DMP & Mutual Support Thread - Part 10

Growurown

Morning all. Groan - have just spent 15 minutes on the phone to Newday who have taken over the old Asda card account with Santander. They charge 5p per minute, kept us waiting ages only to be told they aren't the people we need to speak to and gave us another number. Anyhoo they were the last creditor to contact so I think I am just going to write to them now and tell them that way.

All our other creditors have been fine. A couple wanted to increase our payments but only by about £20 a month, so it wasn't horrendous, and they accepted a slightly lower payment when I pushed the issue. Several of them wanted to go through my budget, but I did that over the phone and just gave them the figures from my latest SC budget. Only one creditor, Capital One wants copies of bank statements etc. but they aren't going to get them. I'll send them a copy of the budget sheet and just keep on paying them and hopefully they won't ask again.

So currently our balance stands at £15,830.64 down from approx £46,000 when we started 3 years ago.

I am hoping to clear this by Christmas 2015. I really don't want to spend another Christmas after this one on a DMP, but my rent has gone up and my pay gone down as I am paying pension contributions now. So I am going to have to be stricter with my budget:cool:

So all in all the self managed DMP so far hasn't been too bad. A lot of phoning, but it could all be done by post, and now it is set up shouldn't cause me too many headaches.

Thomas999

Well, after reading this thread for the last few weeks I've finally taken the plunge and set up a DMP with StepChange which starts in October. Scary, but empowering at the same time!

What I love about the forum is that people here are non-judgmental. I'm so grateful to those who have posted about their situations and how they're progressing - you've no idea how much it's encouraged me to pull my finger out and take action. A big thank you to everyone (I'm a grown man and I'm almost welling up!).

One of the trickiest parts of letting my creditors know about my DMP was actually finding the addresses to write to. I have 11 creditors in all (cost me a fortune in stamps!) and I really struggled to find where to send my letters to. On the 'contact us' part of their websites, most only had a phone number or email address. Anyway, hopefully the letters have made their way to the right department.

I'm annoyed with First Direct. I cancelled my direct debit for my loan with them (with plenty of notice), and wrote to them about my DMP, but they *still* took the funds from my First Direct current account, even though my overdraft is at its limit and the current account is also part of my DMP. And now when I log onto my online banking, the direct debit is showing again and it won't let me cancel it. This means my overdraft amount on my DMP is a lot more than StepChange are aware of - I guess I need to let them know. Luckily I'd already set up another current account for my wages.

One thing I'm unsure of: how will I know whether my creditors have accepted my DMP and reduced payments? Do they let StepChange know and then StepChange informs me? Or do I need to contact them myself? As you can imagine, the last thing I want to do is speak to my creditors on the phone.

Also, StepChange (although they've been marvellous) have said I'm not allowed to have holidays. I was intending to put £50 away each month for a potential getaway next year but they've said that's a no-no. Surely I'm allowed *something* to look forward to (apart from my final debt-free date). Or are DMPs usually that strict?

Anyway, thanks again guys. Here's to the long road ahead..:)

Puzzcat

Thomas999 wrote: »

Well, after reading this thread for the last few weeks I've finally taken the plunge and set up a DMP with StepChange which starts in October. Scary, but empowering at the same time!

What I love about the forum is that people here are non-judgmental. I'm so grateful to those who have posted about their situations and how they're progressing - you've no idea how much it's encouraged me to pull my finger out and take action. A big thank you to everyone (I'm a grown man and I'm almost welling up!).

One of the trickiest parts of letting my creditors know about my DMP was actually finding the addresses to write to. I have 11 creditors in all (cost me a fortune in stamps!) and I really struggled to find where to send my letters to. On the 'contact us' part of their websites, most only had a phone number or email address. Anyway, hopefully the letters have made their way to the right department.

I'm annoyed with First Direct. I cancelled my direct debit for my loan with them (with plenty of notice), and wrote to them about my DMP, but they *still* took the funds from my First Direct current account, even though my overdraft is at its limit and the current account is also part of my DMP. And now when I log onto my online banking, the direct debit is showing again and it won't let me cancel it. This means my overdraft amount on my DMP is a lot more than StepChange are aware of - I guess I need to let them know. Luckily I'd already set up another current account for my wages.

One thing I'm unsure of: how will I know whether my creditors have accepted my DMP and reduced payments? Do they let StepChange know and then StepChange informs me? Or do I need to contact them myself? As you can imagine, the last thing I want to do is speak to my creditors on the phone.

Also, StepChange (although they've been marvellous) have said I'm not allowed to have holidays. I was intending to put £50 away each month for a potential getaway next year but they've said that's a no-no. Surely I'm allowed *something* to look forward to (apart from my final debt-free date). Or are DMPs usually that strict?

Anyway, thanks again guys. Here's to the long road ahead..:)

Hi Thomas and welcome to the best thread on the forum..


Most of your creditors will write to you, but don't worry if they don't. Some people get creditors who say they wont accept the lower payment but SC just keep paying them and I think most settle down after awhile. Don't forget your debt will go up at the beginning as they do tend to hammer on charges and interest. mine went up about 1% but all mine froze charges except 1 and we have ways of fighting with the naughty ones!!!


With regards to holidays etc.. Many of us would recommend being mildly inventive with your budget before setting it up.. take the maximum offered in the debt remedy ie: magazines, dry cleaning, smoking etc.. this allows a small buffer which is useful for an emergency fund or a small treat.. Also any ways of earning any additional money ie overtime, ebay, boot fairs, surveys etc can all go in the e.fund/treat pot...


