Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 12,178Posts
    • 11,642Thanks
    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'm a volunteer to help the boards run smoothly, and I can move and merge posts there, and delete spam.
    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 105
    • Dandytf
    • By Dandytf 30th Sep 17, 7:28 PM
    • 834 Posts
    • 320 Thanks
    Dandytf
    Have you asked to have the defaults backdated? My Next account wasn't defaulted until last November even though my DMP commenced in 2012 like yours. I asked them to backdate it to when the contractual arrangement broke down and they changed it to January 2012 - it will be the first of my defaults to drop off with the rest of them following during 2018. There's a letter on this thread somewhere (think it might be January2015's) you could use. Also - this is two debts? a debt can only be defaulted once.
    Originally posted by CP2016
    Thanks I have read various posts since 2012 advising only 1 default should be applied.
    What I have done earlier is raised a concern via checkmyfile, though I could maybe try via Equifax/clearscore.
    As I have MS I’m hoping I can find CRA to raise the concern to co op or link.
    This is the 1 and only example of 2 defaults I\ve ever experienced, though I did wonder why my Experien score went from a few hundred to 0 past few weeks.
    Thanks for your advice, I’ll post update when I hear from checkmyfile or maybe find time to call step change or ombudsman
    This is one overdrafy debt only, I suspect when co op started to refuse dmp payments for a few months earlier this year, then when link picked up the last few hundred link have placed default as missed payments which it wasn’t i.e. looks like link have applied default immediatley when account on checkmyfile cra.
    I’vre since raised this concern via ombudsman -only tonight online.
    Last edited by Dandytf; 30-09-2017 at 7:48 PM.
    sc dmp 2012 13k

    Jan 2017 7380 paid. 50% ish...
    • Dandytf
    • By Dandytf 1st Oct 17, 2:13 PM
    • 834 Posts
    • 320 Thanks
    Dandytf
    Wasn’t expecting initial reply from checkmyfile today.
    Excellent all requested details passed showing 2 defaults for 427 co op balance.
    I’ll update as always to get a proper answer.
    Thanks mser’s
    sc dmp 2012 13k

    Jan 2017 7380 paid. 50% ish...
    • IWILLgetthere
    • By IWILLgetthere 1st Oct 17, 5:14 PM
    • 54 Posts
    • 236 Thanks
    IWILLgetthere
    Hello everyone, I have been reading this thread over the past week and was wondering if I could please join?
    My total debt is £11,800 approx (cc's and a loan) and as I have slipped behind on payments am finding it hard to keep up and everything is spiralling out of control - very scary times!!
    I went on the Stepchange website and filled out a budgeting form with them - they advised me to set up DMP and I have just sat and handwritten (can't afford printer ink!) 6 letters to my creditors offering them a proportionate monthly amount from my available funds (eek) - some get £1.60 up to some getting £20.80.I have paid them all their amount online today. I have done it myself rather than getting Stepchange to do it for 2 reasons.... firstly, whenever I have some extra cash (getting a lift to work instead of bus, ebay, survey money etc) I'd like to pay it to creditors and secondly, I have not included my Next & Littlewoods when writing letters - I know a lot of people are going to say that is a bad move but the payments to them are small and manageable and I REALLY need to keep those accounts open as they are my only lifeline when I need school shoes/coats, new fridge etc .
    I will be posting my letters off tomorrow and hoping for a good outcome but am INCREDIBLY SCARED .
    Does anyone have any words of wisdom and/or comfort they can offer??
    • IWILLgetthere
    • By IWILLgetthere 1st Oct 17, 7:56 PM
    • 54 Posts
    • 236 Thanks
    IWILLgetthere
    ... what I'm really worried about is that I'm just going to get more letters telling me that I'm behind on my payments, followed by default notices, followed by people knocking on my door and my children asking what's going on! (feel such a failure to them )
    • sourcrates
    • By sourcrates 1st Oct 17, 8:56 PM
    • 12,178 Posts
    • 11,642 Thanks
    sourcrates
    Hello everyone, I have been reading this thread over the past week and was wondering if I could please join?

