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  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 12,432Posts
    • 11,837Thanks
    sourcrates
    DMP Mutual Support Thread - Part 12
    • #1
    • 26th Mar 17, 12:20 PM
    DMP Mutual Support Thread - Part 12 26th Mar 17 at 12:20 PM
    Welcome to the DMP mutual support thread Part 12 !!

    Here you can find help in starting and running your DMP, self managed, Stepchange, Payplan and any other DMP all welcome here, but we do encourage you to use a free service, not one you pay for.

    There is help on getting interest and charges stopped, how to start with an emergency fund, defaults, token payments and lots more.

    If you are in a DMP or thinking of one, this is the place to be. We are non judgmental and all questions are welcome.

    Again the old thread was getting a tad long, so time for a new one.

    The old thread can be found here :

    http://forums.moneysavingexpert.com/showthread.php?t=5285089

    Once again, i think the original "newbie" post by sazzie23 still rings true.
    Last edited by sourcrates; 26-03-2017 at 12:50 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
Page 3
    • sourcrates
    • By sourcrates 28th Mar 17, 9:48 PM
    • 12,432 Posts
    • 11,837 Thanks
    sourcrates
    Hi everyone

    So - tonight, I've been sitting here playing the 'what if' game. What if those F&F's I sent off were accepted ..... well..... if they were my debt would reduce to the £50k's. Highly unlikely, but it is soooooo nice to play 'what if' occassionally
    Originally posted by January2015
    Stranger things have happened lol !!
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • DancingUnicorn
    • By DancingUnicorn 29th Mar 17, 12:10 AM
    • 107 Posts
    • 337 Thanks
    DancingUnicorn
    All my accounts (bar one) have now defaulted *victory dance!*

    I have two questions, though:
    One of my overdrafts is now showing late payment. As this is still technically within its limits and they're offering me zero charges as a gesture of good will (the late payment is charges they shouldn't have made which have been refunded but this hasn't shown on the credit report yet). Should I be pursuing a default on this, or is it better staying in "up to date"?

    The credit card I paid off (and am awaiting a £1 cheque for as it's in credit) still shows as default. They were really quick to default the account, which at the time I thought was great, but now I'm wondering if it was a little premature as I managed to pay it off so quickly. Will the default drop off when they mark the account as settled, or will it stay for 6 years regardless?

    I suppose it doesn't really matter either way because I will have other defaults anyway, I just kind of want to know.
    LBM: October 2016: £20,130 / Current: November 2017: £17,545 12.8%
    DFD: February 2024
    SPC#577
    • zenshi
    • By zenshi 29th Mar 17, 3:43 PM
    • 954 Posts
    • 1,962 Thanks
    zenshi
    Not had any contact from creditors all year and DMP ticking along nicely. This week though, link have left me two messages asking me to call.

    Should I or shouldn't I? I feel it may be a review? But concerned they might be fed up with their measly fiver.....
    LBM.....sometime in 2013 £27,056. 10 creditors
    Oct 17......£18,165.....7 creditors left 32% paid

    £26,200 on interest only part of mortgage (July 16)...will chip away £23,549
    £49,200 repayment mortgage ( July 16) £45,809
    • January2015
    • By January2015 29th Mar 17, 5:53 PM
    • 1,757 Posts
    • 4,746 Thanks
    January2015
    Not had any contact from creditors all year and DMP ticking along nicely. This week though, link have left me two messages asking me to call.

    Should I or shouldn't I? I feel it may be a review? But concerned they might be fed up with their measly fiver.....
    Originally posted by zenshi
    I would write to them and acknowledge you have received their message and remind them that all communication regarding your account needs to be in writing and you do not give them permission to contact them by phone.

    That's what I do with all my creditors....they always write now
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • feelsbadman
    • By feelsbadman 29th Mar 17, 6:26 PM
    • 2 Posts
    • 2 Thanks
    feelsbadman
    questions
    HI,

    I have around 35000 in debt and paying around 700pm is quite frankly unsustainable I haven't missed any payments but doom is impending I am pretty much using cards for general things like petrol now. I have some questions I would like to ask before I begin the DMP process.

    Will they take 100% of my disposable income after the budget is complete or do they leave me some sort of buffer?

