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  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 12,700Posts
    • 12,042Thanks
    sourcrates
    DMP Mutual Support Thread - Part 12
    • #1
    • 26th Mar 17, 12:20 PM
    DMP Mutual Support Thread - Part 12 26th Mar 17 at 12:20 PM
    Welcome to the DMP mutual support thread Part 12 !!

    Here you can find help in starting and running your DMP, self managed, Stepchange, Payplan and any other DMP all welcome here, but we do encourage you to use a free service, not one you pay for.

    There is help on getting interest and charges stopped, how to start with an emergency fund, defaults, token payments and lots more.

    If you are in a DMP or thinking of one, this is the place to be. We are non judgmental and all questions are welcome.

    Again the old thread was getting a tad long, so time for a new one.

    The old thread can be found here :

    http://forums.moneysavingexpert.com/showthread.php?t=5285089

    Once again, i think the original "newbie" post by sazzie23 still rings true.
    Last edited by sourcrates; 26-03-2017 at 12:50 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
Page 106
    • piper89
    • By piper89 4th Oct 17, 10:36 PM
    • 4 Posts
    • 5 Thanks
    piper89
    Advice required
    Hi Folks
    So last week I decided I needed to sort my life out as I was sinking in unsecure debts mostly PD loans due to gambling I had a look at Stepchange and went thru the online process and they recommended a DMP 2 years 4 months £211pm I noticed I forgot to add a guarantor loan (I know) I called them and they added it as debt owed to family/friends but on this action plan it recommended BR which isn't and option for me.


    So after searching online I came upon debt advisory service give them a call and went thru the debt action plan which came back as £2- per month yet I was spending £280 PM on smokes i decided to stop smoking (which i have done so far) and throw this at the DMP £278 pm over 4 years 7 months double what Stepchange was this is due to the monthly fee of £57.I have been back on stepchange and tried to re do the plan minus the smoking but it keeps thrown out the BR on the action plan is there any other way I can work around this??...or use another company...
    • DJB343
    • By DJB343 4th Oct 17, 11:06 PM
    • 34 Posts
    • 63 Thanks
    DJB343
    Hey guys,

    Just want to check in. I'm 3 months into my DMP, and feeling so much better about it - I appreciate all the help and replies the regulars have written. I've also just moved in with the girlfriend, and she has been very supportive about the matter - and we have a glass of wine or 2 every month the SC DD comes out.

    A long way to go (sum is in the sig), and still waiting on 2-3 to default, but it's SUCH a enormous feeling to know I am now eating away at the debt. For anyone struggling with debt, believe me when I say there is always a way out regardless of the amount.

    Thanks again guys, onwards and upwards
    5th Month into DMP
    £2,210 PAID | £32197.60 TO GO
    • penaltychargenotice
    • By penaltychargenotice 5th Oct 17, 8:26 AM
    • 41 Posts
    • 31 Thanks
    penaltychargenotice
    No reason not to go bankrupt - we rent and have no assets. The dmp for me and bankruptcy for hubbie was recommended by CAP. Before I went to CAP I had done some reading myself and thought this was the best solution for us both to go bankrupt. CAP went through our debts and recommended the DMP.
    • penaltychargenotice
    • By penaltychargenotice 5th Oct 17, 8:30 AM
    • 41 Posts
    • 31 Thanks
    penaltychargenotice
    Sorry, that reply was to Sourcrates!
    I'm still finding my way around the forum.
    • Suseka97
    • By Suseka97 5th Oct 17, 1:50 PM
    • 147 Posts
    • 220 Thanks
    Suseka97
    No reason not to go bankrupt - we rent and have no assets. The dmp for me and bankruptcy for hubbie was recommended by CAP. Before I went to CAP I had done some reading myself and thought this was the best solution for us both to go bankrupt. CAP went through our debts and recommended the DMP.
    Originally posted by penaltychargenotice
    Definitely go with Sourcrate's suggestion then. I've no experience of BR but if I was in the same position I'd definitely not do both. I do hope your husband's health improves and whatever you decide - always remember you and he come first (creditors can wait). Good luck.
    LBM Apr13: 14 Creditors / £85k+ owed
    Self-managed Aug17
    Current Status: 6 Creditors / £11,994
    • Dandytf
    • By Dandytf 5th Oct 17, 11:55 PM
    • 927 Posts
    • 351 Thanks
    Dandytf
    Excellent advice from checkmy file.
    2nd default should not have been placed when co op account passed to link.
    Default should drop off 6 years from original date since 2015.
    I’ve been advised to write to co op to ensure default is removed or account suspended.
    Result I wasn’t excpecting-very happy.
    Printed letter to cop op this weekend it is then
    sc dmp 2012 13k

    Jan 2018 8759 paid. 60% ish...
    • fatbelly
    • By fatbelly 6th Oct 17, 6:28 AM
    • 11,647 Posts
    • 8,779 Thanks
    fatbelly
    I am thinking of setting up and managing my own DMP and I would really value any advice from anyone who has done this.

