DMP Mutual Support Thread - Part 7

mikon

the_tooth_fairy wrote: »

Hi, Mikon, read this and your last post on the same subject with interest, because after my glory this week, getting down to under £50k, I now am worried sick because we had to have our car repaired urgently this week, (bill after parts and VAT nearly £700!!:eek:).
Of course I had to give the mechanic a cheque, which when it clears will literally leave us nothing before we even start the month. I keep thinking that I should ask my parents to help, but really that sort of money is far too much. Has anyone else had to make a seriously reduced payment, and how where the creditors?:( Thanks,

ttf

TTF

As your aware I made a reduced payment this month. I also wrot to all my creditors detailing my additional expenditure. Have had nothing from them so fingers crossed. CCCS told me that they probably will not kick off but could not guarantee that.

I was going to make another reduced payment this month (June) and implement a revised DMP payment in July, however CCCS informed me that the creditors may kick off as the payments were not consistent. Apparently this is what the creditors look for consistent payments if they go up and down then they may claim your breaching your DMP agreement and reinstate interest.

CCCS also suggested that I do my review today and implement it with immediate effect which means they will write to all my creditors and enclose the new revised income and expenditure plan informing them that I am reducing my plan due to increase in living costs. CCCS advised that this was the most sensible route as June, July Augusts etc payments would be the same and therefore consistency would be shown rather than go down my route as mentioned earlier.

Another thing they said to reinforce this is that it not necessarily the amount you pay although this is a factor its the consistency they look at your reliability to meet your DMP agreement.

I have reduced my overall monthly payment by £179. I asked how the creditors would view this and I was informed that the figures provided on my budget were well within the expenditure guidelines and the creditors should be sympathetic.

I am pleased I have done the review the down side is my DFD has been put back 3yrs but this reduction is short term as my mortgage is paid off in Jan 2013 and I am expecting a pay rise next year so hopefully will be able to increase the DMP.

I have asked CCCS to emphasise this to my creditors but i am going to write to each creditor to explain each increase and the reason behind it so that they fully understand why the increases are necessary.

Finishing on a final note there was an interesting article on BBC News today about Debt Management Companies that charge fees and then do not pass the clients monthly payments to the creditors.

Thats my update no post today, bet it all arrives tomorrow and ruins my weekend .

Mikon

pinkiepie68

the_tooth_fairy wrote: »

Hi, Mikon, read this and your last post on the same subject with interest, because after my glory this week, getting down to under £50k, I now am worried sick because we had to have our car repaired urgently this week, (bill after parts and VAT nearly £700!!:eek:).
Of course I had to give the mechanic a cheque, which when it clears will literally leave us nothing before we even start the month. I keep thinking that I should ask my parents to help, but really that sort of money is far too much. Has anyone else had to make a seriously reduced payment, and how where the creditors?:( Thanks,

ttf

Hi TTF
Haven't posted for a while, but read every day. Have been on my DMP with CCCS since October 2009. Life kind of took over following starting our DMP as I found out I was expecting a VERY unexpected baby in March 2010, with my due date being November 2010 (timing never was my strong point - lol!!!). We have an absolute debt mountain, and were paying £ 900 per month. Since then I have reduced my payment by £600 in the month of October last year to enable me to by pram etc as we had NOTHING for a baby having got rid of everything shortly after my 7 year old daughter was born, plus all our friends children are older too. Creditors (14 of them with 19 debts) were all fine with the exception of Lloyds TSB, but then I shouldn't have expected them to break the habit of a lifetime!!!! Since then, I reduced my payment to £ 700 per month from November til this April to cover my reduced wages, then I reduced my payment to £ 189 per month from April this year until September to cover the fact that I am on now on government maternity pay only. So far - no problems, but I feel tht a DMP is a kind of month to month scenario with no rhyme nor reason to creditor responses or reactions. We have had a couple of bits of good luck like extra overtime for hubby, but these always seem to be balanced out by something bad happening like a full exhaust and cat system going on my car and both front wheel bearings going on hubbys. I feel I am always playing my cards with my DMP close to my chest and am probably a bit hidden from CCCS as I like feeling I have a little bit of control, but it is not always easy. I know they like changes reported on a regular basis, but I feel the more regularly I update about extra money coming in, the more likely it is that I will have to ask for reductions when the poo hits the fan as it frequently does for me!!! I also feel that I have to have a reasonable emergency fund behind me, or I will never learn to budget for when this plan is finished, and I feel that the £ 40 per month that is allowed for that purpose always seems to go on "mini emergencies" and there is nothing left over for the big "mega emergencies" that always seem to sock me between the eyes when I am least expecting it!!!

pinkie xx:)

the_tooth_fairy

Thanks, Mikon and Pinkiepie,you have both eased my mind after a very sleepless night! I am trying to remind myself that there is nothing I can do about this, and worrying about it will not help. After I posted last night, I remembered that one month Tesco C/C didn't get their payment because the statement was sent the day before PP sent their money, and that seemed to be OK. It's a bit pitiful to use that to cheer myself up, but any port in a storm!
Hope everyone has a great weekend,

ttfx

Toffee_Penny

Hi all :j

Hope you all well and enjoying the dull grey sky for the bank holiday weekend. Where did all that lovely sunshine go from Easter?

