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  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 13,210Posts
    • 12,635Thanks
    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 Free Legal advice see : http://legalbeagles.info/
Page 141
    • ploppy57
    • By ploppy57 8th Feb 18, 7:49 AM
    • 550 Posts
    • 3,826 Thanks
    ploppy57
    Morning,
    Further to my post above and some more research on debt camel (what a great web site). It seems that I was right if you have enough equity in your house then indeed unsecured creditors can request (and then subsequently take you to court for a charge on your house). Which leads me to the conclusion that I may aswell try the secured loan route even though itíll cost me more,take longer etc before my credit file is trashed by a dmp as after starting one surely any loan offer (if at all) would be an even worse interest rate. Seems to be little difference in unsecured debts to secured debts action just that it takes longer to get there for the creditor. Any one had any experience of creditors threatening to put charge on their house/court action (or actually going ahead with it)? Thank you in advance, going to sleep thinking about it and first think I worry about when I wake.
    Originally posted by Summer12
    Hi, I'm sure others will be along to advise as well, and correct me if I am wrong, but I have never heard of creditors taking money from your equity....we have equity in our property. When we started SC DMP, they did ask if moving house was a consideration to help pay debts and I said no, which they accepted.
    Creditors will accept your payment plan as long as you send an Income and Expenditure form, so they can see that you are doing the best you can to pay your debts.
    Personally I would take the DMP route any time
    DMP March '15 £57,549. Now £44,488. Going SM Feb '18 to get DF sooner.
    Emergency fund #231... £35/£1000.
    Christmas 2018 challenge... had to start again/£300
    "There's a Great Big Beautiful Tomorrow, Shining at the end of every day"
    • IANB77
    • By IANB77 8th Feb 18, 8:20 AM
    • 14 Posts
    • 11 Thanks
    IANB77
    So it starts...
    Morning All, I got the below email this morning. I take it this is just normal and that i can be expecting more like this from other creditors? Thing is i have not had a "Notice of default sums"???? The only recent one i had from the was they had entered onto there system i was "under credit counseling"

    Pursuant to the Loan Agreement that you signed and the Terms & Conditions thereof, you are in default of the above referenced loan and have failed to take corrective action as detailed in the Notice of Default Sums sent to you at least 15 days ago.



    We hereby exercise our contractual right of Acceleration. This means that:

    - Your entire loan amount of principal, accrued interest and fees of £473.66 is now due.

    - We may notify the credit reporting agency of your default on this loan.

    - We may sell your debt to a third-party debt purchaser who may exercise any rights available under the law in collecting the amount owed.

    - Interest will not accrue from this point forward.


    If you are experiencing difficulty in paying the sums owed under the agreement, then this notice serves as Pounds to Pocket!!!8217;s offer to you to contact our Collections Team and work out equitable relief.


    If you have queries, email or ring us promptly. We value your business, and we ask you to contact us immediately to resolve this matter. In order to retain your good standing with our company and the Credit Reporting Agency, we must hear from you immediately. Possible payment methods include:



    - Debit Card

    - Direct Debit from your bank account


    If you have already made payment arrangements for the entire balance, please disregard this email.



    WARNING: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk


    Pounds to Pocket Customer Support Team
    • FoolishGirl77
    • By FoolishGirl77 8th Feb 18, 8:25 AM
    • 11 Posts
    • 9 Thanks
    FoolishGirl77
    Looks quite standard to me and as youíll quickly realise on this thread defaults are good.

    The email is not the start of any proceedings as far as I can tell and opens the doors to agreeing a reasonable affordable repayment plan for a set amount with interest frozen so looks good to me.

    This sort of message is common at this point in the proceedings.

    Others more knowledgable than me may wish to correct me if I am wrong.
    • FoolishGirl77
    • By FoolishGirl77 8th Feb 18, 8:30 AM
    • 11 Posts
    • 9 Thanks
    FoolishGirl77
    I had (and still have) enough equity to cover my debts before starting the DMP a few years ago. I originally started my DMP with a fee paying outfit (I know) and they said that whilst a creditor could technically place a second charge on your home it was unlikely and they advised against further secured credit to payoff unsecured credit. Your home is at greater risk if you do this (at least thatís the advice I had).

    I have been in a DMP for 3 years now and the debt total has reduced by 2/3 and there has been no issues with my equity.

