DMP & Mutual Support Thread - Part 9

Debtfreeday

Hi all - as with many here, lots of lurking and now time time to take the plunge!

Firstly I want to say how inspirational, non-judgmental and genuinely helpful this communities seems to be, a real credit (no pun intended) the principles of mutual help and support.

So here's my story then a couple of questions.

Let's keep it brief....between us we have now accumulated over £90k of unsecured debt so far everything paid on time and not a single default or missed payment, the problem is that I now can't increase my income anymore to even start making a dent in the capital, so there is literally no end in sight.

Coupled with that I recently had a change of job, which means I'm now self employed and almost earning enough to just about service the minimum payments, but usually that involves having to juggle between various CC with a few quid left here and there - it's just not sustainable....

So, I room the advice here and contacted step Change - 2 hours later there is at least an option that will clear the debt in 5.4 years and we can keep the house and actually live - I have to say these guys are great, and if (when!) we are clear I would lived to give something back to them somehow, anyway....they recommended on my income (only me working) that we should be eligible for a DMP - I had called them originally to discuss bankruptcy, so this was a good start as both myself and OH agree that we need to repay the full debt if possible as a matter of principle.

So a few questions for you guys as we start (or try to start the process):

1. New current account - we need a debit card (not electron) currently we don't have any defaults so can we can go open another account not linked to the one we are about to close as they have the OD attached, does it mean we can effectively get any sort of 'normal account'?

2. I often have a company credit card to pay my expenses at work (although not in my current job) does this count as 'credit' under the DMP?

3. We are potentially 2 months away from starting, I have enough funds to satisfy Novembers minimum payments in full (just) but should we start the process of contacting Creditors now and sayings that we can't pay - that will mean we will default on everything I guess BEFORE we formally start the DMP or is it better to keep everyone happy until we are ready, will it make any difference to getting the interest frozen?

4. What's everyone's experience of getting interest frozen? Does it make any difference that all of our debts are normal high street lenders? We have 11 in total so if only half agree we are still not really any better off as that will leave us with c£40k accumulating interest at an average of 25% APR so still not really able to pay in my lifetime. What is your views on SC's success rate in getting accounts frozen?

Thanks in advance - as ever the advice about getting the full report and facing it head on is right - only when you know the size of the mountain can you plan a route to the top.....

Sazzie23

anywayout wrote: »

Its all went wrong!!!! I knew I had spoken too soon :-( the cheque centre have text me today saying that they are contacting my friends (I gave names and phone numbers over last year if I didnt they wouldn't give a loan and I was desperate - I wasnt clever enough to give false details) im soo mortified!!! I have emailed them quoting dpa and financial ombudsman but im sure they will ignore it - I have also emailed stepchange asking if they can call them and confirm my dmp. I cant phone anyone as im at work and dont finish till 5 by which time im sure they would have contatced them :-( please excuse the bad typing and spelling - im panicking!!! x

Oooh anyway you must be so upset, did you sleep at all?
I think the cheque centre might be just making threats,:mad: since you haven't run away and disappeared, and you making efforts to pay. I haven't had time to go back to recheck your debts but I suspect they are only one of a number of creditors and trying to get you to make a payment to them rather than other creditors. I think I would come clean with your friends, they don't have to know how bad thing are, unless you want to tell them. Something like, I have had to cut back on credit repayments for a while because money is tight. Explain that you gave the friend's name to the creditor as a way to trace you but that you didn't use them as a guarantor and they are in no way liable (they might get worried too). Your real friends will understand, don't worry about the others.

Come back and let us know how you got on, I'm worried about you.

Sazzie23

Debtfreeday,

Well done for a- realising the problem was out of control
and b- making a start.

I've not get time to give you a full reply but I'll check tonight and see if someone else has.
One message I'd like to give you is that DMP is still a serious option, it will completely ruin your credit rating and there are big impacts because of this, so make sure you are happy this is the way to go.

I don't want to put you off, I just want you to understand what you are letting yourself in for.

Hopelessly_Hopeful

esj13 wrote: »

I have all the materials put together now to return to SC and send my letters to lenders. However one hold up is that one creditor has told me that as a reference i need only use my personal details (I'm guessing that them having said this and me having proof in an email that this will be ok) and one company has not yet got back to me with my account/reference number which according to their site I have to emil them for which i have done twice and had no response yet which is holding things up!

