DMP Mutual Support Thread - Part 12

1…9798100102103…491

Comments

  • Billy12345
    Billy12345 Posts: 105 Forumite
    First Post First Anniversary
    sourcrates wrote: »
    Yep,

    I must of posted this before.

    Once an account defaults, as long as its a running credit agreement, such as a loan, credit card, catalogue etc, then that balance is frozen, nothing more can be added.

    The consumer credit act states that : "a creditor cannot add further interest and charges unless the original agreement allows them to do so".

    The majority of agreements do not allow this, but to be 100% certain, you have to check your original agreement.

    Fantastic thanks sourcrates you are great :beer:

    That drops my total by just over £3,000. Time to update my SC figures :T:T
  • Plucky_Lion
    Plucky_Lion Posts: 3 Newbie
    Hi. I have received a message from Barclaycard, letting me know that my 30 days of breathing space is up and that I should contact them etc. I was hoping to establish an emergency fund over the next two months and then contact Stepchange. Can I ask for another 30 days or do I need to contact Stepchange and get my DMP ball rolling?

    Thank you
  • sourcrates
    sourcrates Posts: 28,870 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Plucky_Lion wrote: »
    Hi. I have received a message from Barclaycard, letting me know that my 30 days of breathing space is up and that I should contact them etc. I was hoping to establish an emergency fund over the next two months and then contact Stepchange. Can I ask for another 30 days or do I need to contact Stepchange and get my DMP ball rolling?

    Thank you

    Do whatever you want chap.

    Save that emergency fund.
    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
  • leanne12345
    leanne12345 Posts: 92 Forumite
    Combo Breaker First Anniversary First Post
    Morning everyone,

    Quick question if I may- I sent off my letters earlier this month to inform everyone I was going self managed and included the bit about only being contacted in writing. Two creditors have come back with letters asking me to phone them so we can 'discuss the issues raised'. Obviously I am not prepared to do this but should I write back telling them I won't be contacting them by phone or should I just ignore their letters?

    Many thanks :)
  • vaper
    vaper Posts: 105 Forumite
    I would ignore them. They've had the letters so know what to do.
    Don't put menthol vape juice in your eyes!!!
  • leanne12345
    leanne12345 Posts: 92 Forumite
    Combo Breaker First Anniversary First Post
    vaper wrote: »
    I would ignore them. They've had the letters so know what to do.

    Thanks, that was my first thought too.
  • Leanneglos1
    Leanneglos1 Posts: 84 Forumite
    Hi all, general question, how did people find the payday loan companies dealt with token payments and the news you were going to be going on a DMP, I have 3 payday loans and I'm slightly nervous, concerned etc about how these companies will firstly handle token payment whilst I get an emergency fund and then go on a DMP?
  • Suseka97
    Suseka97 Posts: 1,562 Forumite
    First Anniversary First Post Name Dropper
    Leanneglos1 wrote: »
    May seem a silly question, but I have a personal loan, once my dmp is set up and the loan defaults, effectively the interest and balance is frozen so does that mean everything I pay towards the loan will be used to reduce the balance or will I still be charged interest on top?
    BeingDebtFreeStartsHere wrote: »
    Hi Leanneglos1,

    I think sourcrates response to Billy answers your question too :)

    BDFSH x

    Whilst this is of course true - the account needs to be defaulted. So not to put a downer on this, you must keep an eye on that. Not all creditors default as a matter of course and it can take anything from 1 month to 1 year (in my experience) for that to happen. Most of my creditors defaulted fairly quickly - except for Barclaycard and Halifax, who I had to push for default. BC did initially, but as the DMP progressed and they started getting a payment that took me above what would ordinarily have been the minimum payment, they reapplied interest. I had to fight that one quite vigorously and they finally gave in and sold the debt to a DCA at which point interest stopped. Halifax continue to charge interest for over a year, until they sold the debt on and its only recently that I managed to get them to backdate the default.

    The rest just defaulted me (both loans and CCs) and stopped interest and charges pretty much from the beginning. So it can vary depending on the creditor, but it will stop eventually - and your payments will clear the balance much sooner as a result. So, as I've said - just keep a watchful eye on it and be prepared to chase down the default if needs be.
  • sourcrates
    sourcrates Posts: 28,870 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Leanneglos1 wrote: »
    Hi all, general question, how did people find the payday loan companies dealt with token payments and the news you were going to be going on a DMP, I have 3 payday loans and I'm slightly nervous, concerned etc about how these companies will firstly handle token payment whilst I get an emergency fund and then go on a DMP?

    Depends on the company, some will happily wipe out the interest and settle for the original cash balance repaid, some wont.

    Payday lending is a fast paced product, they dont like waiting around for there money, its likely debts will be sold on pretty quickly.

    Have you seen this :

    https://debtcamel.co.uk/payday-loan-refunds/
    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
  • Leanneglos1
    Leanneglos1 Posts: 84 Forumite
    Oh wow, never knew any of that existed, over the years I have had a lot, so guess my next job is to go through all of these, wish me luck:) xx
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards