DMP & Mutual Support Thread - Part 9

dmb_2

Hopelessly_Hopeful wrote: »

Morning all

Sorry for the ones that are finding it especially tough at the mo.

Apologies in advance if I am teaching anyone to suck eggs but these are the things I would have benefitted from having spelt out earlier in the plan.

I think most of us are so relieved there may be a solution that we continue to overstretch ourselves and accept low level of allowances at the start of the DMP. DMPs need to be sustainable as most of us are on them for several years. Yes they are informal and you can change the budget when life events come along; however; this usually kicks off computerised madness and hassle, so best to make as few changes as possible for an easier ride.

Personally I think it better to max out your allowances as much as you can so you can squirrel away for emergencies and later to finish the plan earlier if possible.

Things are up and down generally with the creditors at the start so if anyone not feeling like the budget is doable then go back to SC/PP and renegotiate the allowances.

Any creditor still charging interest at month three I would hound and report to FOS in cases of inaction.

Always keep some emergency foods in the freezer and cupboards and a list of cheap meals for when you need that last half of the month to stretch out.

Plan your budget for at least three months in advance, plot in life events such as birthdays, insurance renewals. Less chance of being caught unawares then.

Never rely on PP/SC statements, keep your own records. Likewise same with the bank balance. I know where I am to the penny on any given day now.

Checking in online keeps me going no end. Tips from OS board. Looking back at what I had already achieved since LBM and also planning what life will look like post DMP is very motivational. If I am fretting I try to channel the energy, cleaning, sorting, planning budgets. Good to be specific about concerns then people can often offer a different approach you may not have considered. In any case it's good to get support when it is tough and to contribute by supporting others whether that be emotionally or practically.

Hope that helps.

HHx

Thanks HH
This should be compulsory reading for newbies to DMPs. I fell into all the traps mentioned above.
Really struggled with monthly payments as did not go for max allowances thinking I could manage;
not checking 'real' balances against those quoted by Stepchange (and consequently havinng a bit of a shock 2 years on)
not having an emergency fund back up
not fighting against a couple of creditors who did not completely freeze interest.

Anyway thanks to the support and encouragement ofHH, TTFTM, Alice in Welfareland and others here I have now gone completely self-managed. Feel much more confident and in control.

However, I have to say that in the beginning I could not have coped without Stepchange and I will be forever grateful to them and National Debtline (where I made my first ever call full of panic, anxiety and dread).

So to those starting out good luck - there is light at the end of the tunnel

antonic

Made my normal monthly payment this morning of £275.00 and an extra payment of £30.82 on Tuesday.

This means that I now have one payment of £275.00 due on 02/06/13 and I am then DF.

I cant wait !

dmb_2

wow what an amazing feeling. Congratulations and all the best for a debt free future:j

Suseka

antonic wrote: »

Made my normal monthly payment this morning of £275.00 and an extra payment of £30.82 on Tuesday.

This means that I now have one payment of £275.00 due on 02/06/13 and I am then DF.

I cant wait !

:T :j :T

Well done and here's your life in the debt free zone...

poohbear59

antonic wrote: »

Made my normal monthly payment this morning of £275.00 and an extra payment of £30.82 on Tuesday.

This means that I now have one payment of £275.00 due on 02/06/13 and I am then DF.

I cant wait !

Yay!!:j:j:j:jWell done.

You are helping me in my start on this journey to know it will end and we can/will be debt free.


I have a question so hope this is the correct place to ask. We have been advised by PP to open a new account to make our payments from. DH doesn't want to move from coop as they have been really understanding but we have debts with them. I think he also doesn't want the hassle of changing all our DDs etc. Is it possible to manage a DMP whilst staying with someone with whom you have debts? Does anyone have any experience of this?

Time_to_face_the_music

poohbear59 wrote: »

I have a question so hope this is the correct place to ask. We have been advised by PP to open a new account to make our payments from. DH doesn't want to move from coop as they have been really understanding but we have debts with them. I think he also doesn't want the hassle of changing all our DDs etc. Is it possible to manage a DMP whilst staying with someone with whom you have debts? Does anyone have any experience of this?

The golden rule is never bank where you have debts. I just wouldn't risk it, you stand the chance of offsetting.

The Co-op may be understanding now but you have no guarantee this will last. Please read this MSE article:

http://www.moneysavingexpert.com/banking/setting-off

Money_mayhem

Hi,

I'm hoping someone can help me on behalf of a friend.

My friend is going through a DMP and she banks with Halifax. She says she has asked Halifax to freeze the overdraft payments on her account but they keep adding the OD charges back on, meaning she gets no further clearing her overdraft. She's asked for my help in writing a letter of complaint to the bank but I'm not really sure of how to go about it. Doe's anyone know if there's a template letter for these kind of situations or does it have to go through the debt management company?

Thanks in advance,

Mm

Find_The_Real

poohbear59 wrote: »

I have a question so hope this is the correct place to ask. We have been advised by PP to open a new account to make our payments from. DH doesn't want to move from coop as they have been really understanding but we have debts with them. I think he also doesn't want the hassle of changing all our DDs etc. Is it possible to manage a DMP whilst staying with someone with whom you have debts? Does anyone have any experience of this?

Hi Poohbear

I was with the Co-op for over 20 years and like your DH there was this sense of loyalty as I have had everything but a mortgage with them at one stage, however SC said to move accounts and I am glad I did as 9 days after informing them I was entering a DMP they closed my current account without notice. I only found out when I couldn't log into the internet. Fortunately I had changed everything over to a new bank.

There is no loyalty from any bank so it is essential your open a basic account with a bank you do not have any debts with asap.

Over 3 months on I still haven't had any acknowledgement my account of over 20 years was closed.

Find_The_Real

Money_mayhem wrote: »

Hi,

I'm hoping someone can help me on behalf of a friend.

My friend is going through a DMP and she banks with Halifax. She says she has asked Halifax to freeze the overdraft payments on her account but they keep adding the OD charges back on, meaning she gets no further clearing her overdraft. She's asked for my help in writing a letter of complaint to the bank but I'm not really sure of how to go about it. Doe's anyone know if there's a template letter for these kind of situations or does it have to go through the debt management company?

Thanks in advance,

Mm

Hi Money

NDL have a load of template letters that can be adapted for use

http://www.nationaldebtline.co.uk/england_wales/review_pack.php?page=review_pack_for_people_with_available_income_to_make_payments_to_their_creditors#sl_r3

poohbear59

Thank you for your advice Find The Real and Time to face the Music.

I have to admit to being shocked about how the co-op treated you Finf The Real. We bank with them because they are an 'ethical' bank. What they did to you was not ethical!!

I will try to convince Mr P and in the meantime will open a basic account with a local bank. We have an HSBC near to us.