DMP & Mutual Support Thread - Part 9

Kate_fixing_it

Enough_Now wrote: »

Evening all

I hope all is as well as can be reasonably expected in DMP world.

I just wanted to share a small achievement - one out of my nine creditors is now paid off. Statement received today with £0.00 balance. :j

I have another 18 months left of my DMP but this debt was helped along with a substantial PPI reclaim - well worth the price of a couple of stamps!

Finally I can see the light at the end of the tunnel

EN x

:T :T :T :T Great news

Kate x

kelly140481

Well, I finally had my light bulb moment yesterday and realised that I cannot carry on with my debts the way they are. I contacted SC today and will be completing my budget with the tomorrow and looking into options for getting my debts back under control. I was shocked when we discovered that I currently pay over £800 a month in credit payments, although I'm not sure why that was so shocking, as we never have any spare money. I am apprehensive about getting the ball rolling, because I've never been in trouble with any of my credit accounts before. Can anyone advise me on how long it takes to set up a DMP with Step Change and on what I can expect in the first few months?

livingindreamland

Welcome Kelly,


we are a few months in - 4th payment to StepChange just left the account, First few days of missed payments resulted in a few phones that i'll admit I wasn't brave enough to answer. Now I get statements from our creditors showing balances going down, and everyone has frozen interest with no fight. Have to say we have no regrets and finally have a bank account in the black at the end of the month. It's small steps, but we have paid for two household repairs with cash and no adding more to the pile of debts :-)

Kate_fixing_it

Hi Kelly and welcome.

Set up times all depend on how fast you send the paperwork back. I called SC on 7th March, I delayed starting the plan as I knew my income would increase a little (upped payments from £48 to £130) and I was able to get my car fixed. My plan was set up on 17th April and the first payment went out today. Mine was further delayed by the Easter Bank Holidays.

You have done the right thing, keep telling yourself that. You have made choices that seemed to be the best thing at the time but it didn't work out. You are in debt but it's NOT a crime. I have to frequently remind myself of that BUT IT'S TRUE!!!

This thread is fantastic, the lovely posters here have picked me up over and over again and saved me from a couple of potential disasters. The wealth of knowledge here is beyond compare.

Good luck with your new path.

Kate x

Time_to_face_the_music

Enough_Now wrote: »

Evening all

I hope all is as well as can be reasonably expected in DMP world.

I just wanted to share a small achievement - one out of my nine creditors is now paid off. Statement received today with £0.00 balance. :j

I have another 18 months left of my DMP but this debt was helped along with a substantial PPI reclaim - well worth the price of a couple of stamps!

Finally I can see the light at the end of the tunnel

EN x

Brilliant news - well done Enough Now :j

sunnyskies2

Hi all, I've been reading loads of old posts and feeling more inspired and confident that this is the path for me and DH. Especially with so much moral support and advice.

I've done a budget plan with SC and total debts will take about 11 years to pay off! ...quite scary...but I need some advice to take the next step, I have looked around but have not been able to find a summary of what happens - this is what I surmise - I would be grateful if anyone could let me know if on on the right lines.

1) take out new bank account none related to any debts - in my case this will be Nationwide

My husband is s/e domestic repairs etc on about £23k - I believe his trade accounts e.g b&q etc will not be affected by this - does anyone know whether these are ever flagged up on credit checks for late
payments

Would we be able to get o/d on new account as safety net when customers don't pay on time etc?

2) move over all mdd for non debt payments - seems like existing mdd like car ins and council tax can continue?

3) do SC come in here and/or do I also write to creditors with nominal payment and explanatory letter?

4) Await letters from creditors they will accept new payment plan - many of you talk about getting a default notice - what does that mean and why is it good?

5) I think that we my be able to pay more than SC are offering - being s/e does not always show true picture - can go either way.

6) Can we make ad-hoc extra payments to creditors - if it is too regular would their stance change?

7) is the DFD worked out by SC and is it guaranteed - people talk about interest going on at the end - is this connected to 'default'?

Sorry for so many questions - feel I need to know fully what we are getting into so that I can prepare properly - my husband is late 50s - so heading towards retirement too.

Many thanks in advance

Sarah

Time_to_face_the_music

kelly140481 wrote: »

Well, I finally had my light bulb moment yesterday and realised that I cannot carry on with my debts the way they are. I contacted SC today and will be completing my budget with the tomorrow and looking into options for getting my debts back under control. I was shocked when we discovered that I currently pay over £800 a month in credit payments, although I'm not sure why that was so shocking, as we never have any spare money. I am apprehensive about getting the ball rolling, because I've never been in trouble with any of my credit accounts before. Can anyone advise me on how long it takes to set up a DMP with Step Change and on what I can expect in the first few months?

