DMP & Mutual Support Thread - Part 11

sourcrates · 12 March 2017 at 3:33PM

henrryyyy wrote: »

Is it wise to make a token payment? I read in stepchanges booklet they emailed me says I should, would that still register as a default because full payment wasnt received or should i just make no payment? I've switched bank accounts now so it would mean giving my new account details, im thinking that might not be wise, but then i guess they cant attempt payment without my permission.

It's up to you, but I wouldn't bother to be honest.

I see no point in token payments at all.

motivated · 12 March 2017 at 5:12PM

henrryyyy wrote: »

Thanks for the advice, i didnt realise it was flexible in terms of choosing start date etc. I've always been fearful of creditors which is partly the reason im in such a mess being too scared to miss a payment or ask for help.
Did you make token payments on the lead up to your dmp? or just didnt pay at all?
Its great that yours has started, i bet you feel like a new person now you are on your way, i'll be following your progress and hope you successfully complete your plan

I never made token payments as I sorted my DMP just before any payments were due. I asked my bank for a repayment holiday on 2 loans. They agreed and I added this to my EF. I contacted creditors and pre warned them that we were in financial difficulties up until then we too had never missed a payment on anything. Things are now starting to go into arrears as we speak. Now I am letting SC take the reigns.
My 1st payment goes on the 1st April.
So far so good for us
Good luck
M

heavenlyharry01 · 12 March 2017 at 8:46PM

Just to reassure those just starting (it's new to me too). I haven't made a full payment since November to my 11 creditors.
I set up with stepchange and then cancelled after one month as I wanted to self manage.
I then stopped payments to them all, then gradually wrote to them offering a £1 payment.
I've had hardly any phone calls and standard letters.

Sazzie23 · 13 March 2017 at 5:25AM

DancingUnicorn wrote: »

Hi,
I'm not sure if I'm doing this right but I finally got some of my debts sorted today and wanted to find somewhere for some advice/support/encouragement/general chat about things.

I had a token payment plan with stepchange which I have been doing for around 6 months. My finances changed slightly and I'm now going to be entering a DMP with them to pay a little more towards my debts. I was in touch with them about this in December but due to my anxiety have only just managed to send my documents off to them.

My Natwest overdraft and loan were transferred to a company called Wescot who have been trying to ring me to ask why it wasn't set up yet. Having spoken to them today and explained about my anxiety, they have removed my phone number from their system and will only contact me via post to minimise any anxiety caused to me - I never knew a debt collection company could be so nice!

Hopefully, my DMP will be set up in the next few weeks and I'll finally see some movement in some of my debts (£1 a month doesn't move them very far!).

Like I say, I'm new here and just wanted to get involved. I've read the first couple of posts and a couple of the most recent ones, so I hope I've not broken any rules about posting. I'll be going through and looking at some of the older posts later today when I have some more free time.

Looking forward to some support and hopefully one day I can help others too.

Hi Dancing Unicorn and welcome to the DMP thread:beer:

We like company and encourage posting, so Defo no rules broken here.
There is certainly plenty of reading to keep you busy. As you'll read we often don't recommend token payments but in your case I think it's a requirement of SC until you are able to start the DMP so don't worry. Try to think of your delayed DMP start as a bonus, since your debts should have defaulted and reduced to 0% interest, so those are good things. If they haven't, tell us and we'll make suggestions about what you can do.

Remember defaults are your friend, the earlier the better as they have a definite end date on your credit record (6years after default they drop off even if you are still repaying). Other markers you might get on your credit file will stay on for 6 years after the debt is settled so for someone like me with another 8 -10 years possibly I will likely be retired before my credit file was cleared (however I'm now defaulted so I should have a clear record by the time I'm paid up).

Look forward to you joining us in supporting DMPers old and new.

Saz

Ps I suffer anxiety too, hence I'm awake at 4am writing this, is therapy for me

Sazzie23 · 13 March 2017 at 5:31AM

henrryyyy wrote: »

Hey,
Thanks again for the advice, I know you are right and I need to change my mindset, ive just imagined my creditors as being these people to be feared. Im just going to talk to them all tomorrow and tell them im in financial diffiulty amd getting advice from stepchange.

Is it wise to make a token payment? I read in stepchanges booklet they emailed me says I should, would that still register as a default because full payment wasnt received or should i just make no payment? I've switched bank accounts now so it would mean giving my new account details, im thinking that might not be wise, but then i guess they cant attempt payment without my permission.

Hi Henryyyy

I think this is answered already by outperform other fine DMPers, but just to be clear, If you are going to a DMP, there's no point continuing to pay, cancel your DD and CPA and tell them you are in difficulty and will be setting a DMP and will let them know.

Don't forget that defaults are your friend, (see my reply to Dancing Unicorn above).

