DMP & Mutual Support Thread - Part 9

Mr_Mink

Just my two cents on rejected plans. Our Payplan advisor told us that some will reject it in the hopes of getting a higher payment out of you but the most they can do is go CCJ route where a court will look at your income/expenditure and award them the same amount a month as was proposed in the DMP. We fortunately didn't get any rejections but as others have said, if they're taking the money then it should be fine.

seanavfc92

Monkeyballs wrote: »

That's an interesting one because if I had been in your situation then after speaking to SC I think I'd have done the same so it is definitely something for me to bear in mind in the future...

When I originally set up my DMP the emphasis on them was very much about keeping it fair to the creditors (they even gave me the formula they use to work out their distribution of payments which I've since forgotten) and told me that most creditors would use a similar formula and if it was not fair then some may not agree to their offers?

I guess now I'm wondering how accurate that information was...

Creditors do a credit check when you start on the plan. If they see that there's one creditor that's not on the plan and has it's own arrangement in place, they'll be more likely to reject the offer as they would expect the same type of arrangement as opposed to a DMP. It can be seen as preferential treatment.

The pro-rated formula varies the amount you pay to each creditor based on the balance that is owing.

Coinmachine

It shows how when stressed over all this you can make silly mistakes. Further to my posts yesterday, when I filled in my Debt Remedy Plan I listed a personal loan under secured debt rather than unsecured. having now re-done the plan it has increased my monthly payment and reduced the length of the DMP from 14 to 7 years! Much better!

Puzzcat

Coinmachine wrote: »

It shows how when stressed over all this you can make silly mistakes. Further to my posts yesterday, when I filled in my Debt Remedy Plan I listed a personal loan under secured debt rather than unsecured. having now re-done the plan it has increased my monthly payment and reduced the length of the DMP from 14 to 7 years! Much better!

You've knocked 50% off your dmp journey already, well done!!!

Monkeyballs

Coinmachine wrote: »

It shows how when stressed over all this you can make silly mistakes. Further to my posts yesterday, when I filled in my Debt Remedy Plan I listed a personal loan under secured debt rather than unsecured. having now re-done the plan it has increased my monthly payment and reduced the length of the DMP from 14 to 7 years! Much better!

LOL, easy done

And awesome news!

MB

Hopelessly_Hopeful

Coinmachine wrote: »

It shows how when stressed over all this you can make silly mistakes. Further to my posts yesterday, when I filled in my Debt Remedy Plan I listed a personal loan under secured debt rather than unsecured. having now re-done the plan it has increased my monthly payment and reduced the length of the DMP from 14 to 7 years! Much better!

Result


HHx

gig11

Hi I am just entering my 2nd year of a DMP with Stepchange. I have 2 accounts with Marks and Spencer both paid through DMP so same percentage of payment being made. Both are now being paid above the minimum payment.One account has been defaulted and no interest is being charged ,the other one is showing payment in arrears and charging me interest of 24.9% . If I query this do you think I would risk them starting to charge interest on the first account. Both accounts were interest free to start with. They started to charge interest on the 2nd account when min payment amount was reached several months ago.

Time_to_face_the_music

seanavfc92 wrote: »

The pro-rated formula varies the amount you pay to each creditor based on the balance that is owing.

This is not actually correct for Stepchange DMPs. Their pro-rata distribution is based on previous minimum payment to the debt.

On_that_log_road

Hi everyone,

Not had chance to post recently due to work.

My Christmas was pretty quiet and very uneventful......What a great feeling!!!!!

I Just wanted to wish you all a very Happy New Year and wish you all the best in that quest for debt free paradise!!!

Time_to_face_the_music

gig11 wrote: »

Hi I am just entering my 2nd year of a DMP with Stepchange. I have 2 accounts with Marks and Spencer both paid through DMP so same percentage of payment being made. Both are now being paid above the minimum payment.One account has been defaulted and no interest is being charged ,the other one is showing payment in arrears and charging me interest of 24.9% . If I query this do you think I would risk them starting to charge interest on the first account. Both accounts were interest free to start with. They started to charge interest on the 2nd account when min payment amount was reached several months ago.

This happened to HH and when she challenged it, M&S started interest on the other account too.


I lost a case with the FOS with M&S and it's the only debt I never managed to get down to zero interest


Hope someone has some more positive suggestions for you but I personally would not risk the challenge in this particular case.