DMP & Mutual Support Thread - Part 10

Time_to_face_the_music

Kate_fixing_it wrote: »

Morning all

Just wanted to run an idea past you all.

Now I've calmed down from the PPI offer (yes, it's taken 4 days! :rotfl:) if it all goes smoothly and the money is paid into my new unlinked account what is the best option?

1. As originally planned clear one whole and almost all of another HSBC debt? (No defaults here yet but lots of automated letters still)
2. Clear almost all of the largest debt that is charging reduced interest (trying to fight this and no default issued)
3. Clear two smaller debts (already defaulted) for the psychological victory of owing fewer creditors.
4. Send it to SC to distribute evenly

Or top up my emergency fund that I'm still building and put the remainder (will be close to £2.5k) to one of the above options.

Obviously all this depends on HSBC not communicating internally and deciding it needs to offset what I owe them.

Right now I'm leaning towards getting the emergency fund up to a level that leaves me comfortable if I need it and getting shot of as much HSBC debt as possible as they are a total PITA and each letter causes issues at home but I feel my judgement is clouded a bit and I'd appreciate your sensible input.

What do you think?

Kate x

Given the option, I would always pay off any creditor(s) charging any amount of interest. Anything left, I would use towards paying off my smallest debts.

I take the approach that interest pushes out a DFD and that the less creditors the better, as there are fewer to potentially cause problems in the future.

TTFTM x

Kate_fixing_it

You've really got me thinking Bettingmad! I've started a post on the main forum to reach a wider audience.

I had all but dismissed the idea of reduced settlements but now my little brain is ticking and if I can get 70% acceptance I could turn £2,500 into £3571 off my debt and knocking 7 months extra off the DMP!

Thank you so much for making me think

Kate x

Time_to_face_the_music

Kate_fixing_it wrote: »

You've really got me thinking Bettingmad! I've started a post on the main forum to reach a wider audience.

I had all but dismissed the idea of reduced settlements but now my little brain is ticking and if I can get 70% acceptance I could turn £2,500 into £3571 off my debt and knocking 7 months extra off the DMP!

Thank you so much for making me think

Kate x

I'm pretty sure Moohound managed F&Fs a very short way into a DMP, have a search for some of her posts and check it out.

TTFTM x

Kate_fixing_it

Time_to_face_the_music wrote: »

Given the option, I would always pay off any creditor(s) charging any amount of interest. Anything left, I would use towards paying off my smallest debts.

I take the approach that interest pushes out a DFD and that the less creditors the better, as there are fewer to potentially cause problems in the future.

TTFTM x

I hadn't even considered that aspect yet (thank goodness I have you lovely people!)

Done a quick calculation and as things stand the interest charging debt is reducing by 57p a month They're not responding to my letters regarding this. If nothing changed (which obviously isn't realistic as the other debts will eventually be paid and this payment increased) it'll take 429 YEARS to clear this :eek:

Do you think this puts me in a good position to negotiate a F&F if set out in the right way?

Kate x

Kate_fixing_it

Time_to_face_the_music wrote: »

I'm pretty sure Moohound managed F&Fs a very short way into a DMP, have a search for some of her posts and check it out.

TTFTM x

You living up to your "legend" status TTFTM! Thank you so much

Kate x

Brogden

Kate,

I hope you don't mind my chipping in! Whilst I wouldn't want to say anything with total certainty in this life, I think you can relax that your PPI money will be paid to where you want it to be. Mine was from a Sainsbury's personal loan.

Looking at the best place to put the money......in the cold light of day it should go where the interest is being charged. If you are sufficiently disciplined then an adequate emergency fund could not be wrong. For myself, I sort of avoid having an emergency fund because I maybe feel I don't have the discipline and at the same time I tell myself that I am doing the best for the debts. It just isn't the right way to be I know but I will certainly have a good emergency fund when this lot is behind me!

You mention HSBC causing 'domestic unrest.' I do symapthise.....of all of our debts some are guaranteed to cause mucho unrest and displeasure when their letters hit the doormat. Marks & Spencers springs to mind! Others have no affect at all.......

I try to act like a bloke and take a cool / calculated view of the whole lot (not!!!!)

Brogden

Kate_fixing_it

Brogden wrote: »

Kate,

I hope you don't mind my chipping in! Whilst I wouldn't want to say anything with total certainty in this life, I think you can relax that your PPI money will be paid to where you want it to be. Mine was from a Sainsbury's personal loan.

Looking at the best place to put the money......in the cold light of day it should go where the interest is being charged. If you are sufficiently disciplined then an adequate emergency fund could not be wrong. For myself, I sort of avoid having an emergency fund because I maybe feel I don't have the discipline and at the same time I tell myself that I am doing the best for the debts. It just isn't the right way to be I know but I will certainly have a good emergency fund when this lot is behind me!

You mention HSBC causing 'domestic unrest.' I do symapthise.....of all of our debts some are guaranteed to cause mucho unrest and displeasure when their letters hit the doormat. Marks & Spencers springs to mind! Others have no affect at all.......

I try to act like a bloke and take a cool / calculated view of the whole lot (not!!!!)

Brogden

Thank you for posting a reply. I appreciate everyone that takes the time to get through my waffle and offer their advice and support.

Domestic unrest sums it up perfectly. Debt nearly broke us initially so I'm keen to avoid a repeat. I read and file the letters and as we're not financially linked it has less of an effect on DH. However, it's taken months to rebuild the trust (I revealed all on my LBM day and he had no idea of the full situation) so they're filed where he can get to them if he wishes but never does. It's just on the occasion that something needs to be done so I don't file immediately, he reads it and then wants a full I&E discussion. He's very direct so I get defensive and we reach stalemate. It's not a regular thing but I'd love to see the back of it.

I've spent the last 2 hours reading posts on F&F's. Not sure why I'd got it into my head that it was "wrong" whilst in a DMP but I had.

Thank you for the reassurance about where the money will go. I'm feeling much more positive now. The last "full" minimum payment anyone received was March or April so I'm feeling a bit more positive on hat score too.

I'll keep you all updated on the outcomes but it's safe to say my DFD is much nearer

Kate x

Brogden

It looks like it won't be too long before it is all behind you Kate.

The 'domestic unrest' comes about here when its a high profile names like M&S, Sainsbury's, The Police (parking / speeding fines) and I am often too late to file the letters. If its MBNA as an example its 'who are they?' Promptly forgotten

Brogden

BeingDebtFreeStartsHere

Kate_fixing_it wrote: »

Morning all

1. As originally planned clear one whole and almost all of another HSBC debt? (No defaults here yet but lots of automated letters still)
2. Clear almost all of the largest debt that is charging reduced interest (trying to fight this and no default issued)
3. Clear two smaller debts (already defaulted) for the psychological victory of owing fewer creditors.
4. Send it to SC to distribute evenly

Or top up my emergency fund that I'm still building and put the remainder (will be close to £2.5k) to one of the above options.


Kate x

Will be interested to hear what you decide Kate - we may be in a similar position if Lloyds pay the mis-sold PPI to us! (fingers crossed)

BDFSH x

BeingDebtFreeStartsHere

Hi DMPers,

We have written letters to all our creditors to post out in the next couple of days to advise them we are struggling and that we will be making token payments this month prior to the DMP starting in October.

Just a quick question - would you put something in this letter to ask them to consider freezing interest now or do we wait until a little further down the line? Is that something that SC discuss with them?

Just wondering what is the best thing to do?

Thanks in advance,

BDFSH x