DMP & Mutual Support Thread - Part 10

drhuxtable

Hi I am in need desperate need of some advice and help, new to the forum although I have been lurking the last few nights
reading with great interest and Im stressing myself out to breaking point as the realisation of my issues set in

I have part activated a step change last week and Ive sent most of the information in except for the dd mandate, signature of
declaration and a few account numbers that I did not have, these are Wonga and Sunny pay day loans (I believe you have to contact
them to get the account numbers so SC say)

My situation is a total over commitment of credit, that has had a snowball effect caused by paying for my half of a family holiday going in Aug which I really couldn't afford, at a cost of £2000 to me. I already had some debts which I was just about managing as I have a reasonably good wage but, I still had pay day loans, catalogues, credit cards (inc Vanquis, Cap one, Luma, Barclaycard) and a few high APR loans. Btw the reason I have high APR loans is because I have been bankrupt 10 years ago and even though discharged 6 months later my credit file was adversely affected, its built back up over the years, which I have monitored with checkmyfile.com but it isn't the best, even though it disappeared off all the credit files, no court records found

Another variable is we have a 1 year old baby which costs a lot, I have another daughter from a past relationship who I see a couple of times a month which I pay child maints for on an informal agreement with my ex plus all the other costs of life.

My total debt is about 14k, all unsecured on myself. My partner is not aware of my situation. I live in my partners property, most of the bills are in her name and I bank trans a sum to her every month to cover half the mortgage and bills

Just My monthly minimum credit commitments total around £3000 (big percent of this figure is payday/short term loans, e.g. wonga, lending stream etc) my wages finally going in bank is 1705 (I get child care vouchers for our 1 year old these come straight out of my wages), so borrowing peter to pay paul etc.


The family holiday is now paid off but I am in a financial crisis. I finally decided to take action a week or so ago and went to step change, they were really helpful after I filled in the debt remedy online and we went through my outgoings and debts etc. At this time I have not revealed that I have a guarantor loan with Amigo. There is about £850 left to pay on it. £108 a month til it ends next Feb I think. I didnt reveal it as I was somewhat naively thinking I could leave it out and carry on paying them. What I have come to be wary of is that, there is a possibility that when SC activate the plan and talk to my creditors they share this information of my other debts with them, the creditors check my credit file and what if they see that Amigo is on there and Im paying the full amount? Would they then not agree to a DMP?

I realise that if I include the Amigo loan, then it will default and they will get onto my guarantor which is my partners father. My partner does not know this arrangement, as frankly I was embarrased that I let myself get into the state of needing a consolidation loan a few years ago, especially since I have been bankrupt in the past. She is aware of my bankruptcy.

I really do not want amigo to go chasing my guarantor, he is not in the best shape health wise and is of pensionable age and it would cause extreme pressure in the family unit. He is not working etc. I would also be massively letting him down.

So I am trying to think of options and need any advice anyone can give me in this situation

1. Do I leave off the amigo loan and take the risk that the other creditors wont find out about it, if they did find out about it, do they generally not accept DMPs? As I am effectively giving one creditor priority.

2. Ring SC and see what they think? I havent signed anything yet so its not set in stone

3. What if I just try and settle the amigo loan on next payday? I have redirected my wages to a cash card account that I still have with Barclays. The only creditor that is linked to this account is Wonga. My usual account is a barclays current account which my wages were going into and that is where all the auto card payments are pointing to. I have applied for a co-op basic account over a week ago but not heard anything back yet. I was under pressure to redirect my wages to another bank account in such a time frame that the wages dept could process it this month. Was thinking as soon as my wages go in my co op account would be ready and I could bank transfer my wages into it. Although presumably I will be needing to inform Wonga that they need to stop taking the auto card payment from either my current account nor my cash card account.

4a Maybe I could token pay all the other creditors somehow while I try to pay off the amigo loan then setup the DMP for the month after. Although I haven't a clue how to go about this. I would have to write to them all I think.

Maybe SC could help me out with all this? But then again I dont want it to potentially jepordise the activation of the DMP

I am starting to receive a lot of calls already and a few standard letters, as I've paid nothing this month to credit cards, catalogues but am up to date on the loans

Please help I am in a right mess!:(
Any response is greatly appreciated

Currently reading more threads.

Thanks

DRH

Suseka

Boarder wrote: »

I just wanted to share my DMP experience – sorry this is long-winded, but I’ve found so much support on these forums that I wanted to share.......

.....This is just my experience – good luck to anyone who is going through something similar. 6 years is not a long time.