Well done for making a start at facing your debts, and look forward to getting the budget under control. My advice is : Don't stretch yourself too far at first, it's tough starting a DMP, make life easy on yourself by having some slack in your budget, either by not declaring your overtime, your bonus or being creative with your budget

Saz

henrryyyy · 13 March 2017 at 10:42AM

thanks, all my direct debits are cancelled and my wages have now been setup to be paid into my new account. I did my budget so that I would be able to live with a bit of wiggle room, its hard to judge your figures, but with what i filled in after rent and my dmp i'll have 300 to pay my monthly expenses with, which is great

so just now I contacted my first creditor 118118, kinda hit a brick wall as they wanted a reference number which i dont have yet(apart from the debt remedy reference which it says not to give to anyone) They have put my account on hold for 7 days until I get the number. He said he searched the stepchange register and didnt see my name on it, I guess I have to wait til I've signed the forms they are sending

on a side note i saw advice about trying to get payday loan refunds a few pages back, i contacted all mine asking for statements, sunnys the only one to have replied so far and just explained how to get access to it thru my (closed) account. done all the calculations and im staggered to see that I paid 2.6k interest in just over a year on that one alone.
Hopefully I'll have some success in trying to claw some of it back

sourcrates · 13 March 2017 at 11:33AM

henrryyyy wrote: »

thanks, all my direct debits are cancelled and my wages have now been setup to be paid into my new account. I did my budget so that I would be able to live with a bit of wiggle room, its hard to judge your figures, but with what i filled in after rent and my dmp i'll have 300 to pay my monthly expenses with, which is great

so just now I contacted my first creditor 118118, kinda hit a brick wall as they wanted a reference number which i dont have yet(apart from the debt remedy reference which it says not to give to anyone) They have put my account on hold for 7 days until I get the number. He said he searched the stepchange register and didnt see my name on it, I guess I have to wait til I've signed the forms they are sending

on a side note i saw advice about trying to get payday loan refunds a few pages back, i contacted all mine asking for statements, sunnys the only one to have replied so far and just explained how to get access to it thru my (closed) account. done all the calculations and im staggered to see that I paid 2.6k interest in just over a year on that one alone.
Hopefully I'll have some success in trying to claw some of it back

Pursuing payday loan refunds is a good idea.

Check out debt camel :

https://debtcamel.co.uk/payday-loan-refunds/

Speaking to your creditors on the phone is not.

Keep everything in writing :

(1) so your message does not get lost.
(2) so you have a record of what's been agreed.

[Deleted User] · 13 March 2017 at 11:36AM

henrryyyy wrote: »

thanks, all my direct debits are cancelled and my wages have now been setup to be paid into my new account. I did my budget so that I would be able to live with a bit of wiggle room, its hard to judge your figures, but with what i filled in after rent and my dmp i'll have 300 to pay my monthly expenses with, which is great

so just now I contacted my first creditor 118118, kinda hit a brick wall as they wanted a reference number which i dont have yet(apart from the debt remedy reference which it says not to give to anyone) They have put my account on hold for 7 days until I get the number. He said he searched the stepchange register and didnt see my name on it, I guess I have to wait til I've signed the forms they are sending

on a side note i saw advice about trying to get payday loan refunds a few pages back, i contacted all mine asking for statements, sunnys the only one to have replied so far and just explained how to get access to it thru my (closed) account. done all the calculations and im staggered to see that I paid 2.6k interest in just over a year on that one alone.
Hopefully I'll have some success in trying to claw some of it back

Well done on getting things set up:T. Before long you'll be feeling so much more relaxed about yourdebts. Don't forget, you are making efforts to repay them and not just walking away from them. Be proud of that:beer:

Although I'm trying to repay my debts in the shortest time possible (being retired, time isn't on my side:eek:) I have found that even with a very stringent budget I have more money available to spend on the occasional small treat or not have to buy the cheapest, reduced stuff in the supermarket. That's because pre-DMP I was using every single penny I had to try to keep up with repayments (mainly the obscene amount of interest they were adding every month:mad:). Not only that but I was robbing Peter to pay Paul, paying the minimum on one maxed-out card only to immediately withdraw what was left at an ATM to repay the next card bill that was due. Horrible times:o. I often had only a small amount of loose change to pay for the weekend's food. By small I mean a toss up whether to buy, say, milk or bread. Both were impossible:o. I never have that problem nowadays. Without credit cards and with debt interest frozen I feel totally liberated:j.

One thing in your post that spooked me a bit. You said one of your creditors had searched the Stepchange register for your details:eek:. I didn't know such a register existered or that creditors had access to it. Big Brother and all that:eek:

Good Luck with your interest reclaiming:beer:. Don't forget to come back and let us know how you get on with it:)

Billy12345 · 13 March 2017 at 12:10PM

Hi all

Wonder if someone can give me a bit of advice here. I am currently on a DMP with SC and on reduced payments for three months. I have received defaults from some of my creditors but not all (surprisingly I have received a default from BC which is unusual). Anyway my queries are

1. will the creditors do anything towards recovery as I am on reduced payments but they have issued default notices. They have received notification from SC of the reduced payments but only BC have acknowledged this.

2. Shall i stay on reduced payments to force the remaining creditors to default me or will this have a detrimental effect on the ones which have already defaulted me.

As im with SC i cant pick and choose how much to pay as SC work this out and pay the creditors so if i say ill pay £5 to each creditor SC dont work like this but they will get the total paid to them and split this out using the calculations of how much is owed to who.

Advice greatly appreciated

Billy12345

sourcrates · 13 March 2017 at 12:29PM

Carry on as you are billy.

Stepchange pay your creditors "pro rata", dependent on how much you owe them, all will be fine, they cant take what you dont have can they, its that simple.

Getting eveything defaulted should be your next goal.

DMP & Mutual Support Thread - Part 11

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