DMP Mutual Support Thread - Part 12

leanne12345 · 16 May 2017 at 5:58PM

So today my car windscreen has developed a crack and now needs replacing. Luckily it's covered by my insurance so I only have the excess to pay but it has made me realise the importance of an emergency fund, which we don't currently have.
So after speaking to my partner tonight and everyone's comments previously I think we are going to take the plunge and go self-managed. I'm not entirely sure it's the right thing to do but we can only try. I am sure I will have lots of questions so I am thanking you all in advance for the help I'm sure you will offer!!

[Deleted User] · 16 May 2017 at 8:03PM

unicorndeva wrote: »

I am so happy!!!

Using information given to me by January, I've just found out that the MBNA agreements that were returned to me are unenforceable! That's 11k I don't have to pay. Not sure what our next move will be yet but I'm grinning from ear to ear.

January thank you so much for taking the time to help me and thanks to everyone else here for the time you put in to help others too.

That's wonderful, unicorndiva:j. I'm so happy for you:T:beer:

Still waiting for Link to get back to me about my old MBNA debts. If I have as much success as you I'll be euphoric. The two currently stand at about £11500:eek:

[Deleted User] · 16 May 2017 at 8:16PM

leanne12345 wrote: »

Hi, me again!
After everyone's advice previously I have been looking more into going self-managed. On the NEDCAB website I can see the letters are generated automatically alongside the I&E but how do I go about making token payments initially? Do I still send creditors the I&E with a letter saying I will be making token payments for however long or do I leave off the I&E until I will be making proper payments?
Also any advice on how to word my token payment letter? In some cases I will probably just do it for 4 or 6 months but with others I want to make token payments until they default so not sure how to go about that?
Sorry for the probably rambling post, I feel like I'm over thinking all of this and confusing myself!

leanne, I noticed this post a couple of days ago and it doesn't look like anyone came along to answer your specific questions. I'd be interested in the answers myself if anyone can help please:)

motivated · 16 May 2017 at 8:47PM

leanne12345 wrote: »

Hi, me again!
After everyone's advice previously I have been looking more into going self-managed. On the NEDCAB website I can see the letters are generated automatically alongside the I&E but how do I go about making token payments initially? Do I still send creditors the I&E with a letter saying I will be making token payments for however long or do I leave off the I&E until I will be making proper payments?
Also any advice on how to word my token payment letter? In some cases I will probably just do it for 4 or 6 months but with others I want to make token payments until they default so not sure how to go about that?
Sorry for the probably rambling post, I feel like I'm over thinking all of this and confusing myself!

carbootcrazy wrote: »

leanne, I noticed this post a couple of days ago and it doesn't look like anyone came along to answer your specific questions. I'd be interested in the answers myself if anyone can help please:)

Hi both

I too have sent the letters that were generated on NEDCAB explaining that I will now be managing my own DMP and I added bits to them to them saying "However due to unforceen circumstances like unexpected car repairs and high vet bills ( which has now actually true)

. for the months of May June July and August I will be paying £1 per month to give me time to revise and organise my finances" I also added that "I do not give my permission to be contacted via telephone. All correspondence should be done via written letter only and I will respond promptly to all letters received"
I enclosed a copy of my I&E too

Something along those lines anyway. January2015s advice

Haven't heard anything back as of yet though. Still waiting
Good luck
M

sourcrates · 16 May 2017 at 8:55PM

carbootcrazy wrote: »

leanne, I noticed this post a couple of days ago and it doesn't look like anyone came along to answer your specific questions. I'd be interested in the answers myself if anyone can help please:)

You don't need to give them a reason.

Make something up if you have too.

There are no written rules here.

ClaretBob · 16 May 2017 at 10:03PM

January2015 wrote: »

Car and home insurance - you should be okay. However, after a while you will have been saving the money SC allocate for these things and you will be able to pay your annual policies in one lump sum. Until I entered a DMP I had never been able to do this. You may be paying monthly for a while - and therefore using the SC allocation each month, but you will be saving for other things and the savings will grow and eventually you will have enough to pay for these things in full - hope this makes sense, because it does work

I've renewed and upgrade my mobile phone contract since starting my DMP - no problems whatsoever. I stayed with the same provider though so I expect that helped as I've been with them for years.