Have you thought about not starting straight away in order to pay token payments and save for that WILL be needed emergency fund as you will have no access to credit once it all kicks off.. I have in the last 10 months had a broken freezer, broken washing machine, over £600 car repairs, vets bills etc.. you get the picture...


I wish you luck on your journey and do keep popping in..


Puzz. x

Suseka

Hello Thomas 999 - well done for getting the ball rolling, you won't regret it. I echo Puzzcat's advice about setting yourself up with a bit of an emergency fund and not starting the official DMP payment too early.

When we set up our DMP we were pretty naive about the whole thing and I wish I had read the advice on here first - had I done so i would definitely have built a bit of a buffer in our outgoings - but c'est la vie.

Our budget only allows for £20 each month for 'extras' - we weren't even allowed to include our pet insurance (cats x 4)

So we gave ourselves a couple of months leeway and being able to build up that emergency pot has really helped over the last year.

Sazzie23

City1 wrote: »

Hi,

Was looking for some advice. Next have refused to accept our offer, they are wanting £200 extra per month, all other creditors have been cooperative.

Now what?

Regards

Hi City1

If I looked at your budget, would I be able to see where you coud find £200 to pay Next? If not & I'd expect that it wouldn't be possible, or you probably wouldn't be doing a DMP, then I think maybe take the suggestions of keep paying what you've offered and see what happens. I'm assuming you are self managed, Wonder if the would they dare challenge a SC plan that way?

Even if you are not using SC, I think their budget planner is easy to use and useful to quote at creditors, so try filling that in and sending it to Next if they persist.

I'd defo say that catalogues seem to be in the highly challenging creditor category,:eek:

What issues did you have with HSBC, useful to share in case others having similar trouble.

Suzeka - sister really not having an easy time of it, sending warm fluffy hugs as I think you both need them. Stay strong, it's a hairpin bend in the long road to recovery but the road will straighten up agin soon.

Hellifex troubles, :mad: can see why you want rid of them ASAP, but I suppose that's their plan! annoying though and seems highly unfair to other creditors. Still at least we are the lucky ones in knowing we have our own plan to deal with them.

Went to a 50th this weekend, managed to get an ok pressie for under a tenner, cost ££ for the blimmen card though, just couldn't find a suitable cheaper one. Was happy though as within budget and didn't have to take out savings to pay. Forgot to account for public transport fares to get pressies and get to the do, but routed through the bottom of handbag funds and got away with that one. Did use my card yesterday for something as remember thinking I must be careful it's getting to be a habit again, and frustratingly I can't even remember what it was, will have to pull the receipts out of handbag.

Enjoy rest of weekend

sunnyskies2

Hi Thomas, welcome and well done taking the plunge:)


I agree it really is a good idea to give yourself a couple months to save a buffer. I set up DMP and started £1 token payments in June, my first proper SC payments start in Sept.

I don't know if anyone else knows, but are First Direct allowed to increase an overdraft without current account holders authority?... If you do decide to wait a couple of months, or even if not, you could phone First Direct and ask for the address of their collections department. I am sure they will be fine and you don't have to discuss why you want the address. Then send them your 'I am starting DMP' letter with a token £1 payment for Sept and ask that they do not take anymore from your overdraft.

Just to reassure - not all my creditors wrote to me or SC to confirm arrangement, a couple phoned and were very understanding and kind - I've had no scary calls at all:)... just lots of generic 'you have not paid' letters blah blah blah. It is a good idea to keep copies of your letters and file along with letters from creditors - you never know if you may need to refer to them etc .

Sarah x

sunnyskies2

Growurown wrote: »

So all in all the self managed DMP so far hasn't been too bad. A lot of phoning, but it could all be done by post, and now it is set up shouldn't cause me too many headaches.

Hi GUO glad all is going fairly smoothly apart from phone call :eek: I am taking screen shots of your progress for future reference

Thanks

Sarah x

smiff_50

Hi there. Been lurking for a couple of days reading posts and finding all the advice really helpful. I've filled out the stepchange debt remedy and am waiting on the application pack arriving.

I missed a few payments on Friday there (I have never missed any up to this) and a few creditors have begun to call and email. Should I email them back and tell them I'm entering a dmp yet?

Also I see some of you recommend not starting the dmp right away. How long do you think I should wait? a couple of months to save up? Can I agree this with SC?

Any advice appreciated!

Thanks

Puzzcat

smiff_50 wrote: »

Hi there. Been lurking for a couple of days reading posts and finding all the advice really helpful. I've filled out the stepchange debt remedy and am waiting on the application pack arriving.

I missed a few payments on Friday there (I have never missed any up to this) and a few creditors have begun to call and email. Should I email them back and tell them I'm entering a dmp yet?

Also I see some of you recommend not starting the dmp right away. How long do you think I should wait? a couple of months to save up? Can I agree this with SC?

Any advice appreciated!

Thanks

Hi, If you have a reference number from sc then I would get letter writing now and also enclose a £1 token payment for every payment month you miss to each creditor. There is a template floating around on here somewhere but you will need to read the thread to find it, unless some kind soul pops up shortly who knows where it is! I just told sc when I wanted to start.
Puzz

dad2one

Yeah, I second that. My own examples of what I wrote are on page 64. The creditors will pester a bit whilst they don't know what's going on, the sooner you let them know, the sooner they'll stop.

City 1 - I second what Sazzie23 said. Explain your budget to them and why what you are offering is all you have. I think it does help to start a DMP through a recognised charity, creditors will be more likely to listen - it's a little bit of armory. Self managing can be step later on when all creditors are in agreement and behaving.