    Has anyone put car costs in relating to MOTS and services etc? I seen a guide that says 25pm but my service plan alone is 30pm and I drive around 15000 miles per year to get to work so naturally I believe there will be repair and replacement tyres etc

    My concern is that these plans take all of your disposal income and leave little room for any financial shocks.

    Can anyone give me an idea of what the structure of such plans are and what they allow?
    • sourcrates
    • By sourcrates 29th Mar 17, 6:35 PM
    • 12,432 Posts
    • 11,837 Thanks
    sourcrates
    HI,

    I have around 35000 in debt and paying around 700pm is quite frankly unsustainable I haven't missed any payments but doom is impending I am pretty much using cards for general things like petrol now. I have some questions I would like to ask before I begin the DMP process.

    Will they take 100% of my disposable income after the budget is complete or do they leave me some sort of buffer?

    Has anyone put car costs in relating to MOTS and services etc? I seen a guide that says 25pm but my service plan alone is 30pm and I drive around 15000 miles per year to get to work so naturally I believe there will be repair and replacement tyres etc

    My concern is that these plans take all of your disposal income and leave little room for any financial shocks.

    Can anyone give me an idea of what the structure of such plans are and what they allow?
    Originally posted by feelsbadman
    Hi,

    Ok, how it works is this, you do a budget, you include everything you pay money for, plus you include an emergency fund.

    Whatever is left forms the payment to your creditors, which will be distributed on a pro-rata basis.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Amberamber80
    • By Amberamber80 29th Mar 17, 6:39 PM
    • 40 Posts
    • 38 Thanks
    Amberamber80
    Hi all,

    Just wanted to check a few things. So I have been in my DMP with Payplan for 7 years now and will literally be debt free in another few months. I have 4 creditors and now each figure is only in the low hundreds (happy happy dance). So I contacted Payplan at the beginning of the year and they checked with each creditors that the final amount oweing was accurate....it now is.

    My question is what do I do next? I have read some people doing Full and Final settlements but to be honest I am a bit unsure of this. To reiterate I want ALL these monies paid and cleared. No more worries or strange things turning up on my credit files, so no part payments.

    What is the best way to go about this? How have others WRAPPED UP their DMP?

    Many thanks!!
    • feelsbadman
    • By feelsbadman 29th Mar 17, 7:03 PM
    • 2 Posts
    • 2 Thanks
    feelsbadman
    Hi,

    I understand this general principle I meant more do people budget for repairs for cars etc

    so if your bills total 1100 and you earn 1500 they will want the full 400?
    • Torheb
    • By Torheb 29th Mar 17, 7:04 PM
    • 1 Posts
    • 3 Thanks
    Torheb
    Hi we've contacted SC this week to talk through our options and they think a DMP is or best way forward. We owe £40k and they said we could be debt free in 4 years if all our creditors freeze interest and charges - does I've read through a few of the forums and people seem to have had problems with NatWest and barclaycard but these are the 2 main sources of our debt so I'm worried that if neither freeze interest we'll never be debt free - does anyone have any experience with these companies? Also we have a car in lease purchase due to end next Feb - we will definitely owe excess mileage but what will happen with this charge? I'm really worried about starting the whole thing off it seems so daunting and the thought of all the letters from creditors is making me feel ill before we've even started - is it not as bad as I'm imagining? I know this is our only option really but just was hoping to be as prepared as possible for any negatives - thanks
    • zenshi
    • By zenshi 29th Mar 17, 7:25 PM
    • 954 Posts
    • 1,962 Thanks
    zenshi
    I would write to them and acknowledge you have received their message and remind them that all communication regarding your account needs to be in writing and you do not give them permission to contact them by phone.

    That's what I do with all my creditors....they always write now
    Originally posted by January2015

    Thanks Jan. Sometimes we need the obvious solution told to us. Why I didn't think of that, I don't know!
    LBM.....sometime in 2013 £27,056. 10 creditors
    Oct 17......£18,165.....7 creditors left 32% paid

    £26,200 on interest only part of mortgage (July 16)...will chip away £23,549
    £49,200 repayment mortgage ( July 16) £45,809
    • BeingDebtFreeStartsHere
    • By BeingDebtFreeStartsHere 29th Mar 17, 7:27 PM
    • 260 Posts
    • 785 Thanks
    BeingDebtFreeStartsHere
    Hi everyone

