DMP & Mutual Support Thread - Part 10

BeingDebtFreeStartsHere

Thanks MB, Sazzie and Brogden - sounds like Natwest can be a bit of a pain to deal with!!
Thought it would be a standard letter but just wanted to check with you knowledgeable peeps

Kate - you are so right, it does put things into perspective. I work in a hospital and a lovely lady has been told she has terminal cancer this week - she was only admitted due to back pain and had no idea - so so sad

I look at my family and thank my lucky stars every day.......as you say, we may need to be strict with our budgets and not be able to enjoy luxuries etc but there is always someone dealing with difficult, sad news every day.

FuzzyDF - such fantastic news, really pleased things are looking positive.

Have a great weekend everyone

BDFSH x

Puzzcat

BeingDebtFreeStartsHere wrote: »

Thanks MB, Sazzie and Brogden - sounds like Natwest can be a bit of a pain to deal with!!
Thought it would be a standard letter but just wanted to check with you knowledgeable peeps

Kate - you are so right, it does put things into perspective. I work in a hospital and a lovely lady has been told she has terminal cancer this week - she was only admitted due to back pain and had no idea - so so sad

I look at my family and thank my lucky stars every day.......as you say, we may need to be strict with our budgets and not be able to enjoy luxuries etc but there is always someone dealing with difficult, sad news every day.

FuzzyDF - such fantastic news, really pleased things are looking positive.

Have a great weekend everyone

BDFSH x

Hi, out of my original 60k debt I owed Natwest a third, overdraft, loan and credit card. They froze interest and have been no trouble to me, hopefully you will have a good response too.
Puzz

BeingDebtFreeStartsHere

Thanks Puzz

Keeping my fingers firmly crossed!

KrazyKel

Hi
This might sound a bit silly question... but can you have a DMP without all your debts going on it?

My main problem is my HSBC overdraft, large overdraft maxed out with a lot of interest charges and a few informal overdraft charges when went over the limit (only happened last few months) Just got out of control and these charges all add up - can be £100 a month and that could be used to reduce my debt (thats if they do look at freezing interest/charges)

Most my other debt is on 0% offers at the moment so I dont see the point in adding them yet (until the offers end and cant afford the min payment maybe...)

Is a self managed DMP the best way to go by setting up a new bank account, transfering all my DD's and Credit Card payments etc out this new bank account then sorting out a DMP with the HSBC?
Im new to all this so not sure what is possible, or if im best just defaulting on the lot now if it may/will happen in the long run anyway....

Sazzie23

KrazyKel wrote: »

Hi
This might sound a bit silly question... but can you have a DMP without all your debts going on it?

My main problem is my HSBC overdraft, large overdraft maxed out with a lot of interest charges and a few informal overdraft charges when went over the limit (only happened last few months) Just got out of control and these charges all add up - can be £100 a month and that could be used to reduce my debt (thats if they do look at freezing interest/charges)

Most my other debt is on 0% offers at the moment so I dont see the point in adding them yet (until the offers end and cant afford the min payment maybe...)

Is a self managed DMP the best way to go by setting up a new bank account, transfering all my DD's and Credit Card payments etc out this new bank account then sorting out a DMP with the HSBC?
Im new to all this so not sure what is possible, or if im best just defaulting on the lot now if it may/will happen in the long run anyway....

I understand where you are coming from especially if you are on 0% now, however I think if you'd posted this on the main DFW page, someone would say, if you are only making minimum payments and still getting into trouble are you actually managing your debt or coasting?

To get it into perspective have you tried the SC debt remedy, it's online free and can be done anonymously if you wish, be honest with it and you should find out how far away you are with what you are managing on and what you should be. By honest for example I mean where it says money savings for home repairs, put in what you realistically need to be maintaining your house or car, rather than the £10 or so that most of us on DMP put down etc.

Hope this helps, I don't have the answer re whether you could do it or not, certainly interesting debate, defo have to be self managed I think.

Brogden

KrazyKel wrote: »

Hi
This might sound a bit silly question... but can you have a DMP without all your debts going on it?

My main problem is my HSBC overdraft, large overdraft maxed out with a lot of interest charges and a few informal overdraft charges when went over the limit (only happened last few months) Just got out of control and these charges all add up - can be £100 a month and that could be used to reduce my debt (thats if they do look at freezing interest/charges)

Most my other debt is on 0% offers at the moment so I dont see the point in adding them yet (until the offers end and cant afford the min payment maybe...)

Is a self managed DMP the best way to go by setting up a new bank account, transfering all my DD's and Credit Card payments etc out this new bank account then sorting out a DMP with the HSBC?
Im new to all this so not sure what is possible, or if im best just defaulting on the lot now if it may/will happen in the long run anyway....

Hi KrazyKel,

Its a bit unique I think for somebody on 0% interest special offers to be considering a DMP but you are obviously feeling the squeeze as demonstrated by a maxed out overdraft and all of those vile charges.

Whilst it is a painful thing to do you must open a new bank account elsewhere arrange for your wage and any other income to be paid into that. You must then mentally end the relationship with HSBC. Simply they will be history for you - an old problem to be sorted out - like a divorce You aren't turning your back as such - you are just not going forward together in the way they would like but you must think of yourself.

