DMP & Mutual Support Thread - Part 9

Hunnies

Hopelessly_Hopeful wrote: »

Hi Hunnies

Most wont whilst on a DMP as you are meant to pay back debt first. Some will loan it to you but it depends on defaults and time passed, you are also unlikely to get an interest rate under 5% unless you can see the end of the DMP in the near future.

House being worth 115k doesn't mean that's what you will get but lets assume so. This will give you 18k equity. Buying and selling costs are likely to cost 4-6k including legal and stamp costs. This would leave you with 12-14k deposit which would still need a 90% mortgage which is a big ask with a poor credit record and still on a DMP. Potentially possible but at what cost? And they will factor in cost of another baby etc.

Sorry probably not what you want to hear but that's my understanding.

Have you tried a specialist broker? Don't pay money upfront!

Good luck

HHx

Thanks so much for your reply HH. The estate agents both said £115k and don't take any less as it would sell for that based on the prices in our area currently. Do you know of any specialist mortgage brokers? I called the mortgage broker we used 8 years ago and he said he didn't deal in DMP mortgages and wasn't of any help, don't know where to go next? Thanks again, might not be exactly what I was hoping to hear but at least we know. We can then make the decision to sell to rent (my brother's 2nd home) if needed. x

Time_to_face_the_music

gamblebee wrote: »

Hi. Does anybody know the process of making a f&f payment? How much offer do creditors normally accept?
I am a year on DMP with stepchange but following my recent review, my monthly payment remains exactly the same. How does it impact to all my creditors? I also got a claim form and is about to send the form as nationwide applied CCJ against me.

Any helpful advise how can I be debt free sooner rather than later?
Started with 72k debts, after a year on dmp, debts are currently around 65k. Some froze interest and one or two of my 13 creditors are still charging interest. Eventhough I am making monthly payment, my debts with them hasn't come down. I really need help to make lump sump proposals but I wanted to start with my lowest debts and clear them slowly.Will it be reasonable to offer around 2k and do I infom SC or can I go directly through my creditors?
Thanks for those who'll respond.

Apologies if I have asked you this before but have you made complaints to the creditors still charging interest? If so, did you then follow it up with the FOS? It costs nothing, often works and makes me feel better as the FOS charge each creditor for each case they take on!

My approach to our debts has been to pick off one at a time but by increasing payments to one creditor, rather than offering F&Fs. Have only ever done this with creditors still charging interest. I guess it's a combination of a self managed DMP plus snowballing.

I don't know a lot about F&Fs but people seem to start by offering a low % of the debt, the creditor says no and asks for more and they end up meeting in the middle! There seems to be more chance if the debt has been defaulted and passed over to a DCA. I have seen posts saying they started by offering 20% and eventually paid 40%, though some seem to manage an ever lower % particularly for old debts.

StepChange will handle F&Fs but I think they generally do it closer to the end of a DMP. If you start one year in, they may ask the question how can you afford the F&F and if you have that money, you should be paying it into your DMP, They also consider "fairness" to your creditors and may consider paying off one, rather than sharing the payment between all could be construed as unfair. You could ask the question on their ask a debt advisor a question thread and see what they say.

Good luck and please let us know how you get on

Ellieseleven

catandy wrote: »

just got another default notice to add to my growing collection and debt handed over to DCA - really pleased as it means no chance of interest being reintroduced. seems perverse somehow to be pleased to have a black mark on my record but hey how your perspective changes uh?:o

I know what you mean Catandy - there was a time where I would have been mortified at the thought of a default but having checked my Noddle report a few weeks ago I was so pleased to see all our credit cards defaulted apart from one;)

gamblebee

Urgent help needed!!!
Received a claim form which should be in by Tuesday 23/7/13. Have made an arrangement with my creditor today and they are satisfied with the arrangement. They said they would put the case on hold as long as I adhere to our agreed Arrangement. When I asked them about the claim form, they said I don't need to send it back and they will contact their solicitor to hold the legal action. I've recorded the calls with the creditor so the whole conversation were recorded. I am in a dilemma whether I need to send the form or not. Coz if I don't, they may have a ground to request a judgement against me because I didn't reply by not sending the form. Although the creditor is happy with the arrangement and assured me that as long as I am making the xxx amount of payment every month, they won't take further legal action till the duration that I settled my balance completely.
I called the court and CAB for some advise about this, but to no avail. I didn't get a clear answer . Anyone who can help?

Find_The_Real

Personally I would still send my defence in just in case the solicitors are not quick enough to hold the action. The courts (if they act the same way as my repo claim) should then inform you that they have put the case on hold with liberty to restore.

That way at least you have submitted your defence to the court regardless of what action the creditor takes and you have covered yourself. Not saying that all creditors are completely sneaky lying people but it's best not to put your trust in them entirely.

Are you putting your defence in via the online form?

gamblebee

Thanks FTR, the claim form should be submitted to my creditor as per claim form instructions, so do I need to send anything to the court? I was just thinking the same to send the claim form back to my creditor with an attached letter as to what happened today regarding agreed repayment.

Find_The_Real

Sorry I was assuming it would be like my repo documents and be needed to sent back to the court. I would still send your defence, plus a letter of what they said and to keep a copy of what you send (just in case) and to send it back via recorded delivery so you know they get it. That way everything is on record.

catandy

I've just started a complaint via the FOS against Aqua credit card who refunded all interest and wrote to me last month saying they were freezing interest, only to write to me again a month later saying they have reintroduced it at a reduced rate (they've taken a massive 1% of the rates WOW!!)

fingers crossed it works now!

Hopelessly_Hopeful

catandy wrote: »

I've just started a complaint via the FOS against Aqua credit card who refunded all interest and wrote to me last month saying they were freezing interest, only to write to me again a month later saying they have reintroduced it at a reduced rate (they've taken a massive 1% of the rates WOW!!)

fingers crossed it works now!

Way to go, good luck

HHx

Mossop01

Hi all, been on dmp 4 months now and everything was running smoothly, all creditors seemed to accept plan and stop interest. Got a letter from HSBC today very threatening, final demand for full amount on credit card within 14 days or court action to be taken, apparently i have ignored all previous correspondance from them? This is first i have heard from them!!!! I rang them immediately to find out what was going on and man on phone said they were oblidged to send me updates and thats all it was? Doesnt say anything in letter about dmp being in place, although he knew about it on the phone and said he would call me back this afternoon with more information! Guess what .... He didnt ring and now ill br sweating all weekend about this! Can anyone help, i feel like ive taken 10 steps forward and 20 steps back