DMP & Mutual Support Thread - Part 9

CharliesAngel

evening all.. just phoned the lovely people at lloydstsb and nationwide and can now confirm as of yesterday i'm no longer in debt :T had a bonus from work this month and bit the bullet... tonight I shall sleep like a log

Keep smiling

CA x

CharliesAngel

eyeopener2 wrote: »

Now your in control ,why not go self managed? All your doing now is paying somebody else to distribute your payments. Might knock a few years off your debt free date.

I can understand the initial bewilderment, I was scared stiff, but if I'd known then what I know now I would be self managed. As it is I'm near the finish line so not much point in changing. If I had a year or more to go, I would be DIY.

It would be worth checking though before going self admin that the creditors won't dump a lump sum interest or charge amount on top of what you owe when they become aware that you're no longer on a DMP through a recognised charity etc. I approached Nationwide a year or so ago to self admin but they said they would add 50 admin charge to get it back from their inhouse DCA then 25 a month for statements plus interest at the usual rate, so I stuck with CCCS.
I would also be wary about paying extra amounts through self admin of a DMP too unless you've supplied an up to date budget to each creditor - if you're seen to favour one over the other or if they start to have questions about where the extra is coming from they may want to adjust your budget or refuse to accept your offers.
The only payments Stepchange/CCCS and Payplan receive are from the creditors and the interest in payments given to them from the 1st of the month to the 25th of the month, they are in essence a free service, anyone paying for their debt management plans should seek to use a non fee paying charity to ensure maximum payments towards their debts.

dmb_2

Thanks Charlie' Angel for useful info. I've been pondering about going self-managed but in view of what you've said (and Nationwide is one of my creditors) think I'll probably stick with stepchange at moment.
Another query - how do other creditors find out if you're paying extra to others?
Also, if you've got a few hundred left on one of debts and you can manage to pay that off is this frowned upon by debt charities? (means that other creditors get more)
Have a good day fellow DMPers

CharliesAngel

dmb wrote: »

Thanks Charlie' Angel for useful info. I've been pondering about going self-managed but in view of what you've said (and Nationwide is one of my creditors) think I'll probably stick with stepchange at moment.
Another query - how do other creditors find out if you're paying extra to others?
Also, if you've got a few hundred left on one of debts and you can manage to pay that off is this frowned upon by debt charities? (means that other creditors get more)
Have a good day fellow DMPers

Hi dmb
I'd have a word with your plan provider I think they would want you to distribute the few hundred equally between them, not sure what information creditors have access to but would think they know the total sum you owe from the budget sheets or plan records.. If it was your last remaining debt I'd say full and final request and do it but don't want to risk your dmp just now.
Hope this helps x

Mossop01

Hi all, very quiet in the dmp front here. Strugglingwith budget this month, we seem to keep having unexpected bills to pay, before we have chance to build up the emergency fund which is a bit disheartening when im trying so hard to stick to budget! Hopefully things will improve next month, hope everyone else is plodding along nicely. Looking forward to monday when i can check dmp online n see first payment to creditors!

bobble1990

I am still confused about the whole Step Change/ DMP thing...

- Does having a DMP hugely negatively affect a Credit Rating?


- What does Step Change get out of it? When I rang and got offered a DMP, they seemed VERY keen to sign me up and have even rang me a few times since to check if I have decided to 'go for it yet'!


They are feeling more like a company that wants to sign me up for some reason atm.


I cannot believe that saying to creditors I am not paying you any more interest and I am making my repayments smaller does not have any backlash but this is how SC have been selling it to me.


Surely you'd think their priority would be to encourage me to pay them off in any other way possible???


Maybe I am just being overly paranoid but it all just feels to good to be true to me and that there must be unspoken downfalls?


Can anyone answer my concerns?


Thanks.

antonic

Hi Bobble !

If you need a DMP your credit rating is shot to pieces already and going on a DMP wont affect it (negatively) more than than it is now !.

StepChange although they dont charge, is funded by the credit industry, and so the more people they sign , the more money they get.

(I`m with Payplan and they wanted me to take out an IVA (for which they get the fees for running it - I refused )).

If your unhappy with SC why not try Payplan or Christians Against Poverty, who both run free DMP`s ?.

fatbelly

CharliesAngel wrote: »

It would be worth checking though before going self admin that the creditors won't dump a lump sum interest or charge amount on top of what you owe when they become aware that you're no longer on a DMP through a recognised charity etc. I approached Nationwide a year or so ago to self admin but they said they would add 50 admin charge to get it back from their inhouse DCA then 25 a month for statements plus interest at the usual rate, so I stuck with CCCS.

I believe this would be a breach of The Lending Code and should be challenged:

212.
Personal customers may choose a self-help approach to negotiating debt repayment. Subscribers should ensure that such proposals are given equal consideration as those presented through a debt adviser.

Nationwide are a subscriber to the code and have an excellent Money Advice Liaison Manager, who I am sure would be interested in this.

Mossop01

bobble1990 wrote: »

I am still confused about the whole Step Change/ DMP thing...

- Does having a DMP hugely negatively affect a Credit Rating?


- What does Step Change get out of it? When I rang and got offered a DMP, they seemed VERY keen to sign me up and have even rang me a few times since to check if I have decided to 'go for it yet'!


They are feeling more like a company that wants to sign me up for some reason atm.


I cannot believe that saying to creditors I am not paying you any more interest and I am making my repayments smaller does not have any backlash but this is how SC have been selling it to me.


Surely you'd think their priority would be to encourage me to pay them off in any other way possible???


Maybe I am just being overly paranoid but it all just feels to good to be true to me and that there must be unspoken downfalls?


Can anyone answer my concerns?


Thanks.

Hiya, having a dmp with anyone does affect ur credit rating with defaults lasting 6 years, however if like us u were struggling with minimum repayments and having to constantly use credit to provide food/ essentials then this provides a way of living within our means and paying debts off. It should only be used if you are in financial difficulty and creditors dont have to freeze interest on accounts (although mine have)
Everyones situation is different is different, i was never hounded or felt pressured into my dmp, it was a welcome relief to know that there was a way forward without spiralling furthur into debt.
I read this forum from page to page so i knew exactly what the pros and cons were, it may be useful to do that before u make any decisions, i know it helped me tremendously.
Good luck with whatever you decide

bobble1990

Thanks for the replies.

I guess I am coming from a slightly better/different financial situation and have therefore experienced this DMP world differently.


My debts are not so bad that I am missing repayments but I do struggle month to month but could sort myself out simply by cutting back.


I guess I have experienced a side of SC that does not seem to have been considered i.e. as the OP said SC make money from the amount of DMP's they have in place. Therefore really they should have encouraged me to cut back and not get a DMP, as opposed to encouraging me to get one (IMO). It could have turned out that I went with them and then the creditors declined me due to my surplus being quite high and then this negatively affecting my credit rating anyway. I just am glad I had the sense to ask my families advice and taking some thinking time to before making a decision....


I can understand they are excellent products for people in dire states but for people in my predicament they are potentially dangerous.