DMP & Mutual Support Thread - Part 8

DebtDonkey

Hopelessly_Hopeful wrote: »

Hi and welcome

Tricky one this one isn't it. Can appreciate the stress it must be causing.

Have you told your guarantor about the situation?

What did the DMP advisor suggest?

If your friend insists on paying it then there's nothing you can do about it is there? If they insist for example to pay to Amigo and not to you etc, that may work.

Do you know the status of the account, it may already be damaged.

Good luck with it. Let us know how you get on.

HHX

I maybe explained it badly.

My guarantor doesn't know my situation, as I promised him when he originally agreed it wouldn't be a problem to him.

I know for a fact he will have a good credit rating, due to his business and the fact that he was accepted as a guarantor in the first place.

The bit I wrote about my 'friend' was my question that if someone else pays the debt (not my guarantor) would the debt still be logged as paid in my name.

Additional question:

Should I speak to Amigo Loans, maybe they may not be bothered as long as they are getting their money, do they have to mark the payment on the credit file, if not no one would know?

Alternatively, could they contact my other creditors and advise them, I don't see the benefit to them if they did though. Would they be able to see my credit references through my credit file?

Sorry for the additional questions, once this hurdle is cleared I think I will be able to move forward and start clearing my debt.

Thanks for reading

DebtDonkey

Hopelessly_Hopeful

DebtDonkey wrote: »

I maybe explained it badly.

My guarantor doesn't know my situation, as I promised him when he originally agreed it wouldn't be a problem to him.

I know for a fact he will have a good credit rating, due to his business and the fact that he was accepted as a guarantor in the first place.

The bit I wrote about my 'friend' was my question that if someone else pays the debt (not my guarantor) would the debt still be logged as paid in my name.

Additional question:

Should I speak to Amigo Loans, maybe they may not be bothered as long as they are getting their money, do they have to mark the payment on the credit file, if not no one would know?

Alternatively, could they contact my other creditors and advise them, I don't see the benefit to them if they did though. Would they be able to see my credit references through my credit file?

Sorry for the additional questions, once this hurdle is cleared I think I will be able to move forward and start clearing my debt.

Thanks for reading

DebtDonkey

Hi

I was trying to be 'subtle' - Creditors read the thread!!!

I think you can forget about favours they will mark the situation on the file. It's not that they contact the others its that the others will see the credit file.

I think you need to speak to the guarantor ASAP. I know that will be a difficult conversation but it is urgent as may affect them significantly. Have you missed any payments to it yet?

HHx

Time_to_face_the_music

DebtDonkey wrote: »

I have a quick question I would like to ask before I come back in more detail later.

I am currently in the process of setting up a DMP with PayPlan, first payment should go through 17th February.

I do have 1 major concern and would appreciate anyone's advice.

I managed to amend my available funds on my DMP to include a payment for Amigo Loans, a loan that I have with a Guarantor, but it had to be included in the DMP.

I really do not want to have to default on this so that the guarantor is liable to make this payment, as I don't want his credit file to be damaged (although it probably has anyway). I should however have the funds available for the payment. options,

1) Make the payment through my new bank account?
Q - I assume Amigo would mark the payment as being made and therefore all the other creditors would be up in arms?

2) If I were to ask another friend to set up a standing order to Amigo and I send him the money the day before?
Q - I assume Amigo would mark the payment as being made (still under my name, despite my friend paying, and therefore all the other creditors would be up in arms?

Can anyone advise what the options are for me in this case please.

Thanks in advance.
DebtDonkey

Hi DebtDonkey and welcome :hello:

When you say "I managed to amend my available funds on my DMP to include a payment for Amigo Loans, a loan that I have with a Guarantor, but it had to be included in the DMP."

Do you mean this debt is in your DMP? If so, is it being paid as only a proportion of the amount due each month?

Or do you mean you are going to include it in your DMP and pay the difference with money you have saved in your budget?

antonic

Hi Debtdonkey and welcome aboard !

This is the link to the Amigo Loans website

http://www.amigoloans.co.uk/ and I refer you to this :

What about when things go wrong?

We collect late payments in the same way as any high street lender would. If a loan falls into arrears we will phone, email and text a reminder. Our priority is to stop a late payment snowballing into a bigger problem. Obviously, because our loans are supported by a guarantor, if a borrower doesn't repay then the guarantor has to. In a few very rare cases, where we can't come to an arrangement for repayment with either borrower or guarantor, as a last resort we will either pass a debt onto a professional debt collector or ask a court to decide the best way to deal with it. Whatever happens we will NEVER put your home or other property at risk. We've made 10 promises on how we'll deal with arrears.



I have a horrible feeling that as soon as you default (because your going into a DMP), that they will ask the guarantor to clear the debt.


You are now in a catch 22 situation , in that to enter the DMP with Payplan you have to include EVERYTHING (including the Amigo Loan) and as soon as you do you default.


Is the guarantor a good friend who would be willing to pay the loan off for you and let you repay it when you get debt free ? or will they get upset when you tell them of this situation ?


You need to remember that if you default and they cant pay it off for you, then their credit rating will take a hit as well as yours.


