DMP & Mutual Support Thread - Part 9

Ellieseleven

bertman wrote: »

Just trying out my new signature....

Now below £60k..... Whoop Whoop!!

Good for you Bertman, it's great when it drops into the next X thousands isn't it?

Well Done
Ellie xx

Ellieseleven

Growurown wrote: »

I have stayed with the same car insurance company simply because I thought I wouldn't get credit for monthly instalments and I can't afford a one off lump sum.

It is good to know though that others have changed insurers successfully.

I know the mantra is no more credit when on a DMP and I wouldn't dream of getting another loan or CC but I have made use of a £500 overdraft facility made available by my bank. This was for emergencies, mostly car repair bills. So a bit naughty but not very;)

I've changed my car insurance several times and pay in instalments (picking up several meercats on the way). I try to shop around and have found over the last few years that I have been able to reduce the insurance by a considerable amount

Ellie xx

dad2one

hopeful_at_last wrote: »

well I sent my authority to act back today so another step done.
I still feel sick I think its the not knowing if creditors will accept my DMP plan.....what happens if some don't accept?:(

As others have said don't worry. Your plan is a legal representation of what you can afford to pay back, and is a clear statement of intention to pay back entirely what you owe.

Creditors don't implicitly accept the plan as such (although some do), they just don't actively refuse it (if you know what I mean). Some might say they don't accept at first, or pester you or threaten you with further action (in writing only you must insist), but normally they are quite silent, and even if not they do as others have said fall into acceptance. - because what else can they do? Take you to court? no way will they do that to someone on a DMP. (although, again, they might threaten).

It's getting into the mindset of how this works that you need to do. This is a series of formalities a bit like a game that has to be played through that ultimately always ends in you only paying back at a rate you can reasonably afford. The law of the land is fully on your side in that respect. Not easy I know at first not to worry, but please try not to. You are doing nothing wrong and by setting up a DMP you are doing everything right.

Your DMP will in time be accepted, because there is no other option.

Onwards and upwards!

dad2one

Hopelessly_Hopeful wrote: »

Hi

The DMP providers don't view instalments as credit, so utilities such as , electric, gas, phones, council tax, insurance etc are ok by instalments even if interest added like insurance things. You can even get approval for new car loans etc. For utilities and insurance credit checks are fine, never heard anyone fail them as afterall if you don't pay next months they cut you off, seemples, more like pay as you go! Essentially principles of DMP are that you should be able to live and eat to be healthy and the spare 'disposable' cash goes towards DMP rather than holidays or treats.

Hope that helps.

HHx

Excellent post and should help settle the arguments and queries. Thanx.

Also, well done on your latest move closer to DFD!

dad2one

Puzzcat wrote: »

Well done HH, very inspiring as always and a huge thank you for all your help and assistance, you are a star. Xxx :T

Agree! :T HH is indispensable to this forum.

Debtfreeday

...always looking for positives (BTW there have been some really inspirational posts on here re progress towards the magic day - too numerous to mention - but suffice to say as we start our first Xmas on DMP it's nice read about people's LAST Xmas under DMP - so thank you).

So maybe more bleeding-obvious stuff here but I'm going to share anyway...

As we work through migrating our current account (as we need to include the overdraft in our DMP), we also took the opportunity to do 2 things when transferring the DD's (council tax etc)

1. Ask ourselves "...do we really need it..."
2. If we do are we paying too much

Following this through we managed to find an additional £80 per month to go into the DMP - so. Not huge, but everything we can find will help (or at least give us some breathing space) - I'm sure you guys all ready have the best deals etc - but as a money saving newbie - I thought this was the perfect time to be tough and review everything.

SKY and O2 were particularly accommodating! And the other stuff, well we just don't 'need'

The more i get into this, the more I see it's just as much a change if mind-set as it is a financial objective, and importantly it's moving forward, there is an end in sight (not easy) but look around this forum, there are people who have been through this and come out the other side!

dad2one

Good advice there Debtfreeday, and yes, this forum is a source of assurance for many. Although all cases are individual and experiences different, we are all in a similar boat and sharing the ins and outs is invaluable.

dad2one

So....
I'm 8 months into my DMP, and finally HSBC have stirred. I have three debts with them. Initially into the DMP there was total silence from them. Then for each debt eventually came an arrears notice, then a default notice... standard computer print offs.

(Take note this is how the system works)

Then this week an unusual letter implicity threatening court action because I have not been meeting my end of the loan contracts. Futhermore stating wrongly that I had made no communication or response to them as to why this was happening. A big phone number was printed that I had to ring within 14 days or else!

