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  • sourcrates
    sourcrates Posts: 28,878 Ambassador
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    Bluefae wrote: »
    We own our home.

    Hi again,

    The way forward here is to post that SOA.

    Then and only then can we help you.

    You posted on here presumably looking for a way out of debt, well the way to do that is to start with the SOA.

    Just your income/expenditure, who you owe money to, and how much, you can give us as much or as little detail as you wish, but we need something to get an idea of your situation.
    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
  • The_Analyst
    The_Analyst Posts: 80 Forumite
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    sourcrates wrote: »
    The only difference is that you were paying Vincent Bond for the privilege, Stepchange dont charge fee`s for setting up or administering debt management plans.

    Its working better for you because the money you were paying to the DMC is now coming directly off your debts, the OP`s situation, from the limited info we have been given, is that token payments are all they can afford, as they will never be able to repay what they owe, due to the high amount of debt, and a low income.

    Yup. Fair point. I guess my point was that a DMP isn't a long term solution for getting out of debt although it is a great way reduce monthly out goings....
    August 2011 - Total Debts - £47,352.12
    November 2018 - Total Debts - £0:beer:
  • sourcrates
    sourcrates Posts: 28,878 Ambassador
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    The_Analyst wrote: »
    Yup. Fair point. I guess my point was that a DMP isn't a long term solution for getting out of debt although it is a great way reduce monthly out goings....

    Well it can be a long term solution if you cant, or don't want to explore other solutions.

    There are people on here who have had DMP`s for 10/20 years, now whilst i would say that's far too long, its worked for them, it all depends on individual circumstances.

    If you have property you wish to protect, then your options are limited because of this, that's why getting good advice is so important.
    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
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    The_Analyst wrote: »
    Exactly this. I was in a DMP for 5 years with Vincent Bond. I was paying £600 a month off a combined debt of 50k. VB were taking £90 of the payment, so effectively I was paying £510 a month off this mountain of debt. By the time the DMP ended (prematurely as VB ceased trading) I had paid off £24k of the debt.

    I then arranged direct payments with my creditors and whilst I am paying more a month (£740) I now only have 15 months until I am debt free. The DMP was great at the time because it took the pressure off us, but it's not a long term solution in my opinion. Once you have set up arrangements with your creditors through your DMP it is far easier to then contact them and arrange direct payments because all the hard stuff and difficult conversations have already happened. Now all the creditors are interested in is getting their money back.

    Your point is well made and provides a good lesson for others. VB took £5400 of your money - you would only have eight months to go if you can chosen a free alternative.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    The_Analyst wrote: »
    I was in a DMP for 5 years with Vincent Bond. I was paying £600 a month off a combined debt of 50k. VB were taking £90 of the payment, so effectively I was paying £510 a month off this mountain of debt. By the time the DMP ended (prematurely as VB ceased trading) I had paid off £24k of the debt.

    Unless the creditors were still piling on the interest, those figures don't add up.
  • fatbelly
    fatbelly Posts: 20,492 Forumite
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    Bedsit_Bob wrote: »
    Unless the creditors were still piling on the interest, those figures don't add up.

    The figures are roughly OK. If The Analyst had said they were paying for 47 months and no interest it would be exact. But as you say there may have still been some interest and the figures are not precise.

    For our OP, some options appear to be

    1. Go to a self-managed token payment plan
    2. Argue enforceability
    3. Equity release and settlement deals

    but there may be other options when we see the full soa.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    fatbelly wrote: »
    The figures are roughly OK.

    The OP says they were paying £510 per month, for 5 years.

    That's £30,600, which is a lot different from the £24,000 they say has been paid off.

    That's a fair chunk of interest.
  • sourcrates
    sourcrates Posts: 28,878 Ambassador
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    Bedsit_Bob wrote: »
    The OP says they were paying £510 per month, for 5 years.

    That's £30,600, which is a lot different from the £24,000 they say has been paid off.

    That's a fair chunk of interest.

    The Analyst is not the original OP though Bob, they should start there own thread if they have questions.

    Bluefae is the OP.
    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
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    I see where I've got confused, but I have to say, The Analyst's figures still don't add up.
  • patman99
    patman99 Posts: 8,532 Forumite
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    Bluefae.

    Are you named on the house deeds?.
    This is important. If you are not named on th house deeds, then this opens up extra options.

    Also, you mention that the debts have been passed on to other DCA's. Try sending each DCA a prove it letter (more on this in the 'stickies'). You may well find that some of your debt is uncollectable, so you can instruct Stepchange to cease paying the creditor and thus free up extra to pay to the remaining ones who have all the correct paperwork in place.

    For the cost of recorded delivery an a £1 postal order per creditor, it is worth a punt.
    Never Knowingly Understood.

    Member #1 of £1,000 challenge - £13.74/ £1000 (that's 1.374%)

    3-6 month EF £0/£3600 (that's 0 days worth)

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