www.iva.co.uk

Hi, we are in the early stages of setting up a DMP with a company highly recommended on this site. We have joint debts are £90k and 14 creditors. I took a call from a creditor last week and was made to feel like a criminal, came off the phone in tears. I have been too scared to answer the phone since. This creditor has now passed this debt over to a debt collections company and I have received a letter from them asking me to call them. I would rather not speak to any creditor, but, I am worried sick that debt collectors will start coming to the house if I dont take the calls. Would appreciate an advice that anyone can give me, I have visions of a nasty debt collectors coming to intimidate me. I must admit I am finding this stage very hard. I am constantly in tears and basically leaving in fear of whats going to happen.

With that level of debt, why are you doing a DMP rather than an IVA as a matter of interest? Try not to worry about the creditors. Your DMP company should be dealing with them on an ongoing basis, and it should not take too long before your plan is in place.

Hi Melanie
It was the advice from your company. At present we have very little DI but this will increase considerably within next 6 mths when I am back in full time employment. At present we can only afford to pay £300 into a DMP but this will increase to £1200. Also majority of debt with MBNA. It has been suggested an IVA would be suitable when our circumstances change.

With that sort of DI, I would look to be doing an IVA from the outset, especially if your payments will be increasing.

Take two or three opinions - visit www.iva.com and you will find companies and reviews on there. The advice is free and impartial and you should be told about all the options open to you and the best way forward for your circumstances.

If on paper you show that you you could pay off all of your debts in under 10 years, and MBNA are more than 25% of your aggregate debt, they will reject an IVA so DMP is really the only option.

My staff would have built that into the advice provided, hence our recommendations to you.

Sorry Mel - teach me to read posts properly in future!

No worries Jan - we all wish there was not this criteria, as this case was a classic IVA notwithstanding the MBNA influence.

Thats exactly what we were told Melanie and we are happy to go down DMP route. The service we have received so far from the company we were recommended has been fantastic. I think I have to accept the calls and letter and going to be part of the siutation we have got ourselves into. Probably best to face them instead of hiding away. This site is a godsend.

Hi Poppy123

You may never know MBNA may just send their debts to a debt collection agency and then the clause will be gone.

Good luck and I know how difficult it is to speak to creditors but if they get funny tell them that you are going into a DMP, give them the name of the firm and tell them to speak to them directly. This usually tells them you are serious and that you are not just using the DMP as an excuse (suppose some people do).
Most debt collection agencies will accept any payment or even a one off cash payment. I know MBNA would love me to pay £2000 of a £7500 debt.

Good luck, stick around on the forum there are some wonderful people who give out fantastic advice.

Martyn

Yes, most Debt collecion people are quite stupid and just want to intimidate and frustrate you. Don't give in and stand your ground - some people on this site advise to ignore calls and letters, my advice is to offer a minimal payment, say £1 to everyone to show you are willing to offer something.

Debt collectors may be bullies and try to intimidate you, but stupid they are not. They know exactly what they are doing.

I don't like their tactics either and some of the horror stories we have had on here would make your hair curl.

However, the call centre staff are on a pittance and have to make their money up by commission which is why the are so aggressive.

Best thing is either not to speak to them at all, refuse to confirm your security details or just politely tell them you are doing a DMP/IVA and put the phone down.

Do make sure the DMP company let you know if the MBNA debt gets sold on or assigned - as this may open the door again to an IVA for you.

Just want to thank you all for taking the time to reply to my post. I am feeling alot more positive today. Fingers crossed MBNA sell debt on.