Nothing much to report here apart from a letter OH received yesterday from Halifax overdraft informing him he is really naughty to not clear it all in cash despite being sent a million letters. Due to OH ignoring their plea to pay up they are threatening to put him on a naughty step and pass the debt on to even bigger bullies called a debt collection agency. :rotfl:

Whatever Halifax! :rotfl:

Halifax overdraft = was £150 now stands at over £500 due to new overdraft charges
Halifax credit card = £4000(ish) passed to Lowell Portfolio, no hassle received
Halifax loan = £11,000 passed to Mckenzie Hall, largest debt owed, little bit of hassle to start with but now nothing at all

The overdraft is the worst creditor from Halifax to deal with despite having the lowest arrears. Although it's the same company we'd expect Halifax loan to kick up a stink yet it's the little overdraft that has caused so much fuss. So much inconsistency from one company.

Hope they pass it on soon to a debt collection agency so the daft charges will stop.

Twins

Hello everyone,

How has the start been to your Bank Holiday weekend? Hope you've managed to get some good news or managed to save some of that hard earned cash?

Just a quick update I got two letters in the post today, one from Mint and the other from my bank Santandar saying that they have approved my payment with CCCS and have stopped all interest! :T Also spoke to Satandar the other week who deal with my repayment for my sofa's via DFS and again they agreed to my payment and zero interest Wow, that feels like a weight being lifted off my shoulders!

Still got Barclaycard, Capital One, Egg and Next to go so fingers crossed they will all be ok with my new 'arrangement' :undecided

This is my first full month on the DMP so keep checking my bank balance all the time! It's such an expensive month for me due to birthday's, anniversarys and also kids birthday party to pay for!

Anyway, hope you all have a relaxing weekend and here's to more money saving ideas!

mikon

Twins

Next & Barclaycard (BC) stopped my interest immediately. However after 6 months BC reinstated interest at a much reduced rate and NEXT passed my debt on to a Debt Collection Agency (DCA) after 1 yr which I am happy about now so no interest and looking at making a Full & Final (F & F) in the future.

Good luck, enjoy your weekend

Mikon

Twins

mikon wrote: »

Twins

Next & Barclaycard (BC) stopped my interest immediately. However after 6 months BC reinstated interest at a much reduced rate and NEXT passed my debt on to a Debt Collection Agency (DCA) after 1 yr which I am happy about now so no interest and looking at making a Full & Final (F & F) in the future.

Good luck, enjoy your weekend

Mikon

Hi Mikon,

Thanks for your response! That's good to know that Next & Barclaycard stopped your interest. My biggest debt is with Barclaycard

Can you tell me a little bit more about how Full and Final payment works? Do you need to have had your debt passed on to another company first? At what point can you offer a full & final payment?

Hope you have a lovely weekend

mikon

Twins wrote: »

Hi Mikon,

Thanks for your response! That's good to know that Next & Barclaycard stopped your interest. My biggest debt is with Barclaycard

Can you tell me a little bit more about how Full and Final payment works? Do you need to have had your debt passed on to another company first? At what point can you offer a full & final payment?

Hope you have a lovely weekend

The best person to speak to is Professor Pat Pending on the other forum - without a paddle

https://forums.moneysavingexpert.com/discussion/2388003

Any way F & F are where you make an offer to the creditor to pay anything from 90% - 20% of the outstanding debt they normally accept 50% but some accept less other more its swings and round abouts. When to make the offer is up to you but my impression is that its better when it goes to a DCA but not sure. You also need to make sure that when the F & F is made you also ask them to amend your credit record to satisfied.

Google Full and Final I am just embarking down this route and have sent a letter off my debt is £200 I have offered £45 waiting to see what comes back.

Also tell the creditor that a relative is giving you the money or they will want to know why your not using the surplus cash to pay off your debt.

Like I say not an expert but I am sure someone will be along with more advice and you can pop over to the other forum.

Mikon

ianmak

TP I found the smallest debt to be the worst. I owed Beneficial Finance (DFS Sofa loan) £70 and they phoned incessantly and the start, and were very rude. I eventually owed them £140 after charges, and they offered an F&F of £70, which I accepted...

My two ODs of £1500 and £400 were also a nightmare and took 6 months to stop charges and interest...

mikon

ianmak wrote: »

TP I found the smallest debt to be the worst. I owed Beneficial Finance (DFS Sofa loan) £70 and they phoned incessantly and the start, and were very rude. I eventually owed them £140 after charges, and they offered an F&F of £70, which I accepted...

My two ODs of £1500 and £400 were also a nightmare and took 6 months to stop charges and interest...

Ian

I find the smaller debts/creditors are the ones who are a pain.

NEXT being my example.

Mikon