Called the bank today who were helpful and cancelled all my CPAs (advising that the money may show up as a debit but then be credited back to my account the same day and if not to call them and they will sort it. They're apparently used to this)

So all apart from the one company taking their time I feel things are moving in a positive direction

Welcome, that's good news, seems like you have everything in hand

HHx

anywayout

Hi

thanks everyone for your replies. I called cheque centre yesterday and spoke to yet another one of their goons and im ashamed to admit had a right go at them!!! Told them I was not trying to not pay them that stepchange had contacted them and a payment would be with them soon. He did confirm that they had received stepchange's paperwork and that it was getting processed and that the text must have just 'crossed' I dont trust them so will fess up to my friends this weekend - I couldnt face it last night :-( god these people are horrible!! Back to feeling like a chump for ever getting involved with them :-( I will be sending the letters mentioned about harrassment on Monday recorded delivery. Thanks everyone for your support xx

Samjangi

Puzzcat wrote: »

I am getting some very conflicting post but am assuming that it is just crossing with my letters and SC letters, either that or these financial institutions really don't have a clue...:rotfl:

Yep, I am with you on the conflicting post Puzz!!! From 'you still owe us money now! letters' to I hope you are enjoying using your new card ' letters. Safe to say no cards exist intact or are being used:rotfl:

Samjangi

CaptainAmerica wrote: »

Afternoon all,

Would someone be able to point me in the right direction about sending a letter off asking to freeze interest etc. on a loan I have with Santander.

I am paying it off through my DMP with PP but when they send me statements, the money I've paid off is wiped out by the interest they put back on so I'm not really getting anywhere with reducing it.

Apologies if this information is on the forum somewhere I just thought it may be quicker to ask rather than search

Muchas Gracias

Just opened a letter from Santander re my loan saying they are going to be charging me the same interest! Is it too soon to fire off a please lower/freeze interest letter? A bit gutted as 6/9 of our debts are with them....does not bode well. And to think I gave them my loyal custom for the last 25 years:mad:
Any help or advise gratefully received.

Debtfreeday

Sazzie23 wrote: »

Debtfreeday,

Well done for a- realising the problem was out of control
and b- making a start.

I've not get time to give you a full reply but I'll check tonight and see if someone else has.
One message I'd like to give you is that DMP is still a serious option, it will completely ruin your credit rating and there are big impacts because of this, so make sure you are happy this is the way to go.

I don't want to put you off, I just want you to understand what you are letting yourself in for.

Yes we realise that this is the end of any credit for c11 years - but there is actually something very appealing about this, and it's better than BR (although we may still have IVA) as I can continue earning decent money and pay off sooner potentially. We are not worried about getting credit or changing the mortgage just getting to a point were we finally have our disposable income to ourselves - so long as we can hold onto the house and get a current account with a debit card and no overdraft we can make if work (IF the creditors play ball on the interest - if not I will present them with a choice:

1. Accept the SC offer and freeze interest = 100% of the capital nd interest to date paid

2. Force me into an IVA = c30 - 40p in the pound over the same period

3. Force bankruptcy likely nothing - we have no assets little or no equity in the property, and even with a payment order likely to release only 10 - 30p in the pound over 3 years

But I'm not an expert so no idea how successful we will be?

Puzzcat

Debtfreeday wrote: »

Yes we realise that this is the end of any credit for c11 years - but there is actually something very appealing about this, and it's better than BR (although we may still have IVA) as I can continue earning decent money and pay off sooner potentially. We are not worried about getting credit or changing the mortgage just getting to a point were we finally have our disposable income to ourselves - so long as we can hold onto the house and get a current account with a debit card and no overdraft we can make if work (IF the creditors play ball on the interest - if not I will present them with a choice:

1. Accept the SC offer and freeze interest = 100% of the capital nd interest to date paid

2. Force me into an IVA = c30 - 40p in the pound over the same period

3. Force bankruptcy likely nothing - we have no assets little or no equity in the property, and even with a payment order likely to release only 10 - 30p in the pound over 3 years

But I'm not an expert so no idea how successful we will be?

Hi, I'm certainly no expert as my dmp is only just starting but if I were a creditor and the initial approach was in this format I think I would be less inclined to stop interest not more!
Would it not be better to get the ball rolling and then fight if needs be for lower/no interest? They are under no obligation to stop charges or interest and there is plenty of information on these threads to assist with letters etc as you go along.
The way I understand it Stepchange do not fight for us, these are our debts and our battle.
I wish you well on your journey, and this is only my opinion I'm sure the more experienced oldies (sorry!) on this thread will advise better.

hopeful_at_last

So today I have plucked up the courage to get in touch with payplan. I have felt sick all week and tossed and turned with worry...about getting in touch and having to tell someone you are in debt. I left a message on their site last night and they rang me this morning. A lovely lady called Nikki booked me in with Steve who went through all my income and expenditure and my debts of £10900 :eek:
I have decided on a DMP as I really didnt want to go down the IVA route. Hopefully I will be debt free in 5 years or so...
Someone is ringing me back on Monday to finalise ....hope it will all be ok
I still feel sick but i'm so glad I have taken the first step