You won't go to jail over the windows. Life changes. You honestly thought you could afford the windows when you had them installed and now realised you are in a position where you cannot service your debts. Not quite the same but I had buy now pay later with a catalogue. It went on the DMP and they were fine. They are used to seeing literally thousands of people entering a DMP. On the catalgoue BNPL they kept it interest free until the date the BNPL kicked in and then would have loaded on the interest. I managed to clear my BNPL before the interest was added but I guess windows are going to be more than my £1,200 catalogue debt was. Just be prepared to calculate the total owing on the BNPL as including interest. If you can get any reduction in interest on this then you are already ahead of where you thought your highest debt level was:T

Just had a thought on the windows, I have enough available on a card that I could pay it off during the interest free period then use that debt in my dmp. Should save me a hell of a lot of interest added on wouldn't it? Does that make sense? Think the interest is 19.9% so not peanuts.

January2015 · 16 May 2017 at 11:33PM

ClaretBob wrote: »

Just had a thought on the windows, I have enough available on a card that I could pay it off during the interest free period then use that debt in my dmp. Should save me a hell of a lot of interest added on wouldn't it? Does that make sense? Think the interest is 19.9% so not peanuts.

l

I would do that then before you start the DMP process. It puts your window debt onto a credit card. Same total but you are more likely (though not guaranteed) to have more success with freezing interest with credit card lenders. Either way, the window debt will be in your DMP.

January2015 · 16 May 2017 at 11:36PM

For anyone asking about making token payments when going from a managed (SC type) DMP to a self-managed DMP..... don't ask if you can make token payments, don't even bother making up a reason to make token payments. Just tell them you will be paying £1 per month for the period x month through to x month and after that you will be making payments of £xxx (or whatever it will be).

If you want play real hardball just tell them you will be paying £1 per month and don't give them an end date. Personally I found it best to give them a time frame because they didn't chase me for reasons why my I&E said I could afford a lot more.

[Deleted User] · 16 May 2017 at 11:56PM

January2015 wrote: »

For anyone asking about making token payments when going from a managed (SC type) DMP to a self-managed DMP..... don't ask if you can make token payments, don't even bother making up a reason to make token payments. Just tell them you will be paying £1 per month for the period x month through to x month and after that you will be making payments of £xxx (or whatever it will be).

If you want play real hardball just tell them you will be paying £1 per month and don't give them an end date. Personally I found it best to give them a time frame because they didn't chase me for reasons why my I&E said I could afford a lot more.

Thank you:T

Just wondered if you have to send an amended I&E when telling them about token payments or is it OK to let the already agreed one stand and just send a letter telling them that you'll only be paying £1 for x months? I hate doing I&Es:o

I really need to get on with it, I'm finding any excuse to put it off:o. My payments leave my account on 1st and I'd like to start the tokens from June and carry on to the end of the year;)

January2015 · 17 May 2017 at 12:28AM

carbootcrazy wrote: »

Thank you:T

Just wondered if you have to send an amended I&E when telling them about token payments or is it OK to let the already agreed one stand and just send a letter telling them that you'll only be paying £1 for x months? I hate doing I&Es:o

I really need to get on with it, I'm finding any excuse to put it off:o. My payments leave my account on 1st and I'd like to start the tokens from June and carry on to the end of the year;)

I sent an I&E when I went self managed and told them they were getting £1 payments for x many months - that was it

I guess if you are already self managing and have been paying payments are per your I&E statement then creditors may want a reason / explanation. Personally I would just write and say that "My I&E has not changed since I last sent you this information and I am therefore not including an updated I&E at this time. However due to unexpected circumstances I need to drop to token payments for the period June to December inclusive. As you are aware I have been on a DMP for x years and I am sure you are aware I am committed to clearing my debts (as evidenced by my regular, agreed payments). Please be assured I will resume payments at the current level as soon as possible and certainly from January 2018."

Or something like that

Don't think you need to tell them what the unexpected circumstances are - you are allowed to have some privacy after all. Seriously - you have been paying your DMP good as gold for ages. Creditors expect blips and bumps along the way. You will be okay

Jan -x-

DMP Mutual Support Thread - Part 12

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