DMP & Mutual Support Thread - Part 9

schmalf

Morning All

Received a FINAL DEMAND letter from horrible HSBC yesterday. I've emailed it to SC for their advice, has anyone else had a FINAL DEMAND for full payment of CC and did you just ignore it? At the start of my plan, HSBC said they wouldn't accept the plan, but have been happily taking my payments??!!

Your experiences would be great as HSBC just scare me a bit.

Other than that all going well, second payment went out the other day to the creds - and just had a car problem and for the first time in years can actually pay for it without resorting to the dreaded CC cash withdrawal - YAY!

Thanks

Schmalf xx

Coinmachine

schmalf wrote: »

Morning All

Received a FINAL DEMAND letter from horrible HSBC yesterday. I've emailed it to SC for their advice, has anyone else had a FINAL DEMAND for full payment of CC and did you just ignore it? At the start of my plan, HSBC said they wouldn't accept the plan, but have been happily taking my payments??!!

Your experiences would be great as HSBC just scare me a bit.

Other than that all going well, second payment went out the other day to the creds - and just had a car problem and for the first time in years can actually pay for it without resorting to the dreaded CC cash withdrawal - YAY!

Thanks

Schmalf xx

Dont worry Schmalf I had one too having previously had a letter from them confirming they were happy with the DMP. When I checked the earlier letter carefuly it did say that a final demand letter would still be issued but to ignore it. For peace of mind I wrote back and referred to their earlier letter with the reference etc and restated that they agreed to the DMP.

Suseka

Hi Schmalf,

In my experience at the outset of a DMP letters do cross over a bit and it does get confusing. If you know HSBC have agreed to the plan then you don't really need to worry about any other letters. Many are computer generated by your account reaching certain triggers, and often come from a different branch/office than the one dealing with your DMP.

If it will make you feel better do as CM suggests -or just file the letters away.

blisteringblue

I just think they all appear to be automatic things. I get a weekly text to ring Sainsburys Bank immediately, which I do, only to be told "why are you ringing in" we are aware of your DMP and just waiting for further details from StepChange. I'm beginning to see a pattern that as long as you don't bury your head and do infact give them too much information they seem quite keen to play ball. I've not paid my first payment to stepchange and 6 of 8 creditors have frozen interest so far.

fermi

gettingontop wrote: »

Hi Guys,

I'm after a bit of help/advice...

I'm 9 months into my DMP with stepchange and everything seems to be going well - until I got a statement from one of my creditors....

They haven't frozen the interest and because of the reduced payments I'm making to them, the debt has grown from £7k to £14k!!!

Are the payments out of your DMP less than the contractual ones would have been?

What lender? i.e. are they a subscriber to the lending code?

If they are the lending code clearly says for those on payment plans:

It is inappropriate for interest and charges to continue to be taken where the result would be that the repayment period
for the customer becomes excessive. In forming a judgement on what might
be excessive, a subscriber should take
into account the type of product and the individual circumstances of the borrower.

Applying charges and interest in a way that effectively means the debt is NEVER paid off at that rate is by definition excessive.

Kate_fixing_it

Hi All,

Nothing to report here. No calls, texts or letters yet. Tomorrow is the big one - HSBC payments are due. They represent over half my debt and were the ones I was most concerned about but the above posts have put my mind at rest a little.

I do have one question, it's been announced that we WILL be getting a bonus in August :j it's a percentage of salary and not enormous but mine will be around £300 after tax. In your opinions what's the best thing to do with it? (I realise I'm thinking WAY ahead here) can I pay it off one debt (the highest interest if it's not frozen), split it between debts or put it aside as emergency money?

My two smallest children mention daily that they want to go to London to see the dinosaurs and I estimate we can do so on around £60 (£15 put aside each month from now to August will cover it) and this is going to be as close to a holiday as we're getting but for a little more we could spend a couple of nights in a travellodge so that's on my mind too. That said they've never had a "proper" holiday so they're not going to miss what they've never had so a day trip is going to be a big treat anyway.

Just looking at ideas right now so any suggestions are welcome. As the DMP payments from step change will be starting in May I think I'm unlikely to get any worthwhile F&Fs by August.

Kate x

Suseka

Kate_fixing_it wrote: »

Hi All,
I do have one question, it's been announced that we WILL be getting a bonus in August :j it's a percentage of salary and not enormous but mine will be around £300 after tax. In your opinions what's the best thing to do with it? (I realise I'm thinking WAY ahead here) can I pay it off one debt (the highest interest if it's not frozen), split it between debts or put it aside as emergency money?Kate x

As you say, it a ways ahead yet...but I would put it aside in an emergency fund and spend a little on a the day trip. You get the best of both then.

