DMP Mutual Support Thread (Part 6)

the_tooth_fairy

Hi Kudox, Thanks as always for your advice.
To be really honest, I think our path has almost run too smoothly (at our expense) if that makes sense. We only missed 2 creditors payments out of 12 before starting the DMP. It left us with nothing (as EVERYONE knows! SORRY!) now we have 10 of them ok with DMP, only 6 letters to confirm, but as you say, they don't write all the time, I'm going by Justabank.
Now all this with the smallest debt, and the infamous Halifax are back on our tail, several missed calls today, when I called back - automated service.
They can't really complain, they added on £6k+ of interest at the start, ok.
They are getting £440 a month compared to original payment of £401.
They will be paid earlier than if we had kept agreement.
What's not to like?
Needed a wee moan today!x ttf

LittleMissSkint

Kudox wrote: »

Stick to your guns Northstar, do exactly as you intend and as Geoff says hopefully in the end it will be A&L who shoot themselves in the foot.

My OH is self employed too so I know where you're coming from.

The more we can get ourselves informed about this whole debt minefield the stronger and in control we begin to feel.
I for one refuse to sit down and just be bullied and made to feel powerless, not especially when I'm making every effort to pay it back.

Knowledge is definately power and I'm sure the creditors would rather us be meek and roll over at the first hurdle.

Ok rant over, got a bit political there :rolleyes:

I totally agree with your political rant there, they get away with too much because the debtor does not know their rights - and they abuse that. Well we're stepping up now and we learn so much just from talking to each other. Knowledge is power!

Kudox

bobbyday wrote: »

Hi!

Having been to the CCCS website, their suggestion for me is a DMP. I have 28k of card or loan debt, of which I can pay £600 a month, so taking about 3.5 years assuming a freezing of interest. I also spoke to CCCS on the phone yesterday and having a councillor meeting set up for Nov 16th.
I think though, the DMP is the best course of action for me and what do get the ball moving asap, so can I go ahead and do this online now or should I wait for the councillor?
How long does the process normally take etc?
I'm in the process of changing my wages to go to a seperate basic bank account and have cancelled all DD's.
I have minimum payments which are due in the next couple of weeks but can't afford all of these or won't be able to live so what is the best thing to do? Make smaller payments to each? Should I phone up the banks and say what I'm doing? What do you say and am I likely to get interest frozen or fees not charged? I'm obviously trying to reduce any extras as much as possible. Which banks are normally the most helpful (I seem to be with most!)? So far, having asked for help from HSBC and Halifax, both have been as helpful as a hole in head, all saying there is nothing they can do and fobbing me off to a different department or reading out the terms and conditions.

I am quite young and hope never to be in the situation again and I'm quickly learning which banks I won't bank or deal with in the future!

Also, how severely does this affect your credit rating and for how long. My DMP would pay back all the debt in hopefully under 4 years.

Thanks in advance, and all or any advice on what I do from here would be really useful. I just want to the right thing as soon as possible!

Hi, I cant see a problem with going ahead with the debt remedy online, I would think that would be quicker than waiting for your appointment. Phone them to let them know what you're doing.
As for your payments which are due write to all your creditors informing them you've taken advice from cccs and are entering into a DMP and include a token payment of £1 by postal order.
No one is likey to stop interest etc right from the off ( some of us are still struggling in this regard), however don't worry too much about that at this stage.
Concentrate on getting your DMP set up and changing your bank account and direct debits etc.
Each creditor deals with people differently, so one persons experience won't be the same as the next person.
Hope this all helps, well done on taking the first steps and keep reading this thread, it's been invaluable to me.

the_tooth_fairy

bobbyday wrote: »

Hi!

