DMP Mutual Support Thread - Part 12

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  • Hi Amandadwi! Welcome to the DMP :) I am also a newbie on here and looking forward to getting everything set up. I would suggest having a few months to build up your emergency fund as you're going to need that extra cash. Initially I was going to use SC but decided to do it myself- seemed quite scarey but was straight forward using the NEDCAB templates from their website- I also found more wiggle room than the figures that SC set which for me meant I'd definitely be able to stick to that monthly payment. Anyway I'm currently awaiting DMP acceptance/rejection letters from my creditors- so far I have had 2 default letters, 1 off Tesco Bank for my loan and 1 off Santander for my overdraft (I haven't made any monthly payments since December). The amount I owe scares me- 33K!- but at least I'm dealing with my debts and the stress has gone. Good luck with your DMP journey!
  • motivated
    motivated Posts: 3,044
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    edited 23 April 2017 at 9:06AM
    Amandadwi wrote: »
    This will be the first time I have ever missed a payment so feeling slightly nervous.

    Feeling really nervous but read so many great diaries on here. gonna use this month and maybe next to build up an emergency fund as I have absolutely nothing. So not going to submit paper work to SC yet. Haven't had the courage to ring them yet but have done the debt remedy tool.

    Hi Amanda

    Newbie here too, welcome to DMP land.
    I can certainly relate to how you are feeling. Back in January I was exactly where you are now in debt to the total of £82,590 just on CCs and Loans with nothing to show for it :eek: Petrified of ringing SC worrying myself sick about the whole DMP process and what my creditors will do to me. Had never missed a payment on any CC or loan. Today I have a DMP up and running and its the best thing I ever did, honestly.

    SC were brilliant and not once did they make me feel bad or question any reason I was in the boat I was. They even told me after the call to go and make a cup of tea and not to worry. They were right, the stress and anxiety lifted almost instantly.

    All of our creditors have frozen interest and have stopped any late payment charges. All have accepted our payment plan and I haven't had one phone call or threatening letter. I even had the courage to ring and challenge Halifax when they did add interest, got it all refunded and stopped from now on.

    Its purely down to the guidance and support I've have from the people on this thread that's given me the strength to do this.

    Myself and my DH are so much more relaxed and getting on with life :D

    Definitely build up an EF before you start though. I held off payments for 2 months and used that money (and a little I got off the CC) also :p

    I'm loving DMP land, its given me back my sanity and my life. The overall total doesn't scare me anymore as I know that its going down every month.
    Good luck
    M
    Emptying my lake with a teaspoon
  • torheb
    torheb Posts: 20
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    I'm feeling a it consumed with the debt and thinkin about the DMP I've spoke to step change and have taken a couple of weeks to think about it and want to redo the budget and start the ball rolling this week with SC but I feel so anxious - do hey tell you what to do at each step - do you cancel all your dd's for your debt as soon as you send for your pack - I've set up a basic account with Santander ready after I foster talked to step change but I feel my anxiety has got so much worse since then I just can't pluck up the courage to take that step - can anyone talk me through the process a bit just simply and let me know if there's any things you didn't think of when starting it that are worth knowing - I've trawled the thread but I think I'm on information overload right now!
  • motivated
    motivated Posts: 3,044
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    torheb wrote: »
    I'm feeling a it consumed with the debt and thinkin about the DMP I've spoke to step change and have taken a couple of weeks to think about it and want to redo the budget and start the ball rolling this week with SC but I feel so anxious - do hey tell you what to do at each step - do you cancel all your dd's for your debt as soon as you send for your pack - I've set up a basic account with Santander ready after I foster talked to step change but I feel my anxiety has got so much worse since then I just can't pluck up the courage to take that step - can anyone talk me through the process a bit just simply and let me know if there's any things you didn't think of when starting it that are worth knowing - I've trawled the thread but I think I'm on information overload right now!

    Hi torheb

    Just to outline my personal journey into DMP land.

