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DMP & Mutual Support Thread - Part 9
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Hi esj I had a message via my account from Virgin similar to yours thanking me for letting them know etc, which makes you feel quite a lot better doesn't it? That said I am really nervous of the next 3 as they are HSBC (cc and od), Barclaycard(Egg) and Halifax cc, from looking through these forums all of them seem a right pain to deal with!! I missed a payment to Halifax quite a few years ago due to a mix up with when a direct debit was starting, and they phoned me none stop straight away, which makes me feel a bit sick!
Sounds like we are at a similar point just staring out - hope its all going ok for you. xxLBM october 2013
DMP started 01/02/140 -
My good news... creation have accepted dmp.....
The not so good news they will be charging 0.720% interest... now assuming that is monthly and with my dmp payment to them being about 25% of the minimum I will be surprised if even a £1 reduces each month.... I shall let the dmp get started and have placed them on my 'fighting' pile. They are alone at the moment but I'm not holding my breath....
I have written down all the pages/thread numbers with the appropriate letters in and will go into battle next month....
Wonder what tomorrow will bring.....:DChristmas 2020 £109
I love my dmp started in Nov 13 with SC. Self Managed 2016 57% done
£60062/25384.84 - 13222.60k UE
MY DIARY http://forums.moneysavingexpert.com/showthread.php?t=47686850 -
Hi all.
I'm still in the process of setting up my DMP, and getting my head around everything we need to do, and 'selling' it to my wife.
This stems from the fact that although we've always had a joint account for the mortgage and main bills, we've always been paid into our own accounts, and had our 'own' money. Consequently, we've both always carried on in our own merry ways, never really knowing how the other is doing. Because most of the debt is in my name, she has a feeling that I've mismanaged my money and she is having to bail me out!
My feeling is we would possibly not have got into this mess in the first place if we did everything jointly and both had a handle on what was happening with our income / expenditure. [This was on the advice of my Father in Law, when we bought our house back in 1994. He'd been through a messy divorce and thought it was better we kept our money separate!] With hindsight, I wish we'd ignored him, but still...
Anyway, I've just caught up with this thread and a few questions / concerns have come to mind, which I hope you lovely lot can help / reassure me with.
I've just seen mentioned that Halifax can't access Lloyds accounts: Does this mean Lloyds can't access Halifax either? Our mortgage is with them (fully up to date), my wife has a savings account with them which the child allowance is paid into, and she is generally 'comfortable' using them. This will go some way towards appeasing her...
On the subject of the mortgage, our present fixed interest deal has just ended, and whilst at the moment the monthly payment has dropped for now, I obviously would like to go back to fixed interest at some point. I realise changing to a different provider is going to be out of the question, but are Halifax likely to refuse us a fixed interest rate in the future if our credit rating is shot? As I say, we've never missed a payment (ever). Obviously, I can pick up the phone and ask, but has anyone any experience?
Also, both car insurances are up for renewal soon - next month and January. Both are paid monthly at present, which is budgeted for in the DMP, but once the plan actually starts, is this likely not to be an option? On the other hand, as both are up to date, could we just auto-renew? I know under normal circumstances that's the last thing you should do, but if it keeps us insured for another year we may have to swallow it.
Once everything is up and running, we should have a little to put away for emergencies, so next year it might not be a problem to pay in one go, but at present it's not an option. And we can't do without the cars, before anyone suggests it!
TIA
Have been on a DMP for 2.5 years and have changed car insurance twice with no problems paying by installments. HTH0 -
My good news... creation have accepted dmp.....
The not so good news they will be charging 0.720% interest... now assuming that is monthly and with my dmp payment to them being about 25% of the minimum I will be surprised if even a £1 reduces each month.... I shall let the dmp get started and have placed them on my 'fighting' pile. They are alone at the moment but I'm not holding my breath....
I have written down all the pages/thread numbers with the appropriate letters in and will go into battle next month....
Wonder what tomorrow will bring.....:D
That's great news that they have accepted, hope you can get the matter of interest sorted!
Would you mind sharing the page numbers with the letter/s for asking creditors to freeze interest and charges, please? I've been looking through but can't find them. Or is there a section somewhere with template letters? Thanks in advance0 -
Equilibrium13 wrote: »Hi Mojo13,
Do you bank with Barclays or an associated bank?
I have 2 Barclaycards and a Barclays account with overdraft so am opening a new basic account. Until this is up and runninng SC won't inform Barclays of my DMP. I have 'opening a new account' next to all 3 on my list of creditors.
Thanks Equilibrim that is exactly it, seems obvious now you say it.
One other question to throw out there, my Barclays account which will form part of the debt, I had one of those pay monthly accounts with benefits, when they shut/ freeze this will they cancel that as I obviously don't want that monthly fee building up on an account that's shut. If that makes sense, probably doesn't as it's late but hopefully someone will know what I mean.
MO:)
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Thanks Equilibrim that is exactly it, seems obvious now you say it.
One other question to throw out there, my Barclays account which will form part of the debt, I had one of those pay monthly accounts with benefits, when they shut/ freeze this will they cancel that as I obviously don't want that monthly fee building up on an account that's shut. If that makes sense, probably doesn't as it's late but hopefully someone will know what I mean.
MO:)
I think you might have to request they change that account to one you don't have to pay for...I don't know for definite as I have never banked with Barclays, but one of my Lloyds accounts had a monthly fee, so when I knew I was taking the route of a DMP, I rang them up, without mentioning the DMP and asked to change my account to a regular account without a fee, just said that I didn't need the benefits any longer. They did it with no problems at all, now I just have to try and get them to stop charging a monthly fee and interest on both my overdrafts!