Having been to the CCCS website, their suggestion for me is a DMP. I have 28k of card or loan debt, of which I can pay £600 a month, so taking about 3.5 years assuming a freezing of interest. I also spoke to CCCS on the phone yesterday and having a councillor meeting set up for Nov 16th.
I think though, the DMP is the best course of action for me and what do get the ball moving asap, so can I go ahead and do this online now or should I wait for the councillor?
How long does the process normally take etc?
I'm in the process of changing my wages to go to a seperate basic bank account and have cancelled all DD's.
I have minimum payments which are due in the next couple of weeks but can't afford all of these or won't be able to live so what is the best thing to do? Make smaller payments to each? Should I phone up the banks and say what I'm doing? What do you say and am I likely to get interest frozen or fees not charged? I'm obviously trying to reduce any extras as much as possible. Which banks are normally the most helpful (I seem to be with most!)? So far, having asked for help from HSBC and Halifax, both have been as helpful as a hole in head, all saying there is nothing they can do and fobbing me off to a different department or reading out the terms and conditions.

I am quite young and hope never to be in the situation again and I'm quickly learning which banks I won't bank or deal with in the future!

Also, how severely does this affect your credit rating and for how long. My DMP would pay back all the debt in hopefully under 4 years.

Thanks in advance, and all or any advice on what I do from here would be really useful. I just want to the right thing as soon as possible!

Hi Bobbyday, I can't comment on CCCS as I'm with Payplan, but surely you could talk to them for advice? Please try to keep yourself some backup money, it's tempting to pay all you can, but in the "big plan" it's probably better to only send token payments now.
You've done well to open a separate a/c, I wouldn't ring creditors up and say what your plans are, they will be in touch if they want to speak to you!
At the start of my plan, advice here told me that my credit rating will be affected for 6 years from the issue of any default notices. That's correct, so the sooner you get up and running, the better chance you have of getting a mortgage, etc, later.
I hope you get lots more advice mostly, I hope, from far more experienced people than me, but welcome to the club! :T

Triggles

Well, this is it. We did max out the overdraft, mainly because we didn't want direct debits reinstated by our bank for the loans or credit card payments we are now going to pay a token payment on. We're planning on doing this ourselves, but if it becomes a problem, we will go through CCCS. We've done the online debt remedy and are hoping if we start small with token payments and regularly increase them by a small amount, the creditors will see that we are making an effort to improve the situation.

If at some point we manage (by scraping from scrimping out of the budget) to put aside enough money to try making a F&F offer of payment at a reduced rate, are we free to choose one of our creditors (such as the lowest balance) and just choose them? Or does that cause problems with the other creditors?? To me, it seems the most logical to do regular payments to all, but to get rid of a full one when we've managed to save enough to do so. Then we can up the payments we are making to the others, right?

We've also discussed it, and we're going to cut up the credit cards and include them in the envelope with the first token payment. They're going to ask for them anyway - why not just get it over with? Less painful to offer them back than to have them ask for the cards, IMO.

We've got a fair amount budgeted for grocery - I actually think we may be able to get by on a fair amount less - but just in case, we're going to use that figure and just put aside any left over. Initially it can build up for our emergency fund. Then we will use it to save to pay off the lowest balanced creditor, I think. I would lower the amount budgeted, but then what if I'm wrong and we DO need that amount some months - I don't want it to cause problems further down the road.

the_tooth_fairy

Sorry I rattled through some thoughts, that should probably have been edited, but you seem very level headed and I'm sure this will all go well for you!
Kudox gave you good advice (told you!) you are thinking about this very seriously and deserve some credit for that.
ttf

Northstar68

Kudox wrote: »

Stick to your guns Northstar, do exactly as you intend and as Geoff says hopefully in the end it will be A&L who shoot themselves in the foot.

My OH is self employed too so I know where you're coming from.

The more we can get ourselves informed about this whole debt minefield the stronger and in control we begin to feel.
I for one refuse to sit down and just be bullied and made to feel powerless, not especially when I'm making every effort to pay it back.

Knowledge is definately power and I'm sure the creditors would rather us be meek and roll over at the first hurdle.

Ok rant over, got a bit political there :rolleyes:

Agree totally Kudox, thank you so much, reading up on these posts tonight I really have gained in strength compared to a few months ago where I did an awful lot of crying which got me nowhere of course.

