DMP & Mutual Support Thread - Part 9

maybedmp

Hi to andrar, Mr Mink and kylie_smiley

I'm another newbie kylie_smiley, all forms have just been emailed last week to StepChange with our proof of income ready for our first payment to them on 1st September.

I paid £1 to each of my creditors when the latest payments have been due, some through online banking using an old savings account and for our loan I sent a £1 postal order. All were sent a letter explaining we were entering into a plan with StepChange. I'll need to send another token payment the beginning of September to a couple as I think SC don't pay until the 25th of the month and payments are due on the 1st for some of mine.

Happy to post my letter content if you wish although I know there are a few on here plus SC will send some out to you. I asked them to freeze interest and also to only contact us in writing or through SC.

So far Barclaycard have acknowledged my letter and said they'll freeze interest and charges until the DMP is arranged so fingers crossed they'll stop it for good!

Good luck, I'm panicky atm as it's the first time in my life I've not met a minimum payment. But our budget wasn't sustainable as it was so something had to give.

ETA - the loan one is tricky as it's linked to your bank account. Hopefully more experienced DMP'ers (!) can help with that

maybedmp

Growurown wrote: »

As there are lots of newbies starting I know the one thing we get most anxious about is whether creditors will stop interest, I thought I would post my creditor list. I have posted it before but with so many new DMPers joining I thought it may help set some minds at rest.

All the below stopped charging within a few months of starting the DMP

MBNA Virgin cc (OH's) now passed onto Aktiv Kapital
MBNA Virgin cc (mine) now passed onto Aktiv Kapital
Asda storecard (Santander)
Tesco cc
Mint cc
Nat West cc
Capital One cc
Nat West Loan now passed over to Moorcroft
Intelligent Finance loan passed over to BOS and now paid up in full
Halifax cc (mine) now passed over to BOS

The only accounts being charged are a Halifax CC belonging to OH and a Halifax bank overdraft. I am currently looking into my options with the Halifax CC because it is costing us a lot in interest.

Nice to see as Tesco cc is one of ours - fingers crossed they play ball with us!

kylie_smiley

Hi, Maybe DMP.

Thanks for your reply.

SC were very clear that I should get my bank account set up first...is that what you did? I don't have another account to send payment from, and like I said - I really don't know what to do about the loan., because as soon as I default on that, HSBC could swoop straight in and whip out my money...and direct debits etc may not be changed over ready for 1st of the month. I guess I can take out my wages if the new account is set up and put them in there, leaving enough for the token payments?

This is all a bit confusing...

kylie_smiley

I think I need a little checklist.

1. Open basic bank account
2. Send off DMP forms to SC

3. But then what do I do.....??? :rotfl::eek:

Someone slow me down to a panic!

maybedmp

OK, another newbie question

All creditors have been written to with token payments apart from Santander who we have an overdraft with (account not in use, all direct debits cancelled and no wages or other money of ours goes in anymore). Do I send them a letter as courtesy (as there's no token payment to make as such) or just wait for StepChange to contact them?

TIA

maybedmp

kylie_smiley wrote: »

I think I need a little checklist.

1. Open basic bank account
2. Send off DMP forms to SC

3. But then what do I do.....??? :rotfl::eek:

Someone slow me down to a panic!

My checklist was
April - filled in initial budget with SC then had offer on house so decided to hang on before starting DMP. Sale fell through so decided to start from September, in the meantime they'd sent us DD form and agreement form
Changed bank accounts so both salaries and all household bills are paid into/out of one not linked to any debt
July - contacted SC with revised budget and my new salary (returning to work in August following mat leave)
28th July - cancelled all creditor direct debits
28th July - sent letter and made token payment to creditors 1 & 2 (payment due date of 1st of month)
14th August - Emailed scanned copies of signed DMP agreement and direct debit forms plus copies of our payslips
14th August - sent letter and made token payments to creditors 3 & 4 (payment due dates of 25th of month)

Now - wait and see what happens!

I need to check with SC regarding when they are contacting creditors as Barclaycard have said they want contact from us or then by 6th Sept.

maybedmp

kylie_smiley wrote: »

Hi, Maybe DMP.

Thanks for your reply.

SC were very clear that I should get my bank account set up first...is that what you did? I don't have another account to send payment from, and like I said - I really don't know what to do about the loan., because as soon as I default on that, HSBC could swoop straight in and whip out my money...and direct debits etc may not be changed over ready for 1st of the month. I guess I can take out my wages if the new account is set up and put them in there, leaving enough for the token payments?