    Firstly I too opened a Santander basic account at the start of my journey and once I knew this was up and running we arranged for our wages to be paid into this. I jiggled budget around quite a bit on the SC website upping payments on a few things in order to give us a little extra so we are able to still live our lives whilst being on a DMP. I even added money for my cigarettes(I don't smoke) ;) I checked the figures and checked them again so I knew roughly what the monthly DMP payment would be.

    I then made the call that I dreaded so much to SC. (I shouldn't have worried, they were great) They told me exactly what to do and I then contacted my CCs through the online messaging service through our accounts explaining that we were in financial difficulties and that we were now unable to make the contracted payments and were in touch with and would be working with SC. They replied within a few days and held off interest etc for 30 days giving us time to sort things out. They were all fine with it.
    I then cancelled DDs from my Halifax account (to which I have loans with too) I wrote to Halifax explaining our situation. and then gave my priority payments like rent and council tax our new Santander account details for new DDs

    Things have been fine and you will feel the anxiety ease as you take each step into DMP land. I've been there I know how you feel.

    Others on here have been great for me and will be able to advise you further
    Good luck
    M
    Emptying my lake with a teaspoon
  • sourcrates
    sourcrates Posts: 28,720
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    edited 23 April 2017 at 5:07PM
    torheb wrote: »
    I feel my anxiety has got so much worse since then I just can't pluck up the courage to take that step - can anyone talk me through the process a bit just simply and let me know if there's any things you didn't think of when starting it that are worth knowing - I've trawled the thread but I think I'm on information overload right now!

    Hi,

    Best practice is to follow these guidelines, so DMP advice, in a nutshell.

    You've got to the point where you realize you cannot repay your debts, and a DMP seems like the way forward, so what do you do first ?


    (1) cancel/stop all non essential debt repayments.

    (2) set up new basic bank account, have your Salary and essential payments re-routed through it.

    (3) write to your creditors informing them of your financial situation, tell them you are contacting stepchange, and will be in touch in due course, ask for interest and charges to be stopped, also tell them you prefer contact in writing only.

    Your accounts will be put "on hold" for 30 days, to allow you time to get advice, but in reality, you can take as long as you like.

    The debt collection process is quite a long, drawn out affair, it can take years before a debt reaches the court stage, if ever.

    The key is not to rush into things too quickly, make sure the debt solution you choose, is right for you.

    (4) take some time to weigh up your options, save an emergency fund, do a workable budget, (that means one you can stick to) when your ready, contact stepchange (or other FREE provider, never pay for this service) to get the ball rolling.

    (5) stepchange will write to your creditors with your offer of payment, most will agree, some may not, that doesn't matter, they will either fall into line, or they will sell the debt on to a 3rd party, it makes no difference to you, you make your payment to SC, they pay whoever owns the account.

    (6) You should try to get all your accounts defaulted ASAP, if that means 6 months of no payments, or £1 token payments, then so be it, once defaulted no further interest or charges can be added, and you know that 6 years down the line, the debts will be off your credit file.

    The alternative to defaults are "AP" markers, (arrangement to pay) they stay on your file 6 years from when you pay off the debt, so potentially a very long time.

    (7) that's it, from then on it should all run smoothly, there may be the odd bump in the road, but basically you shouldn't have any more creditor pressures.

    Most DMP's run like clockwork, yours will too.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • System
    System Posts: 178,077
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    sourcrates wrote: »
    I personally wouldn't show a debt collector my dirty toenail clippings.

    They have no right to see any of your personal information, do what's best for you, always.

    Only let them see what you want them to see and you won't go wrong.