Please come back if you need any more help.

freedomfromdebt_2

Hello again,

It's a while since I have posted. In a nutshell I am on a DMP since 2009 which will hopefully be complete by July 2015. All creditors froze interest and charges except Halifax who have been a nightmare. In the beginning they reduced interest to 12% and then a year ago put it up to 23.9%. Have requested numerous times since start of DMP that they either freeze charges or transfer debt and they have consistently refused to do either. A year ago I made a formal complaint to Halifax and as a result they refunded interest charged to date and froze charges for a year
We are now in a situation where because our debt is reducing our monthly payment to them is more than there minimum requested payment and therefore they consider that we are not in financial difficulty!! We pay £219 a month and they are charging £135 in interest meaning it will now take us at least 7.5 years to repay. We currently owe approx £7k to them.
I have complained to them again but to say they have been unhelpful is an understatement. I quoted lending code etc but they refuse to budge on 23.9% interest.
Any advice would be greatly appreciated as the light at the end of the tunnel (2015) is currently out!!!!
Many Thanks,

Time_to_face_the_music

freedomfromdebt wrote: »

Hello again,

It's a while since I have posted. In a nutshell I am on a DMP since 2009 which will hopefully be complete by July 2015. All creditors froze interest and charges except Halifax who have been a nightmare. In the beginning they reduced interest to 12% and then a year ago put it up to 23.9%. Have requested numerous times since start of DMP that they either freeze charges or transfer debt and they have consistently refused to do either. A year ago I made a formal complaint to Halifax and as a result they refunded interest charged to date and froze charges for a year
We are now in a situation where because our debt is reducing our monthly payment to them is more than there minimum requested payment and therefore they consider that we are not in financial difficulty!! We pay £219 a month and they are charging £135 in interest meaning it will now take us at least 7.5 years to repay. We currently owe approx £7k to them.
I have complained to them again but to say they have been unhelpful is an understatement. I quoted lending code etc but they refuse to budge on 23.9% interest.
Any advice would be greatly appreciated as the light at the end of the tunnel (2015) is currently out!!!!
Many Thanks,

Lloyds TSB have recently done the same to us but the interest is actually more than the minimum payment so the debt will never reduce :mad:

Have you complained to the FOS about Halifax?

If you haven't already, it's got to be worth a go. It will cost you nothing and you could have a lot to gain.

http://www.financial-ombudsman.org.u...complaints.htm

Hopelessly_Hopeful

freedomfromdebt wrote: »

Hello again,

It's a while since I have posted. In a nutshell I am on a DMP since 2009 which will hopefully be complete by July 2015. All creditors froze interest and charges except Halifax who have been a nightmare. In the beginning they reduced interest to 12% and then a year ago put it up to 23.9%. Have requested numerous times since start of DMP that they either freeze charges or transfer debt and they have consistently refused to do either. A year ago I made a formal complaint to Halifax and as a result they refunded interest charged to date and froze charges for a year
We are now in a situation where because our debt is reducing our monthly payment to them is more than there minimum requested payment and therefore they consider that we are not in financial difficulty!! We pay £219 a month and they are charging £135 in interest meaning it will now take us at least 7.5 years to repay. We currently owe approx £7k to them.
I have complained to them again but to say they have been unhelpful is an understatement. I quoted lending code etc but they refuse to budge on 23.9% interest.
Any advice would be greatly appreciated as the light at the end of the tunnel (2015) is currently out!!!!
Many Thanks,

Really sorry to hear this. I agree with TTFTM, go for it!

Let is know how you get on

HHx

Alice_in_Welfareland

Hopelessly_Hopeful wrote: »

Hi Alice, were you self managed from the start or did you go self managed later?

HHx

Two and a half years with CCCS then a struggle to go it alone. Up and running for two months on my own all though I am still getting an ear ache from one creditor who only seems to like Stepchange and not me

bertman

We had a letter today from HMRC saying we owed some money, I rang them and its a debt from 2008 which they say we hadn't settled for PAYE which has being accruing interest at a rate of 12p a day for the last 3 years.
They said they won't deal with SC an want us to make an offer. I said £40 a month but they want £145 instead - no way can we afford this...... We have saved £40 a month by changing our power supplier so this was a cushion. I am unsure where to go on this, I know some other posters also had businesses so any help would be appreciated.

Hopelessly_Hopeful

bertman wrote: »

We had a letter today from HMRC saying we owed some money, I rang them and its a debt from 2008 which they say we hadn't settled for PAYE which has being accruing interest at a rate of 12p a day for the last 3 years.
They said they won't deal with SC an want us to make an offer. I said £40 a month but they want £145 instead - no way can we afford this...... We have saved £40 a month by changing our power supplier so this was a cushion. I am unsure where to go on this, I know some other posters also had businesses so any help would be appreciated.

Ohhh that's a nuisance for you. As I understand it tax is considered a priority debt so DMPs have to take it into consideration. I think it's as simple as the DMP gets reduced by £145. I know that will mean longer takent o pay the debt back but also more likely for creditors to stop interest too.

I hope it works out for you

HHx