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DMP & Mutual Support Thread - Part 8
Comments
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Time_to_face_the_music wrote: »I never call creditors and would never advise doing so. It's generally a waste of money and effort and very frustrating and stressful :mad:
Did StepChange suggest making token payments? When we sent off our initial CCCS letters, we made a token payment of £1 to each creditor and it seemed to keep them at bay until the CCCS payment arrived.
I have to admit I was suprised by how nice some of them were - but not all, it's true a few were horrible and just kept calling. I called because I was getting about 30 calls a day and it was driving me mad!
But you can just ignore them - it won't make any difference in the outcome0 -
We have just agreed to a DMP with StepChange and are really looking forward to it. It's been on the cards for years but ive always hit hurdles but now determined to see it through.
One reason is we want to totally rebuild our credit scores and hopefully be in a position to buy a home when it's all done and dusted. My credit score has 6 good clean accounts and as I plan to cease payments on a some loans these are going to slowly slip into the black and default.
My question is, how much does a DMP affect your credit score as you progress and start to actually clear the debt? I suspect it gets worse before it gets better, not that we want any credit. I'm just wondering what the scenario could look like in 3yrs when we're debt free and still have good clean accounts and all the defaulted accounts are settled.
What's life like on the other side when you've paid it all off? We're being inspired by some of the DMP stories so we're seeing it through to the end.LBM - :beer:
DFW - January 2010 = £22,950
DFD - July 2017 = £0
Proud To Have Dealt With My Debts :cool:
Don't give up...it's a long journey!0 -
CommitedToChange wrote: »I have to admit I was suprised by how nice some of them were - but not all, it's true a few were horrible and just kept calling. I called because I was getting about 30 calls a day and it was driving me mad!
But you can just ignore them - it won't make any difference in the outcome
In the end, I resorted to pretending to be an answering machine:
"Hello. We are on a DMP with CCCS. Our reference number is XXXXXXX. Please contact CCCS. Good bye"
It workedLBM 10/1/12 ~ DFW Start 6/2/12: £82,344 ~ Now Zero:staradmin:starmod::staradmin Debt free 17th April 2015 :staradmin:starmod::staradmin
Eternal thanks to the DMP & Mutual Support (no.439) and Payment a Day ThreadsMortgage free 3rd July 2014 - Grateful thanks to the 2013/14 MFW threads"Debt is normal. Be weird!" Dave RamseyProud to have dealt with our debt0 -
Time_to_face_the_music wrote: »In the end, I resorted to pretending to be an answering machine:
"Hello. We are on a DMP with CCCS. Our reference number is XXXXXXX. Please contact CCCS. Good bye"
It worked
Wish I'd thought of that! :T0 -
Debt_Slayer wrote: »We have just agreed to a DMP with StepChange and are really looking forward to it. It's been on the cards for years but ive always hit hurdles but now determined to see it through.
One reason is we want to totally rebuild our credit scores and hopefully be in a position to buy a home when it's all done and dusted. My credit score has 6 good clean accounts and as I plan to cease payments on a some loans these are going to slowly slip into the black and default.
My question is, how much does a DMP affect your credit score as you progress and start to actually clear the debt? I suspect it gets worse before it gets better, not that we want any credit. I'm just wondering what the scenario could look like in 3yrs when we're debt free and still have good clean accounts and all the defaulted accounts are settled.
What's life like on the other side when you've paid it all off? We're being inspired by some of the DMP stories so we're seeing it through to the end.
I may be wrong but I'm sure all the defaults will stay visable on your credit history for 6 years - so while you may pay off the debt in 3 your credit file won't look great for at least another 3 years.
I may be wrong though - anyone else?0 -
CommitedToChange wrote: »I may be wrong but I'm sure all the defaults will stay visable on your credit history for 6 years - so while you may pay off the debt in 3 your credit file won't look great for at least another 3 years.
I may be wrong though - anyone else?
I thought that too. Defaulted accounts will come off in 2014. But I thought you could amend on a settled account by adding text detail.
As I said we're not wanting to run out and try getting a mortgage when the last payment is made, but just wondering what has been the experience for others in that situation. There must be people on here who have gone the full term on a DMP and are debt freeLBM - :beer:
DFW - January 2010 = £22,950
DFD - July 2017 = £0
Proud To Have Dealt With My Debts :cool:
Don't give up...it's a long journey!0 -
Morning
Defaults on file for six years from when they are issued, that's covered by law. Problem one is that creditors may issue defaults at different times, one credit card may give you one this year, the next in 2 years time so that would mean 8 years (6+2) until it falls off the file. Problem 2 is that they are not obliged to default you, so what's worse is when they mark your file in arrears or arrangement to pay (AP) as the six years does not start ticking until it comes of your file which could be at the end of your DMP. So credit record could be marred for your DMP plus 6 years. Thats not saying you wont get a mortgage just that you certainly wont get the best deals to be had. Furthermore, all not lost too as you can be saving for the bigger deposit, and if you have a play with the mortgage calculator and see overpayments etc on here you will soon see this will shave years off your mortgage so you could still be mortgage free in the same time as if you were to take one out now so please consider the positive side too
Hope that helps
HHx0 -
Hi All, Was not to sure where to post this but i have just spoken to RMA Resolve who are sorting our American express we have come to an agreement for a F&F on this account at about 45% which is a fair result but they also said they would only place a "settled" marker on my credit file and not "satisifed" they also commented this "settled" marker will stay on my credit file until 2019 but the account would be closed? This is defaulted which the default drops off in July 2013 will all the other info i have mentioned above also disappear?? Sorry but this is confusing me now! Many Thanks Stuh0
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Hi All, Was not to sure where to post this but i have just spoken to RMA Resolve who are sorting our American express we have come to an agreement for a F&F on this account at about 45% which is a fair result but they also said they would only place a "settled" marker on my credit file and not "satisifed" they also commented this "settled" marker will stay on my credit file until 2019 but the account would be closed? This is defaulted which the default drops off in July 2013 will all the other info i have mentioned above also disappear?? Sorry but this is confusing me now! Many Thanks Stuh
If you've only just settled, then as far as I'm aware this counts as a black mark for 6 years against that account, starting from the date you settled. Regardless of if the account is still open or closed, it'll still stay on your file.DMP mutual support thread No: 2430 -
Hi all,
I have, as many others been using this site, and particularly the forum regarding DMP over the last week or 2 as a 'lurker' (although there is probably a nicer sounding name!)
Anyway after years of 'getting by' I have finally decided to do something about it, rather than keeping finding credit and not really moving my debt done it is clear I need to do something different. DMP it is! I already have 2 defaults from credit cards on my file and to be honest would rather get my debt paid off and all the associated worry than think about the effect it has on my credit rating.
So, after much investigating I plumped for Step Change and have just sent off my documents (along with about 7 questions for them) Have transferred my pay to go into a new bank account. It does feel like the calm before the storm at the moment. Will send a letter off now to my creditors informing them I am going onto a dmp.
My major worry is that I will be contacted my phone at work, I think one or two of my creditors have that number! Does anyone have any advice on how to potentially stop this. After reading others experiences it is clear that once the early days have been got over then it does calm down.
Anyway, all in all quite theraputic really. Not sure how I really feel, pleased that I have done it, but would like to magic myself 3 months down the road when it is all sorted and settled into a routine!
Cheers!0
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