DMP Mutual Support Thread (Part 6)

girlypink

lol @ mamajojo. :rotfl:

Morning everyone, its day one of my DMP today and it feels great:j i have a lovely arrears letter from additions (shopdirect) telling me ive failed my agreed payment plan, not sure what planet they are on as my payment plan isnt starting till this month and they have the paperwork from cccs as i called them. Never mind i guess i shall see what they say next!
i have a default from capital one, is this a good thing or a bad thing?
What happens next once everyone has recived their first payments? i know egg have said they will stop the interest and any charges which is a huge weight as they are my biggest creditors and the ones i was most worried about. But what about everyone else?:huh: should i expect letters or will they just accept my cash from cccs?

tinkerbell12

tedsd wrote: »

ps. a question we are unsure about over on Nataz's thread is do the creditors continue to send monthly statements when you are on a DMP??

Thanks

Our credit cards still send us monthly statements. Loan companies are required by law to send you a statement every 6 months. HTH...

tinkerbell12

tedsd wrote: »

Hi, I've popped over from Nataz's board as a newbie... just reading about reviews..this is ages off for me but if your pay goes up a bit, do you phone CCCS or wait for your review and tell them then?

Has anyone experience of sending token payments for 3-4 months due to changing circumstances so unsure of income and if so, how do creditors take it? - frustrated at not being able to move forward on this but looking at April I think...dealt with phone calls but find the post scary.


Thanks

You could do either re: pay. If it is a permanent increase in salary and a review is pretty imminent I would wait. If not, it really is up to you. I may be inclined to save the extra money so you have little to fall back on.

newlywed

tinkerbell12 wrote: »

Our credit cards still send us monthly statements. Loan companies are required by law to send you a statement every 6 months. HTH...

Yet of my 3 CC companies, one doesn't send any statement at all, one has been passed to a debt collector who sends monthly statements and the other has been passed to Metropolitan who haven't sent me any statement.

So it depends on the company really


Same as not all of them will tell you whether they have accepted the DMP or not - some will ring and tell you, some will write and others will just stop interest quietly.

newlywed

girlypink wrote: »

Morning everyone, its day one of my DMP today and it feels great:j i have a lovely arrears letter from additions (shopdirect) telling me ive failed my agreed payment plan, not sure what planet they are on as my payment plan isnt starting till this month and they have the paperwork from cccs as i called them. Never mind i guess i shall see what they say next!
i have a default from capital one, is this a good thing or a bad thing?
What happens next once everyone has recived their first payments? i know egg have said they will stop the interest and any charges which is a huge weight as they are my biggest creditors and the ones i was most worried about. But what about everyone else?:huh: should i expect letters or will they just accept my cash from cccs?

Shopdirect probably mean you have failed your original payment plan - ie you aren't going to be paying them what they first expected when you bought the goods That probably means they know about the DMP and are just acknowledging your circumstances have changed.

A default is held out by creditors as a really bad thing. What does it do? Creates a black mark on your credit rating so you can't get credit as easily :rotfl: Basically the earlier you get it the better as it stays on your credit report for 6 years from the date of the default (not the date the debt is paid off). It also usually means they will stop interest and/or pass it onto a debt collector. So it's not a bad thing at all

As for letters accepting the DMP, I got a phone call from one creditor and letter from the other and the other 3 just quietly accepted the payments without saying anything and after 4 months of the DMP payments, they just as quietly issued defaults and stopped interest. So you might get told, you might not.

After 6+ months on the DMP I applied for my £2 paper style credit report and saw from that who had listed "arrangement to pay" and "dmp" on my file to work out who officially accepted!!

girlypink

Ah thanks newlywed, i was worried that maybe they had expected the payment plan to start sooner. hopefully it will all sort itself out then.

so if i get defaulted it just says on my credit file that i have "defaulted payments?" and thats stays for 6 years? will creditors put that im on a dmp then? my dmp im expecting to last about 5 or so years so was expecting to have adverse credit for about the next 11 would that be right?

newlywed

girlypink wrote: »

so if i get defaulted it just says on my credit file that i have "defaulted payments?" and thats stays for 6 years? will creditors put that im on a dmp then? my dmp im expecting to last about 5 or so years so was expecting to have adverse credit for about the next 11 would that be right?

I have a couple of defaults on my file they just "drop off" your report 6 years after they were first placed there, whether or not the debt is settled.

I also have one creditor who marked my file as "arrangement to pay", ie I made a reduced payment agreement (via the DMP). That will presumably stay there till it's paid.

I also have one creditor who has marked my file "DMP". Again, that will presumably stay there till paid off.

So defaults may be considered the worst mark on the credit file out of those three, they are the better of the three options in the fact that they disappear after 6 years whereas the other ones still stay till its paid off.

On the other hand, at least your credit file will show you have dealt with your debts and paid them all off so perhaps that may help a little if they are marked with "DMP" etc? I'm not sure if that will help in future.

Personally, I don't want more credit. I still wouldn't trust myself with it. I want to keep with the old fashioned theory of saving up and buying when you have enough money - when the debts are paid off, there should be the DMP payment amount free to be saved.

tinkerbell12

A slightly random post but I have just worked out that we have paid 40% of our total debt as of Feb 2010!!

We have been on our DMP for nearly 2 years and now have 3 1/2yrs to go (we are paying less at min as I am on mat leave and then will be returning to work part time.)

Good luck to those starting out - it really does settle down quickly and the months have just flown by... roll on Sept 2013!

newlywed

Well done tinkerbell.

I was just approaching the half way mark when OH lost most of his work and I've been told I'm in line for redundancy. As soon as we both get jobs though, I'll be back to increasing payments again.

tinkerbell12

newlywed - It must be very frustrating for you having to reduce payments. Sorry to here about your threatened redundancy and OH's loss of work. I thought being on mat leave would reduce our payments loads but luckily we have only had to lower it a bit and have managed to cut right back on things.

I cannot wait until that last payment goes to CCCS and we will have literally £100s free to SAVE each month!! No more credit cards EVER again!!