DMP & Mutual Support Thread - Part 9

Ellieseleven

Just catching up with this thread... Welcome to all the newbie's and to WoodyPuddy, we were in a similar position to you when we started out on our DMP - we were paying approx £300 per month instead of the £1300 that we had paid previously and our debt free date was 11 years away! Over the last few years we have managed to increase our payments and cut our DFD by over 4 years so far (and looking to reduce this even further). MBNA were also one of our creditors and they accepted our offer and defaulted us early on (which is a good thing).

I must say that I am so glad to see the back of January, we managed to scrape through after all the calamities that have befallen us recently! It was just one bad thing after another but perhaps we have now turned a corner:o OH has a job interview and although I am trying very hard to remain calm and not get too excited, this would be a major step for us as his business has suffered so much in recent years.

Keep strong DFW's - onwards and upwards!

Ellie xx

w81

Hi, newbie here on this thread, but I might become a regular.

Does anybody have any experience or knowledge about transition from 0% promotional rates into reduced payment through a DMP?

Haven't done anything yet, but basically reduced income as Better Half gone back to uni to get nursing qual. Was managing ok (or just) as most of our credit cards still on the 0% promotional rates still, but in last month realised that my understanding of minimum payments and interest did not add up :doh: So interest rates now starting up on a few cards and it is going to upset the balance. No opp to tart.

How do creditors look upon those suggesting a DMP arrangement on a debt that is either still in 0% promo rate, or just gone from promo rate into interest bearing?

I have spoken to Stepchange, done their debt remedy, also looked at the CAP website/guide. What I am thinking is that I may self-manage a DMP, and attempt arrangements with creditors either one by one or all at once. Either that or try and manage for the 1.5years until OH finishes, paying credit card mins pos at expense of other debts to my family.

Any advice?

Thanks, W

Puzzcat

w81 wrote: »

Hi, newbie here on this thread, but I might become a regular.

Does anybody have any experience or knowledge about transition from 0% promotional rates into reduced payment through a DMP?

Haven't done anything yet, but basically reduced income as Better Half gone back to uni to get nursing qual. Was managing ok (or just) as most of our credit cards still on the 0% promotional rates still, but in last month realised that my understanding of minimum payments and interest did not add up :doh: So interest rates now starting up on a few cards and it is going to upset the balance. No opp to tart.

How do creditors look upon those suggesting a DMP arrangement on a debt that is either still in 0% promo rate, or just gone from promo rate into interest bearing?

I have spoken to Stepchange, done their debt remedy, also looked at the CAP website/guide. What I am thinking is that I may self-manage a DMP, and attempt arrangements with creditors either one by one or all at once. Either that or try and manage for the 1.5years until OH finishes, paying credit card mins pos at expense of other debts to my family.

Any advice?

Thanks, W

Hi,


As soon as you fail to pay the correct payment the promo rate is a gonna.. on the upside with a dmp, apart from a trashed credit rating with luck your creditors will freeze/reduce interest..

Hopelessly_Hopeful

w81 wrote: »

Hi, newbie here on this thread, but I might become a regular.

Does anybody have any experience or knowledge about transition from 0% promotional rates into reduced payment through a DMP?

Haven't done anything yet, but basically reduced income as Better Half gone back to uni to get nursing qual. Was managing ok (or just) as most of our credit cards still on the 0% promotional rates still, but in last month realised that my understanding of minimum payments and interest did not add up :doh: So interest rates now starting up on a few cards and it is going to upset the balance. No opp to tart.

How do creditors look upon those suggesting a DMP arrangement on a debt that is either still in 0% promo rate, or just gone from promo rate into interest bearing?

I have spoken to Stepchange, done their debt remedy, also looked at the CAP website/guide. What I am thinking is that I may self-manage a DMP, and attempt arrangements with creditors either one by one or all at once. Either that or try and manage for the 1.5years until OH finishes, paying credit card mins pos at expense of other debts to my family.

Any advice?

Thanks, W

Welcome


The NEDCAB site is worth a look too.

I agree with Puzz. I had some zero and low interest and bingo, the rate got wacked up. Swings and roundabouts though, some you win some you loose. Just need to be prepared to do battle.


HHx

w81

Thanks Puzzcat and HH for your replies,

It would make me and my OH much happier I think going on a DMP, and to reevaluate if/when she gets a job.

With Stepchange the Pro Rate offers they were going to make with Creditors would actually be higher than current repayments on zero% for some of the cards. I wonder if as long as it is above the amount required they will keep the zero% until it naturally expires. I'd guess that there is no way to know how they would react once they get a letter from SC but maybe contractually as long as keeping up mins..? Anyone fancy to hazard a guess?

Best

w81

Hopelessly_Hopeful wrote: »

Welcome


The NEDCAB site is worth a look too.

Saw that one too and was really impressed - need to spend some time going through it

Amyboo

Hi can I ask some advice please?

I've managed to lower some of my direct debits today, I've been really cheeky and asked people like O2, sky and Specsavers if they could offer me some discounts. Some have agreed and some have gave me a 6 months offer. Anyway my question is should I put up my debt management payment even though it's only for a short term? Or is it better to save the excess and pay off in one lump sum. Also I receive CSA payments although the ex has obviously been hard up himself and not paid me for a couple of months. We've had to use the emergency savings to try and keep paying the same payment to Step Change as I really really didn't want to lower the payment. So is it best to try and put my emergency savings back up to where they were?

Any thoughts on what to do?

antonic

Amyboo,

When I was on my DMP with Payplan, I tried to keep it as accurate possible, and I included some items that I didnt spend on every momth, and they never objected.

If you are planning to do the same , make the amounts reasonable, and you *shouldnt* run into any problems - I never did.

Amyboo

Thanks Antonic, I think I'm going to put them into savings and then pay off as a lump sum. CSA cannot guarantee any payment and even told me I shouldn't be classing the payments as an income:(

Back_on_budget

Coinmachine wrote: »

I have heard back from 5 of my 9 creditors so far, all 5 have accepted the DMP and 3 have frozen interest. The other 2 dont state either way about interest. One of my creditors is Tesco and they have accepted for 6 months following which they will review. Is thiis anything to be concerned about or are they just protecting their position in the event I was to miss any of those payments - which I wont of course!

One of our debts is with Tesco. We had the same letter. Not heard from them since, and they froze interest from day one. We are now 18 months in, so I would worry.

Most of our creditors said they would review after 6 months. Lloyds tried to change the terms after 6 months, but after a letter or two, they got back on board.