DMP & Mutual Support Thread - Part 9

Sazzie23

Meatloaf1981 wrote: »

My DMP provider is working on the basis of an individual payment to each creditor, rather than a single payment to the provider who then distributes. I was disappointed with the result from my credit union but I guess I can still manage if I can boost my income with any overtime over the next few months to try and maintain a decent level of emergency funds.

Meatloaf, I'm concerned, the DMP process is meant to make the payments manageable and by fair to all the creditors. I'm sure you've done the sums and can see how to stump up the cash for the credit union but does it leave you in a bad place in terms of the other creditors?

Knowing what I've learnt from the amazing folk on this thread, I'd stick it out a bit more with the credit union, it's a credit agreement same as any other, with the same rights to go to court or dca and I'm sure solicitors would tell them that. The only issue that might be is that they take the money straight out of your wages so this might affect the repayments, but I'd still go back to them or check with step change or national debtline about your rights in this sort of case? Just don't want to see you get stick in a hole with no ladder:eek:

Chatterbox20

Sazzie23 wrote: »

Hi Chatterbox,
Welcome aboard, we're all here because of mistakes/circumstances or both, we can't change where we've been, but maybe we can influence where we're going:D. Don't beat yourself up.

See you've had the usual advice about fighting the interest, I'm doing this myself at the moment, Barclays refusing to budge, although I am on reduced, no response yet from Mbna and HBOS.

I know this will sound mad but I think the more you pay the more interest you get stuck with, so maybe on your step change review look at giving yourself a bit more wiggle room on the budget. There are a fair few posts about this few pages back. It might make life more bearable but obviously potentially might take longer to pay the debt, although I know a few on here have some ways round that too, so my message is don't give up just yet, although maybe an IVa is the right way for you, I don't have the experience to know.

Regards CCJs, if you get them, don't they last 6 years on file, same as DMP, obviously no one here wants you to end up in court - for lots of reasons - but it's probably unlikely and also not the worst thing you have to worry about. I can understand the worry of court, I have the same issue, but put it aside for now, worry about it if it starts heading that way. Make sure all your creditors know you are still in DMP too as I think some assume your finances have recovered miraculously.

Thanks Sazzie. The reason I'm worried about CCJs is that even after the 6 years I would still be obliged to report them in my chosen career and would likely stop me getting in. This suddenly hit me this week a few years too late. Ah well I'll just need a new plan! For now I will concentrate on paying my dmp and writing lots of letters! Thank you for the support!

GemP1983

Halifax did still take the payment from SC so if they did offset would it be whatever was available or would it be to make difference to minimum payment? (From before starting DMP).

Flutterby83

GemP1983 wrote: »

Halifax did still take the payment from SC so if they did offset would it be whatever was available or would it be to make difference to minimum payment? (From before starting DMP).

If they offset, they would take whatever credit was/is in the account and offset it against the debt as whole, not just the payment you would have made before the dmp. They wouldn't give you any notice either I'm afraid

Kate_fixing_it

Hi all and thank you for all the previous posts!

From what I'm reading a DMP takes a few weeks to set up. I'm up to date with payments up to 25th March so I'm not expecting the calls and letters to start until a week or so after that (around 1st April) and I'm due my op on 15th so I'll be at home for at least 4 weeks after to field the calls. I'm hoping this is a good thing and I won't have to take any at work which will be a huge relief and will give me time to actually explain when they call.

I'm now 100% certain it's the right thing for me and a lot of the apprehension and fear has subsided.

just one more question (sorry!) given that I'll be paying token payments while its all set up am I likely to be paying SC from 1st May? I just want to get timescales set in my mind and to be fully prepared.

Kate x

Growurown

Kate_fixing_it wrote: »

just one more question (sorry!) given that I'll be paying token payments while its all set up am I likely to be paying SC from 1st May? I just want to get timescales set in my mind and to be fully prepared.

Kate x

If you get your skates on you could start paying SC from 1st April, but May would be better as it will give you a chance to save a bit of an emergency fund and practice your budget. You choose when it starts and SC will accommodate you. Don't forget if you make your first payment at the beginning of May SC won't pass that onto your creditors until the 25th of the month. so you may have to make another token payment during April to keep them happy.

Flutterby83

I think mine might start in May too as I will be ringing SC tomorrow and already have the ball rolling on a new bank account which will hopefully be set up by the end of the week so I can change my income/priority bills over next week (from 17th), make token payments in April and pay SC on the 1st May......am I wishing a bit too much? If I can get it set up for the 1st May I don't actually default on any account or go over my od limit before they are notified of the DMP, does that make sense? I assume that would go in my favour too? I know not paying the full amount is classed as default on the account but they will be told about the DMP and I'm trying to be as 'good' as possible before all hell breaks lose! Another plus to all this is that my oh and I can now have a joint bank account, which has never been a possibility before now! I'm still terrified about making 'that' call tomorrow though and I know I'm going to lose friends if they find out.........no sleep again for me tonight I seem to be very up and down the last couple of days, is that normal??? Or am I just being a complete idiot :undecided

Puzzcat

Flutterby83 wrote: »

I think mine might start in May too as I will be ringing SC tomorrow and already have the ball rolling on a new bank account which will hopefully be set up by the end of the week so I can change my income/priority bills over next week (from 17th), make token payments in April and pay SC on the 1st May......am I wishing a bit too much? If I can get it set up for the 1st May I don't actually default on any account or go over my od limit before they are notified of the DMP, does that make sense? I assume that would go in my favour too? I know not paying the full amount is classed as default on the account but they will be told about the DMP and I'm trying to be as 'good' as possible before all hell breaks lose! Another plus to all this is that my oh and I can now have a joint bank account, which has never been a possibility before now! I'm still terrified about making 'that' call tomorrow though and I know I'm going to lose friends if they find out.........no sleep again for me tonight I seem to be very up and down the last couple of days, is that normal??? Or am I just being a complete idiot :undecided

Hi, As soon as you don't pay the minimum contractual payment the creditor can default you. Don't worry about bring good, the creditors just want paying whatever means possible. And as for friends, well those you choose to tell are not friends if they judge you on finances, friends are the people who stand by you whatever ...

Kate_fixing_it

Growurown wrote: »

If you get your skates on you could start paying SC from 1st April, but May would be better as it will give you a chance to save a bit of an emergency fund and practice your budget. You choose when it starts and SC will accommodate you. Don't forget if you make your first payment at the beginning of May SC won't pass that onto your creditors until the 25th of the month. so you may have to make another token payment during April to keep them happy.

Thank you, that makes a lot of sense to me. I think you're right, May will be a lot better for me. They're still going to get their money just maybe two months of token payments.

I haven't had the paperwork through yet, I only called on Friday afternoon so I'm probably cutting things a bit fine to be set up in 3-4 weeks. If it happens that'd be good but I don't think it's fair to push it. I'll send back what I need to as soon as I have it and let things take their course.

Kate x

Flutterby83

Puzzcat wrote: »

Hi, As soon as you don't pay the minimum contractual payment the creditor can default you. Don't worry about bring good, the creditors just want paying whatever means possible. And as for friends, well those you choose to tell are not friends if they judge you on finances, friends are the people who stand by you whatever ...

So I will be defaulting as of the 28th March (next time a d/d for any debt is due) which gives me a bit of time I suppose and I'm hoping all I'll get is one 'you are overdue' letter as they will hear from either me or SC by then. I think I have a good idea of who will stay but you never can tell, thank you for the advice Puzzcat x