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  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 12,668Posts
    • 12,000Thanks
    sourcrates
    DMP Mutual Support Thread - Part 12
    • #1
    • 26th Mar 17, 12:20 PM
    DMP Mutual Support Thread - Part 12 26th Mar 17 at 12:20 PM
    Welcome to the DMP mutual support thread Part 12 !!

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

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

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

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

    The old thread can be found here :

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

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

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
Page 2
    • Starshot
    • By Starshot 27th Mar 17, 2:04 PM
    • 2 Posts
    • 3 Thanks
    Starshot
    Hello! I'm just about to embark on our dmp (a shared one with my husband) and I'm feeling pretty excited. I actually put the wheels in motion for this in August last year but got a bit distracted trying to juggle many other things. Based one what we can afford to pay it looks like we're going to be paying this off for over 12 years, but fingers crossed our situation will improve as time goes on so that we can bring that dfd forward.

    Today my task is to call my creditors and tell them about the dmp. One has moved to collections, does that mean it has officially defaulted? Also my barclaycard has sent me a default notice dated 15th February but I have also received a default sum notice dated 14th March, has this account defaulted? It is not particularly clear as they've sent me two different letters.

    Looking forward to sharing this with you and getting rid of our albatross!
    • slippy85
    • By slippy85 27th Mar 17, 2:08 PM
    • 43 Posts
    • 9 Thanks
    slippy85
    I am going to speak to StepChange today regarding my debt. I've read over the thread a little but need a few things uncovered. Should I not make any payment to my creditors but inform them of the DMP? I've read that I should wait a few months to get an emergency fund. Do i pay anything to the creditors during this time? Is the aim to get a default notice asap?
    • sourcrates
    • By sourcrates 27th Mar 17, 4:20 PM
    • 12,668 Posts
    • 12,000 Thanks
    sourcrates
    I am going to speak to StepChange today regarding my debt. I've read over the thread a little but need a few things uncovered. Should I not make any payment to my creditors but inform them of the DMP? I've read that I should wait a few months to get an emergency fund. Do i pay anything to the creditors during this time? Is the aim to get a default notice asap?
    Originally posted by slippy85
    Token payments are a bit pointless in my opinion, as long as you tell your creditors when you will be starting the DMP, i`d leave it at that, save up your emergency fund, as you will need it.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • slippy85
    • By slippy85 27th Mar 17, 4:58 PM
    • 43 Posts
    • 9 Thanks
    slippy85
    Thanks for your help again. I'll start tonight. Will phone creditors and informed them and then post letters.
    • henrryyyy
    • By henrryyyy 27th Mar 17, 6:20 PM
    • 59 Posts
    • 56 Thanks
    henrryyyy
    can someone clarify for me defaults please
    I just had a phone call from SC regarding my issues the other day(think complaints department)..
    From what I have understood from this forum is that if I was defaulted tomorrow on a barclaycard account for example. Then 6 years from tomorrow any negative impact on my credit files would be removed, despite being in a DMP and still making arranged payments?

    I have just been told that after 6 years the default would drop off my file, but the account would remain with bad payment markers until 6 years after the date the account was paid off?

    at the end of the day im just going to continue with my dmp starting may 1st for now
    as I said before, will have a little starting block with an emergency fund from this months wages.
    The whole defaulting issue is something that I can deal with in a few months if need be.

    do accounts not default when you are on a DMP anyway after 3-6 months of reduced payments?
    and im assuming if my SC payment covers my contractual payment I wont receive a bad payment on said account anyway(only affects 1 of my accounts)
    • January2015
    • By January2015 27th Mar 17, 7:37 PM
    • 1,757 Posts
    • 4,746 Thanks
    January2015
    can someone clarify for me defaults please
    I just had a phone call from SC regarding my issues the other day(think complaints department)..
    From what I have understood from this forum is that if I was defaulted tomorrow on a barclaycard account for example. Then 6 years from tomorrow any negative impact on my credit files would be removed, despite being in a DMP and still making arranged payments?

