DMP Mutual Support Thread - Part 12

Learning2Budget · 24 April 2017 at 10:19PM

Waiting for full and final settlement on my last creditor. Dmp has turned my life around. Good luck to all setting out on them. 9 years ago i was where you are with 42k debt. Been a slog but the end is nigh.
L2B x

heavenlyharry01 · 25 April 2017 at 8:08AM

Has anyone experience of Frederikson and full and final settlements with them?

[Deleted User] · 25 April 2017 at 10:16AM

January2015 wrote: »

CBC - I did think that if you could get rid of a couple of your debts and get your total owing to under £20k you might want to think about a debt relief order (DRO). I'm not sure whether you would qualify, but being on a pension I imagine you might. However, I also thought it may not be a route you want to consider as I know that for your own very good reasons you have not shared your debt situation with your partner and perhaps a DRO (being a formal solution) may mean you had to share the details of your debts (not sure though).

Worth thinking about though - DRO = no more payments and debts gone in one year:beer:

Thanks very much for that idea:T

I have not checked details of a DRO since pre-DMP days. I didn't qualify then as my debts were around £57000:eek: I'm sure that I wouldn't qualify even when my debts get below £20000 as, although I have a lowish income I do get my state pension and a small occupational pension. The qualification criteria include having less than £50 spare income each month after all debts and household expenses etc are paid. I certainly have more than that, thank goodness, and can't think of any way I can juggle my I & E to make it appear that I would qualify.

I would also feel very uneasy about doing it because details are held on the Insolvency Register and as such are in the public domain. I've tried everything to keep a very low profile through my debt woes and I think being listed on the Insolvency Register (albeit for just a year I assume) is a step too far for me:o

Thanks, as always, for taking the time and trouble to help. I know I can always rely on you:A

[Deleted User] · 25 April 2017 at 10:23AM

sourcrates wrote: »

A DRO is a very simple process, and once approved you don't have any further contact with the insolvency service, the twelve months just tick away, after that your debt free.

Your credit file is only affected for 6 years as with a DMP, the qualifying criteria is the main stumbling block though, because of this, most people won't qualify.

Thanks very much, sourcrates:T

I know I wouldn't qualify so I won't be pursuing the option but I have other reasons for not going down that route even if I could;).

As a matter of interest, is the 6 years on the credit file in addition to the time already served under a DMP please or would the 4 years that have already passed be taken into consideration ? Purely an academic question though as I won't be doing it but I'm just curious.

Caequinn · 25 April 2017 at 11:02AM

As you all know I'm still trying to get my head around all this. I've got a few burning questions to ask and I'm hoping some of you might be able to give me some answers. Probably a lot of obvious stuff but I want to know I'm understanding everything right!

First DMP payment goes on 1st May and my debt is £12,171 plus I have a suspended return of goods order I am paying off with 20 months left.

1. I've been reading about credit builder cards. My instinct is to keep away but are they a good idea to help build my credit score back up?

2. I've read on some other threads that mortgage lenders don't tend to assess your credit score it's more about affordability. Although myself and my other half privately rent, we have a good income between us and he has a perfect credit score. I instantly wrote off the idea of getting a mortgage for at least another 6 years thinking lenders wouldn't touch me with a barge pole! Is that really the case?

3. So, the car thing. I bought my car on PCP. Paid it religiously for 2 years and then the latter part of last year I missed a couple of payments, got myself in a mess and consequently I've ended up with a suspended return of goods order. I now pay an additional £100 on top of the PCP payment originally set up and it has basically turned into a HP agreement. I have about 20 months left until I own the car outright. I have had lots of problems with the car and really I'd like to change it. I know it'll be impossible for me to be approved for a new PCP or HP plan so can anyone guide me as to my options? I'm scared of buying a much older car and having things go wrong and extra bills to pay.

The car thing is my biggest worry now.

Thanks everyone

System · 25 April 2017 at 4:18PM

Has anybody had any experience of taking out a credit card when on a DMP, solely with the intention of helping to build your credit score back up....as in pay for your groceries with it and then go and pay it off straight away to help build up your score? The reason for asking is that there is a possibility of someone paying for a holiday for us to Florida at the end of 2018 and from past experience....(back in the day when we could afford holidays and actually went to Florida), I know that you really need to have a credit card, in case you need to make a medical claim on insurance while out there as the insurance company will normally not pay up front. So do you think this would be a complete "no go"? Got no intention of actually wanting to use credit but need a card as a security really.

January2015 · 25 April 2017 at 4:37PM

Caequinn wrote: »

As you all know I'm still trying to get my head around all this. I've got a few burning questions to ask and I'm hoping some of you might be able to give me some answers. Probably a lot of obvious stuff but I want to know I'm understanding everything right!

