DMP & Mutual Support Thread - Part 10

Time_to_face_the_music

BeingDebtFreeStartsHere wrote: »

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

Ask now, the sooner the better and often much easier to get interest stopped early on.

You only need something very simple, National Debtline recommends:


Dear Sir/Madam


Account No:

We are writing to inform you that we are seeking advice and assistance regarding our current financial difficulties.

To this end, we would appreciate it if you could hold action on the above account for a period of at least 30 days.

Also, during this period, could you please freeze interest and/or any other charges accruing on the above account.

We will contact you again with further details of our financial situation and our proposals for repaying our creditors as soon as possible.

We look forward to hearing from you.

Yours faithfully

BeingDebtFreeStartsHere

Thanks TTFTM - we will add this into our letters

Hopefully we can get the message about ensuring written correspondance only from all the creditors before that phone starts ringing once SC have contacted them all!! :eek:

BDFSH x

sunnyskies2

Kate_fixing_it wrote: »

This was one claim and half of it is interest! Due to a 16 year case of Ostrich Syndrome I have no idea if I even had PPI. This stuck in my mind because I left employment in 2004 (also lost my house ) and tried to claim as I was living on benefits (before a lot of changes and I was keeping two kids on £200 a month for all bills except rent and loan repayments :eek:) I tried to claim on the PPI (loan payments were £154 a month) but I was laughed out of the bank.

I used the template letter and adapted it. All I knew was it came from HSBC, ended some time in 2007 and repayments were £154. From that they found the details, called me for a discussion and wrote a letter the next day. Really couldn't be easier.

It was a very dark time and I still get guilt attacks now - I don't want to sound self indulgent but at that point I'd choose feeding the kids over eating and we'd rarely put the heating on as I simply couldn't afford it. We used to walk 6 miles to my mum's because I knew she had heating and hot water and she'd feed us but I didn't have the bus fare. My teens were 6 and 5 Possibly explains why I'm where I am now to some extent - as soon as I had income I went stupid with it. I feel quite sick just admitting this.

Anyway, fast forward to now, I eventually paid it off and decided I nothing to lose in trying again and two weeks later I'm waiting for payment. Due to that experience I've never taken PPI since and even if the same sales pitch was used I'd refuse a loan if insurance was deemed "essential".

Go for it. All you have to lose is the cost of a stamp and now I have a really cool purple MSE badge as of last night too

Kate x

Thanks Kate boy you did have some tough times - but yes where the kids are concerned there's nothing you won't do to keep them safe and healthy...

...you have jogged my memory - funny I had forgotten all about when my numerous 'consolidation' loans started, during my first marriage about 25+ years ago, when I know I ticked PPI just in the hope they would like me enough to lend me the money :rotfl: ...so I will check it out a bit and have a go...you never know, I might be in the same predicament a you in a few months wondering who to pay.

...my thoughts on where to pay PPI money - mental happiness always comes first for me, so if letters cause problems/friction at home I'd pay them:) to start with.

Thanks again

Sarah x

Sazzie23

chish wrote: »

Hi sazzie thanks for inviting me to this board , I haven't started through stepchange yet as I rang national dept line they took all my finacncial details on Friday I now awaiting paper work to come throu to see wat my next step is , debtline did mention stepchange ,, I just need to get the paper work here ASAP as I so frustrated in wat to do . also Friday my day of from work and Halifax rang to say they needed to speak to me urgently ... Why didn't they phone my house ,, I never contacted them back , I'm to scared , , also I applied for a new bank account at nationwide and got approved I'm proud to say I Declined a overdraft .
Trish

Hey Chish, well done on the overdraft, I know you can't have one in a DMP but it still takes a bit if guts to say no when it's offered and you are struggling.

As you've seen there is loads of help on this thread. Have you felt up to calling Hellifax yet? All you have to say is that you are having financial difficulty, give them your stepchange ref and tell them you will be in touch. If they are horrid, unhelpful or just persisting tell them you need contact in writing only and hang up. Oh yes and write to them telling them they must not contact you at work and to remove your work phone number.

P.s. I didn't manage to call any creditors til several months into my DMP, & I still cry if I talk to stepchange. However I have found all of my creditors have been helpful on the phone, although all my creditors are now CC rather than catalogues and PDL.

Sazzie23

Kate_fixing_it wrote: »

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

Hi Kate I hear that F&f can be better value with a DcA than an original creditor.

IMO - not that important but I'll say it, split the Ppi emergency fund, debt repayment(however you decide) and tax credit overpayment.