    The situation is that we have talked to CAP (Christians Against Poverty) a charity helping people get debt free like Stepchange. They have been through our debts with us and they have suggested that my husband goes through bankruptcy as he is now too ill to work. We have agreed that is the right thing to do. However the debt in my name is a smaller amount (£14000 approx) and CAP recommended a DMP which they would run. My concern is with the budget they have given us. It seems very tight and about a quarter of our income (which is made up of benefits) is going to the DMP after we pay the bankruptcy fees. I think it is too tight to be doable for the three years the think it will take. Firstly because as my husband is quite poorly we need his PIP money to help him now, he may not live the three years to benefit from when the DMP is proposed to finish.

    The second reason is that the amount CAP want to take for the DMP is over £100 more than I was paying in repayments before we came unstuck.

    So my questions are do we stick with CAP? Quite a few people have recommended them to us. Will Stepchange be any different?

    Are there any pros and cons to managing your own dmp?

    Is it cheeky to go along with CAP while they sort husbands bankruptcy and then pull out of the agreement?


    I've been thinking it over and I am really not sure what to do for the best.
    Originally posted by penaltychargenotice
    My thoughts on CAP are probably best saved for another day.

    I agree with the others that their plan makes little sense and bankruptcy x 2 makes more, unless there is a good reason why you must avoid insolvency.

    A better plan again (if you meet the criteria) is a bankruptcy for him and a DRO for you.

    You do not need third-party support to go bankrupt now - the website is very easy to navigate. If you can handle these forums, you can handle the website and make payment online by credit or debit card.

    However you would need a third party to do a DRO and CAP are going to need their arms twisted on that one - may be better to run things past stepchange or CAB, if your local one is still doing debt work and not crippled by the new casebook recording system.
    • StopIt
    • By StopIt 6th Oct 17, 8:39 AM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    Hi Folks
    So last week I decided I needed to sort my life out as I was sinking in unsecure debts mostly PD loans due to gambling I had a look at Stepchange and went thru the online process and they recommended a DMP 2 years 4 months £211pm I noticed I forgot to add a guarantor loan (I know) I called them and they added it as debt owed to family/friends but on this action plan it recommended BR which isn't and option for me.


    So after searching online I came upon debt advisory service give them a call and went thru the debt action plan which came back as £2- per month yet I was spending £280 PM on smokes i decided to stop smoking (which i have done so far) and throw this at the DMP £278 pm over 4 years 7 months double what Stepchange was this is due to the monthly fee of £57.I have been back on stepchange and tried to re do the plan minus the smoking but it keeps thrown out the BR on the action plan is there any other way I can work around this??...or use another company...
    Originally posted by piper89

    You can self manage.


    Use the NEDCAB website https://nedcab.cabmoney.org.uk/remedy_4.asp


    It'll work out Pro-rata payments to your creditors.


    As it's an informal agreement, there's no real difference between Stepchange doing this and yourself. Whatever you do, do not pay for this service. You'll be paying for nothing.


    You can always talk to Stepchange directly, rather than just using their site and they can potentially help also.
    • heavenlyharry01
    • By heavenlyharry01 6th Oct 17, 2:52 PM
    • 109 Posts
    • 133 Thanks
    heavenlyharry01
    Hello

    A quick question about defaults.

    What would your next move once you had asked a company to default you and they they refuse?
    NRAM have said that they will not default us. Even though we have been paying them considerably less than the original payments since August last year. Is it worth taking it to the Ombudsman?
    Thanks
    • penaltychargenotice
    • By penaltychargenotice 6th Oct 17, 5:48 PM
    • 41 Posts
    • 31 Thanks
    penaltychargenotice
    I would be interested to hear your thoughts on CAP. Two other people have tried to discourage me from using their services and I would really like to know if there is anything I should be aware of.