An inspirational story and I find tales such as this help me deal with the various ups and downs of my DMP

FuzzyDF wrote: »

As you lovely people will know I've just started on the DMP road.
...BOS card have rejected SC's offer.
...Vanquis have accepted an 'arrangement to pay' for 12 months, they will freeze interest but does that mean that I won't get a default?
...Halifax loan will accept the reduced payment for 6 months but after that date will start the interest again and expect the 'normal' full payments after that.
Tad confused.

It can get a bit that that at the beginning. Vanguis could well default you, most of my creditors have and the sooner the better in my book.

drhuxtable wrote: »

Hi I am in need desperate need of some advice and help, new to the forum although I have been lurking the last few nights
reading with great interest and Im stressing myself out to breaking point as the realisation of my issues set in.....


1. Do I leave off the amigo loan and take the risk that the other creditors wont find out about it, if they did find out about it, do they generally not accept DMPs? As I am effectively giving one creditor priority.

2. Ring SC and see what they think? I havent signed anything yet so its not set in stone

3. What if I just try and settle the amigo loan on next payday?

4. Maybe I could token pay all the other creditors somehow while I try to pay off the amigo loan then setup the DMP for the month after. Although I haven't a clue how to go about this. I would have to write to them all I think.
DRH

Okay - firstly welcome and well done for taking steps to address the situation. If you are setting out on a DMP you really ought to include all your debts in the arrangement. It's much easier and less messy. So contact SC and speak to them about this. When you set up a DMP with SC they will ask for permission to check your credit file and that loan will likely show up anyway. So best to be honest from the outset.

The general advice from many of the DMP support thread stalwarts is to give yourself a little breathing space and send token payments to all your creditors with a letter to explain you are in the process of setting up a DMP with SC and give them your client reference number. That allows you to set aside monies for an emergency and also to live within your new budget for a while. I would say that especially in your case with youngones to consider.

Cancel the wonga direct debit, and all other unsecured creditor debits as soon as possible (whilst sending out the letters I mentioned above). You could try and contact Co-op and find out when your new bank account will be set up and then arrange to transfer your salary etc.

As to the calls - explain the situation and tell them you are now dealing with SC (again provide them with a reference if you have it).

Above all don't try and do all this too quickly -give yourself a bit of headspace and deal with one thing at a time.

Time_to_face_the_music

FuzzyDF wrote: »

As you lovely people will know I've just started on the DMP road.

BOS card have rejected SC's offer.

Vanquis have accepted an 'arrangement to pay' for 12 months, they will freeze interest but does that mean that I won't get a default?

Halifax loan will accept the reduced payment for 6 months but after that date will start the interest again and expect the 'normal' full payments after that.

Tad confused.

BOS rejected our DMP too but they took all the payments every month, though we never managed to get a default before it was paid off but am in process of complaining about that now.

Not sure about Vanquis, I have no experience with them but it's worth asking them to default you. They will probably argue and tell you how bad it is for your credit file blah blah but if you tell them things are not likely to improve and your DMP is likely to last xxx months, they may change their mind.

Halifax is similar, they are agreeing to a short term arrangement in the hope things will improve and you will be back to normal payments in 6 months. You need to make it clear your financial circumstances are unlikely to improve and you will be in same situation in that time, so would prefer them to default you now.

TTFTM x

FuzzyDF

Thank you TTFTM as always.

Time_to_face_the_music

drhuxtable wrote: »

Hi I am in need desperate need of some advice and help, new to the forum although I have been lurking the last few nights
reading with great interest and Im stressing myself out to breaking point as the realisation of my issues set in

I have part activated a step change last week and Ive sent most of the information in except for the dd mandate, signature of
declaration and a few account numbers that I did not have, these are Wonga and Sunny pay day loans (I believe you have to contact
them to get the account numbers so SC say)

My situation is a total over commitment of credit, that has had a snowball effect caused by paying for my half of a family holiday going in Aug which I really couldn't afford, at a cost of £2000 to me. I already had some debts which I was just about managing as I have a reasonably good wage but, I still had pay day loans, catalogues, credit cards (inc Vanquis, Cap one, Luma, Barclaycard) and a few high APR loans. Btw the reason I have high APR loans is because I have been bankrupt 10 years ago and even though discharged 6 months later my credit file was adversely affected, its built back up over the years, which I have monitored with checkmyfile.com but it isn't the best, even though it disappeared off all the credit files, no court records found

Another variable is we have a 1 year old baby which costs a lot, I have another daughter from a past relationship who I see a couple of times a month which I pay child maints for on an informal agreement with my ex plus all the other costs of life.

