DMP & Mutual Support Thread - Part 9

toots82

Hi everyone,

well here goes......my name's toots and I'm starting a DAS We finally had to admit defeat and realise that just keeping our heads above water wasn't cutting it anymore. So after looking at everything available to us up here (Scotland), we decided on the Debt Arrangement Scheme. Its all still new to me and I don't really understand the differences between DAS and DMP but am happy with where things are going for us.

So, initially our payments are set up for 5 years (unless any objections but from what I gather, our payments are relatively high in DAS terms so fingers crossed) we theoretically should be able to afford more but would like to get back on our feet and some money away for emergencies then we hope to make extra payments (I've been told this is fine).

We have a lot of debt (over 30k) but I will be hugely proud when we pay it back and am happy that the DAS is middle ground for us, no insolvency etc. We have a good income every month but the large number of creditors (esp c/c's) meant that the interest we were paying was what was crippling us.

So, I've managed to get a normal bank account and savings account with Clydesdale (would you like an overdraft...NO THANK YOU!!!!, goodness knows how on earth I was offered one with my credit rating!!) So that's all organised, still have access to debit cards which is a huge help.

Our ideal plan is to get the DAS paid off asap then look to move house. I know the defaults will remain for 6 years but I've been informed that this doesn't make it impossible to get a mortgage, just makes it a bit trickier....any experience welcome. We have a Halifax mortgage & have had it for 10 years, never missed a payment and at the moment have around 30k equity in house. Hopefully this will be more when the time to sell comes. Regardless we're here for next few years, we have enough space (just) lovely neighbours and a good nursery and school just up the road. I'm barely over 30 (DH a wee tad older, not much though) and my kids are young, here's to getting out of this mess that we got ourselves into. Onwards and upwards :money:

Sazzie23

Hi everyone,

Welcome Pickles and Toots

Toots, well done for recognising your issues and making a start art sorting them out, I haven't come across the Scottish DAS scheme, it sounds similar to DMP but I'm not sure?

There are ways to get mortgages after DMP and defaults, even within DMP I'm told but the rules seem to vary for different lenders.

Hope you find the advice you want here.

Have a good day everyone

Ps TTFM your rambles are lovely - and useful- why on earth are employers being so rubbish over redundancies, do they want to get out of paying:mad:

toots82

thanks sazzie,

I think with DAS we get a bit more protection, our interest is guaranteed frozen from when DAS is arranged and the banks etc cant ask for any more money or turn down the offer if its deemed reasonable, even if they refuse it can be taken higher and they can be made to agree I think

redscorpion1

Thanks for all the earlier advise on my post earlier this week.
I thought I would update you all regarding my HSBC advantage account that was costing me £12 p/m.
I phoned payplan to discuss the fact that the advisor said the account would have to be credited £500 per/month for a free bank account and my concerns as my wages are now paid to a Natwest "safe" account. Anyway PayPlan told me that HSBC would have to remove the account fees as the are not allowed to charge for these extra services when you are in financial hardship. Payplan advised I should make an appointment face to face at the branch to discuss this. I was going to do this yesterday but to my surprise I received a letter from HSBC to say my account had already been degraded to a non fee paying one.
I feel more positive now that my DMP payment to HSBC will not be swallowed back by fees for insurances I don't need.
All in all not a bad result from HSBC.

Mossop01

Hi all, quick up date from me.
Dmp running fine, no probs and all quiet!
Had some good news, a ppi refund from hsbc which has cleared our loan with them and a few ( and I mean a few) pennies left to go into the emergency pot! Woohoo
Then had some bad news both our cars started playing up in the same week!!! OHs car is newer than mine and hopefully less costly as I'm hoping it's something minor! My car however is a little more fragile and much older and I'm just hoping above all hope that this isn't the end for it, I'm going to smile sweetly at the mechanic tomorrow and keep everything crossed!
Ever feel like screaming " let me get off this roller coaster!!"
Anyway glad everyone's dmps are up n running and welcome to the newbies
It's definately a journey... And one I should have taken a long time ago!

Pickle29

Hi
Me again! Can anyone tell me the following?
Will I get confirmation from each creditor that they have accepted my plan/payment or will I only hear if they don't accept it (like Santander)?

As stepchange are now paying them (they should get their first payment any day now), do I need to contact them? (as I haven't- left it all to stepchange)

When I get default notices (another one today) do I need to do anything or leave it as stepchange are paying them and have written to them (but I haven't)?

I know I ask lots of questions and I am probably being impatient but I don't want to keep bothering stepchange when I know how busy they are ( and how valuable they are) but I'm worried sick and keep thinking should I be doing something ( although I haven't been told to!)

Thank you for being patient with me x

antonic

Please see my answers in RED

Pickle29 wrote: »

Hi
Me again! Can anyone tell me the following?
Will I get confirmation from each creditor that they have accepted my plan/payment or will I only hear if they don't accept it (like Santander)? The only confirmation you *may* receive (and which I got from HBOS), is that if they still send you credit card statements and they show interest as 0% - they have accepted the DMP and frozen the interest.

As stepchange are now paying them (they should get their first payment any day now), do I need to contact them? (as I haven't- left it all to stepchange) - no , any letters you get from your creditors scan them and send them via email to Stepchange (if Stepchange do this, I did with Payplan who ran my DMP for me).

When I get default notices (another one today) do I need to do anything or leave it as stepchange are paying them and have written to them (but I haven't)? - Default Notices are good for you, because usually when you get defaulted the interest gets frozen (When I was defaulted bu Capital One and Cahoot the interest was frozen until I cleared the debt, HBOS froze interest for 2 years, then charged interest for 2 years and then froze the interest again till my DMP ended).

I know I ask lots of questions and I am probably being impatient but I don't want to keep bothering stepchange when I know how busy they are ( and how valuable they are) but I'm worried sick and keep thinking should I be doing something ( although I haven't been told to!) - They are doing there best for you, and any question you ask is most probably one they have been asked before and they know the answer ! - remember you have taken the hardest step in realising AND dealing with your debt problem so take pride in that - I did !

Thank you for being patient with me x

We all want you to succeed in getting yourself debt free and living a life without financial worry.

It took me 90 months to clear my £24k debt with the help of Payplan I paid it all off in full.

My biggest sense of pride came twice from my Dad, when I started my DMP when he said he was proud of me for dealing with my debt problem and then 90 months later when I had paid off everything and this time he said he was proud of me for paying it all off even though he knew how (financially) tough it had been for me.

Good luck and ask any question you want and we will try to help you !.

annoyedwithHSBC

Hi,

This month I made my first payment through Payplan. According the website however one company rejected the payment offer. They keep ringing me on my mobile while I am at work. I don't want to ring them back because frankly I don't really want to talk to them. I am paying as much as I can afford (they are my 2nd (out of 9) smallest creditor). What will they likely do if I just ignore them?

Thanks

Sazzie23

Hi annoyed

Maybe you could try writing to them to re-iterate your offer and to say you only want to communicate in writing.?

I think there may be some template letters on debtline site - worth a look.

Growurown

annoyedwithHSBC wrote: »

Hi,

This month I made my first payment through Payplan. According the website however one company rejected the payment offer. They keep ringing me on my mobile while I am at work. I don't want to ring them back because frankly I don't really want to talk to them. I am paying as much as I can afford (they are my 2nd (out of 9) smallest creditor). What will they likely do if I just ignore them?

Thanks

The advice from Step Change in this situation is to keep on paying and just keep re-iterating that you are on a DMP with payplan and quote them your reference number. Don't worry if they pass you over to a DCA, everything carries on just the same.