DMP & Mutual Support Thread - Part 11

motivated · 9 March 2017 at 8:46PM

S1Ebbz wrote: »

Evening all

So I have come home today to various letters from my creditors requesting that I respond to them with income and expenditure. They have enclosed documents to do this.

But confused as step change have sent this to them ... Contacted... And I have first payment going to them in April that is then being distributed. Do I just ignore these letters?

Hi S1Ebbz

I had a letter the other day from BC which said exactly the same. I had already contacted them through the secure messaging service to explain our situation so I ignored it and filed it along with the other documents I have.

I am leaving all of mine to SC.
M

sourcrates · 9 March 2017 at 9:31PM

S1Ebbz wrote: »

Evening all

So I have come home today to various letters from my creditors requesting that I respond to them with income and expenditure. They have enclosed documents to do this.

But confused as step change have sent this to them ... Contacted... And I have first payment going to them in April that is then being distributed. Do I just ignore these letters?

Most likley to be computer generated, so won't take your circumstances into account.

heavenlyharry01 · 9 March 2017 at 11:16PM

MrsSammyB wrote: »

Evening all,

Well I'm still on the complaint mission, so just an update... Vanquis said no, they don't agree, no they won't default me and yes I can take it to the fca - so off I go! Today's post bought much more exciting news though, the Co-Op have found in my favour and should've registered a default in 2014, (I had missed payments before my DMP as they were the highest payment and I couldn't afford) because of this they are not going to register a default at all, they are also writing off the £1800 balance I owe them and they apologies for any inconvenience! Woo hoo! Fingers crossed for more post like this!

Hope you're all well xx

That's awesome news! Well done.
I missed what your complaints are regarding though, is it the time they have taken to default you?

heavenlyharry01 · 9 March 2017 at 11:23PM

Creation seem to be my pain in the butt! They have sent another letter today which has again ignored my letter saying we wont be giving them our payslips, and ignoring my offer of £1 payment.
Its really patronising, "I don't think you understand the seriousness of the situation and "I am sure this debt is causing you considerable worry"
I think my plan of action with them, is to again send our budget sheet, and offer of payment, and also include the letter saying I will not be sending payslips. And maybe even photocopy their letters they have sent. Unless anyone has better advice?

Barclays have written, stating they will accept our £1 monthly payment.

Argos have written confirming they have terminated the account and will be registering a default.

Need to get some time to draw up the letters and file the paperwork

k_a_t_h_r_y_n · 10 March 2017 at 1:04AM

Hi

Myself and my husband are 3 years into a dmp, original debt was £40,000, we now owe just shy of £25,000. Unfortunately we have had to lower our repayments as my income dropped by 2/3.

We have approximately £50,000/£60,000 of equity in our house and I was wondering if there was a way of freeing up some of this equity to pay off the debt. We are currently on a really good mortgage and we don't want to lose the rate in an ideal world.

Is there a way we could have a second mortgage for just the £25,000?

Our existing mortgage company won't do it, I've already asked the question.

In my little everything will be okay dreamworld I was hoping to be able to combine both the mortgages when our credit. Score has recovered (6 years as opposed to the current 12 years on dmp)

I hope this makes sense.

Keezing · 10 March 2017 at 2:13AM

k_a_t_h_r_y_n wrote: »

Hi

Myself and my husband are 3 years into a dmp, original debt was £40,000, we now owe just shy of £25,000. Unfortunately we have had to lower our repayments as my income dropped by 2/3.

We have approximately £50,000/£60,000 of equity in our house and I was wondering if there was a way of freeing up some of this equity to pay off the debt. We are currently on a really good mortgage and we don't want to lose the rate in an ideal world.

Is there a way we could have a second mortgage for just the £25,000?

Our existing mortgage company won't do it, I've already asked the question.

In my little everything will be okay dreamworld I was hoping to be able to combine both the mortgages when our credit. Score has recovered (6 years as opposed to the current 12 years on dmp)

I hope this makes sense.

Hi Kathryn,

The only recommended way to release equity from an asset is to sell it.

Your credit file will make it very difficult to remortgage or to take out a secured loan, and neither are advisable as they increase your debt and put your home at risk.

Keezing

Sazzie23 · 10 March 2017 at 11:56AM

k_a_t_h_r_y_n wrote: »

Hi

Myself and my husband are 3 years into a dmp, original debt was £40,000, we now owe just shy of £25,000. Unfortunately we have had to lower our repayments as my income dropped by 2/3.

