DMP & Mutual Support Thread - Part 9

Growurown

snowbean wrote: »

Hello I'm hoping this might be the right place to ask for some advice? It's come to the point where my husband and myself are seriously considering a dmp. We're really struggling, and I think it might be the way forward for us, but I just don't know what to do for the best. My head is just going round and round and I have about a million questions... one being, we have a house (paying mortgage) and I'm wondering how a dmp would affect that? We're currently on a tracker deal which ends in August. If we were in a dmp by then, would we be able to get another fixed deal of any kind, or would we just have to stick with the standard interest rate which it will switch to after the original deal finishes?

Hi snowbean, welcome to the DMP mutual support thread. I would recommend going onto StepChanges website and completing their debt remedy first if you haven't already done it. It will give you an idea of whether a DMP is suitable for you. If you decide on a DMP go with one of the free providers such as StepChange or Payplan. A DMP will wreck your credit rating but I have no idea how this could affect your mortgage. Hopefully someone else will be able to help with that.

The start of a DMP is a very stressful and scary business, but it was the best thing we ever did and I don't regret it all. If you decide on a DMP then you will find lots of help and advice on this thread.

Mossop01

snowbean wrote: »

Hello I'm hoping this might be the right place to ask for some advice? It's come to the point where my husband and myself are seriously considering a dmp. We're really struggling, and I think it might be the way forward for us, but I just don't know what to do for the best. My head is just going round and round and I have about a million questions... one being, we have a house (paying mortgage) and I'm wondering how a dmp would affect that? We're currently on a tracker deal which ends in August. If we were in a dmp by then, would we be able to get another fixed deal of any kind, or would we just have to stick with the standard interest rate which it will switch to after the original deal finishes?

Hiya and welcome,
It can be a very scary time but once u have done ur research and found the right solution for you the relief will be immense.
As for the dmp and mortgage situation, it does wreck ur credit score so getting another fixed rate may be tricky, we are on a dmp and have been advised that when our fixed rate comes to an end we will have to just slide onto the standard variable rate, for us this isnt too much if an issue as our fixed rate is way above this due to the debts we had when we took out the fixed rate, so we should be better off not worse, but worth checking this out if ur worried.
This forum is great for advice, i read through it page for page making sure i understand the problems people face and mainly how to tackle them.
If a dmp is right for you then the support on here is fantastic and has helped me loads as i was very anxious and didnt really know what to expect, but finally i am sleeping again and i NEVER want credit again!!
Good luck no problem is unsolvable x

sillymeme

Hi,
I'm in the process of sorting out a DMP with step change. Just started....but trying to sort out a bank account seperate from any debt.
I was looking earlier in the week and at one point applied to santander. I got a message about being unable to give me an answer etc and id hear later. I then went onto looking at basic accounts to decide whats best but havent opened one yet (Was planning to go to barclays on tuesday).
Anyway, while getting bogged down on what bank is linked to which, I ruled santander out for some other reason anyway.
Ive come home today and they have opened a current account (without overdraft) and so I was looking into it again and I'm now not sure why I ruled out banking there.
I have debts with halifax, nationwide, capital one and mbna. Can anyone reassure me that this should be fine? I cant find anything to the suggest not, but something made me come to that conclusion a few days ago!
Reading this thread is so helpful - its so reassuring to see people well into plans - or finishing!

ANewLeaf

Hi there silly meme, you should be fine with Santander they are not linked to your creditors.

I'm currently having issues with Aqua credit card, anyone else had problems with them? I wrote them the normal step change template letter and included a section saying no contact by phone, however kept calling about my husband's card. We eventually spoke to them, paid a token fiver, and they said the dmp was rejected due to spending on the account in Feb, and to get the dmp reissued to them on the 9th May. That was a week ago and they have started calling loads all day again, even though we have sent another letter last week saying communication in writing only again.

My husband works shifts so is never in which they have been told, all they are doing is harrassing me and my son. I wrote a letter today complaining that we have kept in contact and made them aware of the situation, made an offer of payment, and asked them twice not to call in writing but they continue to do so. Any advice on my next steps? We don't get paid till next week so can't pay anymore.

This is all over a late payment of £50!

Hopelessly_Hopeful

snowbean wrote: »

Hello I'm hoping this might be the right place to ask for some advice? It's come to the point where my husband and myself are seriously considering a dmp. We're really struggling, and I think it might be the way forward for us, but I just don't know what to do for the best. My head is just going round and round and I have about a million questions... one being, we have a house (paying mortgage) and I'm wondering how a dmp would affect that? We're currently on a tracker deal which ends in August. If we were in a dmp by then, would we be able to get another fixed deal of any kind, or would we just have to stick with the standard interest rate which it will switch to after the original deal finishes?

Hi and welcome

Some people are fortunate to get their current lender to give them another deal but outside of that it is unlikely.

Looking at the whole situation together what is the alternative? In reality if you are looking at DMP your credit rating is well on the way down already. Lots of people come to the thread and say but I haven't missed any payments, infact most of us hadn't we just woke up to the LBM to realise it was only going one way and chose to act to change the direction and build a future.