    So - tonight, I've been sitting here playing the 'what if' game. What if those F&F's I sent off were accepted ..... well..... if they were my debt would reduce to the £50k's. Highly unlikely, but it is soooooo nice to play 'what if' occassionally
    Originally posted by January2015
    Why not Jan - you never know

    Keeping my fingers firmly crossed for you x
    LBM - August 2014
    DMP - started October 2014
    Total Debt Sept 2014 - £70,905.57 Apr 2017 £56,116.31 (20.8% paid) but proud to be in control and paying back what we've borrowed
    • BeingDebtFreeStartsHere
    • By BeingDebtFreeStartsHere 29th Mar 17, 7:30 PM
    • 260 Posts
    • 785 Thanks
    BeingDebtFreeStartsHere
    So......

    Customer questionnaires filled in and sent to MBNA for PPI reclaim on two credit cards and one loan.
    Letter written to the Co-op to challenge the lack of default on our loan account - will post recorded delivery tomorrow.

    Hoping for positive outcomes from both letters!!! Will keep you posted

    Take care,

    BDFSH x
    Last edited by BeingDebtFreeStartsHere; 29-03-2017 at 8:18 PM.
    LBM - August 2014
    DMP - started October 2014
    Total Debt Sept 2014 - £70,905.57 Apr 2017 £56,116.31 (20.8% paid) but proud to be in control and paying back what we've borrowed
    • motivated
    • By motivated 29th Mar 17, 7:35 PM
    • 2,273 Posts
    • 3,391 Thanks
    motivated
    Hi we've contacted SC this week to talk through our options and they think a DMP is or best way forward. We owe £40k and they said we could be debt free in 4 years if all our creditors freeze interest and charges - does I've read through a few of the forums and people seem to have had problems with NatWest and barclaycard but these are the 2 main sources of our debt so I'm worried that if neither freeze interest we'll never be debt free - does anyone have any experience with these companies? Also we have a car in lease purchase due to end next Feb - we will definitely owe excess mileage but what will happen with this charge? I'm really worried about starting the whole thing off it seems so daunting and the thought of all the letters from creditors is making me feel ill before we've even started - is it not as bad as I'm imagining? I know this is our only option really but just was hoping to be as prepared as possible for any negatives - thanks
    Originally posted by Torheb
    Hi Torheb

    I have just started my DMP journey and can honestly say if you follow the advice from the people on here you will be ok.

    I have/had 2 Credit Cards with Barclaycard one with a high balance and a smaller one. I had never missed a payment or been late with a payment.
    I contacted them through the online messaging service through our accounts and explained our financial difficulties and that I was in contact with Step Change. I requested they freeze all interest and charges. They were great. Replied within a couple of days saying all interest and charges stopped for the 30 day period which will give us time to work with SC.

    I explained that in future they should only contact me via written letter and they accepted this also.

    I have not had 1 phone call from creditors (yet) and our DMP is all set up and ready to go starting this week.
    MBNA have been exactly the same for us so don't panic.

    After a week or so Barclaycard wrote to us again and said all interest and charges stopped from now on

    MBNA too we've not had one phone call from them. I cannot comment on NatWest I'm afraid.

    Even setting up our DMP was easy I sent them screenshots of wage slips and just emailed them creditors account numbers and balances etc. All was so easy I wish I had done it sooner.

    good luck
    M
    I have arrived in DMP land and I like it, I may stay a while
    Short term goal £735/£1796

    SPC # 91
    • January2015
    • By January2015 29th Mar 17, 8:40 PM
    • 1,757 Posts
    • 4,746 Thanks
    January2015
    Hi Torheb

    I can second what motivated has put in the post above.

    Barclaycard can be difficult but as long as your monthly payment is less than 1% of the outstanding balance there policy is not to add interest and charges. They are very strict on this - we were payment 1.03% (Stepchange calculated that figure) and because of the 0.03% that wacked on interest every month. It meant that a chunk of our payment was going to interest and not clearing the debt. To get round the interest and to force a default from BC we went self managed and eventually stopped paying them anything until they defaulted. We also put in a complaint and got all the interest and charges refunded. It's a pain when things like this happen but see them as a challenge and you will {strangely} begin to enjoy such challenges

    Definitely contact all creditors in writing and notify them you do not give them permission to contact you by phone and all correspondence regarding the account must be in writing. As long as you don't ignore them then creditors will honour this request.

