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  • FIRST POST
    • fermi
    • By fermi 10th Jul 15, 7:32 AM
    • 39,192Posts
    • 47,019Thanks
    fermi
    DMP & Mutual Support Thread - Part 11
    • #1
    • 10th Jul 15, 7:32 AM
    DMP & Mutual Support Thread - Part 11 10th Jul 15 at 7:32 AM
    Welcome to the DMP mutual support thread.

    Here you can find help in starting and running your DMP, self managed, Stepchange, Payplan and any other DMP all welcome here. 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 a non judgemental and all questions welcome.
    Originally posted by Sazzie23
    Once again the old thread was getting a bit large, so here is a fresh thread.

    The previous thread can be found here: Click ---> DMP & Mutual Support Thread - Part 10

    Or click here for the last page of posts on the old thread. ---> Last Page

    Sazzie23's fantastic post of the month winning post from the previous thread is repeated below.

    Best wishes with the DMPs everyone.
    Last edited by fermi; 12-07-2015 at 9:50 AM.
    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
Page 250
    • Floopy2009
    • By Floopy2009 19th Mar 17, 8:36 PM
    • 16 Posts
    • 7 Thanks
    Floopy2009
    Just a quick one i have stopped payments in Feb on my credit cards etc and will be going self managed once defaulted and sold on. Just wondered how long does it take to get sold on and dca contact you i presume you will get a letter who the debt has been sold on to ?
    • sourcrates
    • By sourcrates 19th Mar 17, 8:51 PM
    • 10,894 Posts
    • 10,561 Thanks
    sourcrates
    Just a quick one i have stopped payments in Feb on my credit cards etc and will be going self managed once defaulted and sold on. Just wondered how long does it take to get sold on and dca contact you i presume you will get a letter who the debt has been sold on to ?
    Originally posted by Floopy2009
    Hi,

    How long is a piece of string ?

    It all depends on the creditor, they should default after 3/6 missed contractual payments, some drag there feet, others are on the ball, there is no way to tell beforehand.

    You can write and ask for the account to be defaulted, that may help.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    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/
    • Floopy2009
    • By Floopy2009 19th Mar 17, 9:16 PM
    • 16 Posts
    • 7 Thanks
    Floopy2009
    What about the companies that they sell it on to are they quick to contact you or you waiting around a month or two

    Cheers
    • sourcrates
    • By sourcrates 19th Mar 17, 9:21 PM
    • 10,894 Posts
    • 10,561 Thanks
    sourcrates
    What about the companies that they sell it on to are they quick to contact you or you waiting around a month or two

    Cheers
    Originally posted by Floopy2009
    Again, it's anyone's guess, some are fairly quick, others aren't.

    Debts are sold on in bulk, they have to chase up every single one, on occasion they may not bother, if they feel a certain account may be unrecoverable, it just depends on a whole list of factors.

    As a general rule it's within 3 months of sale.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    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/
    • Puzzcat
    • By Puzzcat 19th Mar 17, 10:30 PM
    • 3,053 Posts
    • 16,065 Thanks
    Puzzcat
    According to the fos the original creditor does not have to default before sale, they have said my original creditor and now dca are correct and they do not have to default the debt. This was a debt that I have been paying reduced payments to for over 3 years.. So yes you can ask, but they don't have to default.
    Puzz
    Christmas 2017 £300 cash/£80 vouchers
    I love my dmp started in Nov 13 with SC 33% paid
    Going Self Managed March 2016
    Pot Of Gold - £405.00
    MY DIARY -
    http://forums.moneysavingexpert.com/showthread.php?t=4768685
    • Stig of the DMP
    • By Stig of the DMP 21st Mar 17, 3:08 PM
    • 5 Posts
    • 17 Thanks
    Stig of the DMP
    So, I am finally underway. We have sent our income and expenditure details to Stepchange and had the pack back, which we have returned. We have also contacted all of our creditors, who were remarkably helpful and sympathetic, all things considered. We are planning to start payments in July to allow ourselves to build up our emergency fund.

    Is it weird that I actually feel quite excited about it? I am no longer terrified to look at my current account, I have started allocating money for differnet things rather than just living hand to mouth each month. I realise this is how most peiople actually live their lives, but the whole concept of planning and sticking to a budget is something that is totally new to me.