    After doing my own reading I think we should go along with hubby as a bankruptcy and myself a DRO but CAP wouldn't support this as they said I had too much spare income. I am not sure the benefit system is set up to give people spare income! I am going to chat again with the CAP advisor but I have a good idea now of what we need to live on and our options so I don't feel like I need them to be my only option. Hubbie's ill health is not going to improve much if at all so this is the situation we are faced with. At the moment we are not being bothered by creditors and I have worked out my budget, spare income and percentage payments for each creditor. Otherwise it will be minimum payments and filing for bankruptcy.
    • fatbelly
    • By fatbelly 6th Oct 17, 7:50 PM
    • 11,647 Posts
    • 8,779 Thanks
    fatbelly
    I would be interested to hear your thoughts on CAP. Two other people have tried to discourage me from using their services and I would really like to know if there is anything I should be aware of.

    After doing my own reading I think we should go along with hubby as a bankruptcy and myself a DRO but CAP wouldn't support this as they said I had too much spare income. I am not sure the benefit system is set up to give people spare income! I am going to chat again with the CAP advisor but I have a good idea now of what we need to live on and our options so I don't feel like I need them to be my only option. Hubbie's ill health is not going to improve much if at all so this is the situation we are faced with. At the moment we are not being bothered by creditors and I have worked out my budget, spare income and percentage payments for each creditor. Otherwise it will be minimum payments and filing for bankruptcy.
    Originally posted by penaltychargenotice
    For a DRO what counts is your income (not your partner's, halve it if joint) and your share of the expenses proportionate to that income. PIP, DLA and Attendance Allowance do not count as income. If your income is benefits then, as you rightly say, it is unlikely you will show as >£50 surplus for DRO purposes.
    • penaltychargenotice
    • By penaltychargenotice 7th Oct 17, 7:16 AM
    • 41 Posts
    • 31 Thanks
    penaltychargenotice
    So I need to persuade to CAP to go with the DRO as I believe you need a qualified person to do it unlike bankruptcy? If they won't I assume I can find someone else who will?
    • fatbelly
    • By fatbelly 7th Oct 17, 7:53 AM
    • 11,647 Posts
    • 8,779 Thanks
    fatbelly
    So I need to persuade to CAP to go with the DRO as I believe you need a qualified person to do it unlike bankruptcy? If they won't I assume I can find someone else who will?
    Originally posted by penaltychargenotice
    I don't think you'll persuade them to do something they don't want to do. You would hope they would act in the client's best interest but with CAP they have a 'repayment ethos' and get a 10% rake-back from the creditors on a debt management plan. Approved Intermediaries are not allowed to refuse to submit a DRO if asked but you really don't want someone to do this reluctantly. You could see what they say though.

    If you can find an AI at your local CAB that's best. One that refers you to the MAS unit is OK as long as your case is simple. Stepchange should also be OK in theory but you may hit the same problem as CAP.
    • Leanneglos1
    • By Leanneglos1 7th Oct 17, 2:00 PM
    • 72 Posts
    • 21 Thanks
    Leanneglos1
    Hello, I have received a letter from first direct, they’ve confirmed they have rejected the proposal from step change and my account will now go to HSBC recovery systems, I assume this is totally normal in respect of debt management plans??
    • fatbelly
    • By fatbelly 7th Oct 17, 2:24 PM
    • 11,647 Posts
    • 8,779 Thanks
    fatbelly
    Hello, I have received a letter from first direct, theyíve confirmed they have rejected the proposal from step change and my account will now go to HSBC recovery systems, I assume this is totally normal in respect of debt management plans??
    Originally posted by Leanneglos1
    It's normal for HSBC. They're useless. Stepchange will just start paying them anyway
    • Suseka97
    • By Suseka97 7th Oct 17, 2:29 PM
    • 147 Posts
    • 220 Thanks
    Suseka97
    Hello
    A quick question about defaults.
    What would your next move once you had asked a company to default you and they they refuse?
    NRAM have said that they will not default us. Even though we have been paying them considerably less than the original payments since August last year. Is it worth taking it to the Ombudsman?
    Thanks
    Originally posted by heavenlyharry01
    Interesting. Personally I don't think the ombudsman will be of much help here, we were in a similar situation with Barclaycard and the FOS found in their favour. Have you considered not paying them anything - or cutting back what you do pay to little more than token payments? There are a good few on here who have forced defaults that way. I know you'll probably worry about them taking court action -but as sourcrates has advised others on many an occasion, you'll get plenty of warning should they start down that route - time that allows you to re-enter into a payment agreement.

