DMP Mutual Support Thread - Part 7

teecee152

Hi mikon,:)
When you start a DMP, your payments to creditors are usually less than the contractual amounts on the debt. Because you are paying less than the minimum payment,you have defaulted on the agreement.
The default notice is issued as a matter of course (some creditors will issue them some wont) Its nothing to worry about and it just means they are able to sell your debt to a debt collector at a later date if they want to. Keep paying what you can afford on your DMP and try not to panic.
I am in the last 6 months of my DMP, and have only received 1 default at the very beginning (march 2007) nothing has ever come of it!
Good Luck and if you are ever worried about things give CCCS a ring.... they are fab!
Good Luck:D

Teecee x

mikon

teecee152 wrote: »

Hi mikon,:)
When you start a DMP, your payments to creditors are usually less than the contractual amounts on the debt. Because you are paying less than the minimum payment,you have defaulted on the agreement.
The default notice is issued as a matter of course (some creditors will issue them some wont) Its nothing to worry about and it just means they are able to sell your debt to a debt collector at a later date if they want to. Keep paying what you can afford on your DMP and try not to panic.
I am in the last 6 months of my DMP, and have only received 1 default at the very beginning (march 2007) nothing has ever come of it!
Good Luck and if you are ever worried about things give CCCS a ring.... they are fab!
Good Luck:D

Teecee x

Teecee thank you for the response. It is reassuring to hear from people in a similar situation unfortunately I have years of DMP ahead only been on my DMP for 6 month and lately is has been rather quiet on the creditors front. So when i got this it panicked me.

Thanks once again.

Talesin

dmb wrote: »

Good luck. this is my new year resolution too. I've been on DMP for just over a year and all going well. But still found it very hard to budget and especially to squirrel money away for car stuff, Christmas etc.

Going to try and walk and cycle to work as much as possible to save petrol (hasn't actually happened yet because of cold, rain - yes I really am a wimp or have no will-power!).

Your idea of taking cash out for week sounds good. I use debit card too much and in my mind it's still 'free' (ha!) money like cc.

Welcome to Steph. DMP was my life-saviour and really had no other choice. So pleased I took that first step of contacting first National Debt Helpline and then CCCS.
Got nothing but praise for CCCS but I know Payplan has equally good reputation so its swings and roundabouts really
Happy New Year to all DMPers.
May that debt disappear soon (ish)

I have just started with Payplan and found them very helpful.

Loubylou2

Hi everyone, new and oldtimers. No insult intended.
we're having a tough month and payday seems such a long way off. Having problems with a previously outstanding energy bill which came to light at the outset of our DMP. EON are suddenly getting twitchy about it and we are going to have to increase our monthly amount which will be a struggle but i'm worried if we reduce our DMP our creditors will wake up and at the moment they are all accepting the DMP even Nat West.
Like Ian I have just drawn out our remaining money and am going to budget very carefully for the rest of the month.

Squirrel the embarrasment and shame about parents is exactly what I felt/feel. As you say their generation are often much better at budgeting and my mums modest amount of savings comes from her just being careful and not having what she couldn't afford.
BUT rememer you are now starting to sort things out. No good comes of beating oursleves up so give yourself a pat on the back as you are dealing with it. Onwards and upwards!

Love & good wishes to everyone
LLx

ianmak

mikon wrote: »

Teecee thank you for the response. It is reassuring to hear from people in a similar situation unfortunately I have years of DMP ahead only been on my DMP for 6 month and lately is has been rather quiet on the creditors front. So when i got this it panicked me.

Thanks once again.

one thing with defaults is that they stay on file for 6 years. So in theory the earlier you get them the better as your credit rating while on a DMP is screwed anyway...

suze72

Hi everyone and Happy New Year

We are also struggling this month as OHs van broke big time just before xmas so he's had 2 weeks with no work. It was going to cost over £1000 to mend so he's had to sell it and buy a smaller one as we have no extra money to put towards it.

On the bright side our creditors are still very quiet and with just over 18 months remaining on our DMP I'm hoping they stay that way.

My new years resolution is to knuckle right down with our budgeting and try to save £500 as an emergency fund which would have made life so much easier the last couple of weeks! If we don't need to use it then the DMP will get paid off a month early.

Hope you are all keeping well

Sue

powerchimp

powerchimp wrote: »

Got home to a letter from Tesco CC.

Late payment fee of £12 :mad::mad:

Tried phoning but that particular office close at 5.30pm :mad::mad:

PC

Managed to speak to someone yesterday, they were very nice and helpful (which is unusual for Tesco) they told me that I shouldn't have received the last payment and they would refund it :j

This morning I received my statement, the CC payment was received on the 21st December and the deadline was the 23rd, so they had it two days before they needed it :mad:

I aslo noticed that the balance hadn't gone down much and when checking with last months statement, this month I'd only paid off £4 :mad:

For some unknown reason they have double the interest on the 3 rates (cash, balance transfer, and purchase interest):eek:

This has made it a rather depressing morning:( and I can't do anything until Monday either:(

PC

mikon

ianmak wrote: »

one thing with defaults is that they stay on file for 6 years. So in theory the earlier you get them the better as your credit rating while on a DMP is screwed anyway...

Does anyone know what happens to your credit file if a default is served now and is registered for 6 years and the debt is going to take 8 yrs to pay off? Will the company serve another default notice in year 7 or can only one be served against the account. Hope you understand what I mean.

Just curious as when my DMP is complete I will never ever turn to credit again.

Regards

Mikon

ianmak

As far as I know you can only receive one per account, unless you sign another agreement after of course.

Twit_Head

ianmak wrote: »

As far as I know you can only receive one per account, unless you sign another agreement after of course.

Thanks Ian - the issuing of further default notices on the same account after six years is something I wondered (and worried) about sometimes.
Now I know I won't have ever have enough to wallpaper the bathroom with

'Twitty'

PS - Hope the 'Happy Hour' pint hasn't broken the cash only budgeting!