    Stig
    • January2015
    • By January2015 21st Mar 17, 4:05 PM
    • 1,692 Posts
    • 4,597 Thanks
    January2015
    So, I am finally underway. We have sent our income and expenditure details to Stepchange and had the pack back, which we have returned. We have also contacted all of our creditors, who were remarkably helpful and sympathetic, all things considered. We are planning to start payments in July to allow ourselves to build up our emergency fund.

    Is it weird that I actually feel quite excited about it? I am no longer terrified to look at my current account, I have started allocating money for differnet things rather than just living hand to mouth each month. I realise this is how most peiople actually live their lives, but the whole concept of planning and sticking to a budget is something that is totally new to me.

    Stig
    Originally posted by Stig of the DMP
    Well done - and really well done on giving yourself a good few months to build an emergency fund. We say it so often on here, but often people new to DMPland panic and feel they must pay creditors NOW. It usually takes a bit of persuading that nothing bad will happen. You have clearly not needed persuading and have taken to DMPland like a duck to water.

    It is normal to feel excited / elated. The pressure of debt worry has lifted from your shoulders and you can start to see the wood for the trees. The debt is still there but you know you have a plan and it will not get worse and you can afford to live life.

    Great to see you making fantastic progress. Now you've started the DMP, don't be a stranger - keep popping in and saying hello and updating us You really will find the support and motivation of this forum will help you get through the years of the DMP. I have been going for just over 2 years now and it really has flown by.
    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
    • Stig of the DMP
    • By Stig of the DMP 21st Mar 17, 4:30 PM
    • 5 Posts
    • 17 Thanks
    Stig of the DMP
    Thanks, January. It is only from reading advice on here that has given me the confidence to request a delayed start date and also to set a realistic rather than monk-like budget.
    • motivated
    • By motivated 21st Mar 17, 7:20 PM
    • 1,527 Posts
    • 1,640 Thanks
    motivated
    So, I am finally underway.
    Is it weird that I actually feel quite excited about it? I am no longer terrified to look at my current account, I have started allocating money for differnet things rather than just living hand to mouth each month. I realise this is how most peiople actually live their lives, but the whole concept of planning and sticking to a budget is something that is totally new to me.
    Stig
    Originally posted by Stig of the DMP
    Hi Stig

    Well done on getting the ball rolling and you're not weird. I too am actually excited about our DMP too Stepchange have been great. I can also relate to not being scared anymore about the bank and creditors etc. Mine were also very understanding, I was quite surprised to be honest. I'm still waiting to hear from 2 but I am not stressing about them yet.

    As for the budget I am still getting my head round it. When you have been used to spending what you want when you want its difficult to keep track of a budget at first. I am getting my head around it now and you will too.

    Its like a whole new fresh start so enjoy it and good luck with everything.
    M
    • ella2ethan1
    • By ella2ethan1 22nd Mar 17, 10:42 AM
    • 184 Posts
    • 154 Thanks
    ella2ethan1
    Hiya and thank god for this thread!

    I am going to set up a dmp so far I am up to date with all my creditors, I am going to contact Payplan later today so finally sort things out.

    Is your advice on here to stop paying the debts straight away? And why to open a new bank account? I am taking it that my overdraft will be stopped when I start all of this?

    And am I getting it right that if they all default then it will be off my credit file in 6 years?

    I/we are drowning in debt and paying it all back there is no money left at the end of the month I am hoping that with this we will get some breathing space. Who sets the repayment figure payplan is it all based on the other income/outgoings?

    Sorry for all the questions I'm sure you have all answered lots of times.



    Hi Henryyyy

    I think this is answered already by outperform other fine DMPers, but just to be clear, If you are going to a DMP, there's no point continuing to pay, cancel your DD and CPA and tell them you are in difficulty and will be setting a DMP and will let them know.

    Don't forget that defaults are your friend, (see my reply to Dancing Unicorn above).