    Itís not a route I would want to go down.
    • FoolishGirl77
    • By FoolishGirl77 8th Feb 18, 8:32 AM
    • 11 Posts
    • 9 Thanks
    FoolishGirl77
    Sorry, keep forgetting to reference the posts I am replying to - pregnant brain!
    • carbootcrazy
    • By carbootcrazy 8th Feb 18, 8:41 AM
    • 4,343 Posts
    • 24,485 Thanks
    carbootcrazy
    Morning,
    Further to my post above and some more research on debt camel (what a great web site). It seems that I was right if you have enough equity in your house then indeed unsecured creditors can request (and then subsequently take you to court for a charge on your house). Which leads me to the conclusion that I may aswell try the secured loan route even though itíll cost me more,take longer etc before my credit file is trashed by a dmp as after starting one surely any loan offer (if at all) would be an even worse interest rate. Seems to be little difference in unsecured debts to secured debts action just that it takes longer to get there for the creditor. Any one had any experience of creditors threatening to put charge on their house/court action (or actually going ahead with it)? Thank you in advance, going to sleep thinking about it and first think I worry about when I wake.
    Originally posted by Summer12
    To be honest, Summer, the information about equity came as a big surprise to me. I had always assumed that UNsecured debts were just that and creditors had no way of recouping payment from a charge on your home.

    I'm sure someone far more knowledgeable than me will be along to advise you but in the meantime I'd advise you to sit tight and do nothing for the moment on the secured loan/DMP situation,


    I can see that this is a very stressful time for you but please try not to worry. Easier said than done, I know. Good advice will be forthcoming soon. The good people on this thread won't lead you astray
    Make £10 A Day Challenge 2018. Jan ?:Feb: £236.25


    Original Debt: £56804 (@ LBM 02/13). Now: £10102
    . Getting there.
    • IANB77
    • By IANB77 8th Feb 18, 8:49 AM
    • 14 Posts
    • 11 Thanks
    IANB77
    Morning,
    Further to my post above and some more research on debt camel (what a great web site). It seems that I was right if you have enough equity in your house then indeed unsecured creditors can request (and then subsequently take you to court for a charge on your house). Which leads me to the conclusion that I may aswell try the secured loan route even though itíll cost me more,take longer etc before my credit file is trashed by a dmp as after starting one surely any loan offer (if at all) would be an even worse interest rate. Seems to be little difference in unsecured debts to secured debts action just that it takes longer to get there for the creditor. Any one had any experience of creditors threatening to put charge on their house/court action (or actually going ahead with it)? Thank you in advance, going to sleep thinking about it and first think I worry about when I wake.
    Originally posted by Summer12
    Hi Summer, I did research before going down the DMP route. What i found out and was told is that a creditor can apply for CCJ which could attach the debt to your Equity. However this is just attached and will only come into force if you decide to sell it, they would then be entitled to whatever you owe from the proceeds of the sale. At no point can they take your house from you or force you to sell, its kind of like a guarantee for them.But from what i can read not many company's apply for CCJ's if you are on DMP Though can happen.

    If you go down the secure loan route that is different and is secured against your home so if you default on that i think the outcome could be different. I rent so am not in the same situation. But thats my understanding. People feel free to correct me if wrong...
    • RW01
    • By RW01 8th Feb 18, 9:17 AM
    • 10 Posts
    • 17 Thanks
    RW01
    No - never bombarded with letters. My debt was with PRAT at the time though.

    I just watched ever reducing settlement offers drop through the letter box and I only responded when I go a 10% settlement offer

    Otherwise I ignored everything they sent me
    Originally posted by January2015
    January2015 I have now settled my MBNA debt with cabot for 10% (£376 so thanks for your previous advice), they refused my first offer, I then replied to say I was at risk of redundancy at work so expected to drop to token payments, a week later they applied to agree it. I'm now going to try this with the remaining 2 debts that haven't replied to cca requests. Although at risk of redundancy I will get a reasonable redundancy and have other things in the pipeline already - just helped me to negotiate the settlement!
    • January2015
    • By January2015 8th Feb 18, 9:25 AM
    • 1,915 Posts
    • 4,957 Thanks
    January2015
    Morning,
    Further to my post above and some more research on debt camel (what a great web site). It seems that I was right if you have enough equity in your house then indeed unsecured creditors can request (and then subsequently take you to court for a charge on your house). Which leads me to the conclusion that I may aswell try the secured loan route even though it!!!8217;ll cost me more,take longer etc before my credit file is trashed by a dmp as after starting one surely any loan offer (if at all) would be an even worse interest rate. Seems to be little difference in unsecured debts to secured debts action just that it takes longer to get there for the creditor. Any one had any experience of creditors threatening to put charge on their house/court action (or actually going ahead with it)? Thank you in advance, going to sleep thinking about it and first think I worry about when I wake.
    Originally posted by Summer12
    I would not recommend trying for a secured loan. You are just moving unsecured debt to secured debt. You are not solving any problems just making them far worse

