Finally admitting we have a debt problem

tiredmumof2

Gimpsdad wrote: »

Not a bad plan in reality, but I would still double check as to the equity, the only thing wrong with DMP's is that they carry no guarantees, and of course neither does life itself. If you are really confident that a larger payment is achievable and sustainable then I am inclined to agree that DMP to start with and then re-assess if it doesn't work is probably about right.

Hi Gimpsdad,

The house is new build- and we asked an estate agent to value it. We also checked Zoopla and Mouseprice and all 3 came back with £265k. I don't want to use the equity in the house as this would take us upto (nearly) 100% mortgage and we had to pay 20% deposit in the first instance to get the mortgage(rules applied to new houses, or so the bank told us).


DMP is the way for us at this moment in time.......at least I think it is!!!!

Gimpsdad

Fair enough, I tend to agree with you.

Good luck.

tiredmumof2

Few more questions folks:

So, spoke to CCSC and I asked what affect the DMP would have in my credit file. The lady I spoke to said some creditors may stateim in DMP whereas some may just list a partial payment.
Does this stay on my record for 6 years AFTER I make my final payment 2020 ha ha ha!!!)

also, in terms of success in creditors freezing/lowering interest can anyone pls tell me how successful they've been with the following pls?

HSBC OD
HSBC CC
LLYODS OD
LLYODS CC
NATWEST CC
BARCLAYCARD CC
AA FINANCE CC
CO-OP CC
ARGOS STORE CARD
NEXT DIRECTORY

thanks again peeps!

mogsi80

Argos I can help you with, they've not stopped the interest, but dropped it to 7% which is a definite improvement on the 30% I was paying.

Can't help with others I'm afraid x

trainergirl

Hi - I see from your posts that you've got a CC with The Co-op so if I was you I wouldn't opt for a bank account with them, as they can dip into your account to get payments for the CC (known as setting-off).

If you've spoken to CCCS then they should be sending you all the details of the DMP either by email or post. In the pack there'll be a list of all banks that offer a basic bank account that will allow DD's and debit card. Make sure you select one that you've got no existing ties with. It's a fresh start so to speak!

Growurown

HSBC are still charging me full interest on the CC. Not sure about the OD haven't had the courage to ask yet and no more statements or online access to be able to check. Reckon I need to go into the branch and ask.

Natwest stopped charges pretty quickly.

tiredmumof2

trainergirl wrote: »

Hi - I see from your posts that you've got a CC with The Co-op so if I was you I wouldn't opt for a bank account with them, as they can dip into your account to get payments for the CC (known as setting-off).

If you've spoken to CCCS then they should be sending you all the details of the DMP either by email or post. In the pack there'll be a list of all banks that offer a basic bank account that will allow DD's and debit card. Make sure you select one that you've got no existing ties with. It's a fresh start so to speak!

Hi tg,

Thanks for your response- yes we've limited ourselves with the options for a basic account as we seem to have debt with most of the high street banks! We've opted for Nationwide (we used to have our mortgage with them so they have all our details and 10 years of no missed payments!). The lady we spoke to was lovely - offered us a flex current account with OD facility la la la .... Both nearly bit her head off (poor woman) and said 'no, just a basic account for paying bills!'. All sorted now.

Just cried as I cut all our CC's and store cards up- tears of joy mind!
Feel like our lives have changed so much in the last 24. I know we still have to set up the DMP and get the creditors to agree but by admitting we have a problem in the first place- instead of leaving letters and statements unopened- has been a HUGE achievement for me and DH.

Thanks for all your responses and encouragement so far- no doubt I'll be a regular contributor on this forum over the coming months (and years!!!!)

Xxxx

trainergirl

Well done in cutting up your cards! I know it does feel strange like everything has changed.

I've just spent 2 hours filling out the paperwork for the DMP, and getting the letters ready to send to my creditors - they are ready to be posted in the morning, so that's it the wheels are in motion!

I'm only a week or two in front of you and it is scary but the alternative is worse! I'm just trying to focus on the future - a debt free one!! :T

tiredmumof2

So, bank account opened at Nationwide (no issues as we previously had our mortgage with them so they knew our details). All DD's and SO's being transferred over by them and I've sorted my wages to go into the new account. Spent the whole day sorting my DMP paperwork and my letters to the above creditors but feel such a relief as I finally feel like in getting a grip on my debrs and sorting our life out. Hubby looked at me today after we left Nationwide n says 'here's to the beginning of our new life' - and I have to agree!

So, in the 4 days since our LBM we've already saved £94 a month as we've cancelled our newspapers, fond cheaper life insurance and cancelled unnecessary items on our sky TV.

Of course Hubby and I are still anxious whether our creditors will accept our DMP from CCSC but that's the next hurdle.

Thanks for all your help so far - I'll keep you informed x

Hovel_lady

Really glad you're getting things sorted and well done on saving £94 a month (£1128 a year :T).
Look forward to hearing how you get on.