DMP & Mutual Support Thread - Part 9

gizmo111

!!!!!!!!!!2012 wrote: »

Hi Guys

As I'm on a DMP and have been for quite a while now I have an idea of how things work, but I have no idea of how things work if you become unemployed through no fault of your own.

I'm asking for a friend who may be in that situation in the not so distant future and a DMP will not be suitable as he will probably have to live off benefits until a job comes along.

Will they allow him to make token payments for a few months until he finds a new job and if they do will his credit file be trashed as if he was in a DMP.

Thanks in advance

They cannot refuse his token payments - there are no repurcussions unless he is not paying mortgage or rent,

A DMP is just a way of paying your debtss over a longer period of time in a fair way - why do you think thi sis not suitable for your friend?

Hopelessly_Hopeful

!!!!!!!!!!2012 wrote: »

Hi Guys

As I'm on a DMP and have been for quite a while now I have an idea of how things work, but I have no idea of how things work if you become unemployed through no fault of your own.

I'm asking for a friend who may be in that situation in the not so distant future and a DMP will not be suitable as he will probably have to live off benefits until a job comes along.

Will they allow him to make token payments for a few months until he finds a new job and if they do will his credit file be trashed as if he was in a DMP.

Thanks in advance

Hi

It used to be said that SC would not accept a DMP if there wasn't at least £100 available for it. They are now saying this is not correct it is about individual circumstances but everyone on that amount seems to come back and say they were refused!

He could of course do self managed by way of token payments. There are some good resources on the debtline website.

Hope he gets sorted.

HHx

Hopelessly_Hopeful

Mossop01 wrote: »

Maybe one step at a time is the answer, dmp first then concentrate on mortgage deals, rome wasnt built in a day. I know if we hadnt gone in dmp then we would still have never got a good mortgage deal with out debts, so for us getting rid of the debts has to be our priority. As far as i can make out as long as u can go onto SVR with current provider things should be ok

That's my impression too. I was doing some searching and found references to defaults within 2 years so we may not have to wait the whole 6.

HHx

Hopelessly_Hopeful

dmp2013 wrote: »

Hi, we are on month 2 of our DMP and things are settling, although HSBC and Halifax are still charging lots of interest, so Im sending them letters threatening FOS. I was just looking at our Noddle credit report and both hubby and me are scored at 1/5- no surprise really, just wondered if over time of being on DMP does this go up at all? Or does it remain there until your DMP is finished? Eventually we hope to move and will need another mortgage, we wont do this until after our DMP as im guessing you cant really get one? But how is credit rating likely to be after DMP? Thanks all x

Hi

I've been on my DMP for 3 years next month. I have paid back 45k and all debts stayed with the orginators but mine is still 1/5 too.

HHX

Hopelessly_Hopeful

Julie67 wrote: »

I know how you feel DMP2013 we are on an interest only mortgage. I'm really hoping they will let us change to a repayment maybe a year into the DMP but I don't know if its a possibility. We've been very honest with our mortgage company and kept them up to date with everything.
If they don't, we may as well sell and rent in an area we want to move too. Since starting in the DMP we would love to pay it off quickly and then use the excess to pay off the mortgage, but we can't do that with interest only. It makes me worry about the future. I guess we may as well be renting and saving instead.

Hi Julie

Mortgage is a priority debt so allowed in the DMP. I would think very seriously about staying interest free. If you go repayment your DMP will be adjusted accordingly. Yes it will take longer to pay back but at least your mortgage will be going down too.

Worth considering

HHx

Mossop01

Sorry Julie presumed u wud have another repayment method to be reducing mortgage, HH makes a good point, we had considered going interest free to pay off some debts short term before doing dmp, but maybe not ideal long term.

RonniesMummy

Morning All,
Things are tight this month, having to scrimp and save, I think I may have been too tight on my DMP budget, with the view of trying to get debt free quicker, I may need to ring them and change, but I dont want to start mucking things about this early on...
I am doing overtime so hopefully from payday I will have a few extra pounds, but there always seems to be yet another bill that pops up to be paid... Its never ending, and I am starting to wonder why I bother.

Roll on payday, I am doing loads of surveys etc to try to get an extra few pounds so I can put petrol in car so I can get to work, I am sure its not meant to be this hard....

x

RonniesMummy

Me again..
Has anyone had any experience with lloyds tsb?
I had a letter from them about 4 weeks ago confirming a payment plan had been set up, it did say 'as per our phone conversation' which we never had, but I thought its a generated letter, it had the date and amounts of payments on there too, now, stepchange have sent me a letter saying lloyds tsb have not accepted the offer?

What do I do now? Just leave it, or get in touch with stepchange and say they did accept the payment plan?

So confused, too early for all this on a monday morning!!!

x

Mossop01

Hi ronnies mummy contact stepchange they will be able to advise, surely if u have confirmation in writing from them accepting dmp they cant change their mind, i would send photocopy to SC. As for ur budget, we have had to make drastic changes to our lifestyle to accommodate budget plan, sometimes i worry our grocery bill isnt realistic (340 for family of 4) but im reluctant to change budget plan so early on, if you are really steuggling tho then the budget has to be manageable long term so maybe u will need to amend. Phone SC and see if they can suggest the best thing to do. Good luck

Julie67

Hi everyone,

Ronnies mum good advice from Mossop I would do the same.
Mossop I meant to say thanks for the info re Barclays Partner Finance I'm just going to hang on and see if they accept.
I'm just wondering wether to ring HSBC and ask if they've accepted the payment plan but going to have lunch first build myself up:D
The only other one then is Blair Oliver Scott who I was already making reduced payments to so I'm hoping they will accept, again not sure whether to ring or not. It's certainly ups and downs every day,
I'm trying to be so careful with our food budget as well.
I find Aldi works out cheaper for us, I try and get most things there. Only dh's coffee from Tesco, he drinks it black without sugar and can't stand the Aldi stuff.
Just waiting for the post to come and see what today brings.:)