This is all a bit confusing...

I would get your account set up first - I was fortunate that we already had a natwest account with no debt that I used as a household account which made it easier.

Personally I would wait to cancel the HSBC DD and wear having the pay the full amount this month so as to not alert the bank to the problem (and send token payments to others) but that may not be the best advice!

As soon as your new bank account is open you could then take the remaining money out leaving enough in HSBC to cover the loan payment in full and pay token payments to the rest of your creditors. Maybe then ask SC if you can delay setting up the DMP until October so you have another month to send token payments and build up an emergency fund?

kylie_smiley

maybedmp wrote: »

My checklist was
April - filled in initial budget with SC - have done this, they emailed DD and agreement to me.
Changed bank accounts so both salaries and all household bills are paid into/out of one not linked to any debt - on this one

So I'm here.

July - contacted SC with revised budget and my new salary (returning to work in August following mat leave)

28th July - cancelled all creditor direct debits - actually, I've done this, except for the loan.(Should I just let that payment go out as normal this month? My wages won't be able to be paid into my new account until the end of September now)

28th July - sent letter and made token payment to creditors 1 & 2 (payment due date of 1st of month) - I'm going to do this with the credit cards...SC have advised not to let HSBC know until I have sorted bank account - which is why I'm confused re: loan.

14th August - Emailed scanned copies of signed DMP agreement and direct debit forms plus copies of our payslips

14th August - sent letter and made token payments to creditors 3 & 4 (payment due dates of 25th of month)

Now - wait and see what happens!

I need to check with SC regarding when they are contacting creditors as Barclaycard have said they want contact from us or then by 6th Sept.

Thanks so much for that!

I'm just so worried about the HSBC current account I have and the debts I have with HSBC...I can't see how it will work. I think I'll have to get my bank account sorted tomorrow and then call SC back again - they'll be bored of hearing my voice!

kylie_smiley

maybedmp wrote: »

I would get your account set up first - I was fortunate that we already had a natwest account with no debt that I used as a household account which made it easier.

Personally I would wait to cancel the HSBC DD and wear having the pay the full amount this month so as to not alert the bank to the problem (and send token payments to others) but that may not be the best advice!

As soon as your new bank account is open you could then take the remaining money out leaving enough in HSBC to cover the loan payment in full and pay token payments to the rest of your creditors. Maybe then ask SC if you can delay setting up the DMP until October so you have another month to send token payments and build up an emergency fund?

I think this is what SC advised...but my head is getting in such a muddle. My gut feel is to:
1. pay token payment and send letter to debt 1 due on 25th August, 2. Send the same for the others (2 and 3) due aon the 5th and 12th of September
3. Pay HSBC debts as normal until salary transfer and direct debit payments are confirmed.

I will definitely be transferring money into new account asap and calling companies re: direct debits. Nationwide have offered to transfer direct debits, but actually, I think I would like to do it and cross off the list - as long as I can find all of the paperwork!

Plan is, on payday, to leave enough in the account to cover direct debits due (inlcuding HSBC loan and CC) and then transfer the rest over. DDs go out (mainly) on the first of the month...I have my checklist of those written down.

Lady at SC did think that actually, October 1st might be a bit more likely than September 1st anyway...so I'm kind of prepared for that!

I'm babbling againm but does that sound about right?

maybedmp

kylie_smiley wrote: »

I think this is what SC advised...but my head is getting in such a muddle. My gut feel is to:
1. pay token payment and send letter to debt 1 due on 25th August, 2. Send the same for the others (2 and 3) due aon the 5th and 12th of September
3. Pay HSBC debts as normal until salary transfer and direct debit payments are confirmed.

I will definitely be transferring money into new account asap and calling companies re: direct debits. Nationwide have offered to transfer direct debits, but actually, I think I would like to do it and cross off the list - as long as I can find all of the paperwork!

Plan is, on payday, to leave enough in the account to cover direct debits due (inlcuding HSBC loan and CC) and then transfer the rest over. DDs go out (mainly) on the first of the month...I have my checklist of those written down.

Lady at SC did think that actually, October 1st might be a bit more likely than September 1st anyway...so I'm kind of prepared for that!

I'm babbling againm but does that sound about right?

I'd do exactly what you are in the same situation