DMP & Mutual Support Thread - Part 10

BeingDebtFreeStartsHere

Thanks Tayajade, Suseka and Sazzie23 for you great advice

Congratulations Bongo1 - I cannot imagine being in that position - to be debt free must feel amazing! Well done!!

Had a few questions and emailed SC - they called today and I spoke to a lovely lady who answered all my queries. Made me feel a bit calmer about the whole process!!

Hoping to get the DMP started in October - excited but apprehensive at the same time!

Continuing the transfer of direct debits - just a query - if we did cancel our direct debits I have an overdraft and loan with Natwest who I have ny current account with so they may suss that something is going on?? I was just going to carry on with the direct debits for September and then cancel each one as the last September payment goes out - is that the best thing to do?

I know that SC contact the creditors to tell them about the DMP - do we need to write to them all too to inform them?

1st October can't come soon enough!!

dad2one

BeingDebtFreeStartsHere wrote: »

Continuing the transfer of direct debits - just a query - if we did cancel our direct debits I have an overdraft and loan with Natwest who I have ny current account with so they may suss that something is going on?? I was just going to carry on with the direct debits for September and then cancel each one as the last September payment goes out - is that the best thing to do?

I know that SC contact the creditors to tell them about the DMP - do we need to write to them all too to inform them?

1st October can't come soon enough!!

Cancelling each one as it goes out sounds like a good approach. most banks let you do it online so it only takes minutes.
All my debit dates were close together so i did a complete switch soon after they were out, and got my wage changed immediately after that.

It is polite to write yourself to your creditors, they'd appreciate it i think, plus you can send a token payment if you wish. It's an opportunity to personally explain in writing that you are in difficulties, and fully intend to repay what you owe.

BeingDebtFreeStartsHere

dad2one wrote: »

Cancelling each one as it goes out sounds like a good approach. most banks let you do it online so it only takes minutes.
All my debit dates were close together so i did a complete switch soon after they were out, and got my wage changed immediately after that.

It is polite to write yourself to your creditors, they'd appreciate it i think, plus you can send a token payment if you wish. It's an opportunity to personally explain in writing that you are in difficulties, and fully intend to repay what you owe.

Thanks Are there any templates on the MSE site that I can use to send to the creditors?

dad2one

There will be a template about somewhere....

My first letter went something like this:-


Dear Sir / Madam

(account detail / number)

I am writing to let you know that I have found myself in unfortunate financial difficulties, and am no longer able to keep to the agreed credit agreement with regard to the above account.

I have been taking advice from StepChange debt charity, and thus organised through them a debt management plan as a proposed solution to repay what I owe (creditor name), along with other creditors (if applicable).

It is to my understanding that StepChange are making contact with (creditor name) about this. My reference number for them is (sc ref no.)

I wish to make it clear that I fully intend to repay what I owe to (creditor name) and hope to come to some realistic arrangement of doing this with a plan organised by StepChange.

I would appreciate any further correspondance to be made via StepChange or by letter to myself. (you could also offer e-mail here too).

Thanking you for your understanding.


- something like that, anyway. It makes a few points clear.

1) you're working with sc to sort it out
2) they'll get their money eventually
3) you only want written correspondance about it

dad2one

I sent that letter out before the plan was in place. I then sent a token payment out a bit later with a short letter:

account/debt detail

I have set up a payment schedule to repay what is owed through StepChange debt charity (ref (ref no.)).
I believe the first payment on this schedule will not reach you until (month) and I have been advised to make a token payment in the meantime.
Please find enclosed a cheque for £ (1 or 2 or whatever)

Hopelessly_Hopeful

Morning all

Thread's busy!

Welcome to the newbies.

Great news GUO, go for it.

Have a good weekend folks

HHx

Kate_fixing_it

Not strictly DMP related but you are all such a support I thought I'd share. London was AMAZING. Kids were incredibly well behaved (DH was a bit of a pain :rotfl:) they realised where we were when DS2 saw the signs as we pulled into "London Euston". I knew how much I could afford to spend and took it in cash before we left, I actually came home with more than half of it still in my purse

My leg was unbelievably painful last night and ended up taking the uber-painkillers and it's still bad this morning (in fact it woke me up before 6am) but it was sooooooooooo worth it. I didn't stress about money all day, in fact I didn't even think about it after I took the cash out that I'd carefully checked several dozen times. Massively different to the last two trips to London shortly after my LBM where I was in a terrible state and completely sabotaged my own enjoyment.

DD1 has decided against Glasgow Uni as she'd be classed as an international student so tuition fees triple :eek: so that open day has been cancelled and the train fare and hotel are now going to be spent on staying over after Bristol's (her favourite) so she can get a feel for the city, all of us going back to London on the "Glasgow" weekend and possibly shifting a bit more of the remaining non-DMP debt.

Physically I'm a wreck but emotionally this past week has me on cloud nine. Thank you all for your unparalleled support. Goodness knows what state I'd be in without you all.

Kate x

outsider2040

Hi all,


I have a query on the DMP; I am financially linked to my dad on the mortgage (only 1 financial link). If I was to take up the DMP I know that it would destroy my credit rating/score and I know my dads will be affected. My question is that will my dad still be able to use his credit cards?


Thanks all.

dad2one

Once on a DMP, your credit rating / score is indeed affected as you say. As the person on the DMP you must not attempt to get further credit from anyone, it would be in breach of the agreement.

However, it is your DMP, not anyone else's debt, so your dad should not be affected.

Ok, his future rating may or may not be affected, but ratings only matter when applying for more credit. Existing agreements remain unaffected, so his current credit arrangements (cards etc) will be untouched. (notwithstanding future credit level reviews of which there will be plenty of advance information given anyway)

Good luck on your DMP

Puzzcat

A quick update from me...


Waves and good luck to all newbies starting out and congratulations to all those who have finished or nearly finished this amazing journey..

August brings me into my 10th payment gone on my dmp and I'm now in the 54k's..:j and 8.6% paid off.. this equates to over £5000 paid off in this time...Only 95 months to go...


I still love my dmp.. and you guys of course.. xxxx