DMP & Mutual Support Thread - Part 8

2spicy

Go fo rthe default as soon as you can. get it recorded and running asap.

2spicy

Well, new Job this month means an increase of almost £15,000 into the Spicy household.



Sadly, Mrs Spicy has been on reduced hours and is being made redundant next month and the Government now tell us that as im a "High Earner", we will loose our family allowance in January ... ho hum .. was nice while it lasted !

stupid-fool

iwilldoitthistime wrote: »

Im having problems with Ll*yds too - Ive been on my DMP for over six months for a loan, CC and OD and they have now said they can give me another six months then default the OD, or go straight to default. They said if we put it off for six months, they can then start charging interest again. problem is my CC is (apparently) already going to default (although they havent actually told me this before) so whats the point in not defaulting them all??

I keep thinking this is all sorted and we can get on with our lives, but they keep dragging it back up again and again, and its really getting me down!

Its amazing how different each case is - we have just started our DMP, not yet missed a minimum payment, yet Lloyds immediately defaulted our CCs with £0 arrears payable immediately.

I am seeing this as positive that the default happened sooner rather than later, but all I really care about is that they stop interest and charges whilst allowing me to repay without court action.

stupid-fool

2spicy wrote: »

and the Government now tell us that as im a "High Earner", we will loose our family allowance in January ... ho hum .. was nice while it lasted !

Yes, we've had that letter too - and whilst I recognise that we do have a high income, we're also in financial difficulty (self inflicted in my case but also resulting from the greed of the lending institutions) so removing the benefit will only make matters worse - how is that good for my kids to be facing university in a household with no disposable income?

debtdawg

2spicy wrote: »

Well, new Job this month means an increase of almost £15,000 into the Spicy household.



Sadly, Mrs Spicy has been on reduced hours and is being made redundant next month and the Government now tell us that as im a "High Earner", we will loose our family allowance in January ... ho hum .. was nice while it lasted !

Great news on the job front though Spicy!

carlyfluck

morning everyone hope your all well, im ill boohoo darn flu jab!!!

anywho,

once the dmp is all running, what happens next?? we will ob default on things mainly our lloyds loan and credit card, but will it come to baliffs? court action or is it because we are on dmp they will be more leanaent?

sorry about spelling i have a 2 year old climbing over me lol cxx

stupid-fool

carlyfluck wrote: »

morning everyone hope your all well, im ill boohoo darn flu jab!!!

anywho,

once the dmp is all running, what happens next?? we will ob default on things mainly our lloyds loan and credit card, but will it come to baliffs? court action or is it because we are on dmp they will be more leanaent?

sorry about spelling i have a 2 year old climbing over me lol cxx

Hi Carlyfluck

We have only just setup our DMP so I can only tell you what I am expecting rather than actually what has happened, but from the reading I have done so far.....

It is totally the decision of each lender how they deal with you not making your minimum contracted payments, but MOST will be reasonable.

If you start the DMP through a registered debt management charity the lenders will generally see this as a good thing and be inclined to trust their assessment of your situation.

Once you start to fall behind with your payments you will start to receive the standard communications which protect the lender in the event that you stop paying, but generally if your DMP arrangement has been accepted they will allow you make your monthly payments and some will reduce or freeze further interest charges. You may still get phone calls etc asking for payment but they should not harass you and you can simply ask them to contact the DMP provider for further information. You can also try to give them the information they need. It is OK to give accurate information to the lender, and tell them that you are in financial difficultly and have worked out how much you can afford to repay to your debts each month with the DMP charity which they are then distributing fairly on your behalf. Some companies might be calling to try to get higher repayments, but you must NEVER make any agreement regarding repayment amounts directly with the lender - let the DMP provider do this.

If you keep up your payments as agreed the lenders may ask for additional information about your circumstances, issue official notices such as defaults, even pass your debt to a 3rd party collection company, but you are unlikely to get any formal court action as the DMP is based on the same ability to pay calculation as the courts would use so there is no benefit if you are paying as agreed.

Baliffs can only be sent by the courts - don't invite anyone into your property who calls trying collect. But this is not common anyway.

I'm sure some of the more experienced regulars will be along to correct any of my misunderstandings.

Once your DMP has been running a while you should check your statements and start contacting any lenders that haven't stopped interest. You can get plenty of help on the forums about how to do this. The less interest you pay, the quicker you will be debt free.

carlyfluck

thankyou so much for that post, it has cleared alot of things up that i had ratterling around in my noggen.

im looking forward to this journey and althou atm our dfd is 2020!!! im sure once we are settled we can bring that down as we will be able to make a higher payment to the dmp.

sickasachip13

Hi,
Our experience (two years in):

Most debts defaulted within the first six months.
Most stayed with original creditors for several months
Some went to creditors internal DCA (for example, Bank of Scotland's internal DCA is Blair, Oliver, Scott)
Majority of creditors fine to deal with, some surprisingly pleasant and helpful
All our DCAs have been fine too, a couple of incompetent issues, but nothing nasty
Phone calls really weren't too bad, Barclaycard were probably our most persisent / irritating
All phone calls seemed to stop very quickly, certainly once the first payment thro CCCS was received
I think, from memory, only two of our 19 debts have been sold on to external DCAs. These have been fine too.
17 of our 19 creditors stopped %. Two charged nominal % only.
We've had no threats of CCJs or anyone turning up, not even any unpleasant phone calls.

I believe that most creditors, when they see you're trying to do the right thing and working with someone like CCCS (StepChange) do play ball - they might grumble a bit and be awkward but they can't have what you haven't got!

Try not to worry
SAAC

PS. Look in my sig to see what our DFD was originally, just being able to up payments, and having done a couple of small F&Fs, two years payments and we've knocked it right down :-)

Michelin

I think I am nearly convinced that a DMP is the way forward for me but I have a couple of questions that someone may be able to answer.

Obviously, I understand that you will get a default for the debts you have if you no longer pay the mimimum payment under a DMP, but what are the other disadvantages to this? I guess it affects your credit record pretty adversely - anything else?

Also, do I understand rightly that you need to se up a new bank account? Isn't this difficult if you have a bad credit record?