    Ok, so you found information which states that if you have enough equity in your house then indeed unsecured creditors can request a charge on your house. It is only likely to happen if you are not making any efforts at all to keep in contact with your creditors.

    I am 3 years into my DMP. I pay only token payments. I have over a quarter of a million pounds of equity in my property which is almost 6 times the outstanding amount of my unsecured debts. All of my creditors are okay with token payments, not one has even mentioned securing a charge on my home, nor even mentioned they are aware of my equity value or anything similar - simply put they do not ever mention my home. We only discuss my income, expenditure and total unsecured debt value.

    I have always been aware there is potential for charges on my home and for CCJs. When I entered the world of DMP I made it my goal to read all available information. I even read The Lending Code - now called The Lending Standards. Knowledge is power. I've said it many times before and I'll say it again. Debt management is a strategy game. Learn the rules, play the game by the rules and stay at least one step ahead of your creditors. Your will clear your debts, your home will not be at risk, you will not get CCJs, you may be able to negotiate F&Fs, you may find some debts unenforceable. You will win the game if you follow the rules. The winner gets to be debt free whilst staying within the law
    Last edited by January2015; 08-02-2018 at 9:43 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
    • January2015
    • By January2015 8th Feb 18, 9:27 AM
    • 1,915 Posts
    • 4,957 Thanks
    January2015
    January2015 I have now settled my MBNA debt with cabot for 10% (£376 so thanks for your previous advice), they refused my first offer, I then replied to say I was at risk of redundancy at work so expected to drop to token payments, a week later they applied to agree it. I'm now going to try this with the remaining 2 debts that haven't replied to cca requests. Although at risk of redundancy I will get a reasonable redundancy and have other things in the pipeline already - just helped me to negotiate the settlement!
    Originally posted by RW01


    I love it So pleased for you One down.... onto the next
    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
    • carbootcrazy
    • By carbootcrazy 8th Feb 18, 11:11 AM
    • 4,343 Posts
    • 24,485 Thanks
    carbootcrazy
    I would not recommend trying for a secured loan. You are just moving unsecured debt to secured debt. You are not solving any problems just making them far worse

    Ok, so you found information which states that if you have enough equity in your house then indeed unsecured creditors can request a charge on your house. It is only likely to happen if you are not making any efforts at all to keep in contact with your creditors.

    I am 3 years into my DMP. I pay only token payments. I have over a quarter of a million pounds of equity in my property which is almost 6 times the outstanding amount of my unsecured debts. All of my creditors are okay with token payments, not one has even mentioned securing a charge on my home, nor even mentioned they are aware of my equity value or anything similar - simply put they do not ever mention my home. We only discuss my income, expenditure and total unsecured debt value.

    I have always been aware there is potential for charges on my home and for CCJs. When I entered the world of DMP I made it my goal to read all available information. I even read The Lending Code - now called The Lending Standards. Knowledge is power. I've said it many times before and I'll say it again. Debt management is a strategy game. Learn the rules, play the game by the rules and stay at least one step ahead of your creditors. Your will clear your debts, your home will not be at risk, you will not get CCJs, you may be able to negotiate F&Fs, you may find some debts unenforceable. You will win the game if you follow the rules. The winner gets to be debt free whilst staying within the law
    Originally posted by January2015
    Superbly put, January

    Always good to see you on here, you talk such sense and put things into perspective. I agree with you that knowledge is power and it's obvious that you've put in the effort and done the research.
    Make £10 A Day Challenge 2018. Jan ?:Feb: £236.25


    Original Debt: £56804 (@ LBM 02/13). Now: £10102
    . Getting there.
    • Suseka97
    • By Suseka97 8th Feb 18, 1:45 PM
    • 184 Posts
    • 282 Thanks
    Suseka97
    I would not recommend trying for a secured loan. You are just moving unsecured debt to secured debt. You are not solving any problems just making them far worse :eek:

    When I entered the world of DMP I made it my goal to read all available information. I even read The Lending Code - now called The Lending Standards. Knowledge is power. I've said it many times before and I'll say it again. Debt management is a strategy game. Learn the rules, play the game by the rules and stay at least one step ahead of your creditors. Your will clear your debts, your home will not be at risk, you will not get CCJs, you may be able to negotiate F&Fs, you may find some debts unenforceable. You will win the game if you follow the rules. The winner gets to be debt free whilst staying within the law
    Originally posted by January2015
    I just want to pick up on two very good points Jan15 has made - and advice that the newbies into the DMP world should heed

    1. It is extremely unwise to move unsecured debts into secured debts. You then do put your house at risk if at some point down the road you run into financial difficulty and a CCJ is pretty much bound to follow. Also - I speak from experience when I thought that was the best route out of my financial problems many years ago and consolidated all my 'then' debt into one big loan offered by the then First Plus and boy oh boy do I regret that. I'm not saying you'd be the same - but doing so didn't alter my lending habits and we ended up with a secured loan (which we are still paying) and having to enter into a DMP. Had I known about DMPs back then, that's the route I would have taken and I wouldn't be where I am today.

    2. It is extremely important to do your research, yes - but you must get into your head this is a 'long game'. You need to be savvy and don't rush in making rash decisions just because creditors or DCAs appear threatening. Although your situation is unique to you - you are only a tiny drop of water in a very large pool of people under debt management plans. Creditors and their agents or DCAs have to treat you fairly and reasonably these days. Sourcrates has posted on more than one occasion why they have to behave nicely If you keep in touch (assuming the debts are proven to be enforceable), make a reasonable offer of payment and keep to that - things should chug along nicely.
    LBM Apr13: 14 Creditors / £85k+ owed
    Self-managed Aug17
    Current Status: 6 Creditors / £11,994
    • January2015
    • By January2015 8th Feb 18, 2:09 PM
    • 1,915 Posts
    • 4,957 Thanks
    January2015
    I just want to pick up on two very good points Jan15 has made - and advice that the newbies into the DMP world should heed

    1. It is extremely unwise to move unsecured debts into secured debts. You then do put your house at risk if at some point down the road you run into financial difficulty and a CCJ is pretty much bound to follow. Also - I speak from experience when I thought that was the best route out of my financial problems many years ago and consolidated all my 'then' debt into one big loan offered by the then First Plus and boy oh boy do I regret that. I'm not saying you'd be the same - but doing so didn't alter my lending habits and we ended up with a secured loan (which we are still paying) and having to enter into a DMP. Had I known about DMPs back then, that's the route I would have taken and I wouldn't be where I am today.

    2. It is extremely important to do your research, yes - but you must get into your head this is a 'long game'. You need to be savvy and don't rush in making rash decisions just because creditors or DCAs appear threatening. Although your situation is unique to you - you are only a tiny drop of water in a very large pool of people under debt management plans. Creditors and their agents or DCAs have to treat you fairly and reasonably these days. Sourcrates has posted on more than one occasion why they have to behave nicely If you keep in touch (assuming the debts are proven to be enforceable), make a reasonable offer of payment and keep to that - things should chug along nicely.
    Originally posted by Suseka97
    Thanks for that Suseka

    I think you made superb points especially that debt management is 'a long game'

    For newbies hearing DMPs of 6 years, 9 years, perhaps more - we've all been there. For some of us that seemed like a lifetime at the start. For some of us, circumstances changed during the journey and some DMPs extend to 30 years We each choose to stick with our DMP for personal reasons, but we should always reassess our position during the journey and decide if DMP is still right for us. It could be that IVA, Bankruptcy, DRO etc. may be better, or not. Each case is individual. Life changes so the DFW journey changes. Don't be scared to deal with those changes as they come along - lots and lots of help on this fab forum

    Whatever - don't be daunted by the initial length of your DMP. Life changes - roll with it
    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
    • Summer12
    • By Summer12 8th Feb 18, 6:07 PM
    • 29 Posts
    • 5 Thanks
    Summer12
    Thank you
    Thank you all for your replies and support. My head is still swimming with ďwhat ifsĒ and numbers. Iím going to start by moving my pay over to a non connected current account that I have for whatever comes next. Need to then really go through the figures and see what realistically I could offer. I read somewhere no more than 1% of each debt. I do feel guilty about Barclays (my current Acc at the moment) who also run my loan, overdraft and barclaycard!!! Hoping they will be kind (....aswell as Tesco and M&S!!) Thank you just knowing you are here and that Iím not alone really helps!
    • lunalola
    • By lunalola 8th Feb 18, 8:04 PM
    • 3 Posts
    • 0 Thanks
    lunalola
    Hi all,

    I've been lurking on this thread for a while now, and have taken some great advice from everyone. I am planning on setting up a DMP with SC, however I am currently in the process of saving up an emergency fund, which I anticipate I will be doing for a good 6 months or so. I do feel like I am in no mans land at the moment though...