    I have just been told that after 6 years the default would drop off my file, but the account would remain with bad payment markers until 6 years after the date the account was paid off? Stepchange are wrong. 6 years after the date of default all record of the account disappears from credit reference agency files. It may take one or two months after the 6 years - because some creditors don't update regularly but all record of the account will disappear. This will not happen if accounts are not defaulted and continue to be marked arrangement to pay.

    at the end of the day im just going to continue with my dmp starting may 1st for now
    as I said before, will have a little starting block with an emergency fund from this months wages.
    The whole defaulting issue is something that I can deal with in a few months if need be.

    do accounts not default when you are on a DMP anyway after 3-6 months of reduced payments? Not all creditor play fair and some will continue to mark arrangement to pay month after month after year after year - even though their rules/regulations/guidance documents advise that 3 - 6 months after contractual payments are not met is when accounts should be defaulted.
    and im assuming if my SC payment covers my contractual payment I wont receive a bad payment on said account anyway(only affects 1 of my accounts) If you meet contractual payments on an account there will not be any negative impact on your credit reference agency files.
    Originally posted by henrryyyy
    See my comments in red above. Others can also confirm what I have said
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • motivated
    • By motivated 27th Mar 17, 7:49 PM
    • 2,291 Posts
    • 3,454 Thanks
    motivated
    Hi all

    I still hadn't heard from Halifax regarding 2 loans that have been added to our DMP. I wrote to them but have heard nothing. So far we have missed 2 payments.

    However I received 2 texts today reminding me that our payments of £xxx are due on the 6th April. Our contractual payments are/were paid on the 15th of the month.

    The payments they speak of are our DMP payments as they both match up to our DMP plan. I think this means that they must be accepting the SC payments. As for any interest and charges being added I'm still in the dark but it's a start.

    Maybe a silly question but our 1st SC payment is due to go on Saturday 1st April. Usually any DDs I've had in the past never went on a Saturday and waited until Monday. Any thoughts please
    M

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • January2015
    • By January2015 27th Mar 17, 7:52 PM
    • 1,757 Posts
    • 4,746 Thanks
    January2015
    The following quote is taken from the Information Commissioner's Office document "Principles for the Reporting of Arrears, Arrangements and Defaults at Credit Reference Agencies"
    "The fact that the account was previously in default wiill remain on your credit file for 6 years from the date of default. If the account was not in default, the record would remain on your credit file for 6 years from the date of closure."
    There are people on here who will confirm there credit reference agency files show no trace of debts where defaults have been recorded more than 6 years ago, even though they still owe and are still paying to clear the debt on those accounts. Even though the record of the account disappears you would still be liable for the debt - but in terms of what anyone can see on your credit files ......it's gone as if it was never there.....if a default was recorded and six years have passed.

    Also - useful information on Debt Camel
    Last edited by January2015; 27-03-2017 at 8:09 PM.
    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 27th Mar 17, 7:54 PM
    • 1,757 Posts
    • 4,746 Thanks
    January2015
    Hi all

    I still hadn't heard from Halifax regarding 2 loans that have been added to our DMP. I wrote to them but have heard nothing. So far we have missed 2 payments.

    However I received 2 texts today reminding me that our payments of £xxx are due on the 6th April. Our contractual payments are/were paid on the 15th of the month.

    The payments they speak of are our DMP payments as they both match up to our DMP plan. I think this means that they must be accepting the SC payments. As for any interest and charges being added I'm still in the dark but it's a start.

    Maybe a silly question but our 1st SC payment is due to go on Saturday 1st April. Usually any DDs I've had in the past never went on a Saturday and waited until Monday. Any thoughts please
    M
    Originally posted by motivated
    Direct debits are only collected on weekdays, i.e Monday through to Friday. Where the collection date falls on a weekend day, the payment will be collected on the next working day, i.e. Monday.

    If I were you I would write to Halifax and remind them of your DMP and ask them to confirm all interest and charges have been suspended.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • motivated
    • By motivated 27th Mar 17, 8:16 PM
    • 2,291 Posts
    • 3,454 Thanks
    motivated
    Direct debits are only collected on weekdays, i.e Monday through to Friday. Where the collection date falls on a weekend day, the payment will be collected on the next working day, i.e. Monday.