    I will be posting my letters off tomorrow and hoping for a good outcome but am INCREDIBLY SCARED .
    Does anyone have any words of wisdom and/or comfort they can offer??
    Originally posted by IWILLgetthere
    Hi,

    Of course you can join !!

    Words of wisdom, stop been scared, they are financial institutions, not the mob, they won’t be breaking your legs for non payment.

    Millions of people are in debt, it’s nothing they don’t see every day, no one will be knocking on your door, instead a perfectly oiled machine will swing into action, it’s called a “debt management plan”.

    Are you intending to self manage ?

    If so you simply send your offer of payment backed up by a budget sheet, explain your situation, then pay what’s agreed.

    For someone who’s never done this before, it can be unknown territory, I can tell you things will be fine.
    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, and delete spam.
    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/
    • motivated
    • By motivated 1st Oct 17, 9:10 PM
    • 2,234 Posts
    • 3,175 Thanks
    motivated
    Hi Iwillgetthere

    I haven't paid my creditors properly for months now and I can relate fully to your concerns about people knocking on your door etc I can assure you my legs are still in one piece and my knocker hasn't been knocked by any debt collectors or creditors. We have all felt the anxieties that you have, you wouldn't be normal but I can assure you they will soon pass.

    By the way you are not a failure, you've just gotten yourself in a pickle but dealing with it now. You're not the first and certainly won't be the last

    Good luck.
    M
    Emptying my lake with a teaspoon
    Short term goal £610/£1796
    EF/1k
    • January2015
    • By January2015 1st Oct 17, 10:17 PM
    • 1,756 Posts
    • 4,732 Thanks
    January2015
    ... what I'm really worried about is that I'm just going to get more letters telling me that I'm behind on my payments, followed by default notices, followed by people knocking on my door and my children asking what's going on! (feel such a failure to them )
    Originally posted by IWILLgetthere


    You want those letters telling you the accounts are being defaulted When on a DMP not all letters are bad letters.... they would be to other people, but not to us DMPer's

    I'm another one who has been paying £1 payments to my creditors for over a year now. See my signature - my debt was almost £100k when I started. £1 a month has been fine. Not one phone call - since I told them in writing not to phone me, not one knock on the door, and not one threat of court action.

    You will soon get into the swing of being on a DMP and find you have a life after all
    Last edited by January2015; 02-10-2017 at 12:14 AM.
    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
    • StopIt
    • By StopIt 2nd Oct 17, 9:08 AM
    • 1,085 Posts
    • 958 Thanks
    StopIt
    ... what I'm really worried about is that I'm just going to get more letters telling me that I'm behind on my payments, followed by default notices, followed by people knocking on my door and my children asking what's going on! (feel such a failure to them )
    Originally posted by IWILLgetthere

    See, this is why debt is a cycle.


    You get so scared to confront it, that your imagined worst case scenario is exactly where you'll be heading if you don't tackle it.


    Entering a DMP is a positive step. Yes, you'll get those letters, but that's part of the way out. Defaulted debt = frozen interest. Frozen interest = a line in the sand and a figure that isn't constantly going up, one that can be dealt with.


    As long as you enter a DMP (Always, ALWAYS save an emergency fund before your first payment), you wont get visits at the door. Even CCJs for people on a DMP is exceptionally rare, as they're usually reserved for those who ignore the debts and hope they go away on their own.


    Get in touch with Stepchange or the National Debtline, speak to them. They'd have heard your story countless times and can help, you're not a bad person, and have nothing to be ashamed of. It's time to take control, and leave the guilt behind.


    Just look at other posts here. Like Motivated and Carbootcrazy etc (Edit: And January2015, sorry *runs*), you'll see a pattern. People come here with guilt, and come out empowered to deal with their debts as at the end of the day, it's a number on a spreadsheet. All your children need to know is that you're helping make their future brighter, nothing more needs saying.