Knowledge definately is power and I can see now how some of the creditors were trying so hard to break us in those early days. I have definately toughened up. The turning point for me came when I accepted
that our credit file was shot to pieces for 6 years and that there was no such thing as customer loyalty. I fought this for weeks and months, after 20 odd years of having an excellent credit rating and no problems with anyone, it was very very hard for me to accept it.

Soooo, once I got my head round it I realised I had to move on and get it sorted so now I dont mind having to change banks, I am really liking the idea of dealing with cash only........just wish I had more of it
Even the default notices get filed and forgotten about, before I panicked when I saw one. Even when the text comes that says 'UNLESS YOU CALL US IMMEDIATELY LEGAL PROCEEDINGS WILL BE TAKEN AGAINST YOU'
Yeah right is my attitude now. The first time I got one of those I panicked unbelievably. NOw I just save them to a folder on my phone and forget them.

I was just looking around at some other boards here, the banking one I think I was on......oh god, I left there pretty sharpish, they are a tough lot there I can tell you! They would slaughter me if I said something there so I am officially staying put here and the Long Haul Supporters one.

Any other boards you think are useful please can you let me know and I will join you there, I click around so much that I forget where I was in the first place. :rotfl:

Sooooo, my plan for tomorrow morning before the onslaught of 3 and 4 year olds and 10 and 11 year olds for my daughter's budget birthday party iiiiiiiissss
1. Ring up Barclays and tell them to downgrade my account - before they freeze it...wouldnt really matter because everything has been moved from there now, but I would like to be the one to tell them to downgrade to a basic account instead of them doing it LOL

2. Cancel those direct debits that are due out Monday.

3. Ring around the companies and tell them having problem with my bank LOL and direct debits will fail, give them my new bank details and offer a payment by cheque next week.....which would buy me time seeing as OH isnt getting paid now tomorrow!
(btw, I write OH.....it does mean Other Half right? LOL I am still getting used to the abbreviations, I hope it doesnt mean anything else LOL)

If I can do this in the morning before I sort the food etc for this party then that will be a big achievement for me.

So fingers crossed I will post again before lunchtime to say I have done that!! After that.....we wait.......for what the post/phone brings.

Went on a bit there, thanks for bearing with me to the end of the message!
I do go on a bit, just really wanted to say THANK YOU again to Kudox and everyone else. Couldnt do it without you.:grouphug:

bailey59

Morning everyone, lovely and sunny here today and my hubby is coming home tonight after working away all week so I am in a good mood today.

So I am making a pledge that from today I am only going to say positive things and not focus on anything negative anymore. This week I have learnt 3 valuable things regarding my current situation so I thought I would share them with you.

Firstly all the companies I have phoned to cancel my dd's have been very helpful and polite and have told me that even if I dont manage to get my new bank account up and running in time for the next payments I can pay by cheque or 2 dd's can be taken out the month after. So even though at the beginning of the week I had a meltdown there really was no need and what I thought was a problem at the time is sorted. So when/if I find myself over the next few weeks starting to have another crisis, I will take deep breaths to calm myself, pull my shoulders back, hold my head high and tackle the situation immediately. Lesson number 1 that I learnt this week - There is no problem that cant be fixed

Even though I havent started the DMP yet I have sorted out loads of little money bags and have started to put money in each week for things like clothing allowance, opticians etc so I can see my little bags of money growing. When I set up my new bank account I will put the cash in there and add to each fund each month. I have realised that I need to save that money and use it towards the things it is supposed to be used for. eg: If I spend the money I have saved for the dentist on a takeaway and some wine, when I need to go to the dentist I wont be able to afford it, so then I would have to use another fund to pay for that like my hairdressing fund, then when I wanted my hair cutting I would have to use the car maintenance fund etc etc.... So, I have now regained control over my money again and doing my finances again. Lesson number 2 learnt - I am in control

Another thing I have learnt is that I am not alone now and I can gain strength from others. I know there are other people in the same situation as me, like all you guys, that have the same fears and problems as me, who have the same worry when the phone rings, who have headaches and heart palpitations the same as me. I also know now that things will get better, in fact it already has. I know that I have support from friends and family that will not judge me and who will be there for me when I need to laugh or cry. So for me lesson number 3 that I learnt this week is the best - I am not alone now.

Northstar68

bailey59 wrote: »

Morning everyone, lovely and sunny here today and my hubby is coming home tonight after working away all week so I am in a good mood today.

So I am making a pledge that from today I am only going to say positive things and not focus on anything negative anymore. This week I have learnt 3 valuable things regarding my current situation so I thought I would share them with you.

Firstly all the companies I have phoned to cancel my dd's have been very helpful and polite and have told me that even if I dont manage to get my new bank account up and running in time for the next payments I can pay by cheque or 2 dd's can be taken out the month after. So even though at the beginning of the week I had a meltdown there really was no need and what I thought was a problem at the time is sorted. So when/if I find myself over the next few weeks starting to have another crisis, I will take deep breaths to calm myself, pull my shoulders back, hold my head high and tackle the situation immediately. Lesson number 1 that I learnt this week - There is no problem that cant be fixed

Even though I havent started the DMP yet I have sorted out loads of little money bags and have started to put money in each week for things like clothing allowance, opticians etc so I can see my little bags of money growing. When I set up my new bank account I will put the cash in there and add to each fund each month. I have realised that I need to save that money and use it towards the things it is supposed to be used for. eg: If I spend the money I have saved for the dentist on a takeaway and some wine, when I need to go to the dentist I wont be able to afford it, so then I would have to use another fund to pay for that like my hairdressing fund, then when I wanted my hair cutting I would have to use the car maintenance fund etc etc.... So, I have now regained control over my money again and doing my finances again. Lesson number 2 learnt - I am in control

Another thing I have learnt is that I am not alone now and I can gain strength from others. I know there are other people in the same situation as me, like all you guys, that have the same fears and problems as me, who have the same worry when the phone rings, who have headaches and heart palpitations the same as me. I also know now that things will get better, in fact it already has. I know that I have support from friends and family that will not judge me and who will be there for me when I need to laugh or cry. So for me lesson number 3 that I learnt this week is the best - I am not alone now.

Lovely post Bailey59, you have given me a bit of strength to get through this morning before the crowds arrive at 2pm. I am going to do the money bag thing too, great idea.

Soooo Barclays, USELESS. Been with them 21 years. Went into my branch yesterday afternoon, kids in tow, they were soooo busy, wait wait wait then someone asked if he could help, i explained about the DMP, the 2 debts I have with them, would like todowngrade so eveythings not frozen etc as once they get the letter that could happen. I know its not likely they got the letter today but hey, you never know. Anyway, he said he will ask if I acn do that on the phone, to save me waiting even more.
One of the advisors came and said no problem, you can do this on the phone, so this morning I phoned, they said no you have to do it in the branch. The left hand has no idea of what the right hand is doing.
It's not drastic, I have nothing to lose from that account, I have moved my payments that go in away so they are safe. There is only a tenner left in there to cover my token payments to Barclaycard and the Barclays loan if they want it.
Could be my 21 year relationship really has ended today!
Still got that pressure headache though, badly need to snap out of this feeling so bailey, I will read and reread your post before the downtime today.

Number 2 and number 3 I will do.......now
So have a good day everyone!
Hope to see some of you on here tonight with lots of PMA and good news eh!

xxxx

Kudox

Hey Northstar, no problem I will always try to help if I can, and even if I can't it's good to talk to someone in the same boat.
Bailey 59 has just made a great point in saying there's no problem that can't be fixed.:j
I remember in the early days for me my bank made a horrendous mess with my direct debits and stuff didn't get paid, which I didn't find out till after the event, it caused loads of problems at the time but it all got sorted in the end. I worried myself sick but it was all soon forgotten.

Enjoy your party Northstar, I bet you and your daughter have a better time because it's done on a budget, and you should feel good that you're achieving so much as the days go on:D

It's my birthday on Sunday so I'm looking forward to a good weekend, well I'm working tomorrow but only till 3, and then it's (budget) party time for me.

BTW, OH does mean "Other half", it took me a while to get my head round all the abbreviations, there used to be a thread knocking around with them all explained!