    If I were you I would write to Halifax and remind them of your DMP and ask them to confirm all interest and charges have been suspended.
    Originally posted by January2015
    Thanks January
    I have done just that . I sent letters again on Saturday quoting our DMP reference number and also requesting that interest and charges be stopped etc etc. So hopefully they will get fed with me and reply.
    M

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • slippy85
    • By slippy85 27th Mar 17, 9:23 PM
    • 43 Posts
    • 9 Thanks
    slippy85
    Token payments are a bit pointless in my opinion, as long as you tell your creditors when you will be starting the DMP, i`d leave it at that, save up your emergency fund, as you will need it.
    Originally posted by sourcrates
    I've produced the letters and will be getting them sent off tomorrow. So the next step would be to speak to StepChange, work out my outgoings and what I can afford. I'll make sure to inform the creditors when the plan will start. Do they normally take that quite poorly then? Especially as I might not be making a payment for a few months?
    • January2015
    • By January2015 27th Mar 17, 10:56 PM
    • 1,757 Posts
    • 4,746 Thanks
    January2015
    Hi everyone

    So the January household DMP is chugging along nicely. We've sent off a few F&F offers to our lowest debts - the offers only amount to a few hundred pounds in total. Totally expect them to be rejected - but if you don't ask you'll never know

    I still hate my job - another naff day at work, but I come home smiling because I know the job is helping pay down our debts. For that reason (and the pension) I'm sticking with it.

    Hope everyone else is okay. It's great to see so many new names joining us (not great they've got the debt, but great they've made a decision to deal with it). A huge hello to all the newcomers - some I've already chatted with and apologies if I've missed any other newcomers....this thread moves quite quickly sometimes.

    Last edited by January2015; 27-03-2017 at 10:59 PM.
    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 28th Mar 17, 7:10 AM
    • 2,612 Posts
    • 10,485 Thanks
    Sazzie23
    Hi everyone

    So the January household DMP is chugging along nicely. We've sent off a few F&F offers to our lowest debts - the offers only amount to a few hundred pounds in total. Totally expect them to be rejected - but if you don't ask you'll never know

    I still hate my job - another naff day at work, but I come home smiling because I know the job is helping pay down our debts. For that reason (and the pension) I'm sticking with it.

    Hope everyone else is okay. It's great to see so many new names joining us (not great they've got the debt, but great they've made a decision to deal with it). A huge hello to all the newcomers - some I've already chatted with and apologies if I've missed any other newcomers....this thread moves quite quickly sometimes.

    Originally posted by January2015
    Hi January

    Good luck with the F&f, like you say, you never know

    I keep reading that personal debt is going up generally, a thought which shocks me when I know how much trouble mine has caused me. How many people admit to it....not many I suspect . But I think it's great so many people are joining us on the thread to try to get on top of their debt, and for everyone that signs in, there are many lurkers out there and that's ok too.

    I've had jobs in the past that I've hated and my way of gettin through was to learn to like bits of it, like the people I worked with or the fact it gave me reasonable time off or whatever, it's surprising what you can put up with when there's an incentive to keep going. Using the debt pay down as reward for the disliked job seems a great motivation.

    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.
    • Sazzie23
    • By Sazzie23 28th Mar 17, 7:18 AM
    • 2,612 Posts
    • 10,485 Thanks
    Sazzie23
    From henrrryyyy. 'and im assuming if my SC payment covers my contractual payment I wont receive a bad payment on said account anyway(only affects 1 of my accounts)', reply from January " If you meet contractual payments on an account there will not be any negative impact on your credit reference agency files."

    I back up what January has said about defaults and credit files, though it's only heresay for me as I'm not 6 years past default yet.....umm that's a thought, I might get a countdown calendar running for time to first default being spent

    Anyway sorry back to subject in hand, what I was going to say was, that if you are meeting contractual payments, you are unlikely to get a default, but then why would you be in a DMP ?

    Also some lenders are just more efficient at defaulting than others and some deliberately don't, maybe because of the credit file track, maybe just because. And I do have one CC which has never been marked anything but paid up, even though I only pay less than third of the contractual payment, but I don't mind since it'll look better on my credit file when the defaults have finally dropped off

    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.
    • ella2ethan1
    • By ella2ethan1 28th Mar 17, 2:53 PM
    • 184 Posts
    • 154 Thanks
    ella2ethan1
    I'm still waiting for the new email from SC with the updated figures to start, while I'm not paying do I need to contact my creditors and tell them before it defaults?