    Edit: I just read a follow up post you made and disagree completely.


    You need to STOP ALL of your credit accounts TODAY. You build an emergency fund before entering a DMP to pay for things you mention, and then budget for all known spending BEFORE your debt payments. You will not be debt free if you have access to more credit, and I implore you, for your sake not to go self managed until you've gotten out of this mindset.
    Last edited by StopIt; 02-10-2017 at 9:12 AM.
    • carbootcrazy
    • By carbootcrazy 2nd Oct 17, 9:26 AM
    • 4,125 Posts
    • 23,166 Thanks
    carbootcrazy
    IWILLGETTHERE, welcome. We're very glad you decided to join us. If there's ever anything that's worrying you or that you aren't clear about please come and ask. There's usually someone on here who has been through something similar. It is scary at the start, we've all been there, but if you read the thread you'll see lots of encouraging examples of how a DMP has really turned people's lives around. Good luck to you.

    EDIT
    While I was writing the long post below I see StopIt beat me to it and posted a great response to you. I'll leave mine as it is though as it might add something else for you to think about too.


    Just a quick comment about your Littlewoods and Next debts. Have you left them totally out of your DMP with Stepchange? As you will know, lines of credit are shut off on a DMP, the creditors effectively close them down. It is usually impossible to access your account details through these creditors' online banking either. Make sure you make a note of balances and other details while you can.


    The other thing I need to say is that on a DMP with SC it is best to just pay what the agreed amount decided between you is each month. I'm not sure it's advisable/acceptable to them to keep making additional small payments to individual creditors. SC like us to treat each creditor fairly and that's why they decide the pro rata payments made to them out of the total we pay SC each month. That's the way a SC DMP operates, they pay creditors on your behalf. That's why a lot of us have found SC to be a lifesaver at the start of our DMP journeys as they take all the payment hassle and the juggling of individual payments away. If you are managing your own DMP and have just used SC's online tools to help with the process and are not going the whole hog with them taking over from you then obviously you can do what you like.


    If you are letting SC manage your DMP though I would advise holding onto the extra sums of money that you get coming in from time to time and save towards an emergency fund. With most lines of credit cut off there are sometimes occasions when we absolutely need money to pay for something unexpected. I think most of us on here have experienced that at some time or other. Of course, you could pay that towards your 2 non-DMP debts (Next and Littlewoods) instead.
    Last edited by carbootcrazy; 02-10-2017 at 1:15 PM.
    Make £10 A Day Challenge 2017. Jan-Sept: £4251.91 Oct: £12.00
    3-6 Months Emergency Fund Challenge #12: £3733.00/£5000.

    Original Debt: £56804 (@ LBM 02/13). Balance now: £15841
    . Getting there
    • manue1970
    • By manue1970 2nd Oct 17, 1:53 PM
    • 18 Posts
    • 2 Thanks
    manue1970
    Need advice on dmp
    I am about to embark on a Debt management program but I am worried about few things and need clarification.
    1 Who to use : Stepchange of National Debt relief ?
    2 Do I need to write to all my creditors or will they do it for me ?
    3 Do I need to open a new bank account before starting the proceedings
    4 My debt amounts to 23k and will be paying 772 a month, when would you think I will be debt free?
    5 Will I received Bailiff letters
    6 Which bank can I use? I have my debt with Barclay and NatWest and my mortgage with NatWest.
    7 My mortgage is due for renewal in December 2019 so will I have problem to get good rates?

