DMP & Mutual Support Thread - Part 9

Puzzcat

Ash73 wrote: »

Thanks. Sc won't let me save to pay off the car - it would be too much. I am thinking about swapping it on a new 4 year PCP with payments staying the same just so ive got a car for the next 4 years. It's with fiat and I'm worried my credit score will be too low - don't suppose anyone knows what checks/ threshold fiat have? Id just feel better than as I really need my car for work.

Great advice on the bank account - I'm checking tonight that all payments come out of my account and not the joint one.

I think this is the right step - I just need to get all my stuff together and go for it. It's amazing seeing how brilliantly everyone else has done - I can't imagine debts going down rather than up!

Thanks again - any more tips gratefully received.

Hi Ash, sorry I know nothing about car finance or balloons.Is it imperitive that you have a newish car for work? I need a car for work but mine is 12 years old, could you downsize to a runaround instead of a financed car? Just a thought....
Nothing beats the feeling of the debts going down, I hope my little car lasts me the journey!
Puzz

Alchemist207

Hello everyone...

I got myself into a proper mess, and I am not sure how to get out of it so I wondered if anyone has any ideas or a similar experience. I've been on a DMP since the beginning of the year, paying £327 every month towards a total debt of £3k or so...

So what happened? Everything was going well, although I was really strapped with my budget, there was no leftover or savings. I had a personal problem in March, and had to make international phone calls in order to resolve it which resulted in a mobile bill of over £300 - way too much for me, I had £30 budgeted.

I went into a few bad months, and made an arrangement with Vodafone to pay off £120 per month until it is all finished...thinking I would be able to cut corners elsewhere and manage my finances. But I was not. I ended up having to take a "remedy" payday loan two months ago. Having been through this mess, I kept it low and took £150 which I repaid prompty. I was still having troubles next month, but I reduced it to £100, and have just repaid that as well. I would like to reduce it further this month, and take £80 but they won't let me have it... My logic was that I will slowly reduce the amounts and then stop taking it completely when my phone bill is paid off and that huge expense is off my bill. But my logic proved irrelevant, as I can't take the money.

I am in too deep with all the costs of life and I need those £80 for the food till the end of the month, I pretty much literally have nothing.

What can I do?

Can I ask StepChange to take a bit less this month? They usually take their payment on the 1st, though, so I am afraid I won't be able to speak to them before they have taken it... I can cancel their Direct Debit to ensure they don't get the full payment but that doesn't feel right.

Can I call Vodafone and ask them to not take the money and just put my account in arrears until I am in a better position? Once again they will take their payment imminently and I am not sure how to even cancel or not permit it, given it is not managed through Direct Debit....

I feel sooooooo stupid, I just can't wait for all of this to be over...
I have nothing that I could sell and no one I could ask to lend some money.

Monkeyballs

Hi Alchemist,

You sound waaay too stressed pickle

Ok, I'm not sure how long you have left on your phone contract but you can add phone contracts to your DMP... It would mean cancelling and giving them your DMP ref (and informing SC of course) you'll also be looking at getting a PAYG sim as well - not saying this is the way to go but if things are as tight as they seem then it's an option

As for SC reducing payments, you can tell them that your circumstances have changed and pay less each month, make a short payment one month or even (if you're really stuck like I was last month) ask for some of what you have paid back as they don't start distributing until the 10th... Up until then it's in their bank earning them interest

Speak to SC, they're ace and will come up with something to help you out just don't go stressing and/or taking on more debt!

P.s, you can add new debts to your DMP too but be prepared to be lectured by SC as to why you shouldn't do it - just don't make a habit of it

MB of G x

Monkeyballs

Hi all,

Here is a sobering thought...

My outstanding debts come to £12,185.

I have logged two official complaints, one to The Cheque Centre and another to Money Shop re. irresponsible lending...

If I get the best case scenario and they repay all charges and an 8% interest which others who have complained in the past then I'll get back around £12k!

LOL, that's just from two payday lenders lending just £1000 and £350 respectively over a period between 2011-2013.

Madness or what!!!

I'm not saying I'm expecting the best case scenario but I can dream right? LOL, it'd be like winning the lottery!!!

MB of G x

Ash73

Puzzcat wrote: »

Hi Ash, sorry I know nothing about car finance or balloons.Is it imperitive that you have a newish car for work? I need a car for work but mine is 12 years old, could you downsize to a runaround instead of a financed car? Just a thought....
Nothing beats the feeling of the debts going down, I hope my little car lasts me the journey!
Puzz

Hi Puzz - sorry - din't want to sound like a spoiled child. My problem is I have no savings or no way of saving up for another car before/when I have to hand back or pay for mine next year. i was trying to think of a way to keep my payments the payments the same but have a car for longer. But it's probably this kind of mess that's got me into this mess.

