DMP & Mutual Support Thread - Part 10

Helen2122

Can anyone tell me how likely vanquis, capital one and natwest (overdraft) are to freeze my interest and charges on a dmp?

FuzzyDF

Helen2122 wrote: »

Can anyone tell me how likely vanquis, capital one and natwest (overdraft) are to freeze my interest and charges on a dmp?

Hi Helen,

Creditors seem to act differently judging by the posts on here. Capital One and Vanquis have frozen my interest for 6 months. Vanquis haven't defaulted me yet (which I wanted) but Cap One have. I'm pushing Vanquis for an early default now.

Sazzie23

Helen2122 wrote: »

Can anyone tell me how likely vanquis, capital one and natwest (overdraft) are to freeze my interest and charges on a dmp?

Hi

We had Nat west overdraft (5k) frozen interest but as OP says they can vary a bit. Even same creditor will treat different accounts differently.

Hope this helps (probably not a lot!) :eek:

Little_Miss_Broke

Hello

I just wondered how you guys felt about a self managed DMP? I'm wondering if you have more flexibility? I spoke to Step Change and they said you can't show any creditors favouritism.. but there are lots of challenges on her like 1 debt vs 100 days that would be good motivation wise - could you over pay one and then transfer the usual payment to be split between the remaining? or is that a massive no no? whats everyones experience?

kb_soma

Hi everyone, Can I join the thread? Feeling slightly overwhelmed again... I'm a few years into my DMP and have just checked my balances. I'm just over halfway through clearing my debts and I'm down a creditor now.

Every time I do a tally of where I am, I need to take a deep breath. It's been a hard journey, but well, well worth it. To those guys that are just starting off a DMP, be patient, once the dust settles you will feel so much better.

My story is here: https://forums.moneysavingexpert.com/discussion/4787573

tgirl

Little_Miss_Broke wrote: »

Hello

I just wondered how you guys felt about a self managed DMP? I'm wondering if you have more flexibility? I spoke to Step Change and they said you can't show any creditors favouritism.. but there are lots of challenges on her like 1 debt vs 100 days that would be good motivation wise - could you over pay one and then transfer the usual payment to be split between the remaining? or is that a massive no no? whats everyones experience?

I'm thinking of doing this too. I don't know if it's worth the stress. Also has anyone done a DMP and kept a credit card out if it for emergent use? Would the card automatically get declined? Step change say that no credit is allowed while on DMP but I was thinking of keeping access to a card with emergency funds.

bertman

tgirl wrote: »

I'm thinking of doing this too. I don't know if it's worth the stress. Also has anyone done a DMP and kept a credit card out if it for emergent use? Would the card automatically get declined? Step change say that no credit is allowed while on DMP but I was thinking of keeping access to a card with emergency funds.

When we set up a DMP with SC I asked if I could keep one card for work expenses as I travel a lot and need to pay for hotels etc. They agreed and I kept a Capitol one card which I pay off every month with reimbursed expenses. The APR is ridiculous so I make sure I always get paid money in time to pay it off but apart from that they said a big fat no to any other card for "emergencies"

Newchapter

Hi TTFM
A few times it has been suggested I consider an IVA, but I am terrified at the thought of one. My anticipated completion for my DMP is over 10 years. I expect to have equity in my property, so at the end of a hypothetical IVA, would I be at risk of losing that equity to the creditors? I have read that I could be forced to try and re-mortgage to release any equity before the end of an IVA. Do you know?
Thanks

Hopelessly_Hopeful

bertman wrote: »

When we set up a DMP with SC I asked if I could keep one card for work expenses as I travel a lot and need to pay for hotels etc. They agreed and I kept a Capitol one card which I pay off every month with reimbursed expenses. The APR is ridiculous so I make sure I always get paid money in time to pay it off but apart from that they said a big fat no to any other card for "emergencies"

That's interesting Bertman. I asked the same and was told no way. I travel lots with work but they did say I could take on a car loan and pay interest on it! Managed to get a lease car through work in the end.

I have a capital one card for the past year that gets paid off every month so no interest.



HHx

UpToMyNeckInIt

Newchapter wrote: »

Hi TTFM
A few times it has been suggested I consider an IVA, but I am terrified at the thought of one. My anticipated completion for my DMP is over 10 years. I expect to have equity in my property, so at the end of a hypothetical IVA, would I be at risk of losing that equity to the creditors? I have read that I could be forced to try and re-mortgage to release any equity before the end of an IVA. Do you know?
Thanks

...but how will you feeling in Year 6 of your DMP (up to 20 Years is nuts by the way), when an IVA would have been done and dusted by then?

Saying that, please consider the ramifications before entering an IVA - speak to a few providers to see if it is the right option for you.

Have a look at the 'Debt Camel' website here:

http://debtcamel.co.uk/debt-options/

In my case, I felt that an IVA was the least painful of all the options.

If you feel the IVA is right for you, Google 'Insolvency Practitioner Reviews'. 3rd or 4th result down takes you to a pretty good customer review site.

Speak to 2-3 well-reviewed companies, and choose one that feels right for you. This is important, as you will not be able to change providers once your IVA is up and running.

By all means seek advice from the ‘charity’ organisations, but don’t be afraid to approach a private firm if they don't think you are eligible for an IVA.

I have a cynical view of the so-called 'independent' charities (Stepchange, National Debtline etc…) - they are all sponsored/funded by the banks/credit companies, and I can't help feeling that was who’s interests they were looking out for when they advised me. They tried pushing me towards a debt management plan (would have taken 15-20 years to pay off my debt + loads of interest).

Saying all that, many private firms will ‘over-sell’ IVA’s to people for whom it may not be the best solution. (Based on your information though, an IVA does seem a reasonable option).

Equity release: Bear in mind that, however unlikely it is currently likely to happen, most IVA's require homeowners to (subject to a property valuation in Month 54 of the IVA), attempt to release equity via remortgage (or secured loan with the advent of the 2014 protocol), up to 85% LTV to increase creditor dividend up to 100p in the £. (Subject to the resulting payment being max. 50% of you current IVA payment for affordability reasons). It goes without saying that the other usual affordability criteria apply such as limitations based on multiples of household income etc.

For the vast majority of IVA customers, equity release is not possible, so your IVA goes on for a 6th Year instead (which usually works out a lot cheaper). Most of us wont stand a snowball's chance in hell of getting a remortgage/further secured borrowing (unless you have stacks of equity of course AND a very high disposable income).

Good luck.