    Many Thanks
    Emmanuelle
    • alana171
    • By alana171 2nd Oct 17, 2:31 PM
    • 60 Posts
    • 86 Thanks
    alana171
    This month will be my first payment to my DMP, I was banking with a halifax (have switched back to an old RBS where I have no debt) but my halifax account had an overdraft (part of my DMP) and a Credit card. This morning I’ve tried to log into my online banking with Halifax and it says the log in details I have been issued have been suspended. Is that the norm? Thanks
    Emergency Fund £100/£1000
    DMP Debt Free Date January 2023
    • StopIt
    • By StopIt 2nd Oct 17, 2:48 PM
    • 1,085 Posts
    • 958 Thanks
    StopIt
    I am about to embark on a Debt management program but I am worried about few things and need clarification.
    1 Who to use : Stepchange of National Debt relief ? The one who doesn't charge you.
    2 Do I need to write to all my creditors or will they do it for me ? You write to all creditors with the same template letter saying you're going to be moving to a DMP powered by Stepchange, and that any further communication should go to them.
    3 Do I need to open a new bank account before starting the proceedings If you have any debt with the bank you have an account with, yes. Open a cash account with a bank that you have no financial ties with.
    4 My debt amounts to 23k and will be paying 772 a month, when would you think I will be debt free? That depends on when your creditors issue default notices, and stop interest. Your letter to your creditors should state that you're in financial difficulty, and as part of the process of entering a DMP, ask that they default your accounts, and freeze interest at the earliest point possible. Have you saved an emergency fund?
    5 Will I received Bailiff letters Only if you ignore your creditors to the point of receiving CCJs, ignoring them, and ignoring any further steps. If you're paying into a DMP managed by Stepchange the chances of this is almost 0.
    6 Which bank can I use? I have my debt with Barclay and NatWest and my mortgage with NatWest. Any bank that isn't them. TSB, Co-Op and Lloyds are options.
    7 My mortgage is due for renewal in December 2019 so will I have problem to get good rates? Yes, in a word.

    Many Thanks
    Emmanuelle
    Originally posted by manue1970

    Comments in red.


    If you post a FULL SOA http://forums.moneysavingexpert.com/showthread.php?t=5720967 we can advise a bit more. A DMP will severely affect your credit rating, and any re-mortgaging or renewal of special fixed deals will be impacted by this. Have you spoken to Stepchange about this issue and have they advised the DMP is the way to go?


    Edit: I thought this was a familiar poster. Certainly seek advice as honestly, I wouldn't say a DMP is right for you, but Stepchange can help you more if you contact them directly.
    Last edited by StopIt; 02-10-2017 at 2:52 PM.
    • vaper
    • By vaper 2nd Oct 17, 2:48 PM
    • 98 Posts
    • 85 Thanks
    vaper
    Mi think this is normal. I am unable to log into any of my online accounts now.
    Sometimes it says I have used an incorrect password when I know I haven't. They then put a number to ring them on.
    I think they do this to force you to make contact with them
    Don't put menthol vape juice in your eyes!!!
    • StopIt
    • By StopIt 2nd Oct 17, 2:51 PM
    • 1,085 Posts
    • 958 Thanks
    StopIt
    This month will be my first payment to my DMP, I was banking with a halifax (have switched back to an old RBS where I have no debt) but my halifax account had an overdraft (part of my DMP) and a Credit card. This morning I’ve tried to log into my online banking with Halifax and it says the log in details I have been issued have been suspended. Is that the norm? Thanks
    Originally posted by alana171

    Yes, your account will be closed to online banking etc as you'll be defaulting on the Overdraft.


    Completely normal and to be expected. You still should have access to the account via the branch etc, but it'll likely be downgraded to a basic account with no access to internet services etc. It's also partially why you shouldn't have an actively used bank account when in a DMP as you may lose many features of the accounts when you do.
    • sourcrates
    • By sourcrates 2nd Oct 17, 3:14 PM
    • 12,178 Posts
    • 11,642 Thanks
    sourcrates
    I am about to embark on a Debt management program but I am worried about few things and need clarification.
    1 Who to use : Stepchange of National Debt relief ?
    2 Do I need to write to all my creditors or will they do it for me ?
    3 Do I need to open a new bank account before starting the proceedings
    4 My debt amounts to 23k and will be paying 772 a month, when would you think I will be debt free?
    5 Will I received Bailiff letters
    6 Which bank can I use? I have my debt with Barclay and NatWest and my mortgage with NatWest.
    7 My mortgage is due for renewal in December 2019 so will I have problem to get good rates?

