DMP & Mutual Support Thread - Part 10

Chapter2009

is anyone able to post me the link for a letter template stating that I am considering a dmp and offering a £1 payment? Thank ou in advance.

Startingover14

First post here, so just looking for a bit of an idea on what to expect with a dmp. I've been in touch with Stepchange and they have suggested a dmp for me. I am a bit nervous over the creditors saying no to the plan and what they may do (ie write, contact me etc) whilst this is being set up. I really need to take control of my finances as they are way way out of control and am working my way through the best options, which are limited.

I've got debts with Sainsbury's, Barclaycard and Halifax and am doing this before it spirals into them chasing me for the money, as at the moment I am just about up to date, but I can't continue this way hence the reason for a dmp.

Does anyone have any advice for what to expect over the coming weeks, month and years?

Sazzie23

kb_soma wrote: »

Time to check in again.

I have cleared one of my creditors, which I'm so pleased about. I still have a long way to go, but am also aware that I have come a long way.

From my initial £9565.29 debt, I now have £4,274.90 (estimated, but not far off).

It gets frustrating, and I just want the debt gone now. I've joined frugal groups and budgeted really well so that I can have the extra to pay off lumps through stepchange when I can, this has meant I've managed £950 overpayments to my DMP this year alone.

Anyone that is on this journey, I wish you well and good luck!

Hi KB had a little read through your thread, you are doing so well. Do you have a spreadsheet set up so you can mark up those all important milestones (going down from 6k to 5k, reaching 25% paid! reaching 3k paid, etc etc...milestones = motivation for me).

I just wanted to quote your post to show that you can make overpayments through SC if you want to, I think sometimes it feels like the DMP payments is all you need to make and there i no control.

Reading through others posts about CC, I realise I'm not ready for another CC (probably wouldn't get one anyway:eek:). I can see why having the fallback option of a CC might be a good thing though,but my reasons for getting into debt were a lot to do with not spending wisely and I have to respect that I can't be trusted with credit. Like Kate, I also kinda like being able to do the budgeting thing

For anyone who wants to know that to expect on the DMP, go back though about 20 pages on the thread, you'll get a pretty good idea, and if you have questions come back and well try to help out.

Main thing to remember is creditors may or may not accept, they may or may not let you know if they've accepted, but either way keep making the payments, you've offered what is affordable and they can't have what you haven't got. NEDCAB have good templates as do national debtline I think.

Defaults are good as they usually mean interest is frozen, and DcA's can be better to deal with than some creditors. Don't be frightened of the mail, and my own tip is to ring the creditors every time you get a letter, even if it's seemingly meaningless, and ask them what they want you to do...in most cases if you are with SC or PP they will say, don't need to do anything, but it makes you feel like you are in control and keeps them happy.

Hope this helps, have a good start to the weekend :j

Ps TTfTm sorry you are having a tough time, hope everything works out (our local chiropractor will do interest free installments if we ask)

Time_to_face_the_music

cmcavon wrote: »

Just checking in.

Hubby's had first chase letter for an HSBC loan that should have been paid on the 1st. It's very friendly actually. I guess the scarier ones will come. They aren't being told about the DMP until next week. Letter filed in the bin!

Seriously considering my future with my job. Once baby's born i may just stay home as we will actually be better off with tax credits etc. controversial I know but we have to do what's best for our family. Hubby works full time. I couldn't stay home forever so would get a part time job when this one starts school.

Still sticking to a weekly budget which is actually going well.

It could be a joke about throwing the letter away but if not, don't do it! One of the first pieces of advice I was given here was to keep every single piece of mail/statement/letter that creditors send me. I did it but thought it was a bit daft until I needed one, then I realised how valuable that advice was. Use a filing box with dividers for each creditor, mine came from the poundshop but you could easily make them from an ordinary cardboard box.

TTFTM x

Time_to_face_the_music

Chapter2009 wrote: »

is anyone able to post me the link for a letter template stating that I am considering a dmp and offering a £1 payment? Thank ou in advance.

Fantastic selection of template letters on National Debtline website:

https://www.nationaldebtline.org/EW/sampleletters/Pages/default.aspx

TTFTM x

Time_to_face_the_music

Startingover14 wrote: »

First post here, so just looking for a bit of an idea on what to expect with a dmp. I've been in touch with Stepchange and they have suggested a dmp for me. I am a bit nervous over the creditors saying no to the plan and what they may do (ie write, contact me etc) whilst this is being set up. I really need to take control of my finances as they are way way out of control and am working my way through the best options, which are limited.

I've got debts with Sainsbury's, Barclaycard and Halifax and am doing this before it spirals into them chasing me for the money, as at the moment I am just about up to date, but I can't continue this way hence the reason for a dmp.

Does anyone have any advice for what to expect over the coming weeks, month and years?