Might be worth asking SC, as with the agreement they have with Barclays, I don't know what arrangement they might have with regards to your current account.First DMP payment 10/06/13
Debt Free approx Jan 2018
Starting debt: £50,013 :eek::eek:
Current debt £39,128.41
:eek:0 -
Hi all
had a busy few weeks with the two jobs and with a bit of sickness thrown in I have not been on here as much as usual. Have caught up now though so hello to all the fellow noobs like me who are just setting sail on the old good ship DMP!!
So just to update my own position:
DMP all set up with SC - 1st payment 1st Nov. Have spoken to all creditors about the impending DMP and their reactions ranged from supportive and agreeing it was the right thing to do, to sounding like they didn't really care what I do!!
Have also sent letters and I am now aware the SC must have also sent the letters offering reduced payments.
Up to that point I had been feeling really positive. However I have had a heap of mail this week and none of it seems to be good.
Firstly the creditor summary showing the calculated payment 'split' from SC was wrong in that 2 of our creditors would have been getting more than what we were paying them anyway because of the way they work things out. Anyway a phonecall yesterday sorted that out so not a big deal really.
We have 8 accounts on the DMP split over 4 different creditors. Further letters from SC today have advised that 2 of the 4 creditors have rejected the offers of reduced payments.
At the same time both creditors have replied direct to our letters saying they need an I&E completing before they can consider anything. Add to this several 'we are passing your account to our collections dept' type letters and its all been a bit negative to say the least and has sent the wife in to a bit of a wobble about what will happen to us and that they will want us to pay in full again! Its also made me worry that my attempts to make the budget realistic have meant that they think we are not being as tight with it as we could and should.
Having read other posters experiences on here who are doing this all at the same time as us I had felt quite hopeful that things would be accepted and we could get on and start dealing with this.
Anyway my query is about these letters and what to do next.
The creditors have not told us directly that they have rejected the offers of payment and have seemingly only informed SC so far. So do I simply ignore it all as SC say to do, or do I try and contact the creditors now to see what the problem is and to see if there is anything I can do about it?
I know from reading here that the first few months are crazy and things get crossed in the post etc, and I have prepared for some rejections and refusals over freezing interest etc. But I guess I just wasn't prepared for ALL of the responses so far to be negative
Cheers
DM0 -
Sorry to hear that DM, must be very distressing
my first payment is 1st of Nov as well and i've only received a letter from one of my creditors so far who accepted but haven't frozen interest. SC haven't told me of any rejections. I'm sure someone will post soon who can advise.
Good luck0 -
Bettingmad wrote: »Have been on a DMP for 2.5 years and have changed car insurance twice with no problems paying by installments. HTH
Hi Bettingmad
That is good news, I think, maybe it depends on if they credit check you or not. Stepchange ask you not to take on any more credit, and to me, if you are having a credit check, its credit! My own feeling is that if you have the right budget in place you should be able to pay in full - most times its more costly with instalments too. However I think it is good news that its possible to do it if you need to.
Hi DebtMagnet
Good news about the DMP, sorry its getting a bit complicated.
As you know DMP are voluntary on both sides, which creditors are being difficult, maybe someone here can advise. If you use your SC debt remedy paperwork for the IandE, maybe they will be prepared to accept it?
My advice would be to contact the negative creditors with your SC budget details, and see what they say, meantime let SC know and take advice from them, but probably continue with payments as if you were in DMP so they are getting something. Do not stress over the letters about handing to collections, they will continue to come with some creditors no matter what you and they do. Collections have no more rights to get you to pay, they just try harder! Make sure you both know what your legals are with collections agencies and baliffs and stuff - read SC website for more on this.
See if anyone else had similar problems, it might help to know what your total amounts are - if your feel up to saying- mine are £32k now down to £28k:(Debt -it's a fight that I'm winning, dealing with debt one day at a time.
Estimated DFD August 2018 - 2031 - now 2027 :T
Guide dog Tess, missing Scotland 2 years
DMP support no438.0 -
Thanks for the replies. I was worried about not doing a token payment as on various posts I read that the creditors don't like it if you have treated one of them differently from the others?
Think I will take my chances and do the token payment - as you say HH they will probably not be quick enough, particularly as it is a branch based account. If they do then it is just a hundred or so pounds in there and I suppose it isn't the end of the world if they take it onto the CC debt. I had forgotten about it actually as the book was lost years ago and it is one of those savings accounts that was opened years ago by family - I actually didn't think there was anything in it and then it appeared on my internet banking but with no way of accessing it!! How cruel being able to see it but not get to it!:mad:
Hi Schmalf, we had a similar account, remember the money goes towards paying back your debt so its not lost - well done for making a start on the DMP.Debtfreeday wrote: »...this was from me earlier - that was the advice given to me by a counsellor at .SC - however, I would always advise doing your own research as well. This is very nerve racking for us at the moment because of the way I am paid, we actually have Novembers cash already in the 'new' account at exactly the right level to pay the DMP and live on the budget for November - and so far all our debts are 100% up-to-date so until I see the first payments go out and Halifax really dont touch the account then I wont be 100% happy - hence why I have also applied for a Co-Op current as back-up.
Good luck with it all!
Hi Debtfree,
Good news about Lloyds, my experience with Natwest is that they give you warning about setting off so you will most likely be ok for November even if you end up changing to the coop eventually. I run 2 bank accounts, one has all the money for my DD including DMP mortgage etc and including the savings I need to make for known payments such as car and house insurance. The other acc I use for shopping, meagre social spending etc, this way I can't accidently overspend on shopping and take out money that should be for DD.Debt -it's a fight that I'm winning, dealing with debt one day at a time.
Estimated DFD August 2018 - 2031 - now 2027 :T
Guide dog Tess, missing Scotland 2 years
DMP support no438.0
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