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  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 11,888Posts
    • 11,394Thanks
    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.
    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 98
    • Suseka97
    • By Suseka97 9th Sep 17, 2:29 PM
    • 121 Posts
    • 184 Thanks
    Suseka97
    Hi SuseKa97
    Why do you have to have a DMP If they're not your debts? I think I've just been super bad at budgeting, I'm getting better but it's hard. I know really I should tell him but I don't want him to think bad off me or decide to leave I don't want him to pay anything, I want to do it myself, I just don't want anyone else to know
    Originally posted by Rebeccadougherty
    It wasn't just his credit card debt, he had loans too and I had a personal loan and one credit card. Back then we had separate bank accounts, because we are both on our 2nd marriage and kept our finances separate (but shared bills etc.) because of previous family (financial) commitments. Anyway - to cut a long story short, we are a partnership and having considered the options at the time, it made sense to add my debts and my income to a joint DMP. Doing so meant we were set to be debt-free in 5 years, it would have taken him a lot longer to have done it alone -and that just wouldn't have been right. I just wish he would have told me much sooner than he did and maybe the starting debt would not have been so high. But that's all in the past - tackling this together has brought us closer and I now manage all the household finances, so were never going back.

    Clearly your situation differs from mine - all I mean is that if you tell him about your situation he might be able to help support you through this. You have sounded quite anxious in previous posts and you're worried he might find out anyway. But only you can decide and you need to do what's best for you. Whether you tell him or not - you'll get lots of support from us fellow DMPers
    LBM Apr13: 14 Creditors / £85k+ owed
    Current Status: 6 Creditors / £11,994
    DFD: Aiming for end of 2018
    Self-managed Aug17: CCAs pending
    • dynomot
    • By dynomot 10th Sep 17, 1:01 AM
    • 3 Posts
    • 3 Thanks
    dynomot
    Hello
    I am in debt up to the proverbial eyeballs and like lots of you here have nothing really to show for it. I kept my personal debts secret from my wife, managing to pay my half of the bills by using pay day loans credit cards (so not at all managing really) How I got into this mess is really beyond me. It has caused me many a sleepless night, lost lunchtimes at work working out what creditor I could pay with what other creditor.

    Anyway last Saturday (2nd September) I contacted StepChange after spending another sleepless night worrying. They were and are being fabulous, and told my wife. She was obviously furious, she was scared and angry in equal measure and while she is not scared anymore and is less angry but is supportive if somewhat hurt by my furtiveness.

    To cut a long ramble short I am personally in debt to the tune of £28,000 this is two loans, three credit cards, four payday loans and two overdrafts. It, according to StepChange is going to take 5 years 11 months to pay off. None of the debt apart from the overdraft in the joint account is jointly owned by my wife. While there is no good thing about being £28,000 in unsecured debt (5K more than my annual wage last year) I realised I had a problem and must face up to it before it affected the mortgage or other household bills. In our brutally honest conversations this last week my wife said if it had affected the mortgage she would have taken the kids and left me. She meant it as well, I don't blame her.

    So StepChange have said a DMP is my best course of action. I gave them ballpark figures last week and updated it today with bang accurate ones. I am awaiting my DMP pack. During the course of this week I have opened a new bank account, cancelled all the direct debits in my old account. Switched my mobile phone contact direct debit to my wife's account (she has agreed to pay this for me) and stopped all four CPAs for the pay day loans. I told my bank to do this and they have. I still have to tell all my creditors I am entering a DMP which I shall do tomorrow.

    I feel relieved that I have done this and have taken the first step to being debt free, but mostly I feel incredibly guilty and ashamed, not to mention incredibly stupid. However I don't feel I am living scared all the time.


    I have a couple of questions. StepChange have advised me to also change my wife's and I's joint account as it has an overdraft which I half own. We will do this, not a problem. However our existing bank (HSBC) also has my wife's personal account, our mortgage one of my loans and one of my credit cards. She doesn't want to change her bank account, but will if there is any risk of the HSBC chasing her for my debt. Is it possible they will hound her for my debt or want her to pay up the overdraft in the joint account ? We will obviously continue to pay the mortgage every month from the new non HSBC joint bank account, my own new Bank account will have wages going in, a payment to StepChange once a month and a Standing Order to pay my half of the household bills once a week after I am paid.

    My other question is my wages vary quite alot. Sometimes there is overtime to be had at work and sometimes not (I've always asked for any going). I do "call" for work twice in every eight weeks for a week. This can dramatically increase that weeks wages or not depending how busy I am on call. There is no predicting it whatsoever. StepChange have basically said my monthly pay should be based on my basic salary after tax and NI. This means some weeks there will be sometimes a fair bit more money after paying the bills and my DMP's quarter (I know some months have five Fridays as well). Can I (shoud I?) give any surplus to StepChange to pay my creditors more that month. StepChange say I can, but it might make my creditors question why I can. As I said there is no way I can say in any month period if I'll be paid more or less than any other month. I just know (happily) that whatever I earn will cover all my expenses. Can I save any excess and when it is enough completely pay off a creditor ? I'm a little confused here surely that would affect my DMP?

    Anyway I've rambled enough. I'm glad I finally faced up to my debt problems and reading this thread actually makes me feel rather humble, some of you are battling real problems and fighting to save your marriages and homes. Good luck and keep plugging away. I'm a firm believer all of here in this thread will one day be debt free.
    • carbootcrazy
    • By carbootcrazy 10th Sep 17, 6:11 AM
    • 4,063 Posts
    • 22,807 Thanks
    carbootcrazy
    dynomot. Welcome to the thread and massive congratulations on facing up to your debt problem and taking the very important step of seeking help.


    I know how hard that first step can be, I was forever living in a dream world that however bad things got (and oh boy, they certainly did get bad) something would miraculously 'turn up' in the nick of time. It didn't of course, I had to continue 'robbing Peter to pay Paul' whenever bills came in until that awful day when I was so backed into a corner that I had absolutely no way of paying for even the most basic groceries and all my cards were overlimit. The embarrassment of my card being rejected at the corner shop till (where all the staff know me)!. I laughed it off a couple of times, but I had to admit that I'd reached rock bottom.


    I had never heard of this support thread then and dived head first into my DMP with Stepchange (who, like in your experience, were wonferful). If I had been more savvy I would have done what the wise people on here advise and delay the DMP start until I'd built up an Emergency Fund for backup. Not having access to any credit is a massive shock to the system and I hadn't cut myself any slack in my budget to allow for anything unexpected that life could (and did!) throw at me. I was hell-bent on paying the absolute maximum towards my debts and get them paid off in the shortest possible time. Not the best policy.


    Missing payments was anathema to me, I'd never missed a payment pre-DMP, even though they were the bare minimums that I paid. I didn't have a single penny in savings. The general concensus on this thread is to delay the actual start of your DMP for at least 3 months, stop paying your creditors so you can get some savings together. Nothing terrible will happen and it will make DMP life easier. I really wish I had done that.


    Also, please take Stepchange's advice about the amount of money you state as your monthly salary. You should only declare the amount that you are definitely guaranteed to get. The extra earnings are variable and not guaranteed so if I were you I'd keep quiet about them and save the money towards an Emergency Fund or to use as final payment figures for some debts in the future. You don't need to mention any of this plan to Stepchange.


    I am somewhat concerned about this joint overdraft with your wife. Is there any way that it can be paid off and not be part of the DMP? I say this not because of HSBC chasing her for the debt (I have no knowledge of how banks operate , sorry) but because of the impact the DMP will have on her Credit File/score. I'm sure you will have realised that your own record will be trashed by a DMP (all of us have the same problem) and getting things like new phone contracts or mortgages would be very hard if not impossible. It would be ideal if her ability to get such things was unimpaired. I'm assuming it is a DMP solely in your name but credit reference agency files show 'Financial Associations'.


    I hope someone else will come along later to address this subject as my own knowledge of joint debts is very sketchy. All my starting debt of nearly £57000 were my own doing


    In the meantime I wish you and your wife the very best of luck. Please post whenever you'd like something explained or just to tell us about how things are going.
    Last edited by carbootcrazy; 10-09-2017 at 6:19 AM.
    Make £10 A Day Challenge 2017. Jan-Aug: £4112.05 Sept: £119.86
    3-6 Months Emergency Fund Challenge #12: £3733.00/£5000.

    Original Debt: £56804 (@ LBM 02/13). Balance now: £15841
    . Getting there
    • fatbelly
    • By fatbelly 10th Sep 17, 7:38 AM
    • 11,218 Posts
    • 8,388 Thanks
    fatbelly

    I have a couple of questions. StepChange have advised me to also change my wife's and I's joint account as it has an overdraft which I half own. We will do this, not a problem. However our existing bank (HSBC) also has my wife's personal account, our mortgage one of my loans and one of my credit cards. She doesn't want to change her bank account, but will if there is any risk of the HSBC chasing her for my debt. Is it possible they will hound her for my debt or want her to pay up the overdraft in the joint account ? We will obviously continue to pay the mortgage every month from the new non HSBC joint bank account, my own new Bank account will have wages going in, a payment to StepChange once a month and a Standing Order to pay my half of the household bills once a week after I am paid.

    My other question is my wages vary quite alot. Sometimes there is overtime to be had at work and sometimes not (I've always asked for any going). I do "call" for work twice in every eight weeks for a week. This can dramatically increase that weeks wages or not depending how busy I am on call. There is no predicting it whatsoever. StepChange have basically said my monthly pay should be based on my basic salary after tax and NI. This means some weeks there will be sometimes a fair bit more money after paying the bills and my DMP's quarter (I know some months have five Fridays as well). Can I (shoud I?) give any surplus to StepChange to pay my creditors more that month. StepChange say I can, but it might make my creditors question why I can. As I said there is no way I can say in any month period if I'll be paid more or less than any other month. I just know (happily) that whatever I earn will cover all my expenses. Can I save any excess and when it is enough completely pay off a creditor ? I'm a little confused here surely that would affect my DMP?
    Originally posted by dynomot
    The reason why you need a new bank account is because of the right of set-off. Stepchange should have explained this. Martin does so here

    http://www.moneysavingexpert.com/banking/setting-off

    You need to know this because your new bank must not be connected, even by a 'family' relationship, to your debts., e.g First Direct = HSBC.

    Stepchange are right to base your payment on your basic wage and right to say that frequent higher sums will cause issues. However, you are in the enviable position to be able to save a fighting fund on the side and pick off creditors by full and final settlement at significant smaller sums, maybe 50%, maybe smaller, eventually.

    A dmp is an informal solution and, from the info you give us, the right one for you.
    • dynomot
    • By dynomot 10th Sep 17, 7:09 PM
    • 3 Posts
    • 3 Thanks
    dynomot
    Thankyou carbootcrazy and fatbelly. Unfortunately there is no way of paying off the jointly owned overdraft. It is £1615 out of an authorised one of £1700 as I type with nothing to come out of it until the 14th. We (my wife and I) were slowly reducing it month by month until now until my bombshell. We will be swapping to a NatWest account tomorrow and I will be tasked with swapping the joint account direct debits to it manually. The overdraft of course will remain in a then totally unused account debit cards chopped.

    I understand the need to swap banks, StepChange did advise me yesterday that the joint account would need to be changed as well as my own. What about my wife's personal account, also with them ? I suspect that needs swapping too yes. What would HSBC do if I did not include my personal overdraft as part of the DMP we swapped all our accounts and we (in reality my wife) kept serving the overdraft debts on the old HSBC ones. Finally closing them once the overdrafts were paid ?
    • Seeking Simple
    • By Seeking Simple 11th Sep 17, 2:45 PM
    • 5 Posts
    • 2 Thanks
    Seeking Simple
    Hi all, I'm new here and just starting out on my journey.

    I have a quick question that I hope someone can answer.

    My husband and I have 3 joint current accounts with Nat West (all in credit). We have filled out the paperwork to remove my name from all 3 and I have opened a basic bank account with TSB. In time he will close 2 of them and just keep 1.

    My question is I have a NW loan and a NW CC. Once I have stopped the DD from one of our NW accounts can they reinstate the DD once the account is in his sole name? Also more worryingly can they take the full amount I owe them via 'setting off 'from his account as it was once joint and in credit?

    Thanks in advance.
    • Leanneglos1
    • By Leanneglos1 11th Sep 17, 2:51 PM
    • 57 Posts
    • 19 Thanks
    Leanneglos1
    I've today received a text message from a payday loan company who I have an outstanding loan with, the text says they will be sending a before action letter to my address, is this a standard computer generated letter, the tone of the text has made me feel anxious about what it may be
    • sunshinejenuk
    • By sunshinejenuk 11th Sep 17, 2:53 PM
    • 2 Posts
    • 0 Thanks
    sunshinejenuk
    Hi all I'm new, my Hubby and I have been on a dmp since last November (step change sorted it all out) most of our debts now seem to being managed by Westcott now.
    I am looking to get back to work now my youngest has gone to school,a friend and I are looking at starting a small cleaning business but because of the dmp no-one wants to give us public liability insurance... Any ideas? Thanks x
    • sourcrates
    • By sourcrates 11th Sep 17, 3:18 PM
    • 11,888 Posts
    • 11,394 Thanks
    sourcrates
    I've today received a text message from a payday loan company who I have an outstanding loan with, the text says they will be sending a before action letter to my address, is this a standard computer generated letter, the tone of the text has made me feel anxious about what it may be
    Originally posted by Leanneglos1
    No need to feel anxious, if its a letter before claim, then you need to deal with this debt.

    What if anything, are you paying towards this loan at the moment ?
    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/
    • Leanneglos1
    • By Leanneglos1 11th Sep 17, 4:58 PM
    • 57 Posts
    • 19 Thanks
    Leanneglos1
    Currently not paying anything as trying to save up an emergency fund, would you suggest starting to pay them something or call them to set up a payment plan, unsure on how to move forwards.
    • sourcrates
    • By sourcrates 11th Sep 17, 5:13 PM
    • 11,888 Posts
    • 11,394 Thanks
    sourcrates
    Currently not paying anything as trying to save up an emergency fund, would you suggest starting to pay them something or call them to set up a payment plan, unsure on how to move forwards.
    Originally posted by Leanneglos1
    If you receive a "letter before action" then yes you need to deal with it to avoid a CCJ.

    The reason they send you this is to comply with the pre-action protocol (civil procedure rules) its to give you a chance to come to a payment arrangement before court action is commenced.

    If a creditor sends you one of these letters, then you should make an arrangement to pay yes.

    Most debts dont ever see a court room, but occasionally a creditor will go down that path, however, they have given you ample warning, so you can deal with 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.
    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/
    • Leanneglos1
    • By Leanneglos1 11th Sep 17, 5:15 PM
    • 57 Posts
    • 19 Thanks
    Leanneglos1
    So I've just discovered an email from them sent today in my junk folder, email says
    'If we've not heard from you by close of business today we hereby notify you that it is our intention to issue proceedings against you forthwith without further notice to yourself. Please note any court proceedings issued will include a further claim for interest and charges'
    The company is cashfloat, surely if they were going to take me to court they would have to issue some sort of warning unless I'm being naive and they are not required to.
    I'm thinking now to call them and set up some sort of plan but if they continue charging interest I've got no chance in hell in ever reducing the balance, it will just continue to increase
    • sourcrates
    • By sourcrates 11th Sep 17, 5:33 PM
    • 11,888 Posts
    • 11,394 Thanks
    sourcrates
    The company is cashfloat, surely if they were going to take me to court they would have to issue some sort of warning unless I'm being naive and they are not required to.
    Originally posted by Leanneglos1
    This is your warning, they will most likely back it up in writing too.

    Fourteen days is the norm though," the close of business" today is a little naughty, but there should not be further interest, if this was a payday loan, they can only charge a maximum of double the original loan, and no more.
    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/
    • Leanneglos1
    • By Leanneglos1 11th Sep 17, 5:57 PM
    • 57 Posts
    • 19 Thanks
    Leanneglos1
    Thanks ever so much for your help, going to call them to discuss further and hopefully come to some sort of arrangement
    • sile001
    • By sile001 13th Sep 17, 2:22 AM
    • 82 Posts
    • 70 Thanks
    sile001
    Very well done for facing up to, and tackling, your debt problems. StepChange are incredibly helpful. Even though your credit will be compromised, it's a small price to pay for knowing that you're getting help.

    As someone else pointed out - sorting out the situation re your bank account is one of the first things to do.

    Good luck and keep us posted
    Debt-Free as of 12th September 2017

    £12,000 > £0

    • Bewildered Banshee
    • By Bewildered Banshee 13th Sep 17, 4:25 PM
    • 31 Posts
    • 23 Thanks
    Bewildered Banshee
    Well I know this shouldn't be good news but I feel it is. step change dmp just starting and had 2 letters today accepting my payment plan and stopping interest and charges from now. I should have done this months ago instead of struggling on. Hope the rest continue .
    • Dandytf
    • By Dandytf 13th Sep 17, 6:01 PM
    • 761 Posts
    • 299 Thanks
    Dandytf
    Well I know this shouldn't be good news but I feel it is. step change dmp just starting and had 2 letters today accepting my payment plan and stopping interest and charges from now. I should have done this months ago instead of struggling on. Hope the rest continue .
    Originally posted by Bewildered Banshee
    I had over 12-18 mths at least before I setup step change dmp since 2012.

    I would have probably avoided it with temp payment plans though step change dmp has been nothing short of amazing.

    Their helpful staff ammend my plan when my circustances change-though I’ve only made 1 what I call serious
    change earlier this year when my pay was reduced due to shift change-permanently.

    Hope your’s runs as planned though never fear contacting step change if required.
    Last edited by Dandytf; 13-09-2017 at 7:35 PM.
    sc dmp 2012 13k

    Jan 2017 7380 paid. 50% ish...
    • atlinford
    • By atlinford 13th Sep 17, 10:26 PM
    • 8 Posts
    • 3 Thanks
    atlinford
    Hi all,

    Finally sent my application off to StepChange for processing.
    Can feel a massive weight off my shoulders already.
    I'll admit there were times I got scared about losing access to finance, and at times I tried to convince myself I could overcome this and get out the hole, but I've put my sensible hat on and realised enough is enough.
    It's been a constant borrowing stream for the last year and it ends now.

    Starting with positive strides I've opened a new bank account, and personally changed all my direct debit details with my priority debts.

    Next I need to tell my unsecured creditors that I'm entering into a DMP.
    I feel as if I'm cheating Halifax though, as I told them I was having difficulties repaying my personal loan so they upped my overdraft to cover last months payment, and gave me a repayment holiday for the payment due at the end of the month, which they'd use the money to reduce my overdraft back down. Long story short I can't afford to pay it, so that agreement will have to be broken. Luckily all my wages will be going into my new account.

    Starting to feel a little nervous about all the impending letters and phone calls I'll be getting, but I'll deal with them one step at a time.

    Sorry for this irrelevant information, just helps me to keep on track by writing it down!
    • Bewildered Banshee
    • By Bewildered Banshee 13th Sep 17, 10:34 PM
    • 31 Posts
    • 23 Thanks
    Bewildered Banshee
    It's a huge step making the jump isn't it. I'm only 3 weeks in but am sleeping!
    I didn't tell all of my creditors as Step change write but the ones I did were very nice.
    MBNA especially were great and I got a letter today that they've stopped all charges and interest.
    I wished I'd done it a year ago but I struggled on, paying one of against the other.
    I'm pleased in a perverse way that I won't be able to get credit. I filled the car up last night and paid with a debit card which was weird but my purse is a lot lighter!
    • susieA
    • By susieA 14th Sep 17, 12:39 PM
    • 3 Posts
    • 1 Thanks
    susieA
    Hi, hope someone can help!

    Totally confused with starting a DMP. I was looking at doing a self managed one but now am thinking of going through step change due to my confusion in it all.

    One thing that I am trying to figure out before starting anything though is that from reading these boards, some people talk about 'token payments' and '£1 payments' for 3 or so months so that they can get some savings behind them. Is this done before you start a dmp or is this something that you do afterwards? Is this something that step change arrange, or do you just pay it via standing order etc before you even talk to them?

    Its just finding out where and how to start. 3 months of £1 payments sounds too good to be true. Maybe i should ring stepchange, but i wanted to ask you guys first.

    Many Thanks
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