DMP & Mutual Support Thread - Part 9

[Time to face the music]

Originally Posted by inbetweener

Hi anxious2, thankyou for your detailed respone.
The 'suggested' budget was £230. i assumed that if i put down more than i actually spend it would be questioned!
Also i put down my basic salary even though i earn extra as regularly do minimum of 8 hours overtime a month.
I wish i had read this thread before submitting now but maybe its not the be all and end all if i can adjust

I think you must have entered something incorrectly. The suggested budget for food for 2 adults and 2 children is £412 and the maximum allowed is £505.

[jubilee14]

Originally Posted by Time to face the music

I think you must have entered something incorrectly. The suggested budget for food for 2 adults and 2 children is £412 and the maximum allowed is £505.

thats odd as when i did my debt remedy in Sept with 2 adults and 3 kids it was £230 which is whats on my plan and with the help of Aldi is doable all be it not much left for special occassions.

[Time to face the music]

Originally Posted by jubilee14

thats odd as when i did my debt remedy in Sept with 2 adults and 3 kids it was £230 which is whats on my plan and with the help of Aldi is doable all be it not much left for special occassions.

That is definitely incorrect and when we were with StepChange, we actually had a food budget of £341 for 2 adults.

Before anyone says anything, we did/do not spend anything like this and the extra money went on interest charging debts!

[Mossop01]

Hi julie, were have managed on £80 a week for the past 4 weeks, gone are the days of chucking anything i fancied into the trolley then having palpiations at the till when the bill was over £150!!! Eek
Fresh fruit n veg is my downfall, but a weekly trip to the local market helps that, i can get twice as much as in supermarket.
£60 a week will be a squeeze but im gonna give it a good go!
As far as my first payment to SC goes, i doubt it will make any difference to my overall debt as i have some creditors who have added fees and still interest (HSBC are my new enemy) but im gonna make sure that changes!
My main worry is the lack if emergency fund and my car needs taxing (obviously not enough yet in my car tax fund) which is rubbish timing.

[Julie67]

Mossop I know what you mean. Our emergency fund is pitiful as well and I know that dh will need to upgrade his car in the near future.
I shop so differently now. We went to a friends last night and I was telling her that I have a fixed budget. She is very much like we used to be, goes shopping as and when she feels like it and doesn't even look at prices when I asked what her weekly budget was she had absolutely no idea. I'm so much happier the way I'm living now. It is restrictive but at least I can account for anything spent and I'm not throwing half the food away I used to.
I'm currently trawling eBay and the charity shops for a bedding box. In the past I would have gone straight out and put it on the CC without a second thought. Now it's got to come in at less than £10 or we will do without.
We really are thinking completely differently
HSBC are our biggest creditor and so far have had no response to the DMP other than to continue adding charges but like you I am determine to get a positive outcome with them.

[Mossop01]

Hi julie, ive sent numerous letters and rang hsbc and given them my ref number, but still heard nothing back from them at all, from reading pists here it looks like they have a backlog to get through! They are the only ones im yet to hear from, all the others have been reasonably quick, however when my wages dont go into hsbc overdraft on wed i think they might have something to say!

[Quarry]

Happy Sunday to all and thanks for your helpful posts. I'm following up the links etc.
I get my state pension in 6 years time (the government has just put it back by 18 months - helpful!) and I'll be OK then provided I have no debt.
It's interesting to hear that StepChange are funded by the financial services industry. Their suggestion that I sell my house would certainly be best for my creditors but would leave me homeless, so not the best advice to me I don't think. I spoke to the CAB and they laughed at the suggestion. Feeling better.
Wishing a peaceful day to all.
Q.

[Growurown]

Originally Posted by Hopelessly Hopeful

That's interesting to hear about the Credit Union GUO. Am going to check it out, will give me an excuse for another page in my spreadsheet book too! Planning on watching 'Bank of Dave' on Thursday evening, I missed it first time around.

HHx

The Credit Union suits my purposes really well. I like the fact that they are an ethical lender and that it is owned by its members.

Unlike a bank I can't go and draw money out on a card which I know I might be tempted to do in a moment of weakness. However I can access my money the same day with just a quick phone call and I find this makes me think about what I need the money for and do I really need it? It eliminates those spur of the moment spends that got me into this mess in the first place.

Bank of Dave

http://www.channel4.com/programmes/bank-of-dave/4od

[Quarry]

Originally Posted by inbetweener

It really is encouraging to read the positive experiences of so many on here.
My cc, loan and overdraft are all with lloyds so i assume i will have to open a new account elsewhere and contact every direct debit ie energy, council tax, insurance etc to make sure it comes out of the new account?

Hello inbetweener. I understand that the new bank can handle the transfer of direct debits from your old account. I'm not sure if all banks will do this and you have to watch the timings in case there is a delay in the new payments being set up. Personally, I'd prefer to deal direct with my suppliers so that there's a record if something goes wrong.
Q.

[gardenlady]

Originally Posted by Back on budget

Hi, been reading the forum since we want on our DMP in August, and have found it really useful to know we are not alone.

The DMP has been going well with all creditors agreeing to payments and a good number stopping interest.

We have had a couple of letters from Lloyds this week saying we can move our overdrafts to their consumer debt recovery department which will permenantly stop the interest. This seems like a good idea, as Lloyds have been the only creditor to be difficult and not stop interest.

Are there any downsides with taking this option?

My other question is regarding mortgages. We are currently on a great rate, having switched to a tracker just before interest rates fell, and currently on a rate of 1.7%. Only trouble is the deal will run out in October and our monthly payment will go thought the roof. Can anyone suggest a good place to look at remortgaging whilst on a DMP? We are currently with C&G and as most of our debt is with Lloyds, I can't see them wanting to give us a good deal! I'm thinking about going interest only for a few years, to keep monthly payments lower and clear our unsecured debt ASAP.

