DMP & Mutual Support Thread - Part 10

moneypit2014

neiljmuk wrote: »

Hi all! About to join the DMP crew if you'll have me! Nervous much! Should be kicking it all off around January 1st.

One burning question, is, if I go for a DMP with lower payments so that I have a comfortable cash surplus to save each month, and I'm with Step change, is making F&F payments during the DMP then asking step change to stop payments to that creditor, paying less on the DMP then going again for another F&F, and so on, a good way to go or will Stepchange and other lenders who are being paid get annoyed?

I've set a realistic SOA but wonder if beefing it up and having lower payments to creditors will be better for compliance / defaulting etc (eg making sure barclaycard get less than 1% so they freeze interest)


Thanks in advance. Will introduce myself properly and give an overview. Will need the support. You are all great!!

Hi Neiljmuk and welcome

Hubby phoned step change this evening regarding F&F's as we had a similar question. They said when we have saved up enough money to phone them and discuss with them which one we should pay off first. I would guess they would then redistribute the money that was going to that creditor amongst the others.

Aloofdragon

Aww I have read and read this thread for hours in the evenings and its so commendable the support your all just amazing !! And lovely to see so many parts of journey though paying your debts off and those with lovely PPI AWARDS LOL


My husband just rang me to say he has declined PP offer of IVA and explained to them that we would be better off to the extent of £200 a month once we stop paying child maintenance, plus my hubby has just had promotion in work so will have a payrise after Christmas so think we could possibly do this ourselves, they are ringing back to see if we want them to do a DMP ... Can I ask a few questions please and hoping someone may know an answer to them.


If we set up a DMP with PP will we be able to set the amount paid a month or does it still go down the set I+E route accounting for every penny and sending receipts etc off..


They mentioned £100 a month and 12 years to complete this just cannot happen I have spent all my adult life stressing about money and debts to the point of suicide(sounds dramatic huh) I want rid of them sooner than that would we be able to pay extra off a month to clear them sooner from our end or will the debts be locked into what their sending ?


We know regarding C/C and argos card we will accrue interest until paid off but if we put every spare penny and grabbing overtime etc into paying these off we can get these 3 done in 6-8 months, my question here is regarding Barclays where we have £700 O/D and £5900 loan how hard would it be to sort these out into a pay plan ourselves possibly asking for freezing interest where possible.??


Over the weekend I have accepted a job only 2 days a week but will earn us an extra £130 a week, plus our SS maintenance stops in December, and my DH was offered a trial based Managers post at work for 6 months so will be ample overtime plus a raise these within time, all comes in threes eh. Sorry for repeating myself here by the way.


Also is Marisota a bully to pay off ? this is one I'd willingly forget about but of course I cant.


Many thanks if you have actually made your way to here lol xx k.

neiljmuk

Aloofdragon wrote: »

Aww I have read and read this thread for hours in the evenings and its so commendable the support your all just amazing !! And lovely to see so many parts of journey though paying your debts off and those with lovely PPI AWARDS LOL


My husband just rang me to say he has declined PP offer of IVA and explained to them that we would be better off to the extent of £200 a month once we stop paying child maintenance, plus my hubby has just had promotion in work so will have a payrise after Christmas so think we could possibly do this ourselves, they are ringing back to see if we want them to do a DMP ... Can I ask a few questions please and hoping someone may know an answer to them.


If we set up a DMP with PP will we be able to set the amount paid a month or does it still go down the set I+E route accounting for every penny and sending receipts etc off..


They mentioned £100 a month and 12 years to complete this just cannot happen I have spent all my adult life stressing about money and debts to the point of suicide(sounds dramatic huh) I want rid of them sooner than that would we be able to pay extra off a month to clear them sooner from our end or will the debts be locked into what their sending ?


We know regarding C/C and argos card we will accrue interest until paid off but if we put every spare penny and grabbing overtime etc into paying these off we can get these 3 done in 6-8 months, my question here is regarding Barclays where we have £700 O/D and £5900 loan how hard would it be to sort these out into a pay plan ourselves possibly asking for freezing interest where possible.??


Over the weekend I have accepted a job only 2 days a week but will earn us an extra £130 a week, plus our SS maintenance stops in December, and my DH was offered a trial based Managers post at work for 6 months so will be ample overtime plus a raise these within time, all comes in threes eh. Sorry for repeating myself here by the way.


Also is Marisota a bully to pay off ? this is one I'd willingly forget about but of course I cant.


Many thanks if you have actually made your way to here lol xx k.

Hi! Newb on here myself a few threads up. As far as I understand, all the debts you mentioned inc Argos and CC would be included with a view to freezing interest with varying levels of success, but thats the aim, or reduced interest or getting them to pass to debt collection company who will actually be happy to do this.

neiljmuk

moneypit2014 wrote: »

Hi Neiljmuk and welcome

Hubby phoned step change this evening regarding F&F's as we had a similar question. They said when we have saved up enough money to phone them and discuss with them which one we should pay off first. I would guess they would then redistribute the money that was going to that creditor amongst the others.