    Many Thanks
    Emmanuelle
    Originally posted by manue1970
    I see "stop it" has already replied to your post, but just to add, only the debt charities offer fee free debt management plans, do not sign up to a commercial debt management company, as you have to pay for there so called service by means of a monthly fee, plus a percentage of your debt in the form of a service charge, so you pay twice.

    These commercial companies can and do go bust on a regular basis, and they usually take all there clients money down with them, so there use is not recommended on MSE.

    Always go to a free debt charity such as Stepchange for advice first.
    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, and delete spam.
    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/
    • alana171
    • By alana171 2nd Oct 17, 3:15 PM
    • 60 Posts
    • 86 Thanks
    alana171
    Thanks for the replies everyone! Feel much better knowing it’s normal!
    Emergency Fund £100/£1000
    DMP Debt Free Date January 2023
    • IWILLgetthere
    • By IWILLgetthere 3rd Oct 17, 5:33 PM
    • 54 Posts
    • 236 Thanks
    IWILLgetthere
    Thank you everyone for your words of wisdom and support
    • penaltychargenotice
    • By penaltychargenotice 4th Oct 17, 6:47 PM
    • 38 Posts
    • 27 Thanks
    penaltychargenotice
    Thinking of managing my own DMP?
    I am thinking of setting up and managing my own DMP and I would really value any advice from anyone who has done this.

    The situation is that we have talked to CAP (Christians Against Poverty) a charity helping people get debt free like Stepchange. They have been through our debts with us and they have suggested that my husband goes through bankruptcy as he is now too ill to work. We have agreed that is the right thing to do. However the debt in my name is a smaller amount (£14000 approx) and CAP recommended a DMP which they would run. My concern is with the budget they have given us. It seems very tight and about a quarter of our income (which is made up of benefits) is going to the DMP after we pay the bankruptcy fees. I think it is too tight to be doable for the three years the think it will take. Firstly because as my husband is quite poorly we need his PIP money to help him now, he may not live the three years to benefit from when the DMP is proposed to finish.

    The second reason is that the amount CAP want to take for the DMP is over £100 more than I was paying in repayments before we came unstuck.

    So my questions are do we stick with CAP? Quite a few people have recommended them to us. Will Stepchange be any different?

    Are there any pros and cons to managing your own dmp?

    Is it cheeky to go along with CAP while they sort husbands bankruptcy and then pull out of the agreement?


    I've been thinking it over and I am really not sure what to do for the best.
    • Max and sasha
    • By Max and sasha 4th Oct 17, 9:38 PM
    • 55 Posts
    • 35 Thanks
    Max and sasha
    Hi penalty charge

    Would it not be best for both of you to go bankrupt? Do you own your house ?
    I hope your husband feels better soon

    Max
    • sourcrates
    • By sourcrates 4th Oct 17, 10:11 PM
    • 12,178 Posts
    • 11,642 Thanks
    sourcrates
    I would say the same as above, whey not both go bankrupt and solve the whole problem in one fell swoop.

    One going bankrupt and the other going on a DMP makes no sense to me.

    Are there any reasons why you can’t both do it ?
    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, and delete spam.
    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/
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

79Posts Today

2,592Users online

Martin's Twitter
  • I was surprised to see the three people in front of me in the newsagents were all shocked their old £1 coins were no longer taken.

  • RT @natdebtline: If you?ve been visited by a bailiff since April 2014 we want to hear your story for our #bailiffreform campaign https://t.?

  • Well so far it seems there's one thing remainers and leavers agree on - the EU is getting the better of the negotia? https://t.co/70z5ffpG8S

  • Follow Martin