Any advice welcome!

With a DMP you are unlikely to get a good rate with a new lender, as your credit file will look awful! The only option you have is to try to get a new fixed rate with your current lender. If they wont give you a fixed rate then you just have to go on your current lenders SVR. This is one of the major downsides of a DMP.
As regards interest only, most lenders will not allow this now unless you have a payment vehicle in place. Also, if you can afford the repayment mortgage I really would stick with that- even if you could go on interest only for a bit, you would have to make up the shortfall at some stage.
I am very envious of the rate you have had up to now though! Good luck, the mortgage on a DMP thing gave me months of sleepless nights. We ended up getting a 5 year fix with our current lender, but I don't know what will happen in 5 years.

[supersavershal]

Hi everyone, all going good here. First payment to stepchange goes out on the 1st March. A few creditors have frozen interest and one has even said they are defaulting me.
The only panic I had was when I tried to set up for my DMP payment to be paid to my halifax account from my natwest new one, I didnt know I needed a card reader and it wont arrive on time. Luckily a friend has agreed to lend me theirs.

[inbetweener]

Originally Posted by Quarry

Hello inbetweener. I understand that the new bank can handle the transfer of direct debits from your old account. I'm not sure if all banks will do this and you have to watch the timings in case there is a delay in the new payments being set up. Personally, I'd prefer to deal direct with my suppliers so that there's a record if something goes wrong.
Q.

Hi Quarry,

If this all goes ahead and say starts in april then i plan to take the day off around 22nd march as this is when last direct debit comes out (car insurance), then i will spend the day ringing evey company to change direct debit details.
Ideally i am hoping they can all come out on 1st or 2nd of every month so it is easier to budget

[Time to face the music]

Originally Posted by Growurown

The Credit Union suits my purposes really well. I like the fact that they are an ethical lender and that it is owned by its members.

Unlike a bank I can't go and draw money out on a card which I know I might be tempted to do in a moment of weakness. However I can access my money the same day with just a quick phone call and I find this makes me think about what I need the money for and do I really need it? It eliminates those spur of the moment spends that got me into this mess in the first place.

Bank of Dave

http://www.channel4.com/programmes/bank-of-dave/4od

I use our Co-op savings account but I really must take the time to look for a Credit Union.

Another one here ready to watch the re-run of the Bank of Dave this week

[Time to face the music]

Originally Posted by inbetweener

Hi Quarry,

If this all goes ahead and say starts in april then i plan to take the day off around 22nd march as this is when last direct debit comes out (car insurance), then i will spend the day ringing evey company to change direct debit details.
Ideally i am hoping they can all come out on 1st or 2nd of every month so it is easier to budget

Depending on who you bank with now and your new bank, it is possible to do all of this online. I cancelled each DD immediately after it left my old Lloyds TSB/OH's NatWest account, and immediately set it up again on our new Co-op account.

I know banks offer an automated service but as we had debts with both of our banks, we didn't want to set alarm bells ringing by doing it all at once.

[Mossop01]

We too had debts with our banks so i cancelled DDs online and set them up myself for new account took a while but pretty straightfoward although some companies did need at least 14 days notice. Like TTFTM i didnt want to draw to much attention to our DDs being cancelled, i was a bit paraniod about it, but it was fine

[Julie67]

I did the same thing as Mossop and TTFTM re the bank accounts.
I am not holding my breath re the hsbc I am sure they are going to be the most difficult to deal with Mossop everyone else seems to reasonable.
I'm another one who is going to investigate the Credit Union.
Shall wait and see what the post brings today, hopefully more acceptances of the reduced payments. Some eBay items finishing today so that shall go towards our emergency fund.
My tumble dryer has decided to give up, it's been on its way out for a while. But I am thinking we will manage without until next winter when it becomes a necessity.

[Mossop01]

Hi julie, bad news on the tumble drier, least were coming out of winter now, i dont use mine in the summer at all, and at least it will keep electricity bill down a bit, also at least we are in the same boat with hsbc, im gonna give them til end of march and if still nothing im going to FOS.
Happy monday x

[Time to face the music]

Originally Posted by Julie67

I did the same thing as Mossop and TTFTM re the bank accounts.
I am not holding my breath re the hsbc I am sure they are going to be the most difficult to deal with Mossop everyone else seems to reasonable.
I'm another one who is going to investigate the Credit Union.
Shall wait and see what the post brings today, hopefully more acceptances of the reduced payments. Some eBay items finishing today so that shall go towards our emergency fund.
My tumble dryer has decided to give up, it's been on its way out for a while. But I am thinking we will manage without until next winter when it becomes a necessity.

Julie have you investigated fixing the tumble drier yourself? In the last year, we have fixed our cooker, tumble drier and fitted a couple of car parts, all courtesy of parts purchased on ebay and help found on forums and YouTube!

I wouldn't try every job but we have saved a fortune and managed so far ....

[Ashamed of Bristol]

Hi everyone!

With a bit of help from Time to Face the Music (thank you!) I wrote to Barclays and they have agreed to reduce my interest by 1% per month to an APR of 13%.

Not a huge win but better than a poke in the eye. Should I challenge them, or complain?

[MarieC5575]

Hi everyone

I am in the process of setting up a DMP with Step Change and have a couple of questions.

1. When sending token payments should I send the total amount that Step Change worked out I could afford and divide it equally (i.e. £400 divided by 10 creditors + £40 each) or a smaller amount at the moment until the agreement is set up?
2. When setting up new bank accounts I know I have to set one up with a bank which I have no financial ties to however does that include financial institutions that are part of banking groups i.e. Tesco Bank (Royal Bank I think) or is this considered a different institution?

Thanks for any advice anyone can give me.

Marie