DMP & Mutual Support Thread - Part 10

KrazyKel

Brogden wrote: »

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

Thank you, will have a look at the Co-Operative
Even if i dont go down the DMP yet, is it best to get all income and outgoings out the new account even credit card payments etc?
Then have my HSBC overdraft as another debt and just set up a standing order or something to pay £100 every month or whatever?

Puzzcat

Thomas999 wrote: »

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..:)

Hi,
Unfortunately it is usual practice for your debt to go up prior to starting the dmp, I assume you are still sending token payments to all your creditors? The time to fight the interest will come once sc are distributing your payments. Yes you can tell sc that you want to start ie; November, make sure that is when you feel able to start because they communicate with your creditors and you don't want to keep moving the date.
Not sure about the signing of the form, hopefully someone else can answer this for you.
Good luck
Puzz

Brogden

KrazyKel wrote: »

Thank you, will have a look at the Co-Operative
Even if i dont go down the DMP yet, is it best to get all income and outgoings out the new account even credit card payments etc?
Then have my HSBC overdraft as another debt and just set up a standing order or something to pay £100 every month or whatever?

I really think you should think long and hard about NOT going on a DMP......at least for the time being - maybe that will be different if you start getting charged interest on all of the credit card debt but I have no idea.

It sounds as though you should certainly use any new account for all of your comings and goings. Thinking about it you probably don't need to do it with Co-op (who accept the credit-challenged) you could probably open account anywhere. Just make sure you don't have an overdraft on the account and make sure the bank is not linked to the issuers of any of your credit cards just in case you go on a DMP in the future.....

If I were you I would pick up the phone to HSBC......tell them what you think of their charges and inform them of the hardship they have caused. Ask if they could do anything about that. I have done this when stung by charges and have received refunds.

Importantly (1) agree a timescale and the amount to be paid in to get the overdraft within its limit. (2) Inform them that you may be taking your banking elsewhere and agree a plan to repay the overdraft over a period (3) when a monthly payment plan has been agreed check with them that this will not cause any marking of your credit file. I don't believe it will cause long term damage if you make a reasonable repayment agreement and stick to it.

It seems likely that your file may not be tarnished but please heed the warning signs you have mentioned here (Accumulated cc debt/ PDL / Unauthorised OD/R) These things suggest finances are going off course. It looks like you can still save the day I ignored signs like this for a couple of years and suddenly...........'house of cards in a breeze.....:('

All the best,

Brogden

KrazyKel

Brogden wrote: »

I really think you should think long and hard about NOT going on a DMP......at least for the time being - maybe that will be different if you start getting charged interest on all of the credit card debt but I have no idea.

It sounds as though you should certainly use any new account for all of your comings and goings. Thinking about it you probably don't need to do it with Co-op (who accept the credit-challenged) you could probably open account anywhere. Just make sure you don't have an overdraft on the account and make sure the bank is not linked to the issuers of any of your credit cards just in case you go on a DMP in the future.....

If I were you I would pick up the phone to HSBC......tell them what you think of their charges and inform them of the hardship they have caused. Ask if they could do anything about that. I have done this when stung by charges and have received refunds.

Importantly (1) agree a timescale and the amount to be paid in to get the overdraft within its limit. (2) Inform them that you may be taking your banking elsewhere and agree a plan to repay the overdraft over a period (3) when a monthly payment plan has been agreed check with them that this will not cause any marking of your credit file. I don't believe it will cause long term damage if you make a reasonable repayment agreement and stick to it.

It seems likely that your file may not be tarnished but please heed the warning signs you have mentioned here (Accumulated cc debt/ PDL / Unauthorised OD/R) These things suggest finances are going off course. It looks like you can still save the day I ignored signs like this for a couple of years and suddenly...........'house of cards in a breeze.....:('

All the best,

Brogden

Thank you, I rang HSBC a few months ago and they refunded one months of unauthorized OD fees and said would look at options next month if they see an improvement
I did ring the next month or so later but rang the normal banking number and they said theres nothing they can do that month as they already refunded charges before think I need to speak to the debt advisors that I originally spoke to at HSBC than a general call centre person, may have more options to me then!
I forgot that they put me through to another department when I originally rang - will check see if I wrote down any direct numbers for them!

Reading some of the other posts on here looks like some others went on DMP with 0% but then lost that rate and were charged a higher fee 8% ish. So need to check when all mine end and do what I can until they do end!

