DMP Mutual Support Thread - Part 7

ianmak

Anna* wrote: »

Hi All,

I have had my 'lightbulb moment' after receiving a letter from MBNA about the increase in minimum payments from 1st April (something that I won't be able to afford).

I plucked up the courage to call MBNA who were actually very sympathetic and suggested a DMP to reduce my payments. I have read as much as I can about the plans.

My question is I have an overdraft of £2000 with my bank (I don't dip into it, it is there purely as a "just in case measure" as I am a carer to my elderly parents). If I enter a DMP with MBNA will my current bank (not affiliated with MBNA) withdraw my overdraft, as in will MBNA inform them that I have entered into a plan?

Any advice would be much appreciated (apart from the non-sympathetic peeps on the forum).

Many Thanks

I reckon that an OD counts as extra credit, and as such you will need to have to OD removed. Not least because if you need a new boiler and dipped in in emergency, you're suddenly lumbered with 1-2k of extra debt.

ianmak

powerchimp wrote: »

I'm still getting charged interest by tesco CC so wrote to them to ask if them would stop, have this letter back today


Its funny really as it was because I couldn't make the tesco payments that I needed to go on the DMP and now I'm paying more than the minimum payments although only £40 is actual coming off each month because of the interest:(

PC

I think because you're paying more than the minimum, the creditor in this case sees you as not being on a DMP.

As I mentioned before recently, most creditors see a DMP as being a temporary arrangement, and when you get to the minimum payments, they will see it being that you're not in trouble, and will start charging again.

the_tooth_fairy

tlc123 wrote: »

Hi all

I haven't been on here for ages, but I'm thinking of signing up for a DMP. We can make our minimum payments, but have nothing left after wev'e paid them, and we have no life. Also, we have a leaking flat roof on our extension that needs fixing and the buildings insurance won't cover it. So basically, need to find £5k to do that.

So I'm thinking a DMP may be the way forward to repay the debts and allow us to have a life, but wonder what to do about the £5k?

Thing is, we have a mortgage and the fixed term comes up in Jan 2012 - if we're on a DMP does that mean we can't keep our mortgage? If so, it may not be possible for us as we want to keep our mortgage. I've read lots about DMP but can't seem to establish what it does to your credit rating.
Thanks in advance

tlc

Hi, TLC, and welcome, although I can't really help with your problem, I'm sure someone will be along soon, so hang in there. I can only realistically contribute at the weekends at the moment, but I'm confident that your question will be answered shortly.If you have any other queries about a DMP , I may be able to help.

ttf

the_tooth_fairy

Twit_Head wrote: »

Hi
I see someone has already answered your question, but just wanted to say I don't think you'll find any unsympathetic folk here on our thread.
In my experience all are very friendly and helpful, not at all censorous or critical.
So welcome - take your shoes off and feel at home!

'Twitty'

Amen to that!
May I say (and I'm not being boastful or C&%P like that, but hoping to encourage the Newbies amongst us!) but we are now 17 months in and lo and behold,we have gone from the Total Horror of £69k+ to the newly improved total of £51,940. It probably doesn't sound great,but in April we will be into the Fab Forties! That's all the extra charges, too.
Can you imagine how long it would have taken, paying minimum amounts with all the interest. Grim.
It really is worth it all, when you see an end to it, and can you credit it (sic) Sainsburys Bank Visa have finally reduced my interest to 0% two months in a row! OH is still in a running battle with his BOS card, they have plainly put him back into collections, letters, phone calls, but he spoke to them yesterday evening, and they have refunded his interest, albeit reduced, so we move on.

Keep going everyone, and we will all move forward, even if it's slowly!

ttf

sarahowen

Quick question, can I ever use the account I used with Winga again until I've cleared my debt with them? Or will they just keep taking money out?

sarahowen

Wonga, sorry!

sarahowen

DFD in 2 years and 4 months... Woohoo! August 2013, here I come!

powerchimp

ianmak wrote: »

I think because you're paying more than the minimum, the creditor in this case sees you as not being on a DMP.

As I mentioned before recently, most creditors see a DMP as being a temporary arrangement, and when you get to the minimum payments, they will see it being that you're not in trouble, and will start charging again.

I was thinking the same, to be honest tesco's have been a PITA before and just after going on the DMP, I didn't really expect anything from them

suze72

tlc123 wrote: »

Hi all

I haven't been on here for ages, but I'm thinking of signing up for a DMP. We can make our minimum payments, but have nothing left after wev'e paid them, and we have no life. Also, we have a leaking flat roof on our extension that needs fixing and the buildings insurance won't cover it. So basically, need to find £5k to do that.

So I'm thinking a DMP may be the way forward to repay the debts and allow us to have a life, but wonder what to do about the £5k?

Thing is, we have a mortgage and the fixed term comes up in Jan 2012 - if we're on a DMP does that mean we can't keep our mortgage? If so, it may not be possible for us as we want to keep our mortgage. I've read lots about DMP but can't seem to establish what it does to your credit rating.
Thanks in advance

tlc

Don't worry you will be able to keep your mortgage, however you may have to put up with being on your mortgage lenders SVR for a while.
If you are thinking of borrowing extra on your mortgage to mend your roof, you definitely need to do it before entering a DMP as your credit rating is likely to be poor for a good 6 years depending on if/when you receive any defaults. Also your creditors would frown upon you getting more credit whilst on a DMP.

Good luck
Suze

suze72

debtfreewannabe321 wrote: »

Hi i just wondered if someone could help me, can we put in claims for bank charges & credit card charges if we are on DMPs? As i was reading through the info on here and it says that the companies may demand you close your account and settle up for doing this? Which of course I can't do? Can anyone tell me if they have been sucessful claiming money back on a DMP or if i should just forget it? Thanks

I assume that these are accounts which are included in your DMP?
You certainly can reclaim bank charges whilst on DMP, however if the banks you are claiming from are amongst your creditors then they will probably just take the money they owe you off of the money you owe them (but at least this would bring your DFD a little closer )
I remember reading on here a long while ago that people on DMPs had been successful in doing this so I would give it a bash, you have nothing to lose.

Suze