It sounds as though you may have a good credit file! If you do decide to do this your credit history will suddenly be very poor and you must decide if you are content with that situation. You will find you cannot get further 0% offers. If this worries you then you must continue to keep appeasing (paying) HSBC! I have been through this myself although not with HSBC.

It may be worth considering opening a new unrelated account with another bank, arranging for your income to be paid into that (this then gives you full control over your income) and calling HSBC to arrange a repayment plan for your overdraft and agree on £100 per month or whatever. You may escape then with little or no damage to your credit profile.

All the best with it

Brogden.

Hopelessly_Hopeful

Morning all

I had a number of accounts that were on 0% and low interest that all went up on the DMP!

As I understand it there is no option but to include all debts into the equation, I know it will feel uncomfortable but they otherwise can withdraw support.

Everything is doable

HHx

Thomas999

Hi guys. I think I'm addicted to reading this thread - I absolutely love it!

Only my second post here after deciding to take the plunge with a DMP through Stepchange. I just have a few issues:

a) My first payment to SC is due on 1 Oct, but there's no way I can afford to pay it. I agreed to the DMP on 27 Aug and it was confirmed verbally over the phone that my first payment would be in Oct. However, I had a message from SC saying I missed my Sep payment, so I called them and told them my payments start in Oct. They said it was a communication error and not to worry. My question is, as I haven't saved up an emergency fund yet, are they likely to agree to postponing my first payment until Nov? I feel like I daren't ask them

b) One of my highest debts is to Barclaycard and if I hadn't started on the DMP, I'd still have another year at 0% interest. However, now I've started the DMP, they're charging 6.9% on it even though I requested a freeze. Is it worth complaining to the FOS?

c) I have a loan and overdraft with First Direct; the loan was 4.9% interest and the overdraft is £1000. Now I'm on the DMP, First Direct have consolidated (set off?) the loan and overdraft into one debt at 7.8%. They've sent me a form (CCA Agreement) asking me to sign it and return it - but I didn't request that the debts be consolidated and I certainly don't agree with the increased interest. What if I don't sign and return it?

So, those are my first concerns with my DMP: I can't make the first payment and two of my creditors have whacked up the interest.

To end on a positive note, two of my other creditors have accepted the DMP and frozen interest and charges - and my work is currently offering loads of overtime, even on a Sunday (double pay!). Every cloud..:)

KrazyKel

Brogden wrote: »

Hi KrazyKel,

Its a bit unique I think for somebody on 0% interest special offers to be considering a DMP but you are obviously feeling the squeeze as demonstrated by a maxed out overdraft and all of those vile charges.

Whilst it is a painful thing to do you must open a new bank account elsewhere arrange for your wage and any other income to be paid into that. You must then mentally end the relationship with HSBC. Simply they will be history for you - an old problem to be sorted out - like a divorce You aren't turning your back as such - you are just not going forward together in the way they would like but you must think of yourself.

It sounds as though you may have a good credit file! If you do decide to do this your credit history will suddenly be very poor and you must decide if you are content with that situation. You will find you cannot get further 0% offers. If this worries you then you must continue to keep appeasing (paying) HSBC! I have been through this myself although not with HSBC.

It may be worth considering opening a new unrelated account with another bank, arranging for your income to be paid into that (this then gives you full control over your income) and calling HSBC to arrange a repayment plan for your overdraft and agree on £100 per month or whatever. You may escape then with little or no damage to your credit profile.

All the best with it

Brogden.

Thank you all for the advice!
My credit rating is 3/5 on Noddle at the moment as currently all up to date with payments too

One of my 0% balance ends in Oct with Barclaycard (Only on a bit of the barclaycard balance tho, rest is 0% till April/July next year) - I stupidly took out a payday loan a few months ago so I think ive really ruined my chances of any more 0% deals now.
Have to find out when other offers end to see what they will all cost then with the interest

I really do need to change banks, with one of my credit cards, I was offered a 0% money transfer to my current account which I thought would help get my overdraft down to avoid the fees and I just end up spending it again - Not sure what bank to go with tho for my new account
- I dont spend anything on the CC's - Dont even have the PIN numbers or anything just keep balance transferring

Brogden

KrazyKel wrote: »

Thank you all for the advice!
My credit rating is 3/5 on Noddle at the moment as currently all up to date with payments too

One of my 0% balance ends in Oct with Barclaycard (Only on a bit of the barclaycard balance tho, rest is 0% till April/July next year) - I stupidly took out a payday loan a few months ago so I think ive really ruined my chances of any more 0% deals now.
Have to find out when other offers end to see what they will all cost then with the interest

I really do need to change banks, with one of my credit cards, I was offered a 0% money transfer to my current account which I thought would help get my overdraft down to avoid the fees and I just end up spending it again - Not sure what bank to go with tho for my new account
- I dont spend anything on the CC's - Dont even have the PIN numbers or anything just keep balance transferring

I am still paying off the damage caused by payday loans

I can think of one or two banks but would really recommend Co-Operative who accepted me when I was at an all time low. Its a basic account. Before conducting the credit search they said I wouldn't get a debit card - just a cash card but the computer said yes :beer: I I got a VISA Debit Card with it........FAB :T

Brogden