DMP & Mutual Support Thread - Part 9

cookie79_2

Got a text today from SC saying they've set up my DMP and the first payment will be due 10/02/2014. No email or paperwork yet, so am wondering what happens now. I assume they now write to my creditors wit an offer and they decide whether to accept or not.
A question for those already on DMPs, when it comes to renewal time for my car and home insurance will i have any issues with continuing with monthly payments or will this be seen as credit?

Mr_Mink

cookie79 wrote: »

Got a text today from SC saying they've set up my DMP and the first payment will be due 10/02/2014. No email or paperwork yet, so am wondering what happens now. I assume they now write to my creditors wit an offer and they decide whether to accept or not.
A question for those already on DMPs, when it comes to renewal time for my car and home insurance will i have any issues with continuing with monthly payments or will this be seen as credit?

I renewed my car insurance last November on monthly payments with no problems at all. So in theory you should be fine.

Come to think of it, I can't recall ever even seeing my insurance "loan" on any of my credit files. I think it may be handled differently.

cookie79_2

Mr_Mink wrote: »

Come to think of it, I can't recall ever even seeing my insurance "loan" on any of my credit files. I think it may be handled differently.

Good point! I don't think I've seen it on mine either. It only occurred to me because a friend of mine is trying to arrange insurance for her 17 year old and has had to arrange for the monthly payments to come out of her bank as he is under 18 and therefore not allowed credit. Prior to this, I didn't consider paying insurance monthly as 'credit'.

amberalert

Hello, I was wondering if anyone on the forum who currently have a DMP have been or are in the process of re-mortgaging. The reason I ask is that I contacted Stepchange who were very helpful and have recommended that I go on a DMP, but I have a fixed rate mortgage coming to an end in November and don't want anything to affect my chances of getting another fixed rate.
I would appreciate hearing from anyone in the similar situation and if they have had any problems or not and would I be advised to not shop around and stick with my current mortgage provider.


Amber

Sergeantbluebird

Hi everyone!

I have been referred to this thread from Time To Face The Music from the main debt wannabee board as my wife and I are about to enter into / start the process of a DMP. (thanks again TTFTM for your help and time taken to reply).

Our basic circumstances are that we have £51k in unsecured debt but are on ok salaries so up until now have been able to service the debt but without reducing it. Recently we have had unexpected payments and had to take out HP on a 2nd hand car which has resulted in us starting to make late payments, juggle our payments around and, inexplicably, are now in arrears with our mortgage but only by £300 which we will catch up with next month.

We have sought alternative solutions to our debt problem including re-mortgaging to consolidate some of our debt but our credit rating is obviously poor due to the amount of borrowings we have. So after reviewing the MSE site and some debt help websites we processed our info into SC and the recommendation was a DMP and an application pack is on it's way.

A few questions if anyone can help us!:

We are forecasted to repay the amount over 4 and a bit years at around £1000 pcm, we're currently paying about £1500 a month so should we increase the amount slightly to pay off the debt sooner or stick to the amount projected on the debt remedy summary as we have been living on basic essentials for so long it would be a relief to have a small amount of breathing space each month!

If our financial position improves during the DMP (which we hope it will in year two once my wife goes back to full time work - currently part time) can interest be re-instated by the creditors and if so would it be back dated?

Amongst the excellent advice from TTFTM was that SC may not be the best option as, in the experience of TTFTM, they appear to offer a great service in relation to taking the pressure away in the first instance but when creditors play hard ball they don't really put up much of a fight? Has anyone else had similar experiences with SC?

We are looking to perhaps start with SC and hope that they have success with our creditors as my feeling is that they may add more weight coming from a registered debt charity. If they are unsuccessful we may then approach creditors directly as TTFTM did.

Any advice would be greatly welcomed, we are at crucial stage on our road to recovery and we want to make sure we approach it and execute it as best we can.

markwoods10

cookie79 wrote: »

Got a text today from SC saying they've set up my DMP and the first payment will be due 10/02/2014. No email or paperwork yet, so am wondering what happens now. I assume they now write to my creditors wit an offer and they decide whether to accept or not.
A question for those already on DMPs, when it comes to renewal time for my car and home insurance will i have any issues with continuing with monthly payments or will this be seen as credit?

i have my first SC payment on 10th feb too
have already rec'd a letter from 3 creditrs stating that they have suspended inerest and added defaults already i called them and they said that they will be in direct contact with SC .
SC say that even if they reject the offer they will still pay the offered amuount
i managed to get new bank a.c up n running and wages moved to there today. cancelled all cpas.
payday lenders were surprisingky co operative?
not going to be sure about halifax as have 1.5k overdraft and 6k credit card but they are getting the biggest chunk
inface credit card are getting few pence more on the plan that normal.
i still have a worry about one though as i took short term loan for £150 then next say went on DMP. as finally realised i had taken too much on. they called me really nasty accusing me of fraud! calling me a criminal SC say that was probably silly thing to do but would have gone on plan very soon and i am still paying them will take 12 months not six they advised just to stay on plan

fingers crossed all ok.
good luck to you too keep me possted.