Hi, thanks for that. As long as SC are up for letting you sniper off individual creditors in one sitting with an F&Fs every now and again that's encouraging what ever the finer detail such as redistribution of total payment to them etc.

Are reduced amount F&F payments something you can just offer creditors even if they've not offered you a F&F and do they usually accept if you turn around and say, "hey I'll give you 50% of the balance now if you write it off" for example?

moneypit2014

neiljmuk wrote: »

Hi, thanks for that. As long as SC are up for letting you sniper off individual creditors in one sitting with an F&Fs every now and again that's encouraging what ever the finer detail such as redistribution of total payment to them etc.

Are reduced amount F&F payments something you can just offer creditors even if they've not offered you a F&F and do they usually accept if you turn around and say, "hey I'll give you 50% of the balance now if you write it off" for example?

In the past when we've requested settlement figures from creditors there's a bit of haggling to be had. I normally get hubby to do it as he enjoys it . All you need to do is ask how much it would cost to clear the debt and when they say X amount you say "Oooh, urm, I can't do that but I have X amount I can pay you today" or something and just see what they say. I think debt collection agencys have more leeway as they have (I assume) bought the debt from your original creditor for peanuts and it also depends on how long it's been since you defaulted.

Growurown

Aloofdragon wrote: »

If we set up a DMP with PP will we be able to set the amount paid a month or does it still go down the set I+E route accounting for every penny and sending receipts etc off..

Can't say for PP but with Step Change the amount that is left over when you have completed your I&E is what is divided up amongst your creditors. You can't set the amount but you can manipulate the figures. I knew we couldn't live on a really tight budget (not in OH's remit at all!!) so I built in a lot of extra costs so we would have more to spend basically. For example I put in that we were smokers who dry cleaned all our clothes and ate lunch at work every day.

Aloofdragon wrote: »

They mentioned £100 a month and 12 years to complete this just cannot happen I have spent all my adult life stressing about money and debts to the point of suicide(sounds dramatic huh) I want rid of them sooner than that would we be able to pay extra off a month to clear them sooner from our end or will the debts be locked into what their sending ?

So you could 'exaggerate' your expenses and use the extra to pay off certain creditors quicker, (or put the money away to use in an emergency). You could 'not exaggerate' and just be really thrifty and use that money to pay them off or you could exaggerate and be really thrifty all at once! Step Change were really helpful and I was very grateful to them, but I didn't tell them about pay rises or overtime money. I figured that as long as the creditors were happy I would use that money for the things I needed to sort out and pay.

Aloofdragon wrote: »

We know regarding C/C and argos card we will accrue interest until paid off but if we put every spare penny and grabbing overtime etc into paying these off we can get these 3 done in 6-8 months, my question here is regarding Barclays where we have £700 O/D and £5900 loan how hard would it be to sort these out into a pay plan ourselves possibly asking for freezing interest where possible.??

If you are doing a DMP with pay plan then these amounts will be included, and they will be offered a share of what you can afford to pay back. You can ask for the interest to be frozen etc. and hopefully it will be frozen, but there are no guarantees. Basically you will have to wait and see what they do and then take if from there.

Aloofdragon wrote: »

Also is Marisota a bully to pay off ? this is one I'd willingly forget about but of course I cant.

Sorry can't help with Marisota, but congrats on the job!

Growurown

I phoned my mystery caller who left a message on my answerphone yesterday and it seems Capital One who have been fine up to now have passed my debt onto Credit Solutions Ltd. A bit of a coincidence that they do this right after I tell them that I am going self managed. Anyhoo it doesn't make any difference to me who I pay as long as they don't reintroduce interest and charges.

I spoke to a very nice lady on the phone who wanted to go through an I&E with me, so I asked her to call me back in 10 minutes whilst I went off and loaded up my spreadsheets. Well it's 2 hours later and still no call. Ho hum think I'll go and walk the doggies.

Aloofdragon

Thankyou kindly GROWUROWN XX all makes sense x

Monkeyballs

Afternoon Amigos!

Growurown wrote: »

For example I put in that we were smokers who dry cleaned all our clothes and ate lunch at work every day

LOL, funnily enough while I struggled to find money to eat due to a gambling problem I too was able to find money to have my suits dry cleaned each month...

On a serious note, can everyone please remember that when you enter into a DMP it is an informal agreement in which you agree to be be fair with each of your creditors and if anyone is seen to be favouring one creditor over another then it could put your plan at risk!

However, if you happen to have a relative or friend who is willing to offer you an amount of money which enables you to make F&F's then that is another matter... I have spoken to Step Change about this in the past, just be clear with them that you are remaining fair to all and that you have not in anyway incurred new debts.

This isn't me telling anyone off LOL, I just want to make sure that any of my new friends who start dropping by this thread doesn't need to worry unduly if their finances and repayments are brought into doubt

MB of G x

moneypit2014

Monkeyballs wrote: »

Afternoon Amigos!
On a serious note, can everyone please remember that when you enter into a DMP it is an informal agreement in which you agree to be be fair with each of your creditors and if anyone is seen to be favouring one creditor over another then it could put your plan at risk!

Even if Step change themselves are telling you to do just that?