    I don't know if I will last more than a couple of months before setting up the plan as guilt will set in.

    If I do need to tell them as anyone got a letter template please?
    • henrryyyy
    • By henrryyyy 28th Mar 17, 4:42 PM
    • 59 Posts
    • 56 Thanks
    henrryyyy
    See my comments in red above. Others can also confirm what I have said
    Originally posted by January2015
    Thanks January, I know this is probably the third time you've explained it, its just confusing when you are being told 2 different things, and I wanted to make sure I didnt misunderstand.
    I'd be interested to see the results of your F&F offers, seems crazy to me that creditors would accept a reduced lump sum to pay off the debt, but I see they often do! fingers crossed
    From henrrryyyy. 'and im assuming if my SC payment covers my contractual payment I wont receive a bad payment on said account anyway(only affects 1 of my accounts)', reply from January " If you meet contractual payments on an account there will not be any negative impact on your credit reference agency files."

    I back up what January has said about defaults and credit files, though it's only heresay for me as I'm not 6 years past default yet.....umm that's a thought, I might get a countdown calendar running for time to first default being spent

    Anyway sorry back to subject in hand, what I was going to say was, that if you are meeting contractual payments, you are unlikely to get a default, but then why would you be in a DMP ?

    Also some lenders are just more efficient at defaulting than others and some deliberately don't, maybe because of the credit file track, maybe just because. And I do have one CC which has never been marked anything but paid up, even though I only pay less than third of the contractual payment, but I don't mind since it'll look better on my credit file when the defaults have finally dropped off

    Saz
    Originally posted by Sazzie23
    its only 1 account where I will be meeting contractual payments(only a small credit card and stepchanges minimum payment is £5)

    so I dont actually have to delay the start date to get the defaults? my stepchange payment will cause me to not do my contractual payments, just means I have to chase the defaults?
    Last edited by henrryyyy; 28-03-2017 at 4:43 PM. Reason: addition of question marks :/
    • beerow
    • By beerow 28th Mar 17, 4:47 PM
    • 49 Posts
    • 662 Thanks
    beerow
    Well all you people that have rang your creditors, well done!! I on the other hand bottled it and sent them all first class recorded letters yesterday. I'm still waiting for my HSBC basic account details to come through though so can't set up my Step Change DMP yet but am ready and raring to go when I do. It's a good feeling knowing that I've taken the first tiny step to tackling our debt.
    • henrryyyy
    • By henrryyyy 28th Mar 17, 5:01 PM
    • 59 Posts
    • 56 Thanks
    henrryyyy
    The advice I was given when I first came on here was its better to keep everything in writing anyway, although I took that to mean email, so I've only been emailing my creditors lol
    • motivated
    • By motivated 28th Mar 17, 6:09 PM
    • 2,291 Posts
    • 3,454 Thanks
    motivated
    Well all you people that have rang your creditors, well done!! I on the other hand bottled it and sent them all first class recorded letters yesterday. I'm still waiting for my HSBC basic account details to come through though so can't set up my Step Change DMP yet but am ready and raring to go when I do. It's a good feeling knowing that I've taken the first tiny step to tackling our debt.
    Originally posted by beerow

    You're not the only chicken out there. I contacted my CCs through the Secure messaging service and I wrote to the bank regarding loans.

    Any other time I am so sure of myself but in this case I bottled it too

    Maybe as we plod along on our journeys we will become more brave

    Good luck
    M

    LBM £82,590 Jan 17/£80,059 Dec 17
    Short term goal £790/£1796

    SPC # 91
    PDBX 18 # £0/£2,000
    52 week challenge £7.28
    • January2015
    • By January2015 28th Mar 17, 9:47 PM
    • 1,757 Posts
    • 4,746 Thanks
    January2015
    Hi everyone

    So - tonight, I've been sitting here playing the 'what if' game. What if those F&F's I sent off were accepted ..... well..... if they were my debt would reduce to the £50k's. Highly unlikely, but it is soooooo nice to play 'what if' occassionally
    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
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