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Best piece of advice for a DMP newbie ?
sortingit
Posts: 4 Newbie
Hi,
I am very new to all of this. I run up credit card debts as a property developer bitten by the downturn. I have since retrained and was just on top of my debts and credit card juggling until the lastest round of offers came out of promotion into the lenders variable rates. Sony card is now 35% apr!!! Others such as Virgin are now 26%!! I am paying interest of £883 on a £1053 monthly payment (which has gone up from just under £600) and now have nowhere to turn. I phoned Sony today to ask for advice and their response was to put a block on my card. Lloyds bank remarked how great my account had been managed then advised me there was nothing they could do in terms of consolidating my borrowing with them (currently paying £450 pcm!!) because I am over committed. Thing is, I wasnt asking for additional borrowing..just borrowing at a rate I could afford. There seems to be no help out out and now understand the complete despair that debt causes.
To date have a spotless credit history but there seems to be no way of getting out of this mess with that intact.
I think my options are a DMP and/or a brother who is looking into putting up some cash amount for me (I would be paying back the loan). The cash amount would work as an option if I can negotiate a full and final settlement of around 60%-70%. This would wipe my cards and bring the monthyl payments down to an affordable level without needing a DMP. Has anybody ever attempted this without going into a DMP? If I need to be on a DMP how far into the plan should I be proposing a F&F?
As far as DMP plans are concerned I am being slightly overwhelmed by the choice of companies. Can anybody make a personal recommendation? Also..is it a good idea to make full payments (if possible) until the DMP has been agreed? I am concerned about being harrassed and threatened: but then again, if I dig deep or borrow to maintain the current payments, will this make my DMP less likely to be accepted? Another concern is that my bank is one of my CC debtors. They have told me they will allow me to keep my overdraft facility on my accounts under a DMP but have read somewhere that they might just randomly take money out of my accounts to service their debts. Can they do this after a DMP has been agreed? The other concern I've got is about mortgages. Has anybody on a DMP managed to successfully secure a mortgage? I am worried about being unable to move in the next 6 years :S
Finally, what is the best piece of advice you could offer a DMP newbie?
Sorry..so many questions but I am very green to all of this.
Any advice is much appreciated..thanks in advance x
I am very new to all of this. I run up credit card debts as a property developer bitten by the downturn. I have since retrained and was just on top of my debts and credit card juggling until the lastest round of offers came out of promotion into the lenders variable rates. Sony card is now 35% apr!!! Others such as Virgin are now 26%!! I am paying interest of £883 on a £1053 monthly payment (which has gone up from just under £600) and now have nowhere to turn. I phoned Sony today to ask for advice and their response was to put a block on my card. Lloyds bank remarked how great my account had been managed then advised me there was nothing they could do in terms of consolidating my borrowing with them (currently paying £450 pcm!!) because I am over committed. Thing is, I wasnt asking for additional borrowing..just borrowing at a rate I could afford. There seems to be no help out out and now understand the complete despair that debt causes.
To date have a spotless credit history but there seems to be no way of getting out of this mess with that intact.
I think my options are a DMP and/or a brother who is looking into putting up some cash amount for me (I would be paying back the loan). The cash amount would work as an option if I can negotiate a full and final settlement of around 60%-70%. This would wipe my cards and bring the monthyl payments down to an affordable level without needing a DMP. Has anybody ever attempted this without going into a DMP? If I need to be on a DMP how far into the plan should I be proposing a F&F?
As far as DMP plans are concerned I am being slightly overwhelmed by the choice of companies. Can anybody make a personal recommendation? Also..is it a good idea to make full payments (if possible) until the DMP has been agreed? I am concerned about being harrassed and threatened: but then again, if I dig deep or borrow to maintain the current payments, will this make my DMP less likely to be accepted? Another concern is that my bank is one of my CC debtors. They have told me they will allow me to keep my overdraft facility on my accounts under a DMP but have read somewhere that they might just randomly take money out of my accounts to service their debts. Can they do this after a DMP has been agreed? The other concern I've got is about mortgages. Has anybody on a DMP managed to successfully secure a mortgage? I am worried about being unable to move in the next 6 years :S
Finally, what is the best piece of advice you could offer a DMP newbie?
Sorry..so many questions but I am very green to all of this.
Any advice is much appreciated..thanks in advance x
0
Comments
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Hi,
Didn't want to read and run. Hang in there and somebody with some sound advice will be along to help you... maybe it's a bit late in the night now but tomorrow you ought to keep checking this thread and see what tips/ advice are in store for you.
Good luck on your mission. you WILL get there. :beer::mad: Hindsight is a wonderful thing...
:j One of Mike's Mob! yea!!!
Finally settled full balance of RBS personal loan ahead of schedule on 10th August 2010 :money:
DEBT FREE AT LAST... BUT FOR HOW LONG?! :eek:0 -
1. Change your bank account to one that is not connected to your debts.
2. Chose your dmp from the short list of fee-free providers (CCCS, Payplan, CAB, CAP)
3. Don't even think about F&F until you have been on a dmp for at least six months0 -
Sortingit
You have done the first best thing and that is posting on here. This is a fantastic place for advise and there is lots of information available to you. The people are great and will help as little or much as you like.
That said, I can only endorse what fatbelly has said ain his post
1. There is a list of associated banking groups in a thread on the DFW forum.
https://forums.moneysavingexpert.com/discussion/2636953
This is to stop co-op cashminder account seems to be very popular. This is to stop off-setting which is where a bank or associated bank take money directly (without you knowing) from your bank account to offset any other debts you may have with them.
2. I am with Payplan and I have been very happy with them. Do NOT pay anyone for a DMP.
3. Credit companies are far more likely to accept full and finals when they actually see that you are not in a position or going to be to pay back the full amount.
Most of all best of luck with your decision and remember if you have any questions no matter how silly you may think it is just ask. You will be surprised at the response.adde parvum parvo magnus acervus erit
Add a little to a little and there will be a great heap
0 -
OMG..I am so touched that anybody has actually read my midnight rambles let alone replied to them that I burst into tears. Bless you guys. Thanks for the advice xx0
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