My total debt is about 14k, all unsecured on myself. My partner is not aware of my situation. I live in my partners property, most of the bills are in her name and I bank trans a sum to her every month to cover half the mortgage and bills

Just My monthly minimum credit commitments total around £3000 (big percent of this figure is payday/short term loans, e.g. wonga, lending stream etc) my wages finally going in bank is 1705 (I get child care vouchers for our 1 year old these come straight out of my wages), so borrowing peter to pay paul etc.


The family holiday is now paid off but I am in a financial crisis. I finally decided to take action a week or so ago and went to step change, they were really helpful after I filled in the debt remedy online and we went through my outgoings and debts etc. At this time I have not revealed that I have a guarantor loan with Amigo. There is about £850 left to pay on it. £108 a month til it ends next Feb I think. I didnt reveal it as I was somewhat naively thinking I could leave it out and carry on paying them. What I have come to be wary of is that, there is a possibility that when SC activate the plan and talk to my creditors they share this information of my other debts with them, the creditors check my credit file and what if they see that Amigo is on there and Im paying the full amount? Would they then not agree to a DMP?

I realise that if I include the Amigo loan, then it will default and they will get onto my guarantor which is my partners father. My partner does not know this arrangement, as frankly I was embarrased that I let myself get into the state of needing a consolidation loan a few years ago, especially since I have been bankrupt in the past. She is aware of my bankruptcy.

I really do not want amigo to go chasing my guarantor, he is not in the best shape health wise and is of pensionable age and it would cause extreme pressure in the family unit. He is not working etc. I would also be massively letting him down.

So I am trying to think of options and need any advice anyone can give me in this situation

1. Do I leave off the amigo loan and take the risk that the other creditors wont find out about it, if they did find out about it, do they generally not accept DMPs? As I am effectively giving one creditor priority.

2. Ring SC and see what they think? I havent signed anything yet so its not set in stone

3. What if I just try and settle the amigo loan on next payday? I have redirected my wages to a cash card account that I still have with Barclays. The only creditor that is linked to this account is Wonga. My usual account is a barclays current account which my wages were going into and that is where all the auto card payments are pointing to. I have applied for a co-op basic account over a week ago but not heard anything back yet. I was under pressure to redirect my wages to another bank account in such a time frame that the wages dept could process it this month. Was thinking as soon as my wages go in my co op account would be ready and I could bank transfer my wages into it. Although presumably I will be needing to inform Wonga that they need to stop taking the auto card payment from either my current account nor my cash card account.

4a Maybe I could token pay all the other creditors somehow while I try to pay off the amigo loan then setup the DMP for the month after. Although I haven't a clue how to go about this. I would have to write to them all I think.

Maybe SC could help me out with all this? But then again I dont want it to potentially jepordise the activation of the DMP

I am starting to receive a lot of calls already and a few standard letters, as I've paid nothing this month to credit cards, catalogues but am up to date on the loans

Please help I am in a right mess!:(
Any response is greatly appreciated

Currently reading more threads.

Thanks

DRH

The major problem here is the Amigo loan, Stepchange will insist it goes in your DMP and your guarantor will be forced to pay it and/or have his credit rating trashed.

How much were you intending to pay to SC each month? Can you pay token payments for several months and get the Amigo paid off?
Token payments will be good for the long term anyway as they will give you some leeway to practice budget, stash away an emergency fund and encourage along some defaults.

Have you cancelled the CPA arrangements for your payday loans? If not, do that today, it's a top priority.

Next get some letters written to your creditors with a token payment to each, you will find some great sample letters on the National Debtline website:

https://www.nationaldebtline.org/EW/sampleletters/Pages/default.aspx

There is always the possibility that a Stepchange DMP is not for you and you need to make individual arrangements with your own creditors, either alone or via National Debtline's My Money Steps or CAB's NED self managed DMP. You could always check these out and see what you think:

https://www.mymoneysteps.org/

https://nedcab.cabmoney.org.uk/dmp.asp

Please don't take this the wrong way but I am not convinced you have had a true lightbulb moment yet. You have been bankrupt once and are in this mess again, you need to totally rethink your attitude to money and get into a new mindset.

TTFTM x

drhuxtable

Time_to_face_the_music wrote: »

The major problem here is the Amigo loan, Stepchange will insist it goes in your DMP and your guarantor will be forced to pay it and/or have his credit rating trashed.

