DMP & Mutual Support Thread - Part 9

abbylou

Hi everyone. Dh and I are sitting down tomorrow night to go through all our money/debt. We have been on a DMP for almost 4 years with Debtline and it has cost us £60 every month. Ridiculous isn't it? I can't believe we started it and have left it for so long but we were in a really bad place and didn't know there were alternatives. I think we have around £30,000 of debt but will know more tomorrow night.
After Christmas we will have a little more to put to our debt and want to start again. We don't want to continue with Debtline and I don't think we have to give notice but will check tomorrow. We are thinking of trying to manage the plan ourselves. We will ring the companies and offer to pay slightly more than we are doing but do it ourselves. Not sure how that is going to go? Some say they will look on us less favourably than a company, others say not sure. I know we could use a non-charging organisation like Stepchange but changing over bothers me as there is always such a long time between payments. I would just feel more in control doing it myself.

Equilibrium13

FreyaWillow wrote: »

Thanks HH and Foolish. I have been reading through the forums.

I am finding it really hard to sleep and to concentrate on other stuff during the day
I am dreading Christmas as I have a large extended family and not much money to pay for Christmas pressies. I usually spend a lot on everyone and this I can't even afford to spend £10 on each of them. Not sure what I am going to do. I feel so stupid for getting into this situation. In total my debts come to £13859 I was getting it down until I started on the payday loan spiral and now it's rocketed. My repayments for them are so huge I have no money to start paying back anything else. It's hit me this month how bad it is and I can see no end in sight. The only person I have told that I am in trouble is my mum and she doesn't know the half of it. It's so scary and lonely going through this on your own. It's nice reading the forums as I kind of feel that I am not so alone I cry a lot at the moment and think about ending it all. I am hoping things will get better eventually.

I hope one day to be putting my own inspiring story of how I am debt free at some point in the future. The thought of that is keeping me going through the darkness at the moment

I have sent my letters saying that I have approached stepchange for help and have only so far got a response from H&M who were lovely

Hi FreyaWillow,

I'm starting with StepChange as well, just made my first payment yesterday. (It's not due yet, but I was so worried the bank might offset my salary for associated debts, that I paid all my bills, rent and topped up my Oyster card and withdrew the rest of the money!)

My debts are around the same amount as yours and I also have payday loans. I got a letter from my bank today to confirm that they have cancelled the continuous payment authority on my account as I requested and will monitor it for 90 days. They warned that the lender might still try to take money out - but I have read somewhere that the bank refunds the money if that happens.

I've been burying my head in the sand for years, but the situation has only gotten worse and worse. Over the last few months I haven't made any payments to some of my debts and felt very stupid and embarrassed about it. I feel so much better now I'm getting help with it and have told a few friends about it, who were just happy for me to be dealing with it.

I have only received a reply from one of my creditors so far saying they have accepted my reduced payments, others are still sending letters demanding payment. Will have to give it a bit more time I guess.

With regards to Christmas presents, one year I had hardly any cash and gave home made vouchers to some of my family and friends. Everyone loved it. It can be anything, like an invite for a home cooked meal, massage (if appropriate!) trip to the cinema, a walk in the park with you... whatever you can think of that is free or doesn't cost much and fits the person you are giving it to. My sister loves baking and often makes cookies or chocolates that she puts in nice packaging and make a really lovely present. Last year I bought a photo album with a funny cover and filled it with silly photos of the person and her family and friends, that was a hit There's so much that can be done and most people appreciate that you've put thought and creativity into the gift

It's so inspiring to read all the positive posts on here. I know it's not going to be easy, but with all the experience and great advice on here it can be done

I'm going to get a folder and dividers to keep all the correspondence now. I actually want to learn how to make spreadsheets now as well after reading about everyone keeping track of stuff by using them!

Best of luck to everyone!

Equilibrium13

Puzzcat wrote: »

Hi Equi !

Sorry there isn't a section for template letters on here, but these letters do pop up quite frequently.. The one I have earmarked is a TTFTM letter, on this thread post 2285. Hope this helps...

Thank you so much, that's great!

Equilibrium13

Time_to_face_the_music wrote: »

Try something like this, customising it for each creditor:

You

Date

Them

Dear Sir/Madam

Re: [Creditor name] account No: XXXXXXXXXXXXXXX

Thank you for your letter/statement concerning the above account. I am sorry that you feel unable to suspend interest/charges on the above account.

