DMP & Mutual Support Thread - Part 9

Sazzie23

Crikey you it was busy on here yesterday, fortunately had a few extra mins this morning to read. Just to clarify, I wasn't actually on the singing train, I just saw the internet link early in the morning and it made me smile....though I wish I'd been there, I like singing and trains (saw Gareth Malone show at the weekend).

MB some time ago you did a great starting out with stepchange post, maybe for the newbies it would be worth doing it again if you could find the time to seek it out?

Better go...xx

Hopelessly_Hopeful

Morning all


Popped into to catch up. Wow lots happening and great to see so much humour and fighting spirit!


HHx

Monkeyballs

Morning all,

It took rather a lot of digging to find this on this thread then it dawned on me that it was on my diary! Durrrr... Anyway, this is what I wrote waaay back in January I've also added a little extra at the end to account for my most recent problems - reduced pay due to illness;

So first I did a little research online to find out about what entering a DMP actually meant, this website was hugely helpful as it contains details and posts from people like me actually going through the process

Eventually, I contacted SC and we went through income & expenses and agreed that £500 pcm is available to repay my debts just over 3.5 years.

Once the plan was set up and I had my SC DMP ref. I signed into my DMP through the SC website to make sure everything was present and correct and to read more of the information on their site.

Step Change contacts my creditors:

SC told me that they would contact each of my creditors to provide them with an Income & Expenditure sheet as well as an offer of payment but they also advised that it would be good for me to contact my creditors too in the meantime so they are aware of the situation.

Me contacting my creditors:

I contacted* each creditor to advise them that I was entering into a DMP with SC, gave them my DMP ref and a contact number for SC confirming that they will be in touch with a budget sheet, list of debts and an offer.

*Contacting creditors was a mix of email, letter and phone call as at this point I did not feel the need to keep copies of my notification to them although I did list creditor and dates as well as names and times if I had called - the exception being payday lenders who I wrote to by registered 1st class mail also asking to cancel CPA and provide written confirmation of receipt and agreement of DMP.
I keep and file all notes and replies in separate envelopes - one per creditor.

Notice of default:

Several creditors sent me a letter of default - I had been told to expect these by SC but I still emailed them details for my own peace of mind and filed them.

Debts passed to DCA's:

A couple of debts were passed to debt collection** agencies, I called the DCA and gave them the DMP information and then called and emailed SC the details so they have the most up to date information on their file and I double checked a week later on my DMP to make sure that the info had been corrected (unless SC emailed before then to confirm the changes made).

** Read what you are sent, it may sound scary but they are fine once you give them the DMP information and will freeze your account for 30 days while waiting for SC to contact them - debt collection agencies are not bailiffs!

First payment, more letters from creditors and me taking control:

On the agreed date my first payment left my bank account - I checked my statement online, again for my own peace of mind.

After about 3 weeks (which was in line with what SC told me) I received an email from SC telling me that my statement was available to view - I looked and could see clearly each creditor listed and the payment sent with an estimate of outstanding balance.

All of this happened over the space of maybe 5-6 weeks roughly.

During the following month I got another couple of letters of default which I passed to SC and filed.

First month done! Second payment and beyond...

The second payment left my account - I checked my statement online to be sure but all was well I felt really good by this point as I had been virtually hassle free with the exception of the default letters and my confidence was increasing as I felt more in control

The third month - no issues everything went to plan as did the following couple of months

Idiot! I'm sabotaging myself.. I hate myself, what do I do?

Around month 6 I had a lapse with my gambling and panicked which made things worse before I contacted SC who agreed to a lower payment and contacted creditors with the reduced payment and confirmation that it was a "one off" and normal payments would resume the following months - I also called my creditors to advise them of the same and to apologise for straying off plan - all were fine except one who seemed a little snotty but acknowledged that it would be ok as a one off

Back on track and making strides...

Following few months take me to today! Everything is back in place and running normally although time (and this site) has given me the confidence to contact a few creditors to challenge the ones who had reduced but not frozen their interest (using template letters available on this site) and even make a couple of full & final settlement offers!

Hindsight and top tips:

The best advice I can offer is to have faith in your DMP manager but keep in touch, monitor your statements, file EVERYTHING, keep posting on the forums here and share your experiences!