    Well done for making a start at facing your debts, and look forward to getting the budget under control. My advice is : Don't stretch yourself too far at first, it's tough starting a DMP, make life easy on yourself by having some slack in your budget, either by not declaring your overtime, your bonus or being creative with your budget

    Saz
    Originally posted by Sazzie23
    • motivated
    • By motivated 22nd Mar 17, 10:47 AM
    • 1,527 Posts
    • 1,640 Thanks
    motivated
    Hiya and thank god for this thread!

    I am going to set up a dmp so far I am up to date with all my creditors, I am going to contact Payplan later today so finally sort things out.

    Is your advice on here to stop paying the debts straight away? And why to open a new bank account? I am taking it that my overdraft will be stopped when I start all of this?

    And am I getting it right that if they all default then it will be off my credit file in 6 years?

    I/we are drowning in debt and paying it all back there is no money left at the end of the month I am hoping that with this we will get some breathing space. Who sets the repayment figure payplan is it all based on the other income/outgoings?

    Sorry for all the questions I'm sure you have all answered lots of times.
    Originally posted by ella2ethan1
    Hi ella I am new to all of this too but just wanted to say DON'T PANIC!!! The experts on this thread will advise you what to do for the best. They saved me and I found the whole process so far fairly easy and pain free.
    Someone will be along shortly i'm sure.

    Good Luck
    M
    I have arrived in DMP Land and I like it. I may stay a while
    Started April 2017

    Short term goal 280/1723.27
    • henrryyyy
    • By henrryyyy 22nd Mar 17, 2:08 PM
    • 36 Posts
    • 39 Thanks
    henrryyyy
    Little update
    I completed all forms and list of accounts etc and finally sent them off yesterday to StepChange.
    I just mailed all my creditors advising them of this and that I requested SC take my first payment on or around 1st August. Now everything is out of my hands.
    • January2015
    • By January2015 22nd Mar 17, 3:00 PM
    • 1,692 Posts
    • 4,597 Thanks
    January2015
    Hiya and thank god for this thread!

    I am going to set up a dmp so far I am up to date with all my creditors, I am going to contact Payplan later today so finally sort things out.

    Is your advice on here to stop paying the debts straight away? And why to open a new bank account? I am taking it that my overdraft will be stopped when I start all of this?

    And am I getting it right that if they all default then it will be off my credit file in 6 years?

    I/we are drowning in debt and paying it all back there is no money left at the end of the month I am hoping that with this we will get some breathing space. Who sets the repayment figure payplan is it all based on the other income/outgoings?

    Sorry for all the questions I'm sure you have all answered lots of times.
    Originally posted by ella2ethan1
    Hello and welcome

    Firstly - if you have made the decision to enter a DMP then there is no point making any further payments to creditors until you start your DMP. So, yes - stop making payments to creditors now.

    You will only need to open a new bank account if you have any debts at all with your existing bank. Most people entering a DMP have some sort of debt with their existing bank, e.g. overdraft, loan, credit card etc. If you have debt at all with your bank you must open a new bank account with a bank which has no relation to any of your creditors. So, for example if you bank with Halifax don't open an account with Lloyds because Halifax and Lloyds are linked. The reason for this is that banks have a thing called right of offset which means if you owe them a debt on one account but have funds in another account they can take those funds without asking towards settlement/clearing of the debt.

    Forget about your overdraft - you don't want it/need it anymore. If you are overdrawn just include it in your DMP.

    Yes, you are right about defaults. Once account(s) default the information is removed from your credit reference agency files after six years. If creditors do not default then the record(s) stay for six years after the account is settled. What this means is that, say your DMP is forecast to be 7 years and a creditor marked your credit reference files as 'arrangement to pay' for the whole term of the DMP - in 7 years you make your final DMP payment, but the bad information of arrangement to pay will stay on your credit reference file for a further 6 years (making a total of 13 years reporting of poor credit management). This is the reason DMPers chase down defaults from creditors.

    Payplan will calculate your DMP payments based on the information you provide on the income and expenditure form. They allow for priority debts such as mortgage/rent, utilities, council tax etc. and then an amount for things like clothing, dentist, sundries, etc. etc. Make sure you don't squeeze your budget too tight in trying to repay your debts as quickly as possible. You are more likely to fail your DMP if you do this. If there is an allowance for something make sure you use it.