    I am getting a lot of letters & calls (even though I sent letters notifying my creditors of my situation and asking to freeze interest etc.) Some have agreed to put on hold for 1 month, some haven't acknowledged anything and I think one of my Natwest accounts might be close to defaulting....

    So what I wondered was, what do I do next? Do I need to send any more letters, or do I just re-send the ones I previously sent if they haven't been acknowledged? When should I start getting worried about the letters? (I am worried about all of them as they are worded in a scary way!)

    Also, when the holding periods are up, say in a month and letters and calls start again, do I just send a letter telling them I am still in the same position?

    Also, how will I know when an account has been defaulted? I have had Notice of Sum in Arrears letters and formal notice of intention to file a default .... Am I right in thinking these are different?

    Apologies for all of the questions, I just feel like I am waiting for a ticking time bomb so need to put my mind at rest!

    TIA x
    • sourcrates
    • By sourcrates 8th Feb 18, 9:33 PM
    • 13,210 Posts
    • 12,635 Thanks
    sourcrates
    Hi all,

    I've been lurking on this thread for a while now, and have taken some great advice from everyone. I am planning on setting up a DMP with SC, however I am currently in the process of saving up an emergency fund, which I anticipate I will be doing for a good 6 months or so. I do feel like I am in no mans land at the moment though...

    I am getting a lot of letters & calls (even though I sent letters notifying my creditors of my situation and asking to freeze interest etc.) Some have agreed to put on hold for 1 month, some haven't acknowledged anything and I think one of my Natwest accounts might be close to defaulting....

    So what I wondered was, what do I do next? Do I need to send any more letters, or do I just re-send the ones I previously sent if they haven't been acknowledged? When should I start getting worried about the letters? (I am worried about all of them as they are worded in a scary way!)

    Also, when the holding periods are up, say in a month and letters and calls start again, do I just send a letter telling them I am still in the same position?

    Also, how will I know when an account has been defaulted? I have had Notice of Sum in Arrears letters and formal notice of intention to file a default .... Am I right in thinking these are different?

    Apologies for all of the questions, I just feel like I am waiting for a ticking time bomb so need to put my mind at rest!

    TIA x
    Originally posted by lunalola
    Debt collection can take a very long time, and, as with everything, there is a process to follow.

    After missing a few payments, your account gets passed over to collections still the same creditor, just another dept, whilst saving your EM, just send a letter each month detailing your position, and that it hasnt yet changed.

    Once you are ready, go ahead with the DMP, you will know if you are defaulted, as you will receive a default notice, on occasion debts will be sold on at this point, keep an eye on the post for the new owner writing to you, they will not be aware of your situation.

    You will gets lots of automated letters and calls, computers generate thousands of the things, usually the same fear of god message designed to get you to contact them, the worst they can do is take you to court, something thats easily dealt with if the need arises, so really the letters are all just empty threats of may bes and what ifs.

    Go at your own pace, keep them informed, and just dont worry about it, once you start payments, everything will settle down.
    Last edited by sourcrates; 08-02-2018 at 9:36 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 Free Legal advice see : http://legalbeagles.info/
    • Daveb45
    • By Daveb45 9th Feb 18, 10:35 AM
    • 3 Posts
    • 0 Thanks
    Daveb45
    I am writing to tell them I am doing a DMP and have cancelled my direct debit(s) is there a template letter for this so I don't make errors. Thanks
    • Suseka97
    • By Suseka97 9th Feb 18, 10:45 AM
    • 184 Posts
    • 282 Thanks
    Suseka97
    I am writing to tell them I am doing a DMP and have cancelled my direct debit(s) is there a template letter for this so I don't make errors. Thanks
    Originally posted by Daveb45
    If you head over to this website there are a few sample letters for various stages of a DMP, the first being 'hold action on your account' on the left hand side menu, which you can modify to suit your situation.

