My own DMP

[LooLoo]

Hi

I have had a huge struggle over the past year and really did not know which way to turn. My money coming in was just going out and the I was relaying on any bits I still had on my credit cards or in the overdraft to live on. Bills were coming in and I had the extra expense of a divorce and a VERY greedy ex.... and I had really come to the end of my tether.....

So which way to turn........

In the following months I had some very hard decisions to make and decide which way to go.

In the first instance I approached Pay Plan and arranged an interview over the phone. I felt complete worthless after the phone call and completely demoralised (please note this is my own personal experience and I know many people who have DMP with Pay Plan that work). The woman I spoke with was so unhelpful, and I said things like ok I pay XX amount for pet insurance - WELL THAT IS NOT ALLOWED - erm but I have to pay it - NO IT IS NOT ALLOWED! Then she questioned my diesel useage - erm but that is what i use each month - WELL WE WILL HAVE TO CHECK THE MILEAGE TO YOUR JOB - er what so iI can't actually have a live outside work then (or carry on with the second job i do), work lunches - i think she said about £5 a month.... by this time I had just about given up!!

I then went online with CCCS to do a plan, and they came back with - you should think about bankruptcy.

My next port of call was to my local cab office, her first thing to say was, well you really have to think about BR but straight away you must stop paying your mothly payments and offer them a £1 token payment and she also offered to do any letters for me. After the meeting she sent me a very detailed letter explaining what we had discussed and also gave me her direct line number so I could call at any time to chat and discuss things over with her. I really can'f fault CAB for the amount of help and support.

During this time I had also been on the MSE website and got lots of support and advice from people there.

Finally I called the Natinal Debtline....... and decided after some advice from a lovely lady there (who acutally offered to call me back as I was quite upset as felt I had no way out) I decided to start and embark on my own DMP and I would like to share with you how I did this and managed it on my own.

However in all instances I would advise anyone to contact one of the debt charities (your local CAB/National Debtline or CCCS) and of course read all the help and advice on this site.

Looloo
x

[enoughisenough]

Re: My own DMP

Hi Sunnylooloo,

I read your post with some interest! It's great that you have sorted this out yourself...

Just over 6 years ago, we signed up with a company who arrange DMPs, paying them in the region of £2000 to get started (we actually used a bit of credit to do this). They promised that within a couple of years, due to a tax loophole, the companies we owed money to would most likely write off our debts... they also showed us a massive file of letters from DCAs and creditors accepting full and final settlements of £1 or £2 and said that if they didn't write them off, then they'd accept tiny payments to write off the debts...

Six years later and there had been no sign of any of the companies wiping our debt (of course - why the heck would they!) we also decided to sack the company and go it alone with our DMP. We contacted the CCCS to see if they'd help, however they can't deal with people only paying token payments... they said go bankrupt, which we can't afford.

So we sent all of our creditors the budget and information that the CCCS put together for us and (stupidly!) asked them to write off the debt as we were getting stressed! They all either declined or didn't respond, however the ones who replied said they'd accept £1 a month. So we phoned them all up and offered them £1 a month - eventually they all agreed, even the ones who said at first that they did not have the power to authorise it!

Then, the very next day after making the phone calls, we discovered unenforceability and we are going down that route now.

A word of caution to anyone thinking of paying a debt management company - they lie to get you on board. Including the lump sum to start their services, we have paid them in the region of £7000 over the last 6 years and only around £2000 of this has gone to our creditors - you can imagine where the difference goes... My advice if you want to have a DMP, is to do it yourself, but contact one of the charities first and get them to create a budget plan with you which you can use to send out to your creditors offering token payments.

[LooLoo]

Re: My own DMP

Thanks Enough

First of all congratulations on going down the UE route.

I'll post tomorrow when I have a bit more time to let people know how I go on approaching the creditors and how I got my template letters etc...

What can I say about paying DM companies. I am just very thankful that I found MSE then Bats site and now Niddy's to know who to contact and that NOT to pay people.

It is such a shame that so many people pay these companies and then find out that hardly anything has gone to paying their debt off.

The thing is so many people want to get themselves out of the mess they are in and do want to pay their debts off.

I still have a long way to go and I still have BR or UE options to think about.

I hope my experience can help people a bit.

Good luck

[IF]

Re: My own DMP

Hi Loo, just wanted to say hello and hope things get sorted for you....it's been a long year lol x

[LooLoo]

Re: My own DMP

Thanks for all your support If and do you like the new site?? somewhere else to visit eh!

[Phoenix]

Re: My own DMP

Hi Sunnylooloo,

I know it is none of my business - but that doesn't stop me havng an opinion!