It's an awful lot to think about - reading some bogs - is it a good idea to get everything sorted before and try and put a tiny amount away incase of dire emergences? Any other tips would be very welcome.

Alchemist207

Monkeyballs wrote: »

Hi Alchemist,

You sound waaay too stressed pickle

Ok, I'm not sure how long you have left on your phone contract but you can add phone contracts to your DMP... It would mean cancelling and giving them your DMP ref (and informing SC of course) you'll also be looking at getting a PAYG sim as well - not saying this is the way to go but if things are as tight as they seem then it's an option

As for SC reducing payments, you can tell them that your circumstances have changed and pay less each month, make a short payment one month or even (if you're really stuck like I was last month) ask for some of what you have paid back as they don't start distributing until the 10th... Up until then it's in their bank earning them interest

Speak to SC, they're ace and will come up with something to help you out just don't go stressing and/or taking on more debt!

P.s, you can add new debts to your DMP too but be prepared to be lectured by SC as to why you shouldn't do it - just don't make a habit of it

MB of G x

:iloveyou:
Thank you for the advice.

Puzzcat

Ash73 wrote: »

Hi Puzz - sorry - din't want to sound like a spoiled child. My problem is I have no savings or no way of saving up for another car before/when I have to hand back or pay for mine next year. i was trying to think of a way to keep my payments the payments the same but have a car for longer. But it's probably this kind of mess that's got me into this mess.

It's an awful lot to think about - reading some bogs - is it a good idea to get everything sorted before and try and put a tiny amount away incase of dire emergences? Any other tips would be very welcome.

Hi Ash, Would it be possible for you to pay token payments for a few months to all your creditors, say £1 each and then save and use what you would be paying for your dmp and buy a cheap runaround? And yes an emergency fund is absolutely necessary with no credit to fall back on. I have had a broken freezer and vet's bills since starting my dmp last November. Make sure your budget is not too tight, allow some wiggle room.
Puzz.x

sunnyskies2

Hi all

Thanks HH and TTFTM for info re going it alone and heads up re: SC although I def feel I need them to 'hold my hand' whilst starting off - with all of yous 'holding' the other:)

Good luck MB with the letters that WOULD be a huge case of fantasticism :undecided and :beer::beer: . and way to go Puzz !

Yes Vix, right with you there!...and thank you:)

...I wondered whether any of you could give some guidance here - yesterday I finished writing and sent all creditor letters with £1 chq I cancelled all direct debits and this is the quandary I transferred remaining balance of available o/d to new account - as it is permanently used for living - before handing in letter to bank manager re DMP. My OH says this is completely wrong and I shouldn't have transferred the money. I did put the full o/d amount on my SC list - I now am wondering whether to transfer it back and try and borrow off family to plug the gap - will already probably have to borrow other though to get straight over next month, so would prefer not to. Do think Lloyds will treat me differently because I took the money out on same day as letter! Or indeed better if I pay it back in?

Thanks for any advice:)

Sarah

Puzzcat

sunnyskies2 wrote: »

Hi all

Thanks HH and TTFTM for info re going it alone and heads up re: SC although I def feel I need them to 'hold my hand' whilst starting off - with all of yous 'holding' the other:)

Good luck MB with the letters that WOULD be a huge case of fantasticism :undecided and :beer::beer: . and way to go Puzz !

Yes Vix, right with you there!...and thank you:)

...I wondered whether any of you could give some guidance here - yesterday I finished writing and sent all creditor letters with £1 chq I cancelled all direct debits and this is the quandary I transferred remaining balance of available o/d to new account - as it is permanently used for living - before handing in letter to bank manager re DMP. My OH says this is completely wrong and I shouldn't have transferred the money. I did put the full o/d amount on my SC list - I now am wondering whether to transfer it back and try and borrow off family to plug the gap - will already probably have to borrow other though to get straight over next month, so would prefer not to. Do think Lloyds will treat me differently because I took the money out on same day as letter! Or indeed better if I pay it back in?

Thanks for any advice:)

Sarah

Hi Sarah, I did exactly the same as you and have had no issues with my old bank, in fact I have 3 debts with them od, loan and cc and these make up a third of my total debts, I was with natwest. Definately better way to start than borrowing from family.
Puzz.x

Monkeyballs

Morning Sunny,

Do you have enough money to see you through to next payday without the money you transferred? To me, it doesn't sound like you can so don't worry as your bank will get the money back as it will be incorporated into your DMP.

What do you mean by "will already probably have to borrow other though to get straight over next month"? do you mean you will need to borrow before your next payday (presumably from family) or do you mean even when you next get paid you'll need to borrow? If it's the latter then that's no good and you might want to either give a second month of token payments or look at your budget again with SC...

MB