Ok, I had written to HSBC several times explaining my situation, my DMP arrangement etc. and of course StepChange had done the same. All payments cashed etc. so I was a bit mad about the language and nature of the letter.
I rang them.

The letter was of course just another standard and was their way of getting to talk to me over the phone. Yes, they were aware of the plan, and had received all my letters... they just wanted to log an actual verbal contact with me on their system. The phone operator was very nice and chatty.

They informed me that it was policy to hand over my debts to a collection agency, and that I would be getting written confirmation of this. The agency would be 'Metropolitan'.

A quick search showed that Metropolitan is actually a HSBC company anyway so.... it's their in house collection dept.
The operator told me there was likely to be no problem in my DMP continuing with them as usual, but that I should inform StepChange of the transfer.

So, I will see what happens - but it kind of illustrates what I was saying above of how the formalities have to be gone through.

A recap update of my situation:

Capitol One implicitly accepted my DMP in writing.
M&S Finance (HSBC underwritten) pestered me to talk to them on the phone, which I did, and once I said I was going on a DMP were completely fine about it. (although zero contact from them since I find a bit odd)
HSBC - 3 debts - well, as already described.

So far... no added charges... no added interest, or rather all interest stopped. (This may change)

The debt collection agency ruse may well be a way of trying to add fees / charges. I have no experience of DCAs as yet.

I would like to initiate a chat about DCAs and what they can and can't do... in good time.

For now, onwards and upwards... and keep sharing folks!
Good luck all.

Sazzie23

Debtfreeday wrote: »

...always looking for positives (BTW there have been some really inspirational posts on here re progress towards the magic day - too numerous to mention - but suffice to say as we start our first Xmas on DMP it's nice read about people's LAST Xmas under DMP - so thank you).

So maybe more bleeding-obvious stuff here but I'm going to share anyway...

As we work through migrating our current account (as we need to include the overdraft in our DMP), we also took the opportunity to do 2 things when transferring the DD's (council tax etc)

1. Ask ourselves "...do we really need it..."
2. If we do are we paying too much

Following this through we managed to find an additional £80 per month to go into the DMP - so. Not huge, but everything we can find will help (or at least give us some breathing space) - I'm sure you guys all ready have the best deals etc - but as a money saving newbie - I thought this was the perfect time to be tough and review everything.

SKY and O2 were particularly accommodating! And the other stuff, well we just don't 'need'

The more i get into this, the more I see it's just as much a change if mind-set as it is a financial objective, and importantly it's moving forward, there is an end in sight (not easy) but look around this forum, there are people who have been through this and come out the other side!

£80 is a huge amount extra, and I know what you mean about the mindset, it really is. Some of the long-timers on here really know how to making savings & stretch budgets. All good stuff debtfree and will help us to maintain debt freedom when the time comes for us to get to the end of the DMP.

Growurown, have to pay the repairs somehow, it's a good thing as long as what you do what works for you - don't know if it might even work in your favour long term as it would show you can repay manageable credit?

Night everyone, have a good weekend

DebtMagnet

dad2one wrote: »

So....
I'm 8 months into my DMP, and finally HSBC have stirred. I have three debts with them. Initially into the DMP there was total silence from them. Then for each debt eventually came an arrears notice, then a default notice... standard computer print offs.

(Take note this is how the system works)

Then this week an unusual letter implicity threatening court action because I have not been meeting my end of the loan contracts. Futhermore stating wrongly that I had made no communication or response to them as to why this was happening. A big phone number was printed that I had to ring within 14 days or else!

Ok, I had written to HSBC several times explaining my situation, my DMP arrangement etc. and of course StepChange had done the same. All payments cashed etc. so I was a bit mad about the language and nature of the letter.
I rang them.

The letter was of course just another standard and was their way of getting to talk to me over the phone. Yes, they were aware of the plan, and had received all my letters... they just wanted to log an actual verbal contact with me on their system. The phone operator was very nice and chatty.

They informed me that it was policy to hand over my debts to a collection agency, and that I would be getting written confirmation of this. The agency would be 'Metropolitan'.

A quick search showed that Metropolitan is actually a HSBC company anyway so.... it's their in house collection dept.
The operator told me there was likely to be no problem in my DMP continuing with them as usual, but that I should inform StepChange of the transfer.

So, I will see what happens - but it kind of illustrates what I was saying above of how the formalities have to be gone through.

Thanks for this dad2one, useful information especially as one of my initial refusals is for 2 accounts I have with HSBC.

Its really helpful to know how things may well pan out further down the line as pre-warned is pre-armed!!