How much were you intending to pay to SC each month? Can you pay token payments for several months and get the Amigo paid off?
Token payments will be good for the long term anyway as they will give you some leeway to practice budget, stash away an emergency fund and encourage along some defaults.

Have you cancelled the CPA arrangements for your payday loans? If not, do that today, it's a top priority.

Next get some letters written to your creditors with a token payment to each, you will find some great sample letters on the National Debtline website:

There is always the possibility that a Stepchange DMP is not for you and you need to make individual arrangements with your own creditors, either alone or via National Debtline's My Money Steps or CAB's NED self managed DMP. You could always check these out and see what you think:



Please don't take this the wrong way but I am not convinced you have had a true lightbulb moment yet. You have been bankrupt once and are in this mess again, you need to totally rethink your attitude to money and get into a new mindset.

TTFTM x

Many thanks Suseka and TTFTM for your replies, I really appreciate it

I will get onto the co op about the new bank account, I'm a bit worried that Barclay card will get at my cash card account to get money from my wages but I'm hoping they don't resort to this tactic for a while.

Its gradually sinking in that I will have to declare the amigo loan if I go on SC. Yes I think the idea of token payments is a good one while I pay off the amigo loan. How long realistically can you provide token payments for?

Was intending to pay SC 717, so I'm thinking I could pay the amigo off in a few months or whatever is comfortable and I can do this without the help of the charity? Sorry for these questions, I feel really embarrassed!

Not cancelled the CPA payments but I will do this very soon Thanks

I will read up on your links and I think I will hold the DMP for now assuming I can token pay on my own?

I haven't taken any of your advice the wrong way don't worry, I am totally disappointed with myself that I am in a mess again but this time I have a decent job with security and I am able to pay debt back albeit in a structured manner. Have a new little one in the family and I think the penny is dropping..

If you could just clarify my points here then that would be lovely. I hopefully have something I can work off here

Thank you:)

Puzzcat

Hi drhuxtable,
If you haven't sent the creditors list back to sc yet could you hold off for awhile and assuming you have a sc ref number use this to quote to all the other creditors when you send them token payments?
Tell sc you need to build an emergency fund and get some cash behind you before you start. Then pay amigo off asap. I did 3 months of token payments before I started my dmp.
Puzz

drhuxtable

Puzzcat wrote: »

Hi drhuxtable,
If you haven't sent the creditors list back to sc yet could you hold off for awhile and assuming you have a sc ref number use this to quote to all the other creditors when you send them token payments?
Tell sc you need to build an emergency fund and get some cash behind you before you start. Then pay amigo off asap. I did 3 months of token payments before I started my dmp.
Puzz

Thanks puzz that's good advice also. Sc have 99% of the debts list but they need a couple of acc nums plus I haven't declared the amigo loan.
I haven't signed yet but I have a client number. Going to take all this good info away and act.

Question with each auto payment off my debit card, to cancel do you have to inform the bank and each of the creditors? I think I know how to do wonga as I received an email the other day about how they are changing the way they take payments, believe there is an email address for this

Thanks you

emskyxx

Thank you so much TTFTM, Sarah and Puzz for the lovely welcome. I've been lurking on these boards for some time now.

Just cut all my credit cards up. One of the hardest things I've had to do for a long time.

I also called Halifax who I will be banking with in future. They said my application for an easycash account was accepted and my welcome pack is on the way, so as soon as that arrives I'll be moving all my direct debits over (apart from the debts) hopefully that'll be the end of this week.

I've cancelled the direct debit that was due to aqua on Monday. I didn't want to cancel too many in one go as I don't want HSBC to get wind of what I'm doing before I have chance to get everything moved.

I called stepchange as well. The gentleman who I spoke to was absolutely lovely. He advised not to pay my debts this month but as advised on this thread that if I wished I could make a token payment. He said if I get everything sent off this week then it should be processed within 3-5 working days then I could call and set up a payment date.

It's all very scary and new to me as I've relied on the credit cards for so long but I know I'm finally on the right path, it only took me 5 years!

If anybody is reading this and unsure about taking that first step, do it. Don't prolong the agony!

Thank you so much again to everybody on here who have been so supportive.

Emsky x

sunnyskies2

Your welcome emsky

I took great joy in cutting my cards up so very liberating. It's not super easy trying to live within a pre-set budget but I am definitely enjoying it, having time to get the buffer I'm finding is a 'safe' way to adjust too.

I know I've said it before but software ynab (you need a budget) is a great tool to help you learn how to budget for everything - not just month to month which many of us do. Definitely worth a look and they have a free 30 day trial.

Best wishes:)

Sarah