Its always comforting to have some money set aside for that unplanned/unexpected expense.

millygdy

Hi ive got A DMP in place all creditors have agreed apart from 24studio I am receiving letters from a debt collectors saying if i dont pay £98 immediatly and then £98 a month until the £700 is settled then they are going to send a doorstep collector. Is this likely to happen? My husband doesnt know about my debts as they are mine not his id rather not have someone turning up on my doorstep!! Should i just try to find £98 and pay it?

Thanks for your advice

Karen

schmalf

Kate_fixing_it wrote: »

Hi All,

Nothing to report here. No calls, texts or letters yet. Tomorrow is the big one - HSBC payments are due. They represent over half my debt and were the ones I was most concerned about but the above posts have put my mind at rest a little.

I do have one question, it's been announced that we WILL be getting a bonus in August :j it's a percentage of salary and not enormous but mine will be around £300 after tax. In your opinions what's the best thing to do with it? (I realise I'm thinking WAY ahead here) can I pay it off one debt (the highest interest if it's not frozen), split it between debts or put it aside as emergency money?

My two smallest children mention daily that they want to go to London to see the dinosaurs and I estimate we can do so on around £60 (£15 put aside each month from now to August will cover it) and this is going to be as close to a holiday as we're getting but for a little more we could spend a couple of nights in a travellodge so that's on my mind too. That said they've never had a "proper" holiday so they're not going to miss what they've never had so a day trip is going to be a big treat anyway.

Just looking at ideas right now so any suggestions are welcome. As the DMP payments from step change will be starting in May I think I'm unlikely to get any worthwhile F&Fs by August.

Kate x

Thanks all for the replies re HSBC. Just reassuring to hear that others have had the same experience. I will try not to worry about it!!

Kate, HSBC are my biggest creditor too, think that's why they worry me the most, plus they do seem to want to be awkward compared to my other creds! I'll keep you posted on my progress with them & vice versa?
Re your bonus, I would definitely put it to one side asa bit of an emergency Fund. Stuff seems to go wrong so often - there's always something to pay for & with no cc to fall back on I think you need that little cushion just in case.
Re the trip, keep an eye out & register on the Travelodge website - I get lots of really cheap room offers from them. Also the large family rooms are good value but there are less of them so you need to book further ahead to get them. Also look at the YHAs - a lot of them are really central & newly done up, and you can get private ensuite rooms at most now at far cheaper prices than hotels! Xx

Kate_fixing_it

schmalf wrote: »

Thanks all for the replies re HSBC. Just reassuring to hear that others have had the same experience. I will try not to worry about it!!

Kate, HSBC are my biggest creditor too, think that's why they worry me the most, plus they do seem to want to be awkward compared to my other creds! I'll keep you posted on my progress with them & vice versa?
Re your bonus, I would definitely put it to one side asa bit of an emergency Fund. Stuff seems to go wrong so often - there's always something to pay for & with no cc to fall back on I think you need that little cushion just in case.
Re the trip, keep an eye out & register on the Travelodge website - I get lots of really cheap room offers from them. Also they have large family rooms are good value but there are less of them so you need to book further ahead to get them. Also look at the YHAs - a lot of them are really central & newly done up, and you can get private ensuite rooms at most now at far cheaper prices than hotels! Xx

thanks for the ideas. The younger children are 5 and 7 and apart from having the odd weekend staying with friends we've never had a family holiday, I also have 2 teenagers so it's incredibly difficult to find something to suit everyone and we generally opt for days out. I got a really good deal from Groupon for DD1s 16th last October, staying in a 4* hotel in Canary Wharf with very little notice so I'm looking now in the hope something even better will pop up. DH works in London quite a lot and I'm hounding him to get loyalty cards for the hotels, his company reimburse him but the points could mount up and mean a break as a family. I've been saving the "adult goes free" vouchers from cereal boxes for a second day out, they're valid until 2015 so definitely worth keeping hold of

The emergency fund sounds like the best plan. If I'd had the bonus money put aside the car would be running again already and I wouldn't be struggling with driving DH's manual and the pain it's causing but then hindsight is 20/20 and I'm learning that lesson!

I'll keep you posted on HSBC - I'm going to attempt to reclaim some bank charges too, I've always been upfront with them but I have charges over the lifetime of the account of over £5k (I feel quite sick at the thought of it!) I'm hoping for something but expecting nothing and obviously anything I get they'll offset but if it decreases the debt I'm happy.

I'm off to look at potential accommodation now - I'm so excited that this could be possible and even more excited that it will NOT involve credit

Kate x