We have approximately £50,000/£60,000 of equity in our house and I was wondering if there was a way of freeing up some of this equity to pay off the debt. We are currently on a really good mortgage and we don't want to lose the rate in an ideal world.

Is there a way we could have a second mortgage for just the £25,000?

Our existing mortgage company won't do it, I've already asked the question.

In my little everything will be okay dreamworld I was hoping to be able to combine both the mortgages when our credit. Score has recovered (6 years as opposed to the current 12 years on dmp)

I hope this makes sense.

Hi, welcome to the DMP thread, I see you've made great progress already. While I think I understand why you'd like to put this currently unsecured debt into a mortgage, I don't honestly think it's such a great idea.

For a start, if something else went wrong and your mortgage repayment was threatened, your house would be at even greater risk. Secondly, you'd be paying interest on the debt (if you are still paying interest, let us know what/who/how and we'll try to help with strategies to get the interest cut).
Thirdly, I think you'll struggle to get anyone to go for it on a prime and sub-prime is really dodgy with massive charges just to apply and dubious variable interest rates.

So my advice would be stick to the DMP for now, reclaiming any bank charges/PPI or other monies you can reclaim and hang on in there.

Hope that doesn't burst your dream bubble to forcefully and just enlightens you to a different view:)

Saz

[Deleted User] · 10 March 2017 at 2:52PM

Bowkers wrote: »

Thanks for the quick response. Generally speaking is there any bank that are ok with people going on DMP? I currently bank with Natwest so unable to choose Natwest/RBS if memory serves me right so am considering Barclasys/Co-op.

Sorry I haven't been around for ages. Impossible internet and phone connection for months. I know we live in a rural area but it had got ridiculous. Shiny new service provider now smoothly up and running and I feel part of the world again:j:j:j

Just a quick reply to you, Bowkers (although a lot of time has elapsed since your post and you'll no doubt have found another bank by now). I opened a basic account with Nationwide, all done online remarkably quickly. Certainly no question about DMP or debt. They are a very well thought of bank/building society, lots of us on here use them:T.

Good luck:beer:

[Deleted User] · 10 March 2017 at 3:05PM

henrryyyy wrote: »

I am seriously considering applying for a DMP but have a few concerns. My debts are secret and only one very close friend knows about my struggles, I do not want my family finding out.
I have filled out all the stepchange details on their website and they have given me a plan, but I have not applied for their DMP pack yet.

Will me entering a DMP affect my family members ie blood relatives(who I live with) chances of getting a mortgage?
How likely is it I'll get contacted by debt collectors?
I really need to try to do this without my family finding out, is this possible?

Sorry, henrrryyyy, had horrendous internet connection issues so haven't been on here much recently. I would have responded to your worries straightaway if I'd seen them before:o

Firstly, please don't lose any sleep about anyone else knowing about your debts etc. Not a single person knows anything about mine (apart from people I owe money to and the lovely folk on here). Even my OH doesn't have the faintest suspicion. Just so long as they are your debts and not joint in any way you'll be fine. No one else at your address will know a thing about them (unless they open your letters or have access to your email account).

You will also find once your DMP is up and running that the horrible avalanche of phone calls from creditors will stop:j. My worry initially was that OH would answer the landline phone to one of these people but luckily he never did.

Please don't worry about debt collectors. Those TV programmes where bailiffs come round to seize goods are a very far cry from most of our situations. It is usually when the debtor has failed to comply after court action has been taken. I doubt anyone will knock on your door asking for money.

I see that sourcrates has given you some reassurance :T. He always give very wise advice:j

Good luck:beer:

Talia74 · 10 March 2017 at 3:52PM

Hello Everyone, We are going to start a DMP with SC, Following the excellent advice on here we will be starting it in July to give us time to build up an emergency fund and also to cover ourselves until we have changed to a basic bank account and sorted our direct debits out,

What we would like to know if someone would be kind enough to help is, we have 2 credit cards with Barclaycard and my husband banks with Barclays, we are already 2 months in arrears with both cards, now stepchange has suggested we make a token payment to them each month until we start the DMP, which is not a problem but our fear is that if we do this it will flag up and they will cotton on and try to grab any money in the bank account, as we know they have the right to offset,

Ideally we would look at making a token payment no later than the end of this month (when our new bank account should all be sorted) but stepchange say we should send a token payment asap? what would everyone advise on this please?

DMP & Mutual Support Thread - Part 11

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