Your views and questions.

Moderators: TalbotWoods, JaneClack

By fed_up_pip
#137502 I was just wondering if anyone here is further down the road than me on their DMP and can tell me what to expect. We're a year in, and so far have encountered no problems. Barclays sold one of our loans on, but has kept three others (don't know why), and our other creditors seem happy just trundling along... but how long will that go on for? Payplan estimates it will take us ten years to pay off our debts (although we hope for a better job, change in circumstances, or whatever, to pay it all off sooner of course), but will our creditors stick with it?

I'm wondering if it makes a difference if you increase your payments a bit every year - when you get a pay rise - so your creditors think there's a chance they might get their money sooner?

I'm worried after reading about how easy it is for them to get a CO or force BR.
User avatar
By chillychicky
#137523 It is very unlikelty that a cred will force B unless it is the revenue or possibly AMEX. It costs them too much that although a lot of them may threaten it in their letters, in reality it rarely happens.

If you own property a CO is always a possiblility - this is not my area of expertise though.

There are sadly no hard & fast rules. I have been on my DMP since Nov 04 (via CCCS) & haven't really encountered any problems (probably jinxed myself now!)

A lot of DMPs don't go the distance mainly because it is hard to stick to such a tight budget long term and unless you get a significant salary rise each year, cost of living increases usually mean that you can't up your payments that much anyway.
User avatar
By WilliamTDLX
#137559 Hi I have been on a CCCS DMP since May 2001. Once my DMP was set up all my creditors with the exception of MBNA played ball and have given me no trouble. As the years have passed I have had less and less communication with them (first couple of years Barclay would contact me once a year). My monthly payment started at £465 stayed at that level for a about 3 years then went up to £480 and now £508. About half of my debts are now cleared, and the rest with the exception of MBNA will be cleared by the summer. MBNA continued to dd interest and charges or they too would be due to be cleared shortly.

I second what has been said, normal annual pay rises make little difference as they are usually at or even below inflation. I only had a reasonably big increase in monthly payment this year because I got promoted.
By thoughtful
#137609
WilliamTDLX wrote:Hi I have been on a CCCS DMP since May 2001. Once my DMP was set up all my creditors with the exception of MBNA played ball and have given me no trouble. As the years have passed I have had less and less communication with them (first couple of years Barclay would contact me once a year). My monthly payment started at £465 stayed at that level for a about 3 years then went up to £480 and now £508. About half of my debts are now cleared, and the rest with the exception of MBNA will be cleared by the summer. MBNA continued to dd interest and charges or they too would be due to be cleared shortly.


:D That's music to my ears!! Thanks for posting your positive experience, WilliamT. :flower: :flower:
By Scrooge
#137736 Hi Pip,........DMPs offer no legal protection unless you are on the Scottish Debt Arrangement Scheme. If you are in Scotland I would recommend you contact Money Advice Scotland to discuss your options including DAS. With DAS, creditors legally CANNOT bankrupt you or take you to Court, hence cannot get a Charging Order. DAS may be a little tighter than Payplan, ie you be left with a bit less money (but not a lot less), but that's a tiny price to pay for the legal protection it offers.

With Payplan, one day in 6 months, 9 months anytime, 1 of your creditors could just decide to pursue you even though you are on a DMP. You need to plan ahead, keep ahead of these b******s. This means you need to be aware of what the chances are of being bankrupted by assessing your finances! There may be better options for you than staying on Payplan. If you give me some more info about your debt and circumstances I will give you my view as to what you should do. It really depends on your assets, job, income,debt and it is very important how many creditors you have. Strangely, it is better to owe 6 creditors £10k than owe 1 creditor £60k. This is because if there are 6, 1 bankrupting you would only get them a sixth of your assets. Eg: if 1 bankrupts you and you have £30k house equity, they will only get a sixth of what is left after the costs of bankrupting you which would get them a sum of about £2k, hence if you owe them £10k bankrupting you is a bigger waste of time than giving you more credit :D
User avatar
By poppy53
#137757 I've been on my DMP for 18 months now, and it's trundling along OK. Every so often a creditor will send a threatening letter (had a card today from Lloyds saying pay up or else) but they don't seem to mean it. I should be finished in 5 years time, maybe a bit less. One of my creditors is the Revenue and even they have been relatively OK. My tax bill shot up last month (just did my last self employed tax bill for 2005 - am now employed but tax bill is worked out 18 months after I earned the money) - tax bill has increased from £3 to £9 and Revenue was on the phone 2 seconds after my tax statement arrived. I have just had to do a reveiw with Payplan which increases Revenue payment and the woman I have been speaking to says she will probably accept it. I had heard they always go for bankruptcy but so far, so good - I told her last time I would rather pay off my debts and also it may affect my job, that I had no credit cards any more, not even a proper debit card because I was serious about becoming debt free - she said she would write all that down on my notes.