DMP & Mutual Support Thread - Part 9

Hopelessly_Hopeful

Woodypuddy wrote: »

Thanks everyone for the responses.

Are Stepchange a charity or are they funded in the same way as Payplan?

Assuming I could start the whole process again with Stepchange rather than proceed with Payplan as I haven't signed anything yet? Got to say I did a bit of a google review earlier as I was unhappy with how the conversation had gone and am now a tad worried whereas I have read (in the main) good things about SC on here. It was the National Debt counselling service that forwarded my details to them.

I will definitely go on the SC website and take a look.

Morning


Im with my twin on this one, no surprise there!


There are two points to bear in mind from me.


1) DMPs are informal, that holds advantages in that they are flexible, or at least should be. The main disadvantage is that because of the informality they are not based in law and they are more about good practice guidelines which a creditor may or may not choose to follow. You can still lean on them should they not follow them but it can be more challenging than if it was a definite law.


Therefore these issues can apply whether you go with a fee paying, a 'charity' or go it alone with or without one of the assisted packs such as NEDCAB. You are expected to treat creditors equally and fairly but they wont necessarily extend the same courtesy to you.


2) No one will protect your interests like you will. It comes down to choice and how much you can handle with doing the research and being prepared to represent yourself. You could always go with one and then go self managed later.


I will always be very grateful to SC, particularly for the anonymous debt remedy tool. Start up was such a relief. However, had I my time again (always easy to say in retrospect) I would go self managed from the start; I've been self managed from month 33.


Good luck whichever you choose.


HHx

HRKL14

Hi,

Can anyone possibly give me some advice on my DMP with SC, I had an email back from SC last Wed saying plan all setup and we are contacting your creditors with offer, budget etc. A week has gone by and I havent heard a thing, is this normal? or am I just getting myself in a state thinking the worst.
I sent first payment through by online banking as first installment wasnt going to be until 1st March as my Direct Debit wouldnt have been set up in time for 1st Feb but I wanted to start payments asap. It is a reduced payment for first month as I have arrears on CTax. Do you think creditors will be ok until arrears are paid off and then my payments will go up. Sorry if this sounds all over the place, just so scared I am going to lose everything for being so stupid with money.

Growurown

HRKL14 wrote: »

Hi,

Can anyone possibly give me some advice on my DMP with SC, I had an email back from SC last Wed saying plan all setup and we are contacting your creditors with offer, budget etc. A week has gone by and I havent heard a thing, is this normal? or am I just getting myself in a state thinking the worst.
I sent first payment through by online banking as first installment wasnt going to be until 1st March as my Direct Debit wouldnt have been set up in time for 1st Feb but I wanted to start payments asap. It is a reduced payment for first month as I have arrears on CTax. Do you think creditors will be ok until arrears are paid off and then my payments will go up. Sorry if this sounds all over the place, just so scared I am going to lose everything for being so stupid with money.

Hi HRKL

If you have concerns about Step Change you can always ring them. I have found them to be very helpful and I am sure they can put your mind at rest. I don't think a week is unusual though. It can take some time for the paperwork to be processed.

Council Tax is a priority debt and must be paid first. It will be OK to target that debt first and creditors will have to wait for their share later on. It's not unusual for people to pay token payments for several months until they have sorted themselves out with the important debts such as council tax and rent.

As for being stupid with money, well I think we have all been there! Try not to worry it will all work itself out in couple of months - honest!

HRKL14

Thank you Growurown,

I think its the unknown with everything, Has anyone had many ccj's issued whilst on DMP. Step Change have been reassuring when I have rung in the beginning but I am just so worried if I have done the right thing with going down the DMP route, I owe 31k with 15 creditors, debts are overdraft, bank loan, CC's, Catalogues, . Have managed to keep on top of min payments for a year or so, None of my accounts have defaulted yet!! Have had no mail no tel calls. Have wrote a cover letter to all creditors explaining I am entering a DMP with SC with client ref number, request to hold any action interest, and to write only.

debtdawg

HRKL14 wrote: »

Thank you Growurown,

I think its the unknown with everything, Has anyone had many ccj's issued whilst on DMP. Step Change have been reassuring when I have rung in the beginning but I am just so worried if I have done the right thing with going down the DMP route, I owe 31k with 15 creditors, debts are overdraft, bank loan, CC's, Catalogues, . Have managed to keep on top of min payments for a year or so, None of my accounts have defaulted yet!! Have had no mail no tel calls. Have wrote a cover letter to all creditors explaining I am entering a DMP with SC with client ref number, request to hold any action interest, and to write only.

I haven't had any CCJs. I started in November 2012 and owed a similar amount as you, but to 6 creditors. I had never had a late payment prior to starting the DMP either, and really hated the idea of having to go down that route, but now I'm over a year into it the DMP and so pleased I took the action that I did. Before we were struggling to find nearly £700 a month in repayments, now we repay £310 a month and all, apart from 1, creditors have frozen interest so we will actually be debt free one day!

HRKL14

Thank you for your post, once I get the Ctax paid I am looking at around £300 a month to pay back. I just think no one is going to accept the plan and wont stop interest and just go straight to court. Did you get many phone calls and letters if so how long until it settled down.

debtdawg

Very few phonecalls, I just didn't answer the phone after setting it up. Lots of letters, but they were confirming the DMP. I get letters and statements occasionally, but I just pass them onto Stepchange if need be, and they are more ones telling me I am being defaulted or passing the debt on to a different department.

antonic

If they have any sense they *should* agree to the plan because you are committing to make regular payments to them which will cost them next to nothing to collect.

Also if you pay them off in full (like I did) they are getting all their money back without having to work hard to collect it.

Any interest they miss out on with you (if they freeze the interest) they will collect of someone else who doesnt clear their card(s) on payment date.

The timeline for my Payplan DMP went as follows:

Sept 2005 contacted Payplan as I couldnt pay my debts
Oct 2005 Telephone interview with Payplan , when my initial payment of £236.month was set.
Dec 2005 first payment made (I didnt pay token amounts between Sept and Dec)
2008 (various dates) my 3 CC providers defaulted me (I didnt argue about the date as I wasnt bothered)
Dec 2012 - DMP extended by 6 months to pay HBOS the interest on my CC after they froze interest for 2 years, then charged for approx a year, and then refroze interest.
Jun 2013 final DMP payment made to Payplan after 90 months.
March 2014, I am going on holiday with my Dad as its my treat for getting DF and sticking the DMP out for 90 months.

Congratulations on taking a positive step to deal with this problem.

HRKL14

Thanks guys,

Really a supportive forum on here. I feel I am not on my own, even though I feel sick inside.

I just couldnt go on like this any longer, I kept this a secret from my nearest and dearest aswell.

hopeful_at_last

Hi all

Has anybody managed to get interest frozen by aquacard or barclaycard. I have just sent them letters by recorded as they never answer my emails