Or reducing domestic unrest in whatever way it works :eek:

BeingDebtFreeStartsHere

Had our online log in details for SC this am. When I logged on there is all the info I submitted to SC regarding balances etc for each debt we have.

When SC contact the creditors to inform them of the DMP do they get current outstanding balances or is it up to us to keep a track of the balances for each creditor and update the 'my debt' section on SC's website?

I can add this into the letters before thet get posted if we need to get this info.

Thanks in advance

sunnyskies2

BeingDebtFreeStartsHere wrote: »

Had our online log in details for SC this am. When I logged on there is all the info I submitted to SC regarding balances etc for each debt we have.

When SC contact the creditors to inform them of the DMP do they get current outstanding balances or is it up to us to keep a track of the balances for each creditor and update the 'my debt' section on SC's website?

I can add this into the letters before thet get posted if we need to get this info.

Thanks in advance

Hi BDFSH, I believe the SC figures will reduce in accordance with payments they have made to creditors - however this will not take I to account any charges/interest the creditors may be adding. Therefore it is strongly advised that you keep a regular check (I do this monthly) on the debt balances and then make any amendments to the SC balance if necessary....and of course keep 'banging on' at creditors to stop interest if they are still adding it.

Sarah x

MegNificent

Hi' I'm a newbie here and hoping for a little bit of support.

I am so very, very scared and worried. To cut a very long story short 12 weeks ago my husband and I had some bad news when we were told we couldn't have children. I got very depressed and wasn't sleeping and started using online bingo sites. I know, I know, I can't believe how stupid I've been. So within 3 months I am now £4,500 in debt to 7 creditors including my mum.

I finally snapped out of it last week. A close friend got married and I had to pretend I was ill as I couldn't afford to go. Two weeks after pay day and I had NO money in the bank.

So I have contacted Stepchange, been through their debt remedy and they have sent me information about setting up a DMP which would cost £150 a month instead of the £600 I am paying at the minute, but I'm still so frightened.

There isn't time to set this up before I am due to make repayments next Monday, but if I make the repayments I have no money left after the mortgage is paid too. I don't know whether to default by transferring my wages to my new bank account before they are raided, or contact my creditors in advance to see what they say.

I feel so sick and tired and I can't tell my husband as I am so ashamed of myself. Any advice would be greatfully received.

Sazzie23

MegNificent wrote: »

Hi' I'm a newbie here and hoping for a little bit of support.

I am so very, very scared and worried. To cut a very long story short 12 weeks ago my husband and I had some bad news when we were told we couldn't have children. I got very depressed and wasn't sleeping and started using online bingo sites. I know, I know, I can't believe how stupid I've been. So within 3 months I am now £4,500 in debt to 7 creditors including my mum.

I finally snapped out of it last week. A close friend got married and I had to pretend I was ill as I couldn't afford to go. Two weeks after pay day and I had NO money in the bank.

So I have contacted Stepchange, been through their debt remedy and they have sent me information about setting up a DMP which would cost £150 a month instead of the £600 I am paying at the minute, but I'm still so frightened.

There isn't time to set this up before I am due to make repayments next Monday, but if I make the repayments I have no money left after the mortgage is paid too. I don't know whether to default by transferring my wages to my new bank account before they are raided, or contact my creditors in advance to see what they say.

I feel so sick and tired and I can't tell my husband as I am so ashamed of myself. Any advice would be greatfully received.

Hey Meg,
Sorry rushed a bit this morning but just wanted to say, don't be too hard on yourself, you made some choices that didn't work out so well, those bingo sites are very persuasive and it's easy to lose a lot easily. You have had some dreadful news and your mind was not thinking straight. I think you should consider talking to your husband, how would you react if he had done some thing similar?

Your debt is not massive, although it must seem it, I know you can't pay at the moment, so cancel your direct debits, call you creditors and tell them you are in financial difficulty are consulting stepchange, and will be making token payments. All creditors should give you a 30 day hold to sort things out. This will give you time to decide what to do. DMP is fine way to go if you understand what it's about, what it will do to your credit status and what it actually means.


It is possible to hide this sort of thing from a partner or husband but I think a lot of folk have found it more practical to share as your budget will be highly impacted for the duration of the DMP and that can take some hiding.

There will be some more folk along later with good advice, but in the meantime don't panic, and if you are able to take some time off work (sick/leave or otherwise) I would consider it to give yourself time to sort it.

moneypit2014

Hi and good morning to you all

My husband and I will be entering a DMP with SC from October and thought I would pop my online head in and say hi.

We have a significant amount of debt (>£40k) which has accumulated over the years, in fact we've been in debt since we got together over 10 years ago!