DMP Mutual Support Thread - Part 7

mogsi80

Hi guys

Just a quickie, is it okay to send a chq for the offered payment with the letter explaining reduced payments?? Basically I have struggled and covered all the bills in full this month, but I still have argos to pay and I was going to send them my letter asking for reduced payments with a chq for £30 - is this okay to do? I'd rather pay something than nothing at all..

If I had the money I would pay it in full, however we've only got £150 left to cover 3 weeks worth of food and petrol for a family of 3 - seriously not going to happen!!!!

Is this okay to do - I don't want to nark them off before they agree to anything..

Thanks for you help guys, and thanks for all the other comments relating to my previous message - really and truly appreciate it!

xx

red_scorpian

Hi mogsi,I sent my payments with my letters asking to accept reduced amount most of the creditors accepted ,I used postal orders and sent recorded delivery ,pay what you can afford do not leave yourself to struggle ,life's hard enough xx

Twit_Head

debtfreewannabe321 wrote: »

Evening all,

Well since i started my dmp, today feels like an exciting day, as this month's DMP payment to CCCS, is the first one to go out (since starting in feb) that will actually be LOWERING the debt! The last of the creditors have finally either stopped interest and/or charges or lowered the interest significantly (we're still working on these ones!)

But still, it feels good for the debt to finally be going in the right direction

Good luck to all those who are just starting out!

Oh happy day!
Soon you (and hopefully all the new folk) will join the 'sorry can't go out for a drink tonight-too busy' club. What we're actually doing is gloating over the fact that we're not wasting money buying expensive alcohol, but are busy checking the balances and seeing them reduce
That wonderful feeling when you first see the reduction of your debt is priceless, and really helps to ease the day to day drudgery of keeping to a budget.

'Twitty'

Twit_Head

ljm21 wrote: »

Hi

I got myself into a mess with payday loans, and with the help of a friend manage to clear these. I now owe my friend over £1,000 and I have arrears on my accounts with all my other creditors. I need renogiate my payments to creditors, but I am not sure how they view loans from friends or familes. does anyone have experience of this?

Thanks for the help

ljm

Hi
Really sorry but not able to give you much solid advice on your situation.
Are you on a DMP? If so, when you say you 'have arrears on my accounts with all my other creditors' are these credit card/overdraft/loans or essential utilities like rent/fuel/council tax etc?
Please post again and let us have more detail - hopefully there will be someone around to help.
If you're floundering around on your own and need expert advice, try phoning or look on-line for CCCS, PayPlan, National Debtline, Citizen's Advice Bureau, who can guide you.
Hope this helps a weeny bit.

'Twitty'

Twit_Head

mogsi80 wrote: »

Hi guys

Just a quickie, is it okay to send a chq for the offered payment with the letter explaining reduced payments?? Basically I have struggled and covered all the bills in full this month, but I still have argos to pay and I was going to send them my letter asking for reduced payments with a chq for £30 - is this okay to do? I'd rather pay something than nothing at all..

xx

Post Orders are preferable to cheques (no link to your bank account)
Don't struggle and leave yourself short for basic necessities - £1.00 is fine as a token payment.
But best to pay the extra P.O. charge to send your letters by recorded post, then you have proof of delivery.
It's so difficult having a soft heart and a conscience when you first start your DMP - you hate having to default on your payments. But you must look to your own needs too. You have to leave yourself enough to live on.

'Twitty'

midget123

I have a debt on an £500 overdraft with first direct. They have accepted my offer of payment with the DMP. I have received today a fixed loan agreement for 12 months, for me to sign, at the end of which I would have to pay the balance or make another offer of payment. The current interest is 1.5%(APR) but is dependant on the bank Base Rate.

I have phone CCCS they said that don't normally advise as if it gets sent to DCA they won't charge interest, but if I want to keep a good relationship with my bank I can.

So question is, should I sign?

