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Looking For Advice From Any Kind Cagger and The National Debtline


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Hi All,

 

Thank you in advance for any replies i receive, all advice greatly welcome.

 

I like many others have got myself into a mess with debt, you think you're doing it for all the right reasons, but it turns around and bits you in the bum.

 

... I sorted out a repayment plan with Payplan, they were a total lifesaver, and I have been paying a monthly amount for years now.

 

They haven't left me with any spare funds really and i got myself into a bit of a situation with payday loans, which are now all paid off (thank god).

 

I had to reduce my monthly payment to Payplan for a while, but they accepted this.

 

I also have a bankloan which my bank were more than happy to give to me because i own a property with quite a lot of equity, and i've been a great customer.

 

The money was used to do work in the flat i own and also for doing a new roof on the home i share with my husband.

 

My problem is now,

i approached my bank and asked if i could make reduced payments towards my loan for a short while as things are a bit tough right now,

i also enquired about a payment break from my mortgage as i have been overpaying this for 5 years plus, but they've said no.

 

Can i approach Payplan and add this debt - the personal loan to my plan?

 

Can anyone tell what best to do, will Payplan wash their hands off me or what?

 

Really need help!

 

Karen x

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It's worth seeing what they will do, they should still help. If not then you could always contact one of the debt charities to see what they can do to help. Why did you have to reduce the instalments on the debts and yet you're overpaying the mortgage?

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I've been overpaying my mortgage for a longtime, and the bank was more than happy for me to do this, my mortage was for 25 years, but will be repaid in full in 2years time, making it only 17 years. I reduced the debt payment to Payplan because i was struggling, they wouldn't leave me any spare cash once my outgoings were taken into account. I thot i could do this, but i've been very stupid, don't want to lose my flat and i was so scared with the debt i'd gotten into. If that kinda explain things.

 

Karen x

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Hi Karen

 

How much is your monthly payment to PayPlan? In my experience, they set the monthlies far too high to be long term sustainable. What you have to be aware of with PayPlan is that they are funded BY THE CREDITORS and it is in their interests to get as much per month off you as they can.

 

Who is your bank? Why are you overpaying your mortgage? How much are you overpaying it by? What mortgage is it - I need to know so I can look at the T&C's and see about flexibility for you.

 

It's hard to know without full info, but my initial response would be to contact PayPlan and tell them that you are unable to sustain the origional payment due to "everything being more expensive" and that you need to drop it if you are to continue. Trust me, they WILL drop your payment. Tell them it has to be a permanent drop, not a temporary one as you don't see your situation getting any better. Don't take no for an answer!

 

Then, go to the bank and tell them you want to stop any overpayment on the mortgage. Ask to speak to their mortgage advisor and ask the advisor the following "Can you fully explain to me the options available to me with my mortgage as I have made overpayments for the past 5 years and am now unable to keep doing this. As my account is now ahead of schedule, is there an option for me to either withdraw the overpayment, or to underpay for a period of time?" Take a witness with you, if you can. The advisor will s**t a brick - they are LEGALLY obliged to disclose your options. You may find it enlightening! With most flexible mortgages, if you have overpayed you can reduce your payment (but not stop it because of contractual legalities) until the overpayment has been used up.

 

I don't know what your figures are, but what we're aiming for is to reduce your mortgage payment and PayPlan payment to a level where you can afford your loan repayment.

 

I also need to ask you - have you WRITTEN a monthly budget so you know exactly how much your expenses are etc? If not - do one ASAP because you will get to the end of it and wonder what you've been spending all your money on...!!!

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I've been overpaying my mortgage for a longtime, and the bank was more than happy for me to do this, my mortage was for 25 years, but will be repaid in full in 2years time, making it only 17 years. I reduced the debt payment to Payplan because i was struggling, they wouldn't leave me any spare cash once my outgoings were taken into account. I thot i could do this, but i've been very stupid, don't want to lose my flat and i was so scared with the debt i'd gotten into. If that kinda explain things.

 

Karen x

 

You shouldn't be overpaying your mortgage if you are unable to meet the minimum payments on your credit debts. If the creditors find out you've been doing that they might not be very happy. You really should treat everybody in an equitable fashion.

 

Contrary to what dead_cat_bounce has said the likes of Payplan (and all other DMP firms) to be adhering to the same set of rules, the fact that they receive a 'fair share' contribution shouldn't really hinder anything. The figures they allow you to live on should be similar to those used by the debt charities or the likes of the CAB.

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