We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Never thought this would happen to me....help!

Options
12357

Comments

  • So, having set up my DMP last autumn, it's now time to face up again, and send some letters to my creditors. I have 8 creditors and am sending each of them a letter concering:

    - Request to freeze interest
    - request to refund charges
    - request for up to date balance.

    I'll let you know what they come back with. In the meantime, can anyone let me know what to expect from the creditors? Just want to be prepared for any eventuality.

    Thanks,

    YKT
    Debt at LBM October 2013 - £11,145 :mad:
    Debt as of November 2016 - £1,582
    :)
  • nicp60
    nicp60 Posts: 457 Forumite
    Debt-free and Proud!
    Hi YTK,
    So glad to hear you're doing well, and congrats on the payrise!

    When I was in a DMP my creditors all reacted differently. One (the largest), was hugely helpful, filed a default within 6 months of the default itself, accepted my payment plan, froze all interest and I eventually cleared the £9k I owed them.
    My smallest creditor wrote the debt off (it was about £120 to a large bank). Another one was an absolute nightmare, recorded incorrect information on my credit report, lied about it, chased me relentlessly and never froze the interest. I ended up paying them triple the £600 I originally owed them. And this was a reputable international bank.

    I don't think there's any predicting what they will all do - be prepared for them to say they won't freeze the interest, and then be pleasantly surprised if they do!
    Fritterati Challenge for 2013:
    £2202/£3000 saved (73%) :j
    Take lunch to work and stop frittering!



  • Best of luck YKT. :):money:
    DEBT FREE AND PROUD:D
    'Better to remain silent and be thought a fool than to speak out and remove all doubt'
  • maganan
    maganan Posts: 254 Forumite
    Part of the Furniture Combo Breaker
    Best of luck most of mine stopped interest quite quickly one has kept adding interest but at less than 1%, my 2 smallest were nightmares but I've thankfully been able to pay them off with a bit of scrimping here and there ;) others have had no such problems with the same lenders! Sadly it's just the luck of the draw but don't forget if you feel you're not getting the right responses contact the FSO, many here have successfully

    Good luck

    Kate
    Final no going back LBM 20/12/10
    Debt Jan 2011 [STRIKE]£28217.65[/STRIKE][STRIKE][/STRIKE] DMP start 01/02/11 -[STRIKE][/STRIKE]
    Debt free[STRIKE][/STRIKE][STRIKE][/STRIKE]26 September 2014 :):beer:
    £2 Savers Club - 2012 no 105 2012 Sealed pot challenge no 1282 DMP mutual support thread No 405
    Proud to HAVE dealt with my debts:j
  • anniec, start your own thread on the DFW board. It's possible you may not be affected, but it's possible your DMP may be withdrawn. People on DFW are friendly and more knowledgable than me.

    Well done YKT! Keep it up :)

    HBS x
    "I believe in ordinary acts of bravery, in the courage that drives one person to stand up for another."

    "It's easy to know what you're against, quite another to know what you're for."

    #Bremainer
  • Guys, thank you all so much for your support and helpful advice! Really feel like I'm getting somewhere now, and I have another update...

    I contacted each of my creditors individually to get up to date balance and also ensure that interest and charges were frozen. Here is how I got on:

    Of the 13 creditors on my DMP, 12 have frozen interest and charges. The one that has not in the largest of my loans. I initially took out an Everyday Loan for 1500. I spoke to them today and my balance is 2600 and of the 66 pound payment they receive through Payplan, 51 pounds is paying for interest. My balance is 2600ish...meaning that about 15 pounds is coming off the balance.

    Firstly, its a positive that the balance is coming down. I've heard some horror stories about these guys but it now seems like I at least have a base now to work off. Also as of next month my monthly payment to EDL will be going up to 90 pounds meaning that about 40 pounds per month will be coming off the balance.

    My initial thoughts are:

    I spend the coming months saving enough to make either full and final offer, or at the worse pay the lot off. Although I'm aware this would void my DMP, would I be able to negotiate that this creditor is taken off the plan? To be fair, I think I will be in a position to self manage my DMP at some point anyway.

    Or, do I concentrate on trying to get interest reduced? or frozen.

    Although this is a bit of a thorn in the side of my DMP at the moment, I am very happy with the fact that 12 of 13 creditors are playing ball, and that's a cause to celebrate. Now I know where to put my focus.

    Thanks all for reading, and looking forward to hearing your views.

    YKT :beer:
    Debt at LBM October 2013 - £11,145 :mad:
    Debt as of November 2016 - £1,582
    :)
  • new balances on signature, these are now confirmed with creditors
    Debt at LBM October 2013 - £11,145 :mad:
    Debt as of November 2016 - £1,582
    :)
  • It sounds like you are starting to come together. It is always nice to read that people are able to get back on track after an initial downfall. Glad to hear that you are now making more money than before and are on your way to getting back to where you want to be!
  • thanks Ron much appreciated. I now just to hope for a good bonus next month so that I can throw it all at my debt! :j

    YKT
    Debt at LBM October 2013 - £11,145 :mad:
    Debt as of November 2016 - £1,582
    :)
  • sourcrates
    sourcrates Posts: 31,510 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Hi,
    Have just read entire thread and it seems some of your creditors are still adding interest, sometimes its better to wait for the lender to sell on the debt to a debt collection agency before agreeing repayment terms, as interest is stopped once they are sold, just something for you to ponder on, good luck with it all !!
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.