    Lol!! dirty toe clippings!! :D
    Thank you.
  • motivated
    motivated Posts: 3,044
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    Hi all

    Just checked Halifax account to see they have refunded another lot of interest that was added last month too. :D
    This has now brought my DFD forward again. Only by 3 months but every little helps.
    M
    Emptying my lake with a teaspoon
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    edited 24 April 2017 at 10:29AM
    It's so cheering to read the progress of all the newcomers to DMPland:T. Good luck to everyone just starting out on their 'journey' (how I hate that overused word but I can't think of anything better:o):beer:

    I'd like a bit of advice myself now please. Sorry if the answer is obvious or has been mentioned before.


    It's in connection with dropping my payments on my now self-managed DMP. I went self-managed at the turn of this year(after almost 4 years of being helped by SC) to gain more flexibility over my payments in the hope of making some F&F payments as soon as possible. I followed the advice on NEDCAB when I started out self-managing. At the outset I chose to pitch my payments just a bit less than I was paying via SC. I sent my creditors the necessary letters, I&E information etc and all went like clockwork:j.


    I now need to cut my monthly payments to the bare minimum, preferably to zero for at least 4 months to accrue a fund to use for F&Fs to the first 2 of my creditors. I only missed one month self-managed payment whilst everything was being set up, otherwise I've paid regularly on the dot. All but one of the creditors was defaulted 4 years ago. My query is do I need to tell my creditors the reason for this upcoming lack of payment/token payment? Obviously, I can't divulge the real reason:o, and I'm loathe to lie to them so wonder if it's possible just to tell them to expect less for x number of months without saying exactly why. Also do I need to send I&E again?


    Also, I see that lots of people pay token payments of £1 per creditor but that sourcrates suggests that this is a waste of time and not cost-effective to the creditors admin-wise. Please could someone like January give me a bit of advice what's best from their own experience. Thank you.


    I'm incredibly anxious about doing this, silly I know, but I'm a total wimp and just want all my debts gone in the shortest possible time with as little hassle as possible:o
  • sourcrates
    sourcrates Posts: 28,720
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    edited 24 April 2017 at 11:06AM
    Hi Carboot,

    Obviously you dont tell them your real reasons for lowering your payments, just send a short letter saying that, for example, your hours are been cut at work due to a drop in orders, or something of that nature, it dosent really matter what you tell them to be honest, dont make a long drawn out issue of the reasons why, just stick to the facts.

    "Circumstances beyond your control" is another good one, i think January will agree with me on this point.

    Then tell them what there going to get paid, and when, and that you will review the situation in 6 months, or whatever.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • January2015
    January2015 Posts: 2,369
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    edited 24 April 2017 at 12:08PM
    Hi CBC

    Sourcrates is right - just write and advise them you need to drop token payments for x many months (however long you think you will need). Sourcrates gives some good examples of reasons why income may drop, especially the circumstances beyond your control (this could be anything from major repair bill - think boiler/car etc, to income drop due to illness or something else). Start with 3 to 4 months of token payments. After that, if you need longer, just write and tell them you need a few more months. Creditors won't bat an eyelid, especially if you have been paying your DMP reliably. Most will not challenge you. If any of them do just refer them to a new I&E statement which evidences you can't afford more than token payments at the moment.

    Don't overthink this. Just tell them you are dropping to token payments - do not ask them, tell them. No creditors are going to rock your DMP boat over a few months of token payments.

    Edit: I do agree with Sourcrates that £1 token payments are a bit pointless when starting DMP journies and saving initial emergency funds, but I also think that keeping creditors onside whilst playing the game once well into the DMP is worth the effort. Once the accounts are all defaulted I personally think it's best to keep paying something. If you suddenly stop paying them anything without good reason they may (or may not) get more troublesome with calls/letters etc. I doubt for a few months it would be worse than that - but for the sake of £1 per creditor I just keep them onside and knowing I am making 'an effort' ;) Again, this is just my opinion. That £1 does reduce my bill, but it costs the creditors/DCAs far more to process it :)

    If you are claiming reduced income then send a revised, temporary I&E. If you are saying it's for an unexpected bill or something like that, then you won't need to send a new I&E.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k :eek: Now debt free and happy :j
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