    Any other questions - please just shout, we are all happy to help
    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
    • Sazzie23
    • By Sazzie23 22nd Mar 17, 4:10 PM
    • 2,596 Posts
    • 10,468 Thanks
    Sazzie23
    Hello

    Well I'm sat watching all the drama at Westminster and decided I'd update my spreadsheet.

    These are my current DFD for my 6 credit card debts
    13.2 years 16.7years 22.4years 6.8years 10.5years 8.8years which gives a total of payoff in 12.6 years at current rates By which time I'll be lots less time to retirement

    However I did my annual review today and I've increased the payment by £30 a month (£5 each creditor). In reality I could probably increase it a bit more, but I'm liking the freedom to spend a little , and save a bit extra and as its not guaranteed money (out of hours payments etc), I've decided not to increase it more.

    In reality I pay off my mortgage in 3.5 years, my secured loan in 6.5 years, assuming I don't up the payments when the mortgage is paid so I should be able to hit the DMP debt hard when I'm not paying out for those. I am hoping to inherit a small sum this year, and maybe I'll try to clear one of the CC debts off with it which will help speed things up, but maybe I won't, am not paying interest, so it's just a matter of maybe not being indebted for the rest of my life ....

    If you are reading this thinking you need a DMP, you probably do, and do it sooner rather than later, it's very rare to hear from anyone sorry they started the DMP too soon, but how many times we hear - I wished I started it sooner.

    Good debt busting to all DMPers new and those already immersed.

    Saz
    Debt -it's a fight that I'm winning, dealing with debt one day at a time.
    Estimated DFD August 2018 - 2031 - now 2027

    Guide dog Tess, missing Scotland 2 years

    DMP support no438.
    • carbootcrazy
    • By carbootcrazy 22nd Mar 17, 4:49 PM
    • 3,684 Posts
    • 20,497 Thanks
    carbootcrazy
    Welcome to the thread Stig of the DMP (brilliant and clever username by the way) and ella2ethan


    You've already done the hardest part, that first step can be so scary, and with the help of SC (or whoever looks after your DMP) and the lovely friendly people on here you'll find your life will seem so much better without the anxiety and worry about what each day will bring.


    Please ask whenever something occurs to you that isn't clear or if anything unexpected crops up. Sometimes creditors send letters (usually just computer generated that mean nothing much) but new DMPers get very worried about what to do. There will always be someone here who has 'been there, done that' and will be only too happy to pass on their good advice. Don't forget, there's no such thing as a stupid question


    Good luck to all DMPers, whether new to it or old hands. It's great to have your company on the journey to debt freedom
    Make £10 A Day Challenge 2017. Jan-May: £1620.98. June: £146.10
    3-6 Months Emergency Fund Challenge #12: £1200.00/£3000. This is such hard going but I will do it.

    Original Debt: £56804 (@ LBM 02/13). Paid : £32316. Balance: £24488
    • ella2ethan1
    • By ella2ethan1 22nd Mar 17, 5:35 PM
    • 184 Posts
    • 154 Thanks
    ella2ethan1
    Thank you January2015 and carbootcrazy,

    I have another couple of questions please.

    Do I have to let my creditors know or just leave it up to stepchange? And how long does it normally take to get the defult?

    I won't have debt collectors at my door will I? I have a mortgage so know I can leave that out and still pay it but I also have a car loan, reading through the paperwork they can't repossess as I've paid over half are they normally safe?

    I will get a new account asap then as I have a card and loan with them and it is with Lloyds so won't chose Halifax thanks for the tip.

    Thanks for the advice ��
    • January2015
    • By January2015 22nd Mar 17, 6:22 PM
    • 1,692 Posts
    • 4,597 Thanks
    January2015
    Thank you January2015 and carbootcrazy,

    I have another couple of questions please.

    Do I have to let my creditors know or just leave it up to stepchange? And how long does it normally take to get the defult?

    I won't have debt collectors at my door will I? I have a mortgage so know I can leave that out and still pay it but I also have a car loan, reading through the paperwork they can't repossess as I've paid over half are they normally safe?

    I will get a new account asap then as I have a card and loan with them and it is with Lloyds so won't chose Halifax thanks for the tip.