DevonGirl

midget123 wrote: »

I have a debt on an £500 overdraft with first direct. They have accepted my offer of payment with the DMP. I have received today a fixed loan agreement for 12 months, for me to sign, at the end of which I would have to pay the balance or make another offer of payment. The current interest is 1.5%(APR) but is dependant on the bank Base Rate.

I have phone CCCS they said that don't normally advise as if it gets sent to DCA they won't charge interest, but if I want to keep a good relationship with my bank I can.

So question is, should I sign?

Hi Midget

I'd follow CCCS's advice here to be honest. It should be lumped in with your DMP and not treated as a separate debt. The bank seem to be contradicting themselves as you say they have accepted the DMP payment offer, but now want you to change it to a fixed loan agreement? And don't forget that taking out a new debt (as it would be) on a DMP is against the rules.

If it's £500 over 12 months, I'm guessing that's £41.66 payment each month? If it's anything over that, they're charging extra interest, not freezing it.

First Direct is owed by HSBC and this is one of their tactics. Sounds very much like a managed loan to me which receive very bad press on this site as they make you pay ££££s in interest. I'd avoid at all costs tbh.

Also just to add, you say you want to keep a good relationship with you bank, but presumably if you're on a DMP you will have opened a basic bank account with another bank that you don't owe any money to so you are in full control of your money. Otherwise they are allowed to take the money owed from your account anyway, known as offsetting. If you don't have a separate account, open one straight away.

I hope this makes sense.
DG

midget123

DevonGirl wrote: »

Hi Midget

I'd follow CCCS's advice here to be honest. It should be lumped in with your DMP and not treated as a separate debt. The bank seem to be contradicting themselves as you say they have accepted the DMP payment offer, but now want you to change it to a fixed loan agreement? And don't forget that taking out a new debt (as it would be) on a DMP is against the rules.

If it's £500 over 12 months, I'm guessing that's £41.66 payment each month? If it's anything over that, they're charging extra interest, not freezing it.

First Direct is owed by HSBC and this is one of their tactics. Sounds very much like a managed loan to me which receive very bad press on this site as they make you pay ££££s in interest. I'd avoid at all costs tbh.

Also just to add, you say you want to keep a good relationship with you bank, but presumably if you're on a DMP you will have opened a basic bank account with another bank that you don't owe any money to so you are in full control of your money. Otherwise they are allowed to take the money owed from your account anyway, known as offsetting. If you don't have a separate account, open one straight away.

I hope this makes sense.
DG

DG,

That makes perfect sense, just needed some reassurance. You are quite right it would be transferring the debt to a loan. I will tell them that I cannot except.

Many thanks.
Midget

2spicy

midget123 wrote: »

I have a debt on an £500 overdraft with first direct. They have accepted my offer of payment with the DMP. I have received today a fixed loan agreement for 12 months, for me to sign, at the end of which I would have to pay the balance or make another offer of payment. The current interest is 1.5%(APR) but is dependant on the bank Base Rate.

I have phone CCCS they said that don't normally advise as if it gets sent to DCA they won't charge interest, but if I want to keep a good relationship with my bank I can.

So question is, should I sign?

Personally .... No !

Growurown

Hello fellow DMPers. Catching up again on what's been happening on the forum and noted there are quite a few of us starting our DMP's this month. Some creditors have accepted our DMP and some haven't and I have received shed loads of default notices but the telephone has been eerily quiet.

Anyhow if you are contemplating a DMP and are feeling sick to your stomach with worry then all I can say is GO FOR IT! The relief is tremendous in spite of the letters etc. and for the first time in months I have enough money to not worry every time I need petrol for the car or need to go food shopping. I don't know yet if my debt is going up because of charges etc., I suspect it probably will but I really don't care because I feel like I have got my life back to some semblance of normality. Plus the DMP means no more credit - Hooray, three cheers because getting out of debt by taking on more debt never works and it has taken a long time to learn that one I can tell you.

Thanks all you lovely people - this forum has been a real life saver.