First DMP payment goes on 1st May and my debt is £12,171 plus I have a suspended return of goods order I am paying off with 20 months left.

1. I've been reading about credit builder cards. My instinct is to keep away but are they a good idea to help build my credit score back up?
Trust your instincts - you don't need a credit builder credit card. Your credit file will be trashed by the DMP anyway so you cannot 'build' your credit again until the poor entries of late payments and defaults have served their time and left your credit file. At the beginning of a DMP you should not even be thinking about any form of credit. Don't do it.

2. I've read on some other threads that mortgage lenders don't tend to assess your credit score it's more about affordability. Although myself and my other half privately rent, we have a good income between us and he has a perfect credit score. I instantly wrote off the idea of getting a mortgage for at least another 6 years thinking lenders wouldn't touch me with a barge pole! Is that really the case?
I don't have any experience, but I would imagine you could get a mortgage but it would be with a sub prime lender at extortionate rates. It may be better for your partner to get a mortgage in their name only.

3. So, the car thing. I bought my car on PCP. Paid it religiously for 2 years and then the latter part of last year I missed a couple of payments, got myself in a mess and consequently I've ended up with a suspended return of goods order. I now pay an additional £100 on top of the PCP payment originally set up and it has basically turned into a HP agreement. I have about 20 months left until I own the car outright. I have had lots of problems with the car and really I'd like to change it. I know it'll be impossible for me to be approved for a new PCP or HP plan so can anyone guide me as to my options? I'm scared of buying a much older car and having things go wrong and extra bills to pay.
Sorry - I have no idea about PCP and cars. All I can say is you don't need to pay a fortune for a car. Older cars are not necessarily unreliable. I would start squirrelling some money away for a car now and wait for the remainder of the 20 months and keep the car when you own it outright. Hopefully all the problems with the car will have been sorted and you can have a payment and hassle free vehicle.

The car thing is my biggest worry now.

Thanks everyone

See my comments in red :beer:

January2015 · 25 April 2017 at 4:44PM

ploppy57 wrote: »

Has anybody had any experience of taking out a credit card when on a DMP, solely with the intention of helping to build your credit score back up....as in pay for your groceries with it and then go and pay it off straight away to help build up your score? The reason for asking is that there is a possibility of someone paying for a holiday for us to Florida at the end of 2018 and from past experience....(back in the day when we could afford holidays and actually went to Florida), I know that you really need to have a credit card, in case you need to make a medical claim on insurance while out there as the insurance company will normally not pay up front. So do you think this would be a complete "no go"? Got no intention of actually wanting to use credit but need a card as a security really.

Hi Ploppy :wave:

Great to see you on the forum :j

I know you can get credit builder type credit cards whilst on a DMP. If you don't pay the money used on it back in full each month then the interest rates are very high. I personally wouldn't take one out, but I can see your reasoning. However, the credit limits on these cards is usually very low and rarely exceeds £1,200. This isn't going to make a dent in any major medical claim in USA. I've never had a problem with medical insurance paying up front in USA in the past (various members of my family have needed medical care unexpectedly 3 times when abroad). If you are going to get a card for the holiday I wouldn't bother getting it until nearer the date of the trip (less time to be tempted to use it).

System · 25 April 2017 at 4:53PM

January2015 wrote: »

Hi Ploppy :wave:

Great to see you on the forum :j

I know you can get credit builder type credit cards whilst on a DMP. If you don't pay the money used on it back in full each month then the interest rates are very high. I personally wouldn't take one out, but I can see your reasoning. However, the credit limits on these cards is usually very low and rarely exceeds £1,200. This isn't going to make a dent in any major medical claim in USA. I've never had a problem with medical insurance paying up front in USA in the past (various members of my family have needed medical care unexpectedly 3 times when abroad). If you are going to get a card for the holiday I wouldn't bother getting it until nearer the date of the trip (less time to be tempted to use it).

Interesting...luckily we have never needed medical care when in USA but from all I have read on various Florida forums that I am a member of, anybody that has had to see a doctor or go to hospital has always had to pay up front and claim money back later. Don't worry I wouldn't be tempted to use on any more....I learnt my lesson.:rotfl:

sourcrates · 25 April 2017 at 5:03PM

ploppy57 wrote: »

Interesting...luckily we have never needed medical care when in USA but from all I have read on various Florida forums that I am a member of, anybody that has had to see a doctor or go to hospital has always had to pay up front and claim money back later. Don't worry I wouldn't be tempted to use on any more....I learnt my lesson.:rotfl:

I've heard the Norfolk broads are nice this time of year, no credit card needed there.

DMP Mutual Support Thread - Part 12

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