    Gnats Vest stopped all interest and charged immediately for us. They have been excellent all through the DMP. It is only very recently (2 years in) that they have passed the handling of the account to a debt collection agency (DCA). Gnats Vest still own the debt and I still pay Gnats Vest, but all communication is through the DCA. Weird - buts that's how it works.

    I should think you would be able to add the excess mileage charge to your DMP when it crops up - it is a debt after all.

    In all honesty, there have been no negatives for me since entering a DMP. I sleep better, my marriage is better (because we are both less stressed about money), and we budget for everything. We have savings for car breakdown, appliance breakdown, dentist, optician, etc....all those categories Stepchange allow you to alloccate funds for - we regularly transfer those amounts to our savings.

    All creditors have been absolutely fine - even BC were fine, we just didnt agree with their policy, but they were always polite in letters (we did everything by letter/email). DCA's are actually easier to deal with than original creditors in my opinion - they know about DMPs (well more than call centre operatives at creditors).

    The best piece of advice I can give anyone entering a DMP is keep visiting this forum - and in particular this thread - and keep posting and chatting. The motivation to keep going and pay down your debts is amazing. We are just over 2 years in and time has flown by so quickly. It hasn't been a drag or a burden. Get your budget right - don't make things so tight you can't have the odd treat. If you try to pay so much to your debts that you are living in poverty you are likely to fail the DMP.

    Welcome to the thread by the way
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • January2015
    • By January2015 29th Mar 17, 8:43 PM
    • 1,757 Posts
    • 4,746 Thanks
    January2015
    So......

    Customer questionnaires filled in and sent to MBNA for PPI reclaim on two credit cards and one loan.
    Letter written to the Co-op to challenge the lack of default on our loan account - will post recorded delivery tomorrow.

    Hoping for positive outcomes from both letters!!! Will keep you posted

    Take care,

    BDFSH x
    Originally posted by BeingDebtFreeStartsHere
    Oh BDFSH.....I am doing a happy dance for you already re. the PPI claims.....way to go Keep us updated

    Good luck with the default letter - fingers tightly crossed here in January household
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • Suseka97
    • By Suseka97 29th Mar 17, 8:46 PM
    • 146 Posts
    • 219 Thanks
    Suseka97
    Hi Torheb
    ......After a week or so Barclaycard wrote to us again and said all interest and charges stopped from now on
    M
    Originally posted by motivated
    Great news and good luck with your DMP journey.

    Just one word of advice re Barclaycard, do keep an eye on the payments to them as your DMP changes over time. BC stopped interest on our debts until, after a year or so, the DMP payment to them went over what would have been the standard minimum payment and then they reintroduced interest. We had to push hard until they finally defaulted the debt and the DCA they transferred the account to stopped interest again. It took about 9 months or so for that to happen - so not a massive deal in terms of interest paid, but just keep an eye on them.
    LBM Apr13: 14 Creditors / £85k+ owed
    Self-managed Aug17
    Current Status: 6 Creditors / £11,994
    • January2015
    • By January2015 29th Mar 17, 8:55 PM
    • 1,757 Posts
    • 4,746 Thanks
    January2015
    HI,

    I have around 35000 in debt and paying around 700pm is quite frankly unsustainable I haven't missed any payments but doom is impending I am pretty much using cards for general things like petrol now. I have some questions I would like to ask before I begin the DMP process.

    Will they take 100% of my disposable income after the budget is complete or do they leave me some sort of buffer?

    Has anyone put car costs in relating to MOTS and services etc? I seen a guide that says 25pm but my service plan alone is 30pm and I drive around 15000 miles per year to get to work so naturally I believe there will be repair and replacement tyres etc

    My concern is that these plans take all of your disposal income and leave little room for any financial shocks.

    Can anyone give me an idea of what the structure of such plans are and what they allow?
    Originally posted by feelsbadman
    Hi,

    I understand this general principle I meant more do people budget for repairs for cars etc

    so if your bills total 1100 and you earn 1500 they will want the full 400?
    Originally posted by feelsbadman
    If you want to see what debt management plan (DMP) figures would look like for you without going to a DMP provider such as Stepchange or Payplan, then you can go to NEDCAB DMP and enter your own situation, e.g. income and expenditure, and it will calculate how much you can afford to pay each creditor. NEDCAB DMP doesn't send your information to any support advisers, nor to creditors....it's just there for people who want to self manage their own DMP - but you could go on and see what the figures look like for your situation and nothing will happen if you don't want to continue with a DMP.

