calculator, although not sure if it will help you if you are making up your own payments.

Tigert

Hi Ghosthunter,

If I understand you correctly, what you are proposing isn't really a DMP, you are just proposing to make a payment arrangement with some of your creditors but not others. I don't really understand why you'd want to do this.

As Rayday said, the idea of a DMP is that all creditors are treated equally. So all of your debts are added up and your creditors are paid pro rata.

I think it's highly likely that the creditors being offered a reduced amount, would not accept on that basis. Just because you are hiding the amount from CCCS, doesn't mean that your creditors won't find out, if they see your credit file, then they will be aware of your other creditors.

You'd also lose out - A lot of creditors will stop interest on a DMP, on the debts you are hiding from your DMP, you would continue paying interest. So you would end up taking longer to become debt free.

It's far better to disclose everything, it could come back and bite you otherwise.

Green_Man_3

Hi there,

I'm very new here.

I recently entered into a DMP with CCCS (who I have found to be very helpful).

I'm not sure which is the best place to pose this question, or whether it is too early to ask.

However, one of my major creditors is Abbey.

I opened a new account with Alliance & Leicester (seemed like a good idea at the time), and now I find that A & L have been bought out by the same company who own Abbey.

I must admit I'm slightly worried about this...

worrygirl

Hello everyone

I just wanted to ask your advise this is my situation...

I am 30 yrs old and living with parents I am in about £40k of debt. The amount has gone down since being on my DMP i have reclaimed PPI and bank charges on credit cards. I am comfortable for the first time in years and am very pleased i started the DMP with payplan a year ago.

but

I want to move out with my boyfriend (he is on a DMP with CCC'S £30kish)He had to move home as his debt got so bad he couldnt afford the rent any longer I got him to talk to national debt helpline and they put him on DMP.

Now at the time of starting the DMP I thought that IVA wasnt for me - it scared me to be honest and I wanted to pay the debt off myself so thats why i did DMP. But now im thinking If i was to move out next year my DMP amount each month would go down so will take years to pay off (13:eek: )
but if i did the IVA i could pay them the same amount for 5 years then be debt free?!

what i want to know is -

1. is it hard to get a mortgage after the term? we will rent for 5 years?

2. what happens if I fall pregnant during the IVA (im 30 and not getting any younger to have children!)

What I pay -

£447 to payplan a month in this for about 7 years

I get paid £1113 a month

The rest gos on living - ie rent of £250 to parents food going out (not a lot!) petrol £100 i pay no bills except phone roughly £30 - looking to improve this.

What do you guys think could an IVA be a solution to what i want to do? would i be better off?

Any advise would be welcome thankyou ! xx

Also i have a bank account with A&A who are they connected to with Santandar?

newlywed

Bottoms. Just read that Santander are also buying GE money.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/28/cnge128.xml

That means my "safe" bank of A&L could possibly be affected by my somewhat large debt to Debenhams

I'm gonna be running out of places to bank at this rate and really don't want to go to Hellifax for my current account as I hated them and left well before I got into any debt

Tigert

Arrrrggghhh - I wish Santander would stop buying things. My bank account is with Abbey but 6 of my debts are with GE Money.

I've got a halifax account as I wanted a debit card, so looks like it's time to switch to them.

Mogminnie

I could be wrong but I am sure you can only enter into a IVA if you have property to remortgage and repay a proportion of your debt OFF at the end of paying what you can afford for the 5 years. This percentage varies depending upon what you can afford and the amount of equity you have. Not all your creditors have to agree but a large proprtion of them must accept the terms for it to be binding. If you do not have enough equity then you are unable to do an IVA. It is an alternative to going bankrupt but the same laws apply. It is a legally binding agreement between you and your creditors however if you miss payments etc or are unable to pay they are more likely to file for bankruptcy. I would be concerned at the present if there was any equity with the fall in house prices. I am no expert but my parents went through this process before being left money by a relative to pay the debts off. You will also be charged a fee for having this set up for you. I decided this was not for me as I did not want to put my home in jeopardy.