As you are aware, I/we am/are in a DMP with XXXXXXXX, reference number XXXXXXXX. The majority of my/our other creditors have agreed to the offer of payment and agreed to suspend any interest charges still accruing. They have accepted that to continue to charge interest would not assist us in my/our present financial difficulties, and can only serve to increase my/our total debt.

I/we have already paid considerable sums in interest to my/our account. If interest charges continue, the monthly instalments I/we am/are paying will not even cover that interest. Also, the cooperation of my/our other creditors who have agreed to freeze interest already would be put at risk.

I am aware that XXXXXXX subscribes to the Lending Code which states that lenders will consider reducing or suspending interest and charges if these would cause the debt to increase or lead to the repayment term becoming too extended. I would therefore be grateful if you would reconsider your decision not to freeze the interest. This would mean that the monthly payments I/we make would actually reduce the balance outstanding to your company.

Please consider this letter as a complaint about the interest charges you are continuing to apply to my account. I would like to see these stopped immediately and previous interest charges refunded.

If you are unable to help me with this issue, I will have no alternative but to take this case to the Financial Ombudsman Service.

I look forward to hearing from you as soon as possible.

Yours faithfully

You

And thank you very much Time to face the music for posting this! Hope you don't mind me quoting it, am sure there are other newbies who can benefit from it

*Foolish*

Find_The_Real wrote: »

Congratulations on the PPI reclaim Foolish, it is certainly worth doing it if you think you were mis-sold, especially if it was with First Plus as their tactics were terrible. Glad you are getting 50% back from the joint one.

My claim won't pay out unless I get agreement from the ex from hell which isn't going to happen but seeing they are going to offset it against the debt, I'm not that fussed as even if that didn't happen the IVA would capture it instead. So unless you have an ex from hell like me, I would always recommend claiming any PPI due!

That's annoying for you! Mine was with Alliance & Leicester (Santander) and they needed nothing from my ex at all. I also have no debts with them, which is a bonus! I do still speak with my ex, so I'm going to let him know so that he can go claim his 50% too!

FreyaWillow

Equilibrium13 wrote: »

Hi FreyaWillow,

I'm starting with StepChange as well, just made my first payment yesterday. (It's not due yet, but I was so worried the bank might offset my salary for associated debts, that I paid all my bills, rent and topped up my Oyster card and withdrew the rest of the money!)

My debts are around the same amount as yours and I also have payday loans. I got a letter from my bank today to confirm that they have cancelled the continuous payment authority on my account as I requested and will monitor it for 90 days. They warned that the lender might still try to take money out - but I have read somewhere that the bank refunds the money if that happens.

I've been burying my head in the sand for years, but the situation has only gotten worse and worse. Over the last few months I haven't made any payments to some of my debts and felt very stupid and embarrassed about it. I feel so much better now I'm getting help with it and have told a few friends about it, who were just happy for me to be dealing with it.

With regards to Christmas presents, one year I had hardly any cash and gave home made vouchers to some of my family and friends. Everyone loved it. It can be anything, like an invite for a home cooked meal, massage (if appropriate!) trip to the cinema, a walk in the park with you... whatever you can think of that is free or doesn't cost much and fits the person you are giving it to. My sister loves baking and often makes cookies or chocolates that she puts in nice packaging and make a really lovely present. Last year I bought a photo album with a funny cover and filled it with silly photos of the person and her family and friends, that was a hit There's so much that can be done and most people appreciate that you've put thought and creativity into the gift

It's so inspiring to read all the positive posts on here. I know it's not going to be easy, but with all the experience and great advice on here it can be done

Best of luck to everyone!

Thanks everyone for the comments I am feeling a little bit more positive today

Hi Equilibrium - thanks for the great ideas for Christmas. Thanks for your comments. Have you had any response from the payday loan lenders to your reduced payments? I know this will sound silly but it's them I am most worried about dealing with. I wish fervently that I had never heard of them and had never got involved with them. Hindsight is a wonderful thing. This experience has taught me that I will never allow myself to get into this situation again. I don't know about you but I am feeling in need of inspiration so I am going to sign up for some of the challenges on here. I probably won't be able to do them but I will give it a good go.

I think the next few months will be extremely tough but hopefully once they are out of the way things will settle down and I might be able to have some sort of a life again

Thank you so much everyone for all your help and the positive stories that are posted on here. It's a real comfort for people like myself just starting out to know that we are not alone and that other people have been in the same situation and come out the other side.

