DMP & Mutual Support Thread - Part 9

Bettingmad · 16 February 2013 at 9:00AM

Allypops wrote: »

In your situation I would not go down the DMP route. If you are making all the payments with a surplus it is not necessary - you can look at snowballing instead where you pay minimum payments on all but the debt with the highest interest which you pay the minimum plus your surplus to. Once paid off you use that payment towards the next highest APR debt and so on. Sounds obvious but really can shorten the time to being debt free.

If you enter into a DMP, you would have to show that you are unable to meet your commitments. Also, the new defaults may not be issued straight away (some of mine have still to issue a default and some have waited 20 months) so you could actually be talking 7-8 years before the new defaults drop off your credit file so making a mortgage either more difficult (some say nigh on impossible) or more expensive.

In your situation, a DMP is using a sledghammer to crack a nut. Post your SOA, take on board any tips, keep a spending diary and hopefully you can start making inroads into the debt. Good luck.

regarding companies defaulting you after 20mths, have you made an official complaint and referred it to ICO as it is clearly against their guidelines to have issued defaults at such a late stage?

Time_to_face_the_music · 16 February 2013 at 9:05AM

dad2one wrote: »

Hello all.
What a great little community this is then! Absolutely marvellous to see so much solidarity and support. I'm just going through my DMP application now. Will be great to have some spare cash and pay my debts off.
Anyone have experience of M&S finance? Are they reasonable?
I've not yet arranged a DMP but will have to send a letter and a token payment soon anyway.
Good luck all.

Hi dad2one and welcome :hello:

I am probably not the best person to ask about M&S but, as you will find from reading posts here, there are no hard and fast rules with any creditor. They seem to have some sort of magic calculator but no-one has any idea what they put into it or what is going to come out the other end!

Are you planning your DMP via StepChange or Payplan?

This thread is all about help, experience, advice and support. So please stick around and ask if you need anything

Julie67 · 16 February 2013 at 9:25AM

Morning all,

Still no letters acknowledging the DMP from creditors but another token payment cashed. I also got the letter from SC yesterday with my log in details.
Absolutely mad weekend so far so not managed to do a food shop yet.
Will be waiting for the post as usual today, and a mad clean up this morning.
Have a good Saturday all J x

Time_to_face_the_music · 16 February 2013 at 12:41PM

Find_The_Real wrote: »

Hi Everyone

I just thought I would pop in and say hi to you and all my fellow newbies.

I have just started the first month on a DMP with StepChange and I have to say they have been wonderful so far along with all the advice on this excellent forum. It has been a great relief to know there are people out there who have experienced problems with debt and have got through it and that help is always at hand.

As someone who has always paid their debts it was hard at first to accept that there was a problem but I am so glad I took advice on how to sort it out.

I have been fortunate at the moment that my creditors seem to have bit a bit quiet and apart from a couple of letters acknowledging my letter to them saying I was on a DMP I have not had a lot of contact but I am sure that will all change once the accounts go into arrears this month. However having spent the last year dealing with the repossession of my house I am pretty much prepared for it all and any phone calls I may have. Not necessarily the best training but it has certainly made me able to deal with any debt people contacting me!

I just wanted to wish those on their journey good luck and congratulations to any of those that are now debt free who still so kindly take the time to share their wisdom and advice, and for that I thank you all.

Hi Find The Real :hello:

I must have missed your post in a flurry of activity but just wanted to say hello and welcome to our thread.

Anything you need help with, just ask, there always seems to be someone here whose experience can assist with most questions. I love the thread for the support offered so please stick around and join us

Time_to_face_the_music · 16 February 2013 at 12:44PM

Bettingmad wrote: »

regarding companies defaulting you after 20mths, have you made an official complaint and referred it to ICO as it is clearly against their guidelines to have issued defaults at such a late stage?

Does this work?

I recently spoke to the FOS about M&S marking me as up to 6 months late payment, which is not true, rather than a default and said I would prefer the default. The FOS seem to think a late payment marker is better but I don't share their opinion!

Is there any way the ICO can force a default?

Bettingmad · 16 February 2013 at 2:41PM

Time_to_face_the_music wrote: »

Does this work?

I recently spoke to the FOS about M&S marking me as up to 6 months late payment, which is not true, rather than a default and said I would prefer the default. The FOS seem to think a late payment marker is better but I don't share their opinion!

Is there any way the ICO can force a default?

Definately make a complaint to ICO, as the data entries are against ICO guidelines. Whether they will force a default is anyones guess or whether they will agree that the account is marked as AP or DMP. Saying this my understanding as AP's and DMP markers should only be used short term.

The principle of data entries on credit files should differentiate between can't pay and won't pay. Someone who is making an effort should not be placed in a worse position thatn someone who makes no effort to pay at all.

It grates me that having accounts marked as AP will do more damage than if I just stopped paying and forced a default. At least with a default it drops of completely after 6yrs whilst AP markers will still be there at least 3yrs after the account is settled. Therefore if the DMP is for 6yrs then negative entries will remain for 3yrs longer than if a default had been issued. This is far from fair.

Find_The_Real · 16 February 2013 at 3:02PM

Hello All,

Thanks for any welcomes.

Still very quiet on the creditor front at the moment but this week will probably see some form of communication as the payments are due. Let the fun commence....

Since entering into my DMP and taking my spends a lot more seriously for the first time that I can remember I am not desperate for pay to come around at the end of the month just mid-way through. My love of spread sheets has now grown to an obsession that may not be considered too healthy though.

I think I must been a first for the woman at the Halifax with my reasons for wanting to cancel the house insurance today, I guess they don't get an awful lot wanting to cancel due to repossession as she queried my response twice, probably not in the drop down box!

Hope you all have a good weekend.

Allypops · 16 February 2013 at 3:32PM

Bettingmad wrote: »

regarding companies defaulting you after 20mths, have you made an official complaint and referred it to ICO as it is clearly against their guidelines to have issued defaults at such a late stage?

No. Not sure whether I will or not as I don't have much fight in me at the moment

I'm sure I will come up fighting in the end tho

antonic · 16 February 2013 at 5:34PM

I didnt get defaulted till after 3 years of being on my DMP and I think they have done me a favour, as it means I have had longer to get used to without credit ! (not that I want any !).

Obviously thats not to everyones taste , but its fine for me !.

dad2one · 16 February 2013 at 5:38PM

Time_to_face_the_music wrote: »

Hi dad2one and welcome :hello:

I am probably not the best person to ask about M&S but, as you will find from reading posts here, there are no hard and fast rules with any creditor. They seem to have some sort of magic calculator but no-one has any idea what they put into it or what is going to come out the other end!

Are you planning your DMP via StepChange or Payplan?

This thread is all about help, experience, advice and support. So please stick around and ask if you need anything

Many thanks.:wave:
I am going through StepChange, only just applied.
Is there a letter template in app pack, or do I have to wait for confirmation of the plan before contacting creditors?

Thing is I am going to miss a payment very soon, so I was thinking of making a token one anyway.

DMP & Mutual Support Thread - Part 9

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