    How it works is something like this.

    (A) How much do you have coming in
    (B) How much must you pay for priority expenses (things like mortage, rent, council tax, utilities, etc.
    (C) How much do you need for living costs, e.g. groceries, dentisit, optician, car repairs, etc. etc.

    They then use the formula (A) - (B) - (C) = (D)

    (D) is what's left to be shared amongst your unsecured creditors

    Creditors can't have what you don't have. They can only have a share of what's left after (B) and (C) have been accounted for. Car maintenance is included in (C).

    NEDCAB, Stepchange - all DMP providers - have a list of expenses that people are likely to incur. There are upper limits for what is considered reasonabe for each expense. When completing the online forms if you put in too high a figure a message pops up to let you know. Even if the figure needs to be higher than the box thinks is reasonable as long as you can justify why it's high then that's acceptable. For instance maybe vehicle fuel is high because driving is part of your job.

    However, I am a bit confused.....in your example where bills total £1,100 and you earn £1,500 - why would you be considering a DMP? In that scenario you can afford the minimum payments for all your debts and a DMP wouldn't be recommended.

    I would understand if your income was £1,100 and your bills £1,500.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • January2015
    • By January2015 29th Mar 17, 8:59 PM
    • 1,757 Posts
    • 4,746 Thanks
    January2015
    Great news and good luck with your DMP journey.

    Just one word of advice re Barclaycard, do keep an eye on the payments to them as your DMP changes over time. BC stopped interest on our debts until, after a year or so, the DMP payment to them went over what would have been the standard minimum payment and then they reintroduced interest. We had to push hard until they finally defaulted the debt and the DCA they transferred the account to stopped interest again. It took about 9 months or so for that to happen - so not a massive deal in terms of interest paid, but just keep an eye on them.
    Originally posted by Suseka97
    Suseska97

    BC did that to us and we did the token payment thing for a few months and then no payments. We also wrote to them and asked for all interest and charges to be refunded back to the date of the start of our DMP. They did that....reducing the balance owed. It was several hundred pounds for us. May be worth thinking about asking for this if you haven't asked already.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • motivated
    • By motivated 29th Mar 17, 9:08 PM
    • 2,273 Posts
    • 3,391 Thanks
    motivated
    Great news and good luck with your DMP journey.

    Just one word of advice re Barclaycard, do keep an eye on the payments to them as your DMP changes over time. BC stopped interest on our debts until, after a year or so, the DMP payment to them went over what would have been the standard minimum payment and then they reintroduced interest. We had to push hard until they finally defaulted the debt and the DCA they transferred the account to stopped interest again. It took about 9 months or so for that to happen - so not a massive deal in terms of interest paid, but just keep an eye on them.
    Originally posted by Suseka97
    Thanks for the heads up Suseka I will definitely be looking out for this one
    M
    I have arrived in DMP land and I like it, I may stay a while
    Short term goal £735/£1796

    SPC # 91
    • Suseka97
    • By Suseka97 29th Mar 17, 10:15 PM
    • 146 Posts
    • 219 Thanks
    Suseka97
    Suseska97

    BC did that to us and we did the token payment thing for a few months and then no payments. We also wrote to them and asked for all interest and charges to be refunded back to the date of the start of our DMP. They did that....reducing the balance owed. It was several hundred pounds for us. May be worth thinking about asking for this if you haven't asked already.
    Originally posted by January2015
    We weren't able to drop to token payments because it was (is) an SC managed DMP, not 'self-managed'. I must admit I was close to considering going self-managed, but then BC handed the debt over to a DCA. Given we are now in our final year, I'm fine to continue the way things are... it's been tough because our monthly payments are high -but if I had my time again I think I would bite the bullet and go it alone. Whilst I really appreciate all that SC did at the outset, the fact is they do not really intervene with interest and charges and having so many DMPers on their books, they really don't have the resources to do more than set the thing up and apportion payments to creditors. I do admire those on here who have gone 'self-managed' -but to me it was just a step too far at the time.
    LBM Apr13: 14 Creditors / £85k+ owed
    Self-managed Aug17
    Current Status: 6 Creditors / £11,994
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