Oh, I also suggest you contact your creditors/DCS's from time to time to confirm the balance and update your SC account online to keep it accurate and avoid any nasty surprises further down the line!

Reduced pay:

So... Since posting this I have been on long term sick with back problems and while initially I was on full pay I am now starting to lose money I have lost 25% of my pay and will only be receiving the remaining 75% for another four months or so

I have contacted Step Change and redone my Income & Expenditure budget (you can do it online by signing into your account and will be given a number to call if you need to discuss your revised budget) as I now only have a spare £200

We have agreed that my monthly payment will drop from £500 pcm to £200 pcm and on this occasion SC told me not to worry about contacting my creditors as I'm already in a DMP and £200 still represents a significant proportion of my income and while it's very early days I've had no calls, emails, letters (oh, expect from Vanquis accepting ).

Hopes this helps folk!

MB of G x

Ellieseleven

Hello everyone, just dropping by to catch up with everyone and see how you are all coping.

Hi to all the newbies and good luck with your debt-free journey's:)

We are now approaching our 4th year and have paid back £24,698 so far:eek: We have a way to go but the light at the end of the road is starting to shine a lot brighter;)

We have 11 outstanding debts, most have been defaulted and passed to DCA's - most have been very reasonable and have reduced or stopped interest. These include Capital 1 (whom we get statements from every 6/12 months, no interest), M&S (passed to DCA), MBNA (passed to DCA), Barclaycard (arrangement to pay - I want to challenge this but concerned that they may start adding interest) and Santander (interest being applied on overdraft, reduced interest on loan, no interest on CC)

It's not all been plain sailing and we have had times where we have really struggled but I have never regretted going onto a DMP as the alternative was far worse than not being able to pay for things on credit. I budget better and save for the things we need and my stress levels are much lower and I sleep great these days;)

I set myself milestones on the way which makes it much more attainable than saying "I owe nearly 46k and it will be 7 years before it's paid":eek:, instead I look at the balances and say "2 more payments until I have 3 CC's under 1k" or "3 more payments until we reach the 20k mark" - it does make a difference and helps to keep me motivated.

We try to keep an emergency fund so that we can pay for the big things e.g. car, washing machine etc. and we have had to dip into it a few times but it has really been a godsend and I can't promote an emergency fund enough, just knowing that you have that cushion makes a huge difference.

I also join in on some of the challenges and these can be fun, at the moment I'm putting a £1 a day away in a tin that can't be opened (so no temptation). It's become a habit and is now mounting up;)

My spreadsheets are also another source of "entertainment" as I can play around with figures and these also show just how far we have come:o

Take care

Ellie xx

Kate_fixing_it

What a lovely post Ellieseleven. Well done on paying off so much :T some days I feel like a bit of a pro and other days it hits me like a ton of bricks how long is left.

No debt news here (which is good ) but it appears my car insurance went out at the full amount from before the vehicle change. I really feel like calling them and saying "told you so", I knew the operator was talking rubbish about the DD request being reduced the day before it came out but he thought he knew best.

I've also followed some advice posted here weeks ago and booked myself a massage via Groupon for £15. I've hardly touched entertainment money in May and June is looking the same (DH away a lot with work and still battling pain/limited mobility) so I decided to do something all about ME. The nurse at my GP surgery suggested alternative therapies to help with the pain but I'm a little apprehensive about the acupuncture she suggested so this will ease me into the idea. My research is saying it'll help battle the pain and circulation issues I have and who doesn't like a bit of pampering? I haven't been for a haircut since early December and can't get in/out of our very deep bath without help so my usual pamper-treats have been put aside.

Really looking forward to it and even more so because it fits snuggly within the budget and I've already paid for it Hopefully it'll help physically but if not its a nice hour all to myself

Kate x

ETA: The bath issue sounds like I haven't had a proper wash in a month! Just to confirm that we have a separate shower cubicle so I am nice and clean through using that :rotfl:

igaveupnowimback

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1000
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 170
Total monthly income.................... 1170

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 375
Management charge (leasehold property).. 0
Council tax............................. 93
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 16
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 10
Internet Services....................... 15
Groceries etc. ......................... 160
Clothing................................ 10
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 831