Hi and welcome Kelly :hello:

Am not sure how long Stepchange are currently taking to set up DMPs but it's worth giving yourself a bit of breathing space and making token payments to your creditors for a couple of months before you get going with your DMP.

1) It encourages quick defaults
2) It allows you to practice your budget
3) You can save up a bit of an emergency fund

First month or 6 weeks can be a bit of an emotional roller coaster, it can be upsetting to see your debt go up a bit at first, and any hassle from creditors seems to come in that time. It's useful to learn your Stepchange reference number off by heart, or have it on a piece of paper by the phone. If any creditor calls the answer is "Hllo I am in the process of setting up a DMP with Stepchange, my reference number is XXXXXXX. Please speak to Stepchange, they are authorised to speak on my behalf."

Have a read through this thread and ask any questions you need to, someone here will always try and help.

TTFTM x

Time_to_face_the_music

sunnyskies2 wrote: »

Hi all, I've been reading loads of old posts and feeling more inspired and confident that this is the path for me and DH. Especially with so much moral support and advice.

I've done a budget plan with SC and total debts will take about 11 years to pay off! ...quite scary...but I need some advice to take the next step, I have looked around but have not been able to find a summary of what happens - this is what I surmise - I would be grateful if anyone could let me know if on on the right lines.

1) take out new bank account none related to any debts - in my case this will be Nationwide

My husband is s/e domestic repairs etc on about £23k - I believe his trade accounts e.g b&q etc will not be affected by this - does anyone know whether these are ever flagged up on credit checks for late payments

Would we be able to get o/d on new account as safety net when customers don't pay on time etc?

2) move over all mdd for non debt payments - seems like existing mdd like car ins and council tax can continue?

3) do SC come in here and/or do I also write to creditors with nominal payment and explanatory letter?

4) Await letters from creditors they will accept new payment plan - many of you talk about getting a default notice - what does that mean and why is it good?

5) I think that we my be able to pay more than SC are offering - being s/e does not always show true picture - can go either way.

6) Can we make ad-hoc extra payments to creditors - if it is too regular would their stance change?

7) is the DFD worked out by SC and is it guaranteed - people talk about interest going on at the end - is this connected to 'default'?

Sorry for so many questions - feel I need to know fully what we are getting into so that I can prepare properly - my husband is late 50s - so heading towards retirement too.

Many thanks in advance

Sarah

Hi Sarah and welcome :hello:

I am not experienced in DMPs and self employed so hope someone who is will be along to help soon.

Just a couple of questions/answers:

Will the new bank account be a business account? You are not normally allowed to take on any new credit in a DMP and that includes an overdraft but this may be different for self employment.

You speak about new and existing DDs but they should all be moved to your new bank account and ensuring you cancel all debt DDs.

Stepchange used to provide a template letter to send to creditors with token payments. am not sure if they still do this but if not, there are some very good templates on the National Debtline website:

https://www.nationaldebtline.org/EW/...s/default.aspx

A default means the clock starts ticking on clearing your credit file, as they are removed 6 years from the date of the default. For people who want further credit, new mortgage etc, this is a good thing.

Ad hoc payments are supposed to be sent to Stepchange for even distribution to your creditors, so all creditors are treated fairly. Often advice is to save any extra money you have as an emergency fund or to make F&F offers in the future.

No DFD is guaranteed, a DMP is an informal arrangement and some creditors refuse to stop interest and/or fees/charges. You may need to fight this and if so, we can help you.

Hope some of this helps.

TTFTM x

sunnyskies2

Hi TTFTM

Thank you for full and speedy reply. I was thinking to take out new bank account before we start DMP - not a business account - as not many business transactions I keep it all under one account to save money and time - waiting for customer chqs to clear - also another reason for o/d we have no guarantee/regular monthly income as nature of s/e sole trader - just juggle, juggle and more juggling - but starting to drop the balls now!

Also, how do you know when you have a defaults.

You have done amazingly well clearing your debts - a real inspiration - is your earlier DFD due to making additional f&f payments on debts?

Sarah

sunnyskies2

Hi all, Still trawling to get more info and prepping - checking out spreadsheets etc.

Hi, i've justvremembered anther couple of questions, I'm thinking of returning to half completed open university study - to eventually use degree to increase salary - would I be able to get a student loan under a DMP does anyone know?

Also with regard to current bank account - which is with Lloyds, I have £2,500 o/d to add to DMP - William be able to close this account - if not should I firstly change from gold account to basic account?

Thank you once again for any advice.

Sarah