Tomorrow I am going to spend the day comping and doing my CV for a second job hopefully either Lionbridge or Leapforce

*Foolish*

FreyaWillow wrote: »

Thanks everyone for the comments I am feeling a little bit more positive today

Hi Equilibrium - thanks for the great ideas for Christmas. Thanks for your comments. Have you had any response from the payday loan lenders to your reduced payments? I know this will sound silly but it's them I am most worried about dealing with. I wish fervently that I had never heard of them and had never got involved with them. Hindsight is a wonderful thing. This experience has taught me that I will never allow myself to get into this situation again. I don't know about you but I am feeling in need of inspiration so I am going to sign up for some of the challenges on here. I probably won't be able to do them but I will give it a good go.

I think the next few months will be extremely tough but hopefully once they are out of the way things will settle down and I might be able to have some sort of a life again

Thank you so much everyone for all your help and the positive stories that are posted on here. It's a real comfort for people like myself just starting out to know that we are not alone and that other people have been in the same situation and come out the other side.

Tomorrow I am going to spend the day comping and doing my CV for a second job hopefully either Lionbridge or Leapforce

Out of my 5 PDL's I had issues with 2, nothing major, just a lot of phonecalls (which I chose to ignore) but I sent letters to them asking to stop phoning me and the correspond in writing. They wrote back saying they hadn't heard anything from SC (I think this is a regular response from some creditors) so I told SC and they resent their letters. Phonecalls stopped. One PDL added a whacking amount of interest but when I wrote to them, they told me it had been an admin error and they removed it. Try not to worry, I know it's hard, but they do seem to be pretty accepting.

Equilibrium13

That's helpful to know Foolish, glad you got them sorted!

I haven't heard from my payday loan lender yet either (Moneyshop only, luckily I didn't go for any more than that) but I am also worried about them, especially with their diabolical interest and charges. But I'm glad that the bank will be stopping them taking money out of my account. I know MS have received the letter I sent, as I sent it recorded delivery. I was expecting more letters from creditors this week, will see what next week brings...

Time_to_face_the_music

abbylou wrote: »

Hi everyone. Dh and I are sitting down tomorrow night to go through all our money/debt. We have been on a DMP for almost 4 years with Debtline and it has cost us £60 every month. Ridiculous isn't it? I can't believe we started it and have left it for so long but we were in a really bad place and didn't know there were alternatives. I think we have around £30,000 of debt but will know more tomorrow night.
After Christmas we will have a little more to put to our debt and want to start again. We don't want to continue with Debtline and I don't think we have to give notice but will check tomorrow. We are thinking of trying to manage the plan ourselves. We will ring the companies and offer to pay slightly more than we are doing but do it ourselves. Not sure how that is going to go? Some say they will look on us less favourably than a company, others say not sure. I know we could use a non-charging organisation like Stepchange but changing over bothers me as there is always such a long time between payments. I would just feel more in control doing it myself.

Hi abbylou :hello:

Dump the charging company ASAP, just check if you have to give them a notice period and if so, put this in place now. Don't wait until after Christmas, you could be wasting another £180 if you do!

Get the full contact details of all of your creditors: original lender, if passed over to DCA, contact address, amount outstanding etc.

Go to North East Derbyshire CAB website:

http://mymoney.nedcab.org.uk/moneyadvice/signup.asp

and punch in all of your figures there. It's a totally self managed DMP but gives you all the backup and support you need. All your details can be stored and you can print off all the letters you need. You even get a CAB reference number to supply to your creditors, in case they want to play silly bs and say they can only go through an external company rather than dealing directly with you. They can't legally say this but it saves you having the hassle with them over this.

Good luck and please let us know how you get on

Time_to_face_the_music

Equilibrium13 wrote: »

And thank you very much Time to face the music for posting this! Hope you don't mind me quoting it, am sure there are other newbies who can benefit from it

I don't mind one little bit

Any other template letters which are needed can be found on the excellent National Debtline website:

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#4

Scroll down to section 5 and sample letters, you can print directly or copy and paste and then adapt for your specific needs.

My advice re getting interest stopped came originally from my twin HH and is simply - do it as soon as possible. If the creditors do not play ball, get the FOS involved:

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

We did not win every case but we fought 5 and won 4!