    Hello, I have received a letter from first direct, theyíve confirmed they have rejected the proposal from step change and my account will now go to HSBC recovery systems, I assume this is totally normal in respect of debt management plans??
    Originally posted by Leanneglos1
    Yep- and its good news because putting it into they 'recovery' system should mean they'll stop interest and charges and default the account (if they've not do so already). Just let SC know and they'll carry on paying regardless - you don't really need to do anything else.
    LBM Apr13: 14 Creditors / £85k+ owed
    Self-managed Aug17
    Current Status: 6 Creditors / £11,994
    • motivated
    • By motivated 8th Oct 17, 7:01 PM
    • 2,297 Posts
    • 3,481 Thanks
    motivated
    Hi all

    Iíve logged into my online banking on my old bank account to discover my 2 loans are not showing anymore. I have been paying them £10per month for a few months now. Halifax are the creditor. than scare me out of all mine. Maybe because the loans are for very high amounts. They sent me letters with FCA information enclosed and told me to carry on with the low payment amount for the time being.

    Anyway, any thoughts on what you think their next move will be? Both loan accounts are not defaulted yet so maybe this could be it.

    My MBNA accounts have informed us they will be defaulted at the end of the month
    M

    LBM £82,590 Jan 17/£79,720 Dec 17
    Short term goal £896/£1796

    SPC # 91
    PDBX 18 # £423/£2,000
    52 week challenge £17.84
    • sourcrates
    • By sourcrates 8th Oct 17, 9:06 PM
    • 12,700 Posts
    • 12,042 Thanks
    sourcrates
    Hi all

    Iíve logged into my online banking on my old bank account to discover my 2 loans are not showing anymore. I have been paying them £10per month for a few months now. Halifax are the creditor. than scare me out of all mine. Maybe because the loans are for very high amounts. They sent me letters with FCA information enclosed and told me to carry on with the low payment amount for the time being.

    Anyway, any thoughts on what you think their next move will be? Both loan accounts are not defaulted yet so maybe this could be it.

    My MBNA accounts have informed us they will be defaulted at the end of the month
    M
    Originally posted by motivated
    Most likely scenario is they are prepping them for sale.

    Banks dislike managing bad debts, it costs them money basically, thatís why they sell them on, time will tell, itís all perfectly normal and just a part of the game.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Mcfry80
    • By Mcfry80 9th Oct 17, 6:51 AM
    • 3 Posts
    • 0 Thanks
    Mcfry80
    wescot
    Hi
    Started a joint Dmp in June and everything has gone smoothly until I received a letter from Wescot saying they are now managing our natwest debt. They say they have contacted Stepchange and they have not replied so I need to contact them. I am scared to make contact as my mental health has not been good since we started facing our financial situation.
    The letter was only addressed to me and my husband has had no contact from them. Our Dmp is showing Stepchange still paying natwest. Has anyone else had a similar issue.? Will be contacting Stepchange but know the phone lines will be jammed so not sure when I will get through and don't want to leave contacting Wescot to long as don't want debt collectors to turn up. Any advise would be greatly apprechiated.
    • StopIt
    • By StopIt 9th Oct 17, 9:59 AM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    Hi
    Started a joint Dmp in June and everything has gone smoothly until I received a letter from Wescot saying they are now managing our natwest debt. They say they have contacted Stepchange and they have not replied so I need to contact them. I am scared to make contact as my mental health has not been good since we started facing our financial situation.
    The letter was only addressed to me and my husband has had no contact from them. Our Dmp is showing Stepchange still paying natwest. Has anyone else had a similar issue.? Will be contacting Stepchange but know the phone lines will be jammed so not sure when I will get through and don't want to leave contacting Wescot to long as don't want debt collectors to turn up. Any advise would be greatly apprechiated.
    Originally posted by Mcfry80

    Debt collectors wont be turning up any time soon, so don't worry. This isn't the 80's, seriously. The cost of sending someone far outweighs anything they'll get, and besides, you're paying into a DMP, so what's the point of wasting resources like that.


    Wescot only manage debts, they do not buy them, have no powers whatsoever, and the only difference you'll notice is a payment going to a different place.


    If you can't call Stechange, e-mail them with your DMP reference with the details Wescot have given you and they'll deal with it. Aside from that, you don't really need to do anything to a DMP you're actively paying into.
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