    https://www.nationaldebtline.org/EW/sampleletters/Pages/default.aspx
    LBM Apr13: 14 Creditors / £85k+ owed
    Self-managed Aug17
    Current Status: 6 Creditors / £11,994
    • January2015
    • By January2015 9th Feb 18, 10:52 AM
    • 1,915 Posts
    • 4,957 Thanks
    January2015
    I am writing to tell them I am doing a DMP and have cancelled my direct debit(s) is there a template letter for this so I don't make errors. Thanks
    Originally posted by Daveb45
    Hi

    Assuming you are self-managing your DMP, then I would use NEDCABs site to get your started. It is free, no-one to interact with, but it walks you through everything you will need for your DMP and at the end of the process (which doesn't take too long), it will generate the income and expenditure report and offer letters you will need for your creditors.

    However, before you jump in with both feet, have you managed to save an emergency fund yet? You will need one as you will have no access to credit. Don't worry, creditors are used to this happening.

    What you can do is adapt the letters that are generated at the end of the NEDCAB DMP site and add something like "I intend to make token payments of £1.00 per month between February and July 2018, and subsequently payments of £xx.xx per month."

    You choose how long you want to make token payments - I've allowed Feb to July in the example above because you really will need to build a good emergency fund and six month is not unreasonable. Feel free to change that. Also, some people choose to write they will not make payments at the current time, but will commence payments form (for example) July 2018. People new to DMP land are often to nervous to make no payments at all and so feel more comfortable that token payments show their commitment to creditors.

    Also, don't forget to add a sentence along the lines of "Please ensure all communication regarding this account if via written letter only. I do not give permission for you to contact me by telephone. However I will always try to respond promptly to any letters received."

    Put in writing that they cannot phone you and they have to honour that request, providing that you do remain in contact with them.

    Hope this helps
    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
    • MK-4
    • By MK-4 9th Feb 18, 12:22 PM
    • 12 Posts
    • 3 Thanks
    MK-4
    Hi all,

    Thanks for all your posts and advice you have given, especially to the newcomers like me.
    Many hours have been spent reading through all the posts and getting a lot of inspiration. Itís like learning a new language. The acronyms took some deciphering but getting there slowly.

    Been sinking slowly but surely into debt. Now got to the point of not being able to pay all of them. Been living on CCís for too long now.
    It seems that like many on here, my feeling are that the debt is mine and I want to pay all that I owe, but just canít make that happen anymore. I have a house that has equity in excess of my debts BUT my application for a re-mortgage was turned down, as well as loans that I tried to get to consolidate the debt. Iím coming up to 60, the mortgage only has 7 years to go and I really donít want to lose the house.
    Itís taken a few years but 60% reduction in household income and debts from a failed business (that the OH started) have now mounted up to too much. A couple of years ago I managed to get a number of new CCís to do 0% balance transfers. It was helping a lot and the debt was reducing but then the change in income stopped that. We donít have a lavish lifestyle and it is very difficult to find areas to reduce our spending.

    Around 20 years ago I lost a business that had a lot of personal debt associated. This was shortly followed by being divorced. Left the family life taking all the debts with me. It took me 11 years to pay these all off. One was even written off. One debtor kept taking me to court but it was rejected every time as my SOA did not have the balance to pay any more that I was already paying.

    Starting a DMP looks like a great (or my only) option. It is a bit confusing but the posts on here are helping a lot.

    So far I have spoken to SC and filled in the budget. Currently doing a final, comprehensive, budget so I can see exactly where my costs are. Also opened a new bank account, although with one where I already have a credit card but only £300 left to pay on that card.

    The DEFAULT is something that is not all that clear to me. Is this needed?

    I still have may questions though. Some things are needed to be able to work, like the car and internet plus computer equipment.

    My main problem that needs to be solved are bank accounts. We have one account each and one joint, all at the same bank. All near the overdraft limit. The OH cant join me on a DMP due to being self employed and Iím worried that the bank will nab all her money deposited into her own personal account. Iím not sure but it seems that she will need to open a separate account at another bank.

    Can writing to the creditors be done by email or is it better to post? I will only write once the bank accounts are sorted out so still a way to go.

    What happens if I write to / inform the creditors, one being the bank, to say I am having difficulties and that I am talking to SC. Will they immediately cancel our overdrafts and drain what little funds are in there?

    Sorry for the long post, and will update as things happen.
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