DMP & Mutual Support Thread - Part 9

poisoncandy

Oh dear got a letter from Post Office to say they have passed my debt onto a debt collection agency who have sent me a letter as well. Have emailed the info to SC and hope it can be resolved amicably. Still haven't got a job, things would be so much brighter if I could get my outstanding redundancy (around £900) and secure a job. Fingers crossed!

maybedmp

Hi All, I posted a few months ago with some possible options for us - DMP, sell (house is already on the market as we're looking to move out of the area) or go on interest only mortgage (declined by bank). In the meantime we thought we had a house sale but it's fallen through. Just in time for me to return to work from mat leave meaning ironically we're even worse off than when I was on mat leave due to childcare, petrol and going back on reduced hours from before my maternity leave started.

So, thankfully we'd already started the wheels in motion with Stepchange and I've called today to update our budget ready to start our DMP in September. I have letters ready to send to creditors explaining the situation, have separated our bank account to one with no links to any debt and cancelled all creditors direct debits. Today I made token payments through internet banking. I can't send everything off to SC until mid August when I get my first pay slip after returning to work.

So a quick question - I want to send the letters to our creditors today or tomorrow and wondered should they be sent recorded?

TIA

Hopelessly_Hopeful

maybedmp wrote: »

Hi All, I posted a few months ago with some possible options for us - DMP, sell (house is already on the market as we're looking to move out of the area) or go on interest only mortgage (declined by bank). In the meantime we thought we had a house sale but it's fallen through. Just in time for me to return to work from mat leave meaning ironically we're even worse off than when I was on mat leave due to childcare, petrol and going back on reduced hours from before my maternity leave started.

So, thankfully we'd already started the wheels in motion with Stepchange and I've called today to update our budget ready to start our DMP in September. I have letters ready to send to creditors explaining the situation, have separated our bank account to one with no links to any debt and cancelled all creditors direct debits. Today I made token payments through internet banking. I can't send everything off to SC until mid August when I get my first pay slip after returning to work.

So a quick question - I want to send the letters to our creditors today or tomorrow and wondered should they be sent recorded?

TIA

Hi and welcome back

I would send recorded, I know it's pricey but I would bet anything some of them say they didn't have it so you will need it so you can start the interest reducing/freezing appeal.

Good luck. Keep us updated.

HHx

maybedmp

Thanks HH, that was what I thought. Will send this afternoon.

*Foolish*

Puzzcat wrote: »

Hi HH, thank you for your quick reply, very helpful indeed. Can I just ask did you have to supply copies of pay slips, bank statements
etc?
Regards
Puzz. X

I started my DMP with StepChange in June, I had to send them a copy of my payslip and a list of creditors and outstanding amounts. They ask for these or recent statements. I just scanned mine and attached them to an email.
Good luck with your debt free journey.

sharpeyes66

How does the pro-rata rule apply when deciding payments on a dmp? I am having trouble getting 2 of my creditors to consider reducing or freezing interest as they both say i am paying too much. Natwest have written back saying that the payment prorata should be £65 & so they cannot treat me as in financial difficulty as sc have offered £101 pm. Halifax have suggested as:question:king sc to amend the payments down as their offer is over the minimum monthly figure and so are carrying on with the account as normal and charging 18.95% interest. Natwest do seem to have a points when i have checked the payments they would be paid off much sooner than the others if interest etc was frozen on all accounts, 36 months as opposed to 58ish for all the others. Can i ask stop change to pay each creditor the same percentage of my payment to them as their debt is percentage wise. Feel like is being treated at a disadvantage for paying too much. Always thought it would be the opposite but both these 2 have said i would be more likely to have a chance of preferential interest rates etc if i was paying less. Very confused

Hopelessly_Hopeful

sharpeyes66 wrote: »

How does the pro-rata rule apply when deciding payments on a dmp? I am having trouble getting 2 of my creditors to consider reducing or freezing interest as they both say i am paying too much. Natwest have written back saying that the payment prorata should be £65 & so they cannot treat me as in financial difficulty as sc have offered £101 pm. Halifax have suggested as:question:king sc to amend the payments down as their offer is over the minimum monthly figure and so are carrying on with the account as normal and charging 18.95% interest. Natwest do seem to have a points when i have checked the payments they would be paid off much sooner than the others if interest etc was frozen on all accounts, 36 months as opposed to 58ish for all the others. Can i ask stop change to pay each creditor the same percentage of my payment to them as their debt is percentage wise. Feel like is being treated at a disadvantage for paying too much. Always thought it would be the opposite but both these 2 have said i would be more likely to have a chance of preferential interest rates etc if i was paying less. Very confused

Hi

SC do use a different way of working out pro rata payments than some other organisations like NEDCAB. It has caused a number of us issues but they would not move on this. The one that finishes in 36 months is this because it is a loan or HP? The amount is worked out according to a % of the contractual amounts so my loan finished much earlier than the CCs.

I had the same experience with Hellifax. Come people find self managed helpful for this sort of thing.


Ms TTFTM probably in best position to advise.

Hope you get sorted soon.

HHx

shrekkiegirl

hi everyone

I have been reading through this thread for a while now but kept my head buried in the sand until a few weeks ago when I realised I had no way of sorting my debts out and pay all my bills etc. so I decided to look at SC. I have taken the bull by the horns and on Sunday I sent off everything they asked for to set up a DMP. I am relieved and scared at the same time.
I have defaulted on all my debts this month as I just couldn't afford to pay them. should I now go and make a token payment on each?
It's very encouraging reading everyone's stories and knowing that people do get through the first few months and come out the other end.
Hopefully with the help and encouragement on this thread I will get through this.
Bit worried at the moment about what happens at the start of your DMP with creditors but it's better than sticking my head in the sand forever

ianmak

Hi all, need a bit of hand holding, and advice of where to go next.

my DMP company have been going through the motions of setting up a 'Full and Final IVA' to settle my debts. I have 9k to offer, on approx 16-18k of debt. After fees they will offer £4450 to creditors! Is this right and normal? They keep saying it's better than me settling on my own, but can't help thinking what a waste of money! Surely my creditors soon me offer money without an IVA?

Growurown

shrekkiegirl wrote: »

hI have defaulted on all my debts this month as I just couldn't afford to pay them. should I now go and make a token payment on each?

Hi, welcome to the thread! Yes make a token payment even if it is only a pound. Shows willing.