Cccs Dmp Plan - Advice Needed Please

[tillymitch09]

Hello,

Im new to this forum and need any advice I can get really. I am due to start a DMP with CCCS in Feb 09, all in all i have 13 creditors with about £16,000 of debt, my surplus income is £323 per month which i will be paying straight into the DMP.

I am about 5 month behind in arrears to my creditors, some accounts have already been passed to DCA who are threatening door to door collections. I have been making token payments. I am worried about the level of my debt in comparison to my surplus income and creditors refusing the payments.

Can anyone advise of the expieiences with creditors refusing DMP payments and what happened to their accounts?

I really am worried sick over this, I feel ashamed of the sistuation I have gotten my self into and the hassle and threats from the creditors are really starting to get to me now.

Any advice would be really appreciated x

[Jamesx81x]

Sounds like an IVA might be a better option but you need to research it first as it is legally binding.

 

They will usually go ahead with debts of 15K and above and you should be able to with a little tweaking get your surplus to around £250p/m. Pay for 5 years and what ever is left is written off.

 

It all depends if you want to be tied into that option though. Plus side is creditors cannot contact you in anyway what so ever and you are completely protected by your supervisor and the law. Pay your monthly amount each month then dont give it another thought.

 

With an IVA it seriously impairs your credit file and remains there for 6 years.

 

There are many reputable firms offering IVA's such as Payplan but make sure you fully research all your options first.

 

Good luck:)

[tillymitch09]

Hi I really dont want a IVA i'd rather stick with the DMP im just wondering how others have found this route?

[loobyloo85]

Hi

 

I have been in a debt management plan with Payplan since November 07, and have found it a lot easier to manage my money and pay my debts at the same time. 1 of my creditors rejected my financial statement at first, but then my case officer negotiated with them, and I had to tweak my budget and they have since accepted. At the moment they are threatening to put interest back on my accounts which is worrying me, but my case officer is dealing with it all on my behalf, in attempt to freeze all interest. x

[fedup74]

Hi tillymitch welcome to CAG:) Just to give you some idea of whether creditors will accept. We pay around £120pm to 8 creditors total of around £45k unsecured debt. MBNA never accepted-kept putting pressure on to increase payments etc and eventually sold it on to a DCA. My OH had a loan with HFC who also weren't happy with the payment so took him to court to get a CCJ- the laughable thing is they weren't happy with £87pm so he is now paying £88pm through the CCJ!!! This I should point out was how I found CAG -so cheers HFC:D and there is no way would they have got that CCJ if I had found CAG earlier. Have you ever asked for a copy of your credit agreement- especially off the DCAs that are threatening the door to door collection? (VERY RARE for them to do this so don't worry- they have about as much right as the tramp from the local park to knock on your door and this can be dealt with)

I would go with the DMP- Payplan have been really good with us and at least if the creditors aren't happy with the payment you can show you have done your bestto try and come to an agreement.

Don't feel ashamed of your situation, nearly everyone on here have gotten into debt and the threats that go with it- that's what CAG is for- to share your troubles and get the monsters off your back:)

If you need a CCA request letter / telephone harassment letter or a letter to stop them doing doorstop visits:rolleyes: just shout.

[tillymitch09]

Hi thanks fr the welcome and the advice,

Im currently waiting for the last of my statements to arrive so I can get my infor sent of to CCCS, im still worried Ive left it to late tho .

I have a CCJ which i am appyling to get reduced as advised CCCS, I was wondering whether anyone had any expeiriences with getting a ccj reduced and which creditors are leat likely to accept a dmp? x

[blueda]

Hi Tillymitch, I have been paying through a private debt management company for several years now ( i did not know about CCCS until i joined this site last month), like you are expierencing just now,the creditors at first were doing their best to harras and frighten me away from debt management, they would write to me threatening legal action, tell me the interest was still going on, phone me and say they were not obliged to negotiate with the Debt management company, that the debt was still between me and them etc, so with the help of telephone caller display i stopped speaking to them on the phone as advised, passed on all letters to the DMC , then the hassle lessened, the creditors agreed with the debt management company to freeze interest for one year, which was they continued to do every year since, they accepted a payment deal with DMC. I now have fewer creditors through reduced settlement deals , so less debt, the remaining creditors are now through DCAs, and i have sent them CCA requests to find out if they are legally entitled to enforce the debts. My advice is NEVER take out out loan on your house to pay them.

[tillymitch09]

Hi thanks again for the replys, im trying to prepare myself for whats to come! I already have a ccj as I have mentioned, Is that the worst that an unsecured lender can do? I live with my father and dont have any assests so im just wondering whats the worst that could happen? I dont want to go Bankrupt as Im only 22 and ive got mhyself into this right mess by making bad decisions! x

[tillymitch09]

oh and sorry about the spelling I really need to pay more attention to my typing x

[blueda]

CCJ is about the worst they can do, it will stay on your credit file for 6 years and affect your credit file and ability to gain future credit including getting a mortgage, you may get a mortgage during this time, but be limited to what companys would accept you, and therefore what interest deal you would get, your only 22 and still have time for all that, once you have a debt management plan up and running you wont be likely to get any more CCJs, and your credit rating will start to repair ( dont ever use credit cards again ) Dont be scared of them, in time things will settle down, take it one day at a time, continue to do whatever hobbys you have and relax.

[geministar2007]

Hi Tillymitch,

 

I know exactly how you feel and what you are going through.

 

I was on a DMP with Payplan, started March last year. I owed around 15k. Again i had not paid some creditors for a few months and i was worried sick. I was paying £103 a month to Payplan. Some creditors accepted my offer, some didn't. The ones that didn't were eventually passed to a DCA (some people say a DCA tends to be more likely to accept an offer, particularly if it is small than the orginal creditor), which were largely accepted. Then sometimes passed on again.

 

I have recently gone bankrupt, purely because i got fed up of creditors still charging me interest and charges. E.G Natwest were adding around £45 a month to an overdraft and they were only getting about £6 a month. This meant i would never be debt free. I was estimated to finish my DMP in 2046!! Due to further financial problems i had to reduced my DMP payments to £32 a month for a short period of time.

 

Basically try not to worry, a DMP is a good thing for many people. Particularly if you get lucky, in which your creditors freeze all interest etc immediately and you can stick to a good monthly repayment plan.

I found Payplan a brilliant team to deal with.

 

Just remember any letters etc tell your case officer straight away. DO NOT deal with creditors on the phone only in writing if you want to!

 

Also go with the CCA request i did this and got Great Universal off my back as i knew i hadn't signed an agreement as it was sat in my diary. They agreed to stop chasing me for the £800 i owed them.

 

Stick with your DMP for now, but if that doesnt work out. There are other options. I was absolutely terrified about going bankrupt. But now i have done it i wish i'd done it a year ago and not bothered with a DMP. I also have a friend who was on a DMP for 4 years and went BR in December due to the interest etc still being added. She wishes she had not wasted all that money trying to do the right thing and pay everything back.

 

Here in the UK we are very proud. Most of us want to do the right thing, and what we believe we should be doing as a member of society. We also care too much sometimes about what others think of us. Rather than what is best for us and our loved ones.

 

Keep your chin up! Help is at hand.

[tillymitch09]

Hi Thanks again for the advice, im bracing myself for a bumpy couple of months lol, im trying not to think about it too much and hope for the best! x