DMP & Mutual Support Thread - Part 9

SIRENS

Hi
I have had another look at sc and filled in an app in just my name as most of the debit is mine, around 21k, going through dmp it would take me 19 years to pay off, am a little freaked out as I will be in my mid 60's by then.
I don't know which to do with dh it will be repaid in 12 years but the payments are £70 pm more and I don't know if we can manage, also I don't want to drag him into my mess?
What do you think, thanks

Time_to_face_the_music

BASILB wrote: »

Hi all,

I'm just about to start a dmp with stepchange and i'd like to know what to expect with regards to my creditors and how they will likely react in terms of accepting the plan etc.

My creditors are:
Lloyds loan:£6100
lloyds overdraft:£3000
santander loan:£450
ladder loan:£3700
moneyway loan:£15000
capital one card:£1500
very catalog:£900
wonga:£760
quick quid:£360

Just a bit of extra information: I have a long history of borrowing especially payday loans. I was taking out new ones to pay off ones i had every month. My moneyway loan is only 2 weeks old and i had to use that to pay back a few payday loans and family. I finally decided 4 days ago after doing research that a dmp would be the only solution for me. I'm in the process of changing my bank as i bank with lloyds. I've been accepted for barclaycard and nationwide and would like to know if either of them are associated with my list of creditors. So if anyone can help with that then i would be grateful but I would appreciate any knowledge or advice. Specific advice as to peoples experiences with my creditors would be great especially with moneyway as i haven't even made the first payment yet.
I will be paying £468 a month and will hopefully be debt free sometime in 2019.

Hi BASIL and welcome :hello:

I see you have had lots of good advice on your other thread so just wanted to say hello and please stick around if you need any support, that's what this thread is all about.

TTFTM x

Time_to_face_the_music

SIRENS wrote: »

Hi
I have had another look at sc and filled in an app in just my name as most of the debit is mine, around 21k, going through dmp it would take me 19 years to pay off, am a little freaked out as I will be in my mid 60's by then.
I don't know which to do with dh it will be repaid in 12 years but the payments are £70 pm more and I don't know if we can manage, also I don't want to drag him into my mess?
What do you think, thanks

My honest opinion is that 19 years is too long for a DMP. Is there a reason why you couldn't do an IVA instead, possibly because of your job?

Are you and your DH financially linked in any way, e.g. mortgage, loan etc? If so, he will be affected by your DMP, so it could be better to combine this and reduce the time, though 12 years is still a long time.

It may be worth having a look at National Debtline's website. This is a good page to start:

https://www.nationaldebtline.org/EW/information/10%20ways%20to%20clear%20your%20debt/Pages/default.aspx

SIRENS

Hi ttftm
I would prefer the dmp beacause I do feel that as it is more informal it would have less impact on my work, I do not want to jepodise my work as I am currently the higher income earner.
Dh and I do have have a mortgage together but this is not part of the dmp as I can manage the payments, I have no arrears on anything but due to change in finances I am struggling hence the dmp.
Dh debt is less than 1k and I thought if I did the dmp in my name at the lesser amount I would be able to help him pay his debts off sooner then work on mine.
When the children are older I can work more hours and put money aside to perhaps pay of the debt sooner?
I don't know am so confused at to which is the right path to take.

bertman

Time_to_face_the_music wrote: »

My advice is to always try and stop interest ASAP, the earlier you go for it, the better chance you seem to have.

Try something like this, customising it for each creditor:

You

Date

Them

Dear Sir/Madam

Re: [Creditor name] account No: XXXXXXXXXXXXXXX

Thank you for your letter/statement concerning the above account. I am sorry that you feel unable to suspend interest/charges on the above account.

As you are aware, I/we am/are in a DMP with XXXXXXXX, reference number XXXXXXXX. The majority of my/our other creditors have agreed to the offer of payment and agreed to suspend any interest charges still accruing. They have accepted that to continue to charge interest would not assist us in my/our present financial difficulties, and can only serve to increase my/our total debt.

I/we have already paid considerable sums in interest to my/our account. If interest charges continue, the monthly instalments I/we am/are paying will not even cover that interest. Also, the cooperation of my/our other creditors who have agreed to freeze interest already would be put at risk.

I am aware that XXXXXXX subscribes to the Lending Code which states that lenders will consider reducing or suspending interest and charges if these would cause the debt to increase or lead to the repayment term becoming too extended. I would therefore be grateful if you would reconsider your decision not to freeze the interest. This would mean that the monthly payments I/we make would actually reduce the balance outstanding to your company.