A few months ago I was worried that I was declined a new balance transfer card, made a couple applications too (another bad mistake) so dont want to make any more really for a while. Just want my overdraft under control first thing

Puzzcat

KrazyKel wrote: »

Thank you, I rang HSBC a few months ago and they refunded one months of unauthorized OD fees and said would look at options next month if they see an improvement
I did ring the next month or so later but rang the normal banking number and they said theres nothing they can do that month as they already refunded charges before think I need to speak to the debt advisors that I originally spoke to at HSBC than a general call centre person, may have more options to me then!
I forgot that they put me through to another department when I originally rang - will check see if I wrote down any direct numbers for them!

Reading some of the other posts on here looks like some others went on DMP with 0% but then lost that rate and were charged a higher fee 8% ish. So need to check when all mine end and do what I can until they do end!

A few months ago I was worried that I was declined a new balance transfer card, made a couple applications too (another bad mistake) so dont want to make any more really for a while. Just want my overdraft under control first thing

Hi, The one thing you will always read on here is the saying I wish I'd done it sooner, don't let this be you. A 0% card is irrelevant if you are entering a dmp and the sooner you start the sooner you finish! If I had known about dmp's when I joined this site I would be nearly finished. Do the sc debt remedy online and work from there.
Puzz. X

Sazzie23

mol3 wrote: »

Another one who doesn't post so often!

I've had to reduce my dmp again I am really worried about it this time, if I'd waited a week I can actually increase it by about £20 which is typical but don't want to be seen as mucking them about.

Still waiting for the confirmation letter, they sent an email but last time I reduced it they also put a confirmation letter - my partner doesn't know (you may or may not agree with me about this but I have my reasons for not telling) and I just know it will arrive tomorrow.

Well done to those who have paid it all off. I'm sure it's a lovely feeling. :T

Hi Mol

Hopefully you've had the letter by now, and partner didn't get suspicious, I know you have your reasons, but hiding it's an extra level of stress I'm really glad I don't have to worry about.

If you can afford the extra £20, why not make some extra payments towards the debt? Or get a little savings fund going in case you hit hard times again, it might mean you can weather a little storm if not a full blown gale.

Also very happy for those that have done it, and reaffirming that I intend to be one of those soon.

Just waiting for the washer to finish so I can get my uniform dry for work tomorrow, bit last minute but better than remembering in the morning.

antonic

My Noddle rating went like this :

While on DMP with 3 defaulted CC and an o/d 3/5

DF July 2013 1/5

Having taken a CC with a low limit with my bank 3/5

So your Noddle rating means nothing !.

To all of you starting your DF journeys, do not delay get started as soon as you can because the quicker you start the quicker its over.

I can tell you its not an easy journey, but you get addicted to saving money !.

I have been DF now for 15 months and I still take all my own food & drink to work, I still begrudge spending money unnecessarily , but the best part for me about being DF is I can afford to go on holiday without using credit.

Good luck to you all, I wish you all well !.

Brogden

antonic wrote: »

My Noddle rating went like this :

While on DMP with 3 defaulted CC and an o/d 3/5

DF July 2013 1/5

Having taken a CC with a low limit with my bank 3/5

So your Noddle rating means nothing !.

To all of you starting your DF journeys, do not delay get started as soon as you can because the quicker you start the quicker its over.

I can tell you its not an easy journey, but you get addicted to saving money !.

I have been DF now for 15 months and I still take all my own food & drink to work, I still begrudge spending money unnecessarily , but the best part for me about being DF is I can afford to go on holiday without using credit.

Good luck to you all, I wish you all well !.

I have read before that credit reference ratings mean nothing and I think that's probably true.

If you want a good credit file then the rules are:-

- Don't go bankrupt
- Don't have CCJ's
- Don't have defaults
- Make the full payments
- Pay on time

Its easy really (not!! :rotfl:)

Brogden.

Monkeyballs

Gooooood afternoon my DMP brothers and sisters

I hope you've all enjoyed a nice weekend.

I've been reading through and (as I'm still in catch up mode) can see quite a few new names which is great on a few points mentioned, here are my views;

1. Having someone in the know about your situation is a good thing, it might be embarrassing but it's surprising how many people are in the same boat but like you, don't want to talk about it as they see it as some sort of failure! I wouldn't want you to rush off and tell the world but having someone to share in confidence can be a life saver!