Have you thought about UE? I contacted Payplan and was not very impressed with them. They suggested a DMP - think I would have been about 250 before it was paid (and that is assuming interest had been frozen!) But what really annoyed me is that the kept trying to sell some sort of insurane policy - although they were going to calculate any excess money they obviously thought there was enough to pay them for this! And then I found Nid and UE - and the rest, as they say, is history!

If you do go down the UE route there are loads of people on here to help - and it seems to be getting more every day!

[Never-In-Doubt]

Re: My own DMP

Sunny has different circumstances Ann - she has property and other stuff so really not worth it right now, she knows to speak to me and I am helping in other area's but unfortunately UE is not suitable for her.....

Shame really, but hey ho!

[LooLoo]

Re: My own DMP

Hey ann you can be a nosey as you want - think we know each other well enough now!!

Yep I have spoken to Niddy (and also Bat and Phil) about my situation for a while now and we think whilst things are "ticking over" it is best to carry on this way - tomorrow when I have a bit more time I'll share with everyone how I went about starting my own plan)

I am glad to hear your opinion on Pay Plan.... I can't beleive how awful they were - I don't want to slate them too much as I know lots of people have got DMP's and IVA's with them - but I would never have been able to cope.

Niddy is being a great help to me over my other "little problem" (still not heard back from then yet Niddy)

Anyhoo I will go and join in some chit chat now - and Niddy it all looks like it is going really well

[LooLoo]

Re: My own DMP

After lots of thinking and mainly it was my chat to National Debtline, I decided to contact my creditors directly.

I used the template letters from the ND website and also their Income and Expenditure sheet - it works out for you, out of your surplus what you should pay your creditors.

I wrote the letters at this time to 2 of them (all credit cards - I also had two O/D which I also had to deal with - will come to those later)

I cancelled my direct debits (I changed bank accounts opened a co-op basic account - I am not sure how much longer I can keep this as one of my creditors is the Co-op and don't want them to offset anymoney)

Once I cancelled the DD's and missed one month's payment the calls started. Now it was only some advice from a friend and being on the "other" site, I could deal with them. All my debts were then and still are now with the original creditors. With the calls I would only give them my home number (out at work most of the thime and have caller display so very easy to ignore).

Finally I got responses to my letters. I did follow mine up with a call and all get set up on to an arrangement plan (some wanted a touch more than I originally offered but we basically hit a happy medium which I could cope with)

With each of them they do ask for a review every now and then, some after 6 months and some after a year. I just update my letter and I and E sheet and send back.

The Halifax original wrote to me and said they would only do a DMP if it was with a company such as PayPlan - this is rubbish - they can accept it from you directly (obv they dont have to). I got a reference number from National Debline and quote that on my letters.

So I have had almost a year of paying my DMP and I can see my balances actually coming down. Most of them have frozen or reduced interest and charges.

Please note that this does shoot your credit history to bits..... mine went from excellent to very poor almost overnight. However for me it was all about tackling my debt and being able to survive rather than have a good credit history.

Egg have told me that I only can have this arrangment for a year "then we have to make other arrangements" so wonder what that will bring.

My actual goal is that when my house is sold and the ex is paid off, with the money I have over I can start making F and F offers where possible but we will see how that goes.

Nothing is cut and dried for me and who knows what is around the corner.

In my next post I'll let you know about the O/D's

[DVardysShadow]

Re: My own DMP

Egg have told me that I only can have this arrangment for a year "then we have to make other arrangements" so wonder what that will bring.

It sounds threatening, but my guess is that they keep it that way for a year and then see at the end of the year whether your circumstances have changed. If they can get you back to full repayment, then all well and good. But if the can't, they may well sell the debt on. That would be my take.

[LooLoo]

Re: My own DMP

Yep I am sure they will probably sell it on - o well we'll see..... still got a couple of months left

[MRS A]

Re: My own DMP

Sunny I was busy reading your story and then it stopped - aaargh.

Can I have your next installment soon please ;--G

Re: My own DMP

It's really difficult to read a friends story when they're still going through it and not too sure what might happen. We've spent a year together and it saddens me that it's not allover for you just yet. You're doing so well, you're attitude is tip top and you're a strong strong lassie.

Maybe you know that the very worst is not too bad because you've been with us through our journeys. I'll be an avid reader loo, jeering you on x

Courgette?

[LooLoo]

Re: My own DMP

Thanks Mrs A - I have read your thread but I think you have been given some good adivce already - but feel free to ask my any questions and I will be happy to help

I will update you shortly on the O/D's.....

Ah Miche thanks hun ( ;EEK you were up very late!) I really do appreciate all the support I get from you all - be totally lost without the Christmas Crew!! haha.

I am going to put some courgett recipes up on the home made board! just for you!! Love ya

xx

[confused76]

Re: My own DMP

what a year it has been for you ;K7
you're doing well hun xx