Hopelessly_Hopeful

amberalert wrote: »

Hello, I was wondering if anyone on the forum who currently have a DMP have been or are in the process of re-mortgaging. The reason I ask is that I contacted Stepchange who were very helpful and have recommended that I go on a DMP, but I have a fixed rate mortgage coming to an end in November and don't want anything to affect my chances of getting another fixed rate.
I would appreciate hearing from anyone in the similar situation and if they have had any problems or not and would I be advised to not shop around and stick with my current mortgage provider.


Amber

Hi

I think this depends on context. Generally I'd say people on a DMP can only get another deal with their existing mortgage company. Last year my mortgage company gave me written approval to 'port' my mortgage to another property. They don't have a licence to lend any more money but at least I had the option of moving. I am in the last 6 months or so of my DMP and have just had two Decisions in Principle to take on new mortgages for higher amounts.

Hope that helps.

HHx

Hopelessly_Hopeful

Sergeantbluebird wrote: »

Hi everyone!

I have been referred to this thread from Time To Face The Music from the main debt wannabee board as my wife and I are about to enter into / start the process of a DMP. (thanks again TTFTM for your help and time taken to reply).

Our basic circumstances are that we have £51k in unsecured debt but are on ok salaries so up until now have been able to service the debt but without reducing it. Recently we have had unexpected payments and had to take out HP on a 2nd hand car which has resulted in us starting to make late payments, juggle our payments around and, inexplicably, are now in arrears with our mortgage but only by £300 which we will catch up with next month.

We have sought alternative solutions to our debt problem including re-mortgaging to consolidate some of our debt but our credit rating is obviously poor due to the amount of borrowings we have. So after reviewing the MSE site and some debt help websites we processed our info into SC and the recommendation was a DMP and an application pack is on it's way.

A few questions if anyone can help us!:

We are forecasted to repay the amount over 4 and a bit years at around £1000 pcm, we're currently paying about £1500 a month so should we increase the amount slightly to pay off the debt sooner or stick to the amount projected on the debt remedy summary as we have been living on basic essentials for so long it would be a relief to have a small amount of breathing space each month!

If our financial position improves during the DMP (which we hope it will in year two once my wife goes back to full time work - currently part time) can interest be re-instated by the creditors and if so would it be back dated?

Amongst the excellent advice from TTFTM was that SC may not be the best option as, in the experience of TTFTM, they appear to offer a great service in relation to taking the pressure away in the first instance but when creditors play hard ball they don't really put up much of a fight? Has anyone else had similar experiences with SC?

We are looking to perhaps start with SC and hope that they have success with our creditors as my feeling is that they may add more weight coming from a registered debt charity. If they are unsuccessful we may then approach creditors directly as TTFTM did.

Any advice would be greatly welcomed, we are at crucial stage on our road to recovery and we want to make sure we approach it and execute it as best we can.

Hi and Welcome

I buried my head in the sand for two years before starting the DMP. My how I regretted how that interest piled on! Doing a DMP is one of the best decisions I ever took as at least there is a future, albeit trimmed to the bone, especially at the start of it.

I was with SC and had the same experience. I will always be tremendously grateful for the anonymous debt tool online they have and for the ease of starting up the DMP. I too left and went self managed as creditors either wouldn't stop and some reapplied interest rates. Had I my time again I'd go self managed from the start. easy to say in retrospect and not for everyone I do agree.

Interest can't be back dated. One of the downsides of DMPs is that they are informal so no set rules etc. you can reference various good practice guidelines and we can help with that. Before I started I spent a couple of days going back to previous versions of this thread and reading page after page. It's amazing how much knowledge and support is there and how many queries you get answered.

I'd pay minimum you can on DMP and squirrel any wage rise so you can make your move to pay off creditors later when all the circumstances have been weighed up.

Good luck to you, stick around and let us know how you get on.

HHx

Hopelessly_Hopeful

markwoods10 wrote: »

i have my first SC payment on 10th feb too
have already rec'd a letter from 3 creditrs stating that they have suspended inerest and added defaults already i called them and they said that they will be in direct contact with SC .
SC say that even if they reject the offer they will still pay the offered amuount
i managed to get new bank a.c up n running and wages moved to there today. cancelled all cpas.
payday lenders were surprisingky co operative?
not going to be sure about halifax as have 1.5k overdraft and 6k credit card but they are getting the biggest chunk
inface credit card are getting few pence more on the plan that normal.
i still have a worry about one though as i took short term loan for £150 then next say went on DMP. as finally realised i had taken too much on. they called me really nasty accusing me of fraud! calling me a criminal SC say that was probably silly thing to do but would have gone on plan very soon and i am still paying them will take 12 months not six they advised just to stay on plan

fingers crossed all ok.
good luck to you too keep me possted.

Welcome

Sounds like you are well on your way

HHx

Growurown

Just been online looking at my new SC statement for January and my estimated debt free date in November next year. Now I know that is a long way off but I could be debt free next year! It just sounds so good to say I will be debt free next year!