Please consider this letter as a complaint about the interest charges you are continuing to apply to my account. I would like to see these stopped immediately and previous interest charges refunded.

If you are unable to help me with this issue, I will have no alternative but to take this case to the Financial Ombudsman Service.

I look forward to hearing from you as soon as possible.

Yours faithfully

You

I haven't been around for a while as things have settled down a lot from the early days. Getting interest stopped is one of the most important things you can do when you first go onto a DMP. We managed to do this with a lot of advice from people on this forum, but it means that from as early as possible all the money you pay goes to getting rid of your debts. There are no hard and fast rules as they don't treat everyone the same.

We have a very long way to go but we are getting there, just wish we could chuck more at the debts every month so we can get rid of them, but we still have to live!!!

Sazzie23

bertman wrote: »

I haven't been around for a while as things have settled down a lot from the early days. Getting interest stopped is one of the most important things you can do when you first go onto a DMP. We managed to do this with a lot of advice from people on this forum, but it means that from as early as possible all the money you pay goes to getting rid of your debts. There are no hard and fast rules as they don't treat everyone the same.

We have a very long way to go but we are getting there, just wish we could chuck more at the debts every month so we can get rid of them, but we still have to live!!!

Hi Bertman

Good advice there, and your signature shows it's working, nearly 20% done! great news.

Monkeyballs

SIRENS wrote: »

Hi
I have had another look at sc and filled in an app in just my name as most of the debit is mine, around 21k, going through dmp it would take me 19 years to pay off, am a little freaked out as I will be in my mid 60's by then.
I don't know which to do with dh it will be repaid in 12 years but the payments are £70 pm more and I don't know if we can manage, also I don't want to drag him into my mess?
What do you think, thanks

Hi Sirens,

Are those figures correct?

Assuming the best case scenario and all interest and charges are stopped then £21k over 19 years would mean repayments of about £92 pcm?

I could be misunderstanding completely as I'm pumped full of painkillers at the moment lol but I'd question those figures as I would have thought that if/when you speak to SC then they may suggest another route because 19 years is crazy!

MB

SIRENS

Thanks Monkeyballs

Sorry my mistake it is £90 pm.

I know 19 years is crazy but my main debt is 16k overdraft that I have had since dh was made redundant 5 years ago it costs me between £88-£100 pm and that is just charges not actually paying off any of it.
Dh is back at work now and has just had a pay rise of £20 pm which has resulted in our tax credits being cut by £170 pm and now having pay full council tax at £120 pm so for and extra £20 we are now £270 worse off a month, I can see no other way I can just about afford £90 pm month to dmp??

Thanks so much your advice is greatly appreciated, sorry about the pain killers hope you are well soon xx

Monkeyballs

SIRENS wrote: »

Thanks Monkeyballs

Sorry my mistake it is £90 pm.

I know 19 years is crazy but my main debt is 16k overdraft that I have had since dh was made redundant 5 years ago it costs me between £88-£100 pm and that is just charges not actually paying off any of it.
Dh is back at work now and has just had a pay rise of £20 pm which has resulted in our tax credits being cut by £170 pm and now having pay full council tax at £120 pm so for and extra £20 we are now £270 worse off a month, I can see no other way I can just about afford £90 pm month to dmp??

Thanks so much your advice is greatly appreciated, sorry about the pain killers hope you are well soon xx

Ouch... Is there anyway DH could reduce his hours to compensate for the £20 to balance the books and gets the benefits back? Sorry if that's a really naive question but I don't entirely know how the benefits system works?

As for the DMP, hmmmm... that's a tricksy one especially as you're worried about the impact on your work too! When you spoke to SC did they mention other alternatives or did they go straight ahead with DMP as being your best option?

As for the painkillers, they're for a back injury that started at the end of last year necessary evil but life could be worse, at least the sun is out

MB x

sunnyskies2

Hi all,

I am waiting for new bank account card and chq book to come through and have started writing letters to advise about SC looking after payments to creditors and offering £10 pm - feel really in limbo and treading on eggshells, don't want to get it wrong - bank account find me out and take away o/d from beneath my feet!
I was just wondering if credit card will keep accepting mdd on son's x-box - he pays out of pocket money - mmm I know credit card, can't remember why that rather than bank account mdd! - or should I cancel it with them? - also think I might have a couple of small annual renewals on credit cards that I am not sure of details- do you know what happens with those?

Many thanks, I am feeling nervously liberated - if that makes sense:/

Sarah