Hi and welcome Startingover14 :hello:

When you get some time, make a drink and sit down and have a read back through this thread and its predecessors. I did that, made some notes on specific worries, then came back and asked and read more then asked again. Someone here will always try to help you.

My personal advice is get the DMP set up but don't start it right away. Give yourself a couple of months of breathing space to make token payments, practice your budget, save a small start to your emergency fund and possibly encourage early defaults.

The start of a DMP is a bit of an emotional roller coaster so if you need support, this thread is here for you.

TTFTM x

Karen777

Hello Hello everyone. Sorry in advance for the rambling post!

Things I wish I had known when starting a dmp -

1. Leave it a couple of months and build up some emergency funds rather than throwing yourself straight in and paying as much as you can
2. Defaults are ok and not things to be avoided at all costs - some of my creditors didn't accept I was in hardship as had no defaults or missed payments
3. Keep everything from creditors, read it and file it. It's not as scary as you think.
4. Keep on top of your figures yourself - I was with PP (now self managed) and thought their figures were accurate only to find out after almost a year that they didn't include interest - that was a hideous shock and almost derailed me completely.
5. Creditors may or may not accept repayment plans but I have never known one not accept a payment, so keep making token payments while things are sorted out, and write to them telling them you are doing so.
6. Work out your rewards - not spendy ones, and feel proud of yourself for confronting this and sorting it out. Many many people never do.
7. You will still have bad days... a dmp is amazing but is not going to solve every problem - we get into debt for many reasons and some of us have spending patterns linked to mood/ emotional screwiness. That will still need addressing if that is you. When I could no longer 'comfort shop', I had to work out another way of looking after myself. Which I am still in the process of doing (I suspect it's a lifelong process .
8. Tell someone if you can - it's a big and stressful thing to keep to yourself. You don't have to tell everyone but a real live physical person to support you is a good and useful thing

er, that's it for now I think! I'll get down off me perch and shut up!

tayajade

Morning all,

I feel like I am not doing so well with my budgeting, this is the second month and at the start of each we have put a good amount in a savings account but then ended up having to take most of it back out it's little things that I would usually have put on a credit card or the dreaded next account like birthday presents that are adding up! And school holidays are an expensive time as it is trying to keep kiddywinkles entertained for little to no cost!

Just feeling frustrated with myself for not being stricter and having more saved!

Hello to all the newbies..this thread truly is amazing for support!

kb_soma

Sazzie23 wrote: »

Hi KB had a little read through your thread, you are doing so well. Do you have a spreadsheet set up so you can mark up those all important milestones (going down from 6k to 5k, reaching 25% paid! reaching 3k paid, etc etc...milestones = motivation for me).

I just wanted to quote your post to show that you can make overpayments through SC if you want to, I think sometimes it feels like the DMP payments is all you need to make and there i no control.

Thanks Sazzie23, yes, stepchange have been very supportive of me making overpayments, I did originally ask them if I could just pay it straight to the creditor, but they advised me not to as it could jeopardise the agreements set out with my other creditors.

I did think of working in my budget to make over payments every month, but this would leave me desperately under budget some months. For example, this month the cat has vet check up, boosters and will need flea and worm treatment which all adds up.

I do not have a spreadsheet to mark my milestones, what a great idea!

kb_soma

Startingover14 wrote: »

First post here, so just looking for a bit of an idea on what to expect with a dmp. I've been in touch with Stepchange and they have suggested a dmp for me. I am a bit nervous over the creditors saying no to the plan and what they may do (ie write, contact me etc) whilst this is being set up. I really need to take control of my finances as they are way way out of control and am working my way through the best options, which are limited.

I've got debts with Sainsbury's, Barclaycard and Halifax and am doing this before it spirals into them chasing me for the money, as at the moment I am just about up to date, but I can't continue this way hence the reason for a dmp.

Does anyone have any advice for what to expect over the coming weeks, month and years?

Hi Starting, Just keep in contact with your creditors. I did this all in writing.

Start the DMP when you are ready.

You will be advised to open a new basic bank account with no links to any of your debt. Do this first. When you are ready, switch your income and essential outgoings such as rent, electric, gas, C Tax... from your new account.

Remember to cancel any direct debits that you have from your old account.

Stepchange will be able to advise you of the order in which to do things. They will talk you through the best options and look at a realistic budget for you.

Fill in all the forms etc to stepchange.

Write all of your template letters to your creditors with your first token payment. - I did this after the payment went to them, before the next one was due, but I don't think that it matters as the token payment you will be making will be less than they are asking for.

They shouldn't refuse as you have a big charity on your side, they hold a lot of weight and have helped many pay off their debts. Stepchange will be there on the end of the phone any time you are worried. It's nice to have someone on the end of the phone you can talk to.

Remember to go easy on yourself, this may be the hardest thing that you do, but it will be so much easier when you have a realistic budget to live with.

Set up your standing order to stepchange each month, then you don't have to worry, it just goes out on payday.

Good luck and stay strong!