Without a paddle... support for anyone starting a DMP in 2010 (part2)

mikon

Slightly digressing but can somebody explain to me why interest rates need to increase?

If employees are not receiving pay rises and the cost of living is rising resulting in the public not going out spending on the high street. Why are interest rates being put up surely increasing interest rates means peoples mortgages payments increase forcing more people to default and less people are inclined to take loans out. Also as unemployment increases less money is being paid into the tax system and more money is being paid out on welfare benefits.

So why dose an interest rate increase help. Can someone advise.

Mikon

eyeopener2

mikon wrote: »

Mikons DMP Projections

A reduction of 0.75% in the next four months

1% reduction by year end = upset creditors

2% reduction by end of 2012 = very upset creditors

3% reduction of DMP by end of 2013 = Bankrupt creditors = £0

Daunting figures hope by the end of 2011 we have gone down the route of Egypt and the people have overthrown the Government and the banks.

Mikon

I'd vote for that!

Mikon for King.

eyeopener2

mikon wrote: »

Slightly digressing but can somebody explain to me why interest rates need to increase?

If employees are not receiving pay rises and the cost of living is rising resulting in the public not going out spending on the high street. Why are interest rates being put up surely increasing interest rates means peoples mortgages payments increase forcing more people to default and less people are inclined to take loans out. Also as unemployment increases less money is being paid into the tax system and more money is being paid out on welfare benefits.

So why dose an interest rate increase help. Can someone advise.

Mikon

Interest rates are used to control inflation. Less money in the system means less money to buy goods, manufacturers have to lower prices to attract buyers, prices go down. Inflation drops, wages demands lower, manufacturers dont need to increase prices so inflation drops.

Thats the theory at any rate.

Our country is so out of kilter though that the B of E seems not to want to do that for all the reasons you say, Mikon.

Interest rates should be higher than inflation, not lower, so should be around the 6/7% mark. We live in strange, worrying times.

Hopelessly_Hopeful

Evening all

Am also with NRAM and feel no chance of changing either. On CCCS advice I did attempt a payment holiday when my car trouble kicked in. NRAM wanted to do full credit check so I just didn't bother and struggled on but have zero emergency fund. On the brighter side I have only 3 years of DMP to go. Post DMP I'm hoping to put 70% of the amount I'm paying on my DMP to overpay the mortgage. As more people struggle I do wonder how long the support for DMPs will continue. Some days I think it will not, other i'm sure creditors would prefer DMP support with debts paid ack other than everyone going bankcrupt!

What is what is. Lets try to worry when things happen!

HHx

mikon

Hopelessly_Hopeful wrote: »

Evening all

Am also with NRAM and feel no chance of changing either. On CCCS advice I did attempt a payment holiday when my car trouble kicked in. NRAM wanted to do full credit check so I just didn't bother and struggled on but have zero emergency fund. On the brighter side I have only 3 years of DMP to go. Post DMP I'm hoping to put 70% of the amount I'm paying on my DMP to overpay the mortgage. As more people struggle I do wonder how long the support for DMPs will continue. Some days I think it will not, other i'm sure creditors would prefer DMP support with debts paid ack other than everyone going bankcrupt!

What is what is. Lets try to worry when things happen!

HHx

HH

I took a Holiday payment at Christmas and I was on a DMP and also NRAM is one of my creditors. They checked to make sure I had made the last 9 months payments on time and as I had they agreed to the holiday payment. They did increase my monthly payment though by £10 but it got me through christmas.

So I would contact them and try and get a holiday payment.

Mikon

Hopelessly_Hopeful

mikon wrote: »

HH

I took a Holiday payment at Christmas and I was on a DMP and also NRAM is one of my creditors. They checked to make sure I had made the last 9 months payments on time and as I had they agreed to the holiday payment. They did increase my monthly payment though by £10 but it got me through christmas.

So I would contact them and try and get a holiday payment.

Mikon

Thanks

HHx

mikon

Eyeopener 2

I think I have answered my question and this is the answer. Instead of further quantitive easing interest rates will rise because if they do not then UK investments and savings accounts don’t seem attractive, then there is pressure on the Bank of England and the government to sort out inflation, so big investors don’t look to put their money overseas.

Again we are back to the greedy financial houses. I guess we have come full circle as the greedy financial houses want us to pay more on our DMPs and yet also want us to pay more in mortgages quite ironic really. When will they wake up and realise that we are not getting bankers salaries or bonuses.

What a state this country is in.

There endeth the lesson on economics.

Mikon.

Mephista

Hi Mikon

Please don't think down that route unless you have to. Now that you have that information, ring some of your local banks (not sure where you're based but in NI, banks like Ulster Bank and Bank of Ireland are more likely to look favourably upon your situation) and prove with statements that you have been able to make payments on your mortgage all along. That's the main thing.

Speaking to a few of them may be difficult, but if you get someone helpful in one of the banks, they will either do their best to help you out (don't forget they too are desperate for income at the moment) or they may have some useful tips or information for you to have a look at which may be better for your situation right now.

If you can get something sorted - who knows you might get a capped annual discount for a few yars - there's no point in having a panic situation. If you don't ask .... you don't get.

Chin up my friend.:)

the-money-muppets

Yayyyyyyyyy, some good news for a change our mortgage with Northern Rock was on a fixed rate at 5.99%, got letter today saying its now on at 4.78% in line with their SVR, so a drop of about £100 per month....not sure how long this will last but i guess every little bit helps :rotfl::rotfl::rotfl::rotfl:

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the-money-muppets wrote: »

Yayyyyyyyyy, some good news for a change our mortgage with Northern Rock was on a fixed rate at 5.99%, got letter today saying its now on at 4.78% in line with their SVR, so a drop of about £100 per month....not sure how long this will last but i guess every little bit helps :rotfl::rotfl::rotfl::rotfl:

Excellent stuff.