DMP & Mutual Support Thread - Part 9

Mossop01

MarieC5575 wrote: »

Hi everyone

I am in the process of setting up a DMP with Step Change and have a couple of questions.

1. When sending token payments should I send the total amount that Step Change worked out I could afford and divide it equally (i.e. £400 divided by 10 creditors + £40 each) or a smaller amount at the moment until the agreement is set up?
2. When setting up new bank accounts I know I have to set one up with a bank which I have no financial ties to however does that include financial institutions that are part of banking groups i.e. Tesco Bank (Royal Bank I think) or is this considered a different institution?

Thanks for any advice anyone can give me.

Marie

Hi marie i sent payments for what i could afford until DMP was set up this was only £1 a month and no relection on SC payment amount, also gave me opportunity to start and emergency fund with the extra money i would have normally paid them.

I think that u do need a bank account with no ties to any of ur debts to stop them offsetting ur accounts. I used the co op cashminder account if that helps
Good luck

Time_to_face_the_music

Ashamed_of_Bristol wrote: »

Hi everyone!

With a bit of help from Time to Face the Music (thank you!) I wrote to Barclays and they have agreed to reduce my interest by 1% per month to an APR of 13%.

Not a huge win but better than a poke in the eye. Should I challenge them, or complain?

Tricky one and I really don't like this approach.

Because they have lowered your interest rate, they can claim to be helping you. But 1% reduction? Pffft big deal Barclays, surely you can do better than that :mad:

You have nothing to lose by going back to them and threatening to contact the FOS, so I would give it a go.

Time_to_face_the_music

MarieC5575 wrote: »

Hi everyone

I am in the process of setting up a DMP with Step Change and have a couple of questions.

1. When sending token payments should I send the total amount that Step Change worked out I could afford and divide it equally (i.e. £400 divided by 10 creditors + £40 each) or a smaller amount at the moment until the agreement is set up?
2. When setting up new bank accounts I know I have to set one up with a bank which I have no financial ties to however does that include financial institutions that are part of banking groups i.e. Tesco Bank (Royal Bank I think) or is this considered a different institution?

Thanks for any advice anyone can give me.

Marie

Hi Marie and welcome :hello:

A token payment can be anything you can afford and doesn't have to be connected to your StepChange payment. It's a good idea to make a start on an emergency fund, so why not pay each creditor a small token and save the rest.

Totally disconnected bank is the best advice. Don't go for anything with any link.

Time_to_face_the_music

Mossop01 wrote: »

Hi all just been through statements and as expected my debt has risen due to interest charges and late payment fees. On a couple of my credit cards the interest charges and fees have taken me over my limit so therefore they have added more fees, these are also the companies who are yet to respond to DMP, what should i do about this? When they eventually respond to DMP will this be straightened out or should i contact them? Cheers for any advice

We actually found ourselves in this position with NatWest in the first month of our DMP and against CCCS advice, I made an additional payment to them to bring us within the limit and reduce charges for the next month.

Unfortunately this often happens at the start up of a DMP and many people see their debt rise in the first month. If you feel comfortable doing so, you could contact the creditors and ask are they aware you are on a DMP and will they waive the charges.

If you end up winning a complaint against the creditor, you often get charges refunded but you don't always win and it can be a long wait even if you do. I think I would do my best to limit damage now.

ianmak

MarieC5575 wrote: »

Hi everyone

I am in the process of setting up a DMP with Step Change and have a couple of questions.

1. When sending token payments should I send the total amount that Step Change worked out I could afford and divide it equally (i.e. £400 divided by 10 creditors + £40 each) or a smaller amount at the moment until the agreement is set up?
2. When setting up new bank accounts I know I have to set one up with a bank which I have no financial ties to however does that include financial institutions that are part of banking groups i.e. Tesco Bank (Royal Bank I think) or is this considered a different institution?

Thanks for any advice anyone can give me.

Marie

I was always told that a token of £1 was better. If you pay a lot more than that, then step change suggest you pay a lower amount, then the creditors will wonder why you couldn't pay the higher amount. If that makes sense!

Mossop01

Thanks TTFTM, tried to phone the creditors in question, but they wont discuss with me cos those particular cards are in OHs name. Will have to wait til he comes home from work, that'll please him after a 14 hr day, he would much rather i dealt with everything and then gave gim forms to sign! Haha

dmp2013

Hi massop we are in a similar situation to you. Charges and interest after our first month has meant debt has risen!! I know uve got hsbc debt too, they are one of tho worst offenders for us. Lets hope we can sort this out as otherwise we will be in our dmps forever!! Ahh!! Good luck

Julie67

I know what you mean Mossop my Dh is exactly the same but sometimes they have to bite the bullett.
TTFTM the drier has been fixed several times, dh is an electrician and a domestic appliance engineer and he says its dead:D
I'm going to manage until next summer I think.
Dmp2013 I think a lot of us have a long battle ahead with HSBC perhaps we should organise a support group:)
No post today and still nothing from HSBC will have to keep waiting.

Time_to_face_the_music

Julie67 wrote: »

I know what you mean Mossop my Dh is exactly the same but sometimes they have to bite the bullett.
TTFTM the drier has been fixed several times, dh is an electrician and a domestic appliance engineer and he says its dead:D
I'm going to manage until next summer I think.
Dmp2013 I think a lot of us have a long battle ahead with HSBC perhaps we should organise a support group:)
No post today and still nothing from HSBC will have to keep waiting.

My OH wouldn't phone anyone up at first, now he is champing at the bit to do battle with the creditors :T

Sorry Julie, I bow to the much better judgement of your other half

Support group? That's us lot but you can have a HSBC special division

Julie67

Your right I couldn't manage without the support on here, keeps me going every day:T