DMP & Mutual Support Thread - Part 9

worn_out_3

Sorry if this is in the wrong forum, I posted it in the Loans forum and was pointed here.

I will contact step change for advice but just wondering if anyone had any experience with this.

My husband and I have had a DMP with stepchange for four years without missing payments and try to increase the monthly payments where possible. We have around 7 years left on this. During this time we have worked hard to live within our budget and haven't taken out any form of debt or missed or been late with any of our bills.

This month things have went wrong, the car has broken down (after paying the road tax at the start of the month). My husband needs the car for work. He works about 50 minute drive away and works shifts (so cycling and buses are out of question). There is no one he can car share with.

We don't have any savings and no family we can borrow money from.

The organisation my husband works with has its own credit union. We are talking about taking out a small loan over a short period. We would be able to afford the repayments by tightening the budget.

Would doing this affect our DMP? We obviously don't want to go down this route if it means our four years hard work will be ruined.

Thanks in advance for any responses.

Enough_Now

Hi worn out

I believe that credit unions still have to conduct checks with credit reference agencies, even though they are workplace based. I would think it is unlikely that anyone on a DMP would qualify for this reason.

I am not sure what the reaction would be from the creditors but you do sign an agreement to say you will not take out further credit at the start of the DMP. Maybe a better option would be to suspend/reduce DMP payments for a few months to get the money for car repairs?

Hope you work it out.

NaughtySpot

worn_out wrote: »

Sorry if this is in the wrong forum, I posted it in the Loans forum and was pointed here.

I will contact step change for advice but just wondering if anyone had any experience with this.

My husband and I have had a DMP with stepchange for four years without missing payments and try to increase the monthly payments where possible. We have around 7 years left on this. During this time we have worked hard to live within our budget and haven't taken out any form of debt or missed or been late with any of our bills.

This month things have went wrong, the car has broken down (after paying the road tax at the start of the month). My husband needs the car for work. He works about 50 minute drive away and works shifts (so cycling and buses are out of question). There is no one he can car share with.

We don't have any savings and no family we can borrow money from.

The organisation my husband works with has its own credit union. We are talking about taking out a small loan over a short period. We would be able to afford the repayments by tightening the budget.

Would doing this affect our DMP? We obviously don't want to go down this route if it means our four years hard work will be ruined.

Thanks in advance for any responses.

Does the car just need mending or is it a right off? You should be able to make reduced payments for a couple of months, but the best bet is to phone step change for their advice. Part of the agreement with your creditors and step change is that you won't get anymore credit so if you get this loan you may find that your agreements come to an end.

Good luck, it's so hard without any credit options sometimes.

BevieB

Puzzcat wrote: »

Halifax statement has arrived....no interest or charges showing...:T

You need to check as the Halifax will normally freeze charges/interest for 30 days then re instate at a lower rate (ours was 1% per month) When they start charging again our statements showed no interest charges but they did some sort of clerical calculation so the payment requested included the 1% interest. Take care as it took us well over a year before the passed us on to a DCA then interest stopped.

Puzzcat

BevieB wrote: »

You need to check as the Halifax will normally freeze charges/interest for 30 days then re instate at a lower rate (ours was 1% per month) When they start charging again our statements showed no interest charges but they did some sort of clerical calculation so the payment requested included the 1% interest. Take care as it took us well over a year before the passed us on to a DCA then interest stopped.

Thanks for the heads up, I will make sure I keep an eye on them!!!

Hopelessly_Hopeful

worn_out wrote: »

Sorry if this is in the wrong forum, I posted it in the Loans forum and was pointed here.

I will contact step change for advice but just wondering if anyone had any experience with this.

My husband and I have had a DMP with stepchange for four years without missing payments and try to increase the monthly payments where possible. We have around 7 years left on this. During this time we have worked hard to live within our budget and haven't taken out any form of debt or missed or been late with any of our bills.

This month things have went wrong, the car has broken down (after paying the road tax at the start of the month). My husband needs the car for work. He works about 50 minute drive away and works shifts (so cycling and buses are out of question). There is no one he can car share with.

We don't have any savings and no family we can borrow money from.

The organisation my husband works with has its own credit union. We are talking about taking out a small loan over a short period. We would be able to afford the repayments by tightening the budget.

Would doing this affect our DMP? We obviously don't want to go down this route if it means our four years hard work will be ruined.

Thanks in advance for any responses.

Hi

Life events will crop up for us all from time to time. I had approval from SC to get a car loan if needed as it could be defended that needed for work and no work no money so no DMP payments. I didn't end up needing it and my car limped through until I got a lease car with work, phew. Just make sure you get their approval in advance.

Good luck

HHx

jubilee14

BevieB wrote: »

You need to check as the Halifax will normally freeze charges/interest for 30 days then re instate at a lower rate (ours was 1% per month) When they start charging again our statements showed no interest charges but they did some sort of clerical calculation so the payment requested included the 1% interest. Take care as it took us well over a year before the passed us on to a DCA then interest stopped.

Hi puzcat bevieB Hfx are still charging me 1% per month just at the end of my first year but its pushing the date out. But it does show up on my hfx statement of the interest charged. Would be nice if they had a bit of continuity across the board of their approach tho.

Puzzcat

jubilee14 wrote: »

Hi puzcat bevieB Hfx are still charging me 1% per month just at the end of my first year but its pushing the date out. But it does show up on my hfx statement of the interest charged. Would be nice if they had a bit of continuity across the board of their approach tho.

Hi jubilee, have you complained and if so did you follow it up with the fos?

Mojo13

Sazzie23 wrote: »

Hi mojo, not something I have dealt with but sure the question was answered previously as Puzz says that the money was safe. If you are worried though, maybe you could move accounts - to get a better rate? Or withdraw most of the money until the danger is passed?

Thanks Sazzie and Puzz,

I gave in in the end and just got my name taken off, left Grandma as the sole name on there, I just couldn't live with the slight possibility they may take it, you know how small things become so big in your mind.

Mo

jubilee14

Puzzcat wrote: »

Hi jubilee, have you complained and if so did you follow it up with the fos?

HI Puzzcat the reduction was the outcome from the formal complaint. Ashamed to say havent taken it up with FOS as thought i missed the 6 month cut off and life has been very hectic. Promise myself to write new letter to Hfx and call FOS to see if there is any hope thanks