2. If you have a decent credit file and are still able to obtain things like 0% interest cards, etc but are starting to get bogged down with repayments and worrying about what happens when the 0% offer ends then rather than panic and immediately assume you can't afford your debts spend a little time looking at your income & expenditure first... Maybe post an SOA on the main DFW forum for people to pick through as they may be able to offer advice on reducing your outgoings and increasing your debt repayments while retaining a sensible budget

3. If a DMP is the way forward (as is often the case) then remember that those 0% offers are only valid so long as you stick to the terms and conditions of the offer. I've seen folk posting on the credit cards forum that they've lost the deal just for being a couple of days late with a payment losing it when entering into a DMP sucks b*lls but 6.9% is better than 29.9% in the short term and you can always work on getting it reduced further or frozen entirely later

4. You need an emergency fund! Any DMP provider worth their salt will be happy to help you make token payments for a month or three while you make a fund if you don't have one, speak up and get some token payments made... Be realistic too, plenty of folk on here have had a few hundred put aside only for it to be gobbled up by car problems, fridges conking out, etc.

5. Speak to your provider, forums are great but it's always good to pick up the phone and speak to someone... A DMP can be incredibly stressful to start with (but it gets oh so much easier as you go)

Thomas999 wrote: »

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?

Hi Thom, to me this sounds like First Direct are either trying to pull a fast one or don't understand you're going into a DMP? I can't see (but am happy to be proved wrong) that a creditor would be asking you to sign up to a new credit agreement (which is essentially what this is) at a higher rate of interest than you are paying at the moment while entering into a DMP? If they make you do this then it's worsening your position despite having been told you're struggling and would imagine the FOS would frown on this... Speak to Step Change before signing it, there is no reason why you can't be repaying 2 debts to the same creditor as far as I'm aware?

Good luck all!

MB of G x

Brogden

Monkeyballs wrote: »

Gooooood afternoon my DMP brothers and sisters

I hope you've all enjoyed a nice weekend.

I've been reading through and (as I'm still in catch up mode) can see quite a few new names which is great on a few points mentioned, here are my views;

1. Having someone in the know about your situation is a good thing, it might be embarrassing but it's surprising how many people are in the same boat but like you, don't want to talk about it as they see it as some sort of failure! I wouldn't want you to rush off and tell the world but having someone to share in confidence can be a life saver!

2. If you have a decent credit file and are still able to obtain things like 0% interest cards, etc but are starting to get bogged down with repayments and worrying about what happens when the 0% offer ends then rather than panic and immediately assume you can't afford your debts spend a little time looking at your income & expenditure first... Maybe post an SOA on the main DFW forum for people to pick through as they may be able to offer advice on reducing your outgoings and increasing your debt repayments while retaining a sensible budget

3. If a DMP is the way forward (as is often the case) then remember that those 0% offers are only valid so long as you stick to the terms and conditions of the offer. I've seen folk posting on the credit cards forum that they've lost the deal just for being a couple of days late with a payment losing it when entering into a DMP sucks b*lls but 6.9% is better than 29.9% in the short term and you can always work on getting it reduced further or frozen entirely later

4. You need an emergency fund! Any DMP provider worth their salt will be happy to help you make token payments for a month or three while you make a fund if you don't have one, speak up and get some token payments made... Be realistic too, plenty of folk on here have had a few hundred put aside only for it to be gobbled up by car problems, fridges conking out, etc.

5. Speak to your provider, forums are great but it's always good to pick up the phone and speak to someone... A DMP can be incredibly stressful to start with (but it gets oh so much easier as you go)



Hi Thom, to me this sounds like First Direct are either trying to pull a fast one or don't understand you're going into a DMP? I can't see (but am happy to be proved wrong) that a creditor would be asking you to sign up to a new credit agreement (which is essentially what this is) at a higher rate of interest than you are paying at the moment while entering into a DMP? If they make you do this then it's worsening your position despite having been told you're struggling and would imagine the FOS would frown on this... Speak to Step Change before signing it, there is no reason why you can't be repaying 2 debts to the same creditor as far as I'm aware?

Good luck all!

MB of G x

Absolutely fantastic post Monkeyballs. Not only for the specific advice but points 1 to 5 are complete and total wisdom

It'll take some following that

Brogden.