The other thing to consider about the DMP decision is that it works on the principle of 'reasonable' and 'essential' living costs first. So; mortgage is a priority debt so that is an allowable allowance and then what's left goes to the creditors.

Don't worry about the million questions just fire away, people can usually help.

Good luck with your decision

HHx

Ellieseleven

Hello everyone,

Just dropping by with an update and to see how everyone is bobbing along. This is a massive month for me as we've now dipped under the 30k mark and we're still here to tell the tale!

We've now paid off over 15k in just under 3 years and that time has flown by. We've had our ups and downs but seeing that debt reduce is the thing that motivates me the most, knowing that I can look forward to a debt free retirement in a few years time.

My biggest headache recently has been the amount of time that I've been working away and the expenses that I've racked up. I do try to have a float so that I can cover expenses but in April it has been every week so I have had to go to bank of m&d:o

Our fixed rate mortgage is also coming to an end soon, Snowbeam and we will move onto the std variable rate but for us this won't cause any problems at the moment as our fixed rate is way over the standard.

Another of our accounts has been sold onto Arrow Global Management - not had much info so far just been told that it will move over on 7th May - I look on this happening as a positive as some of our payments are now getting close to minimum and I always worry that interest and charges will start being applied again which will totally upset my plans!

Good Luck to all of you starting out on your DMP journey, the road may be bumpy and a bit of a rollercoaster at times but the alternative route is far more scary:eek:

Take care

Ellie xx

Hopelessly_Hopeful

Ellieseleven wrote: »

Hello everyone,

Just dropping by with an update and to see how everyone is bobbing along. This is a massive month for me as we've now dipped under the 30k mark and we're still here to tell the tale!

We've now paid off over 15k in just under 3 years and that time has flown by. We've had our ups and downs but seeing that debt reduce is the thing that motivates me the most, knowing that I can look forward to a debt free retirement in a few years time.

My biggest headache recently has been the amount of time that I've been working away and the expenses that I've racked up. I do try to have a float so that I can cover expenses but in April it has been every week so I have had to go to bank of m&d:o

Our fixed rate mortgage is also coming to an end soon, Snowbeam and we will move onto the std variable rate but for us this won't cause any problems at the moment as our fixed rate is way over the standard.

Another of our accounts has been sold onto Arrow Global Management - not had much info so far just been told that it will move over on 7th May - I look on this happening as a positive as some of our payments are now getting close to minimum and I always worry that interest and charges will start being applied again which will totally upset my plans!

Good Luck to all of you starting out on your DMP journey, the road may be bumpy and a bit of a rollercoaster at times but the alternative route is far more scary:eek:

Take care

Ellie xx

Under 30k and more than a third paid off. :T:T:T Great news Ellie. Are you celebrating?

HHx

Ellieseleven

Hopelessly_Hopeful wrote: »

Under 30k and more than a third paid off. :T:T:T Great news Ellie. Are you celebrating?

HHx

Yes, I'm celebrating by re-doing my spreadsheet and plotting the next milestone:rotfl:I've also plucked up the courage to get my Noddle report:eek: I've always avoided looking at this but I don't know what I was afraid of:o My credit score is 1/5 but at least my mortgage is up to date! 5 out of 6 of my creditors have defaulted me which is great news - off now to look at OH's

The defaults went on in early 2011 so if I understand this correctly they will drop off my file six years later which coincides with my DFD

antonic

Thats right Ellie,

and congratulations on paying of a third of your debt, I know how good that feels !.

Julie67

Morning all,

Welcome to all the newbies:wave: you've definitely come to the right place for help.
Well done Ellieseleven, that's such a fantastic achievement.
We've made payment number three, just. It's been an horrendous month money wise, with dh have very little work, he is self employed, and I'm currently not working. I'm hoping that's going to change soon. I've been offered a job through an agency but not due to start for another month, but in the mean time I have seen a couple more jobs which would be even better so am in the process of applying. Everything is on hold until after the bank holiday but am hopeful I will be in work soon.
Last week, I did ok on eBay and also collected every coin I could find in the house and took it to the bank, they were very pleased as you can imagine.:D
Also sold some bits and bobs of jewellery I had lying about, mainly broken so weighed them in.
I am longing for us to settle into the DMP so that we are sticking to a budget, paying x amount into the bank each week. It's not that we are overspending, far from it, it's that our income has dropped.
There is no wriggle room at all. We are paying minimum payments to the creditors to begin with and everything else is priority bills plus paying arrears off to the mortgage company, which will be cleared by August
Nothing else to do except keep pushing forward. All the creditors are currently quiet, no response from Asda credit card asking them to get rid of the interest completely, I suppose as long as we keep making the promised payments through SC we won't do.
But I hate this feeling of not getting anywhere, debt free day is so far away I will probably be dead and buried:eek:
This should reduce to around 7 years when I get a job which I can live with, sorry for the waffle just needed to get everything down on paper this morning.
The good news is dh is working today and will hope to work the bank holiday if anything comes in. As Mossop says onwards and upwards