    Thanks for the advice ��
    Originally posted by ella2ethan1
    Stepchange will let your creditors know but this can take some time. I would write to them all and advise them you are in financial difficulty and have been seeking the support of Stepchange (SC) and are in the process of setting up a DMP. In the letter tell them you will update them with your SC reference number as soon as you receive it (otherwise they will contact you and ask for it and you won't have until everything is set up with SC), also request they suspend all interest and charges on your account(s). Advise them that future payments to the account will be made via SC. Also put in the letter that all future communication regarding the account must be in writing and that you do not give them permission to contact you by telephone. Providing you do keep in contact with them, creditors have to honour this request - this takes pressure off of you when your phone rings - you don't have to worry it's creditors and you don't want to talk to them.

    On this forum we recommend you take several months before you start your DMP payments. This may seem difficult to do when you have not missed any payments to creditors but it's important to remember you will no longer have access to credit. Use the several months to build up an emergency fund - save the money you would be paying to SC to put away for car or appliance breakdowns etc. If I were you I would not consider starting the payments until at least September - or even longer if you payments are likely to be low. Please believe me - nothing bad will happen. Creditors understand people who need to enter DMP will have several months before those payments start. If you really feel you cannot face not paying them anything then some people just pay them £1 each month per creditor whilst they save up their emergency fund. SC won't do this for you and you need to organise this yourself if you do want to pay a token £1 per month.

    You will not have debt collectors at your door. Creditors recognise that people on DMPs are dealing with their debts and not avoiding them so please don't panic about this.

    Put the details of your mortgage onto the income and expenditure form for SC and they will make sure that you pay that before any money is allocated to creditors.

    Car loan - I assume you got the finance from the garage - is this right? I'm not sure what happens about things like this. Our car was purchased through a loan from the bank and therefore the loan was just another debt to be included in our DMP. You might want to talk to SC about your car / car loan situation. Sorry I can't be more help with this.
    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
    • ella2ethan1
    • By ella2ethan1 22nd Mar 17, 6:34 PM
    • 184 Posts
    • 154 Thanks
    ella2ethan1
    Ok thank you for all your help your a star! I've tried to open an account with Barclays but have to take my Id in �� So will do that tomorrow, then I have to transfer all my direct debits to my new account and use that instead, is that right?

    For my mortgage and household bills I mean.
    • January2015
    • By January2015 22nd Mar 17, 6:44 PM
    • 1,692 Posts
    • 4,597 Thanks
    January2015
    Ok thank you for all your help your a star! I've tried to open an account with Barclays but have to take my Id in �� So will do that tomorrow, then I have to transfer all my direct debits to my new account and use that instead, is that right?

    For my mortgage and household bills I mean.
    Originally posted by ella2ethan1
    When setting up your new bank account I would recommend setting up all direct debits manually and not using the bank switching service. It's not hard - just contact the companies you need to set up DDs for and ask for a DD form to complete and return to them. They want your money so they will soon send those forms through.

    Just checking - you didn't have a Barclaycard credit card did you? If you did - then don't go to Barclays as they are linked, otherwise you should be okay.

    You will also need to make sure your salary payments go straight to the new account as soon as possible as well.
    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
    • BeingDebtFreeStartsHere
    • By BeingDebtFreeStartsHere 22nd Mar 17, 7:31 PM
    • 256 Posts
    • 780 Thanks
    BeingDebtFreeStartsHere
    Ok thank you for all your help your a star! I've tried to open an account with Barclays but have to take my Id in �� So will do that tomorrow, then I have to transfer all my direct debits to my new account and use that instead, is that right?

    For my mortgage and household bills I mean.
    Originally posted by ella2ethan1
    Hi

    You only need a basic bank account - nothing fancy. I applied for one with Santander and it was all done online. Not sure which one you have gone for but just get one with no overdraft facility and just a debit card.

    Only transfer the direct debits for your priority debts (mortgage, utility bills etc), make sure you cancel all loan/CC etc direct debits and don't give your new bank these details. These payments as they stand are now no longer in existence, everything will now be done through your DMP.

    You have definitely made the right decision

    Take care,

    BDFSH 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
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