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................5100......0.........16.9
credit card 2..................170.......0.........34.9
credit card 3..................180.......0.........34.9
overdraft 2....................440.......0.........1.4
overdraft 1....................500.......0.........1.4
catalogue 4....................55........0.........0
catalogue 3....................50........0.........0
catalogue 2....................440.......0.........39.9
catalogue 1....................1600......0.........39.9
Total unsecured debts..........8535......0.........-


Monthly Budget Summary
Total monthly income.................... 1,170
Expenses (including HP & secured debts). 831
Available for debt repayments........... 339
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 339

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,535
Net Assets.............................. -8,535

Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

igaveupnowimback

Hi, been reading with interest for ages and posted SOA on general DFW board, had suggestion that I come over here and try. Am fascinated at how you are all managing, but am still afraid to take the (literal) Stepchange. They advised DMP couple months back and I held back and continued to struggle on. I am fearful of even opening basic account, don't know how to change this with my employers, feel massive guilt at leaving a bank with whom I have CC at £5k, am afraid of calls, afraid of 'failure' as it were, in being unable to pay my own way. At moment I am paying debts, but not living, just working and existing. No money for treats, hair, dentist, clothes, home repairs, insurances, holidays etc. It's gruelling and miserable bloody sackcloth and ashes stuff but I still don't know whether to continue or DMP. At some point in next year or two I would like to rent a different flat and don't know if DMP will affect this. Thanks for reading.

Ellieseleven

Kate_fixing_it wrote: »

I've also followed some advice posted here weeks ago and booked myself a massage via Groupon for £15.
Kate x
:rotfl:

If you have a local beauty college, this can be another way to get massages etc. for very little cost. I have my hair coloured and cut for £22 and have just booked myself in for my nails to be manicured and treated for £8.50 - the girls are usually in their last year and are supervised throughout. I have been going along for various treatments for a good few years and have always had a great experience;)

Ellieseleven

igaveupnowimback wrote: »

Hi, been reading with interest for ages and posted SOA on general DFW board, had suggestion that I come over here and try. Am fascinated at how you are all managing, but am still afraid to take the (literal) Stepchange. They advised DMP couple months back and I held back and continued to struggle on. I am fearful of even opening basic account, don't know how to change this with my employers, feel massive guilt at leaving a bank with whom I have CC at £5k, am afraid of calls, afraid of 'failure' as it were, in being unable to pay my own way. At moment I am paying debts, but not living, just working and existing. No money for treats, hair, dentist, clothes, home repairs, insurances, holidays etc. It's gruelling and miserable bloody sackcloth and ashes stuff but I still don't know whether to continue or DMP. At some point in next year or two I would like to rent a different flat and don't know if DMP will affect this. Thanks for reading.

Hi there,

I know exactly what you mean, it's a massive step and very scary. I can only speak from my own experience but I felt the same as you...I had never missed a payment and struggled on for far longer than I should of, I felt very dis-loyal towards the bank whom I had been with for 25 years plus. In the end I went with the DMP knowing that it would shatter my credit but I'm still here to tell the tale and have managed for 4 years without a credit card! I work away from home a lot and this was a big worry i.e. how would I pay for hotels etc. but I have managed to get around this without letting on to anyone that I am on a DMP

For us, a DMP was our best solution. I was in a very dark place with some terrible thoughts and I rarely slept without waking up and worrying some more. These days, I budget and live within my means and in less than 3 years we will be debt-free. I don't care that my credit rating is trashed as I don't want any more credit.

It won't all be plain sailing I'm sure and in the beginning the feelings of failure and dis-loyalty can be over-whelming but the bank that I mentioned earlier didn't give me any loyalty and just slapped penalties and interest on everything, so I quickly learnt there is no such thing as loyalty to a bank.

Only you can decide on the way to go but if you read through this thread and the experiences of others then it may help to make your mind up either way.

Ask as many questions as you need to before deciding anything, many of us have already tread the same path and can offer help and advice;)

Take care and welcome:)

Ellie xx

igaveupnowimback

Thanks Ellieseleven,
Good to hear your story. Hearing that bit about CC to book hotel even made me wary, but in reality I can't actually afford to do that anyway lol! How do people do things like that though during DMP, if I was able to get a break (sorely needed) or book a ticket for something, would a basic bank account debit card cover it? Guess so. Thanks : )