DMP & Mutual Support Thread - Part 10

ailz95

Brogden wrote: »

You got there Ailz95 though didn't you? Absolutely years ago I had a credit card default that was quickly sold on to a collector whose offices are a few miles from my house. Every month I called in and paid a cheque over the counter until every penny was paid about eighteen months later. It never occurred to me to negotiate either. I was so naive and conscientious in those days and worried about the debt every day. Look at me now......does age make us any better? Haha

I don't have a debt company or charity by the way - self managed and I can be as wayward as I require

Brogden.

Oh yes Brogden, I got there. Ever since I found that I could take my pension in a lump sum - or £120 per month - I was excited to think that my birthday present for my 60th would be to pay off all our debts, and I did.

Although apparently Barclaycard won't close the account until I pay them the owing interest of... £0.88, they really do need every drop, poor things, must be so desperate :mad:

Ailz

Time_to_face_the_music

Good morning fellow DMPers

Have seen a few requests for sample letters recently and they can be quite difficult to find on the thread, especially when it’s busy. So thought it would be useful to add a couple of the most requested letters here.

Letter for token payments, thanks to Puzz:

our address

Account details

Date


Dear Sir/Madam

I am writing to inform you that I am currently seeking advice and assistance regarding my current financial difficulties.

I am working with StepChange to set up a Debt Management Plan (DMP) – my reference number is *******. They will send you an offer of payment along with a copy of my budget and list of creditors.

I am unable to meet my normal monthly payments, would you please accept a token payment of £1 per month until StepChange contact you with my DMP details. I would appreciate if you could hold any action on the above account until this time.

I would ask that you please consider stopping or reducing interest and any other charges on my account to help me during my financial difficulties and to avoid increasing my debts any further.

I would please note all future communication should be in writing only.

I thank you in anticipation of your assistance and co-operation whilst I am going through this difficult time, and assure you thatI am doing everything I can to resolve my current financial situation in a responsible and sustainable manner.

Yours faithfully

________________________________________

Letter to get interest stopped:

You

Date

Them

Dear Sir/Madam

Complaint re: [Creditor name] account No: XXXXXXXXXXXXXXX

Thank you for your letter/statement concerning the above account. I am sorry that you feel unable to suspend interest/charges on the above account.

As you are aware, I/we am/are in a DMP with XXXXXXXX, reference number XXXXXXXX. The majority of my/our other creditors have agreed to the offer of payment and agreed to suspend any interest charges still accruing. They have accepted that to continue to charge interest would not assist us in my/our present financial difficulties, and can only serve to increase my/our total debt.

I/we have already paid considerable sums in interest to my/our account. If interest charges continue, the monthly instalments I/we am/are paying will not even cover that interest. Also, the cooperation of my/our other creditors who have agreed to freeze interest already would be put at risk.

I am aware that XXXXXXX subscribes to the Lending Code which states that lenders will consider reducing or suspending interest and charges if these would cause the debt to increase or lead to the repayment term becoming too extended. I would therefore be grateful if you would reconsider your decision not to freeze the interest. This would mean that the monthly payments I/we make would actually reduce the balance outstanding to your company.

Please consider this letter as a complaint about the interest charges you are continuing to apply to my account. I would like to see these stopped immediately and previous interest charges refunded.

If you are unable to help me with this issue, I will have no alternative but to take this case to the Financial Ombudsman Service.

I look forward to hearing from you as soon as possible.

Yours faithfully

You
________________________________________

Lots more really useful template letters and tons of other information on National Debtline website:

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

And lots of fantastic information on NED CAB DMP website:

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

Hope this is useful but if you need any more help, someone here will always offer their advice or point you in the direction of someone who can assist.

TTFTM x

ailz95

Congratulations spiffyiffy and to your wife on your son, how much did he weigh? what are you calling him? Is he your first? We need details, you can't give us half the story

Ailz

neiljmuk

Puzzcat wrote: »

Fuzzy most of us had never missed payments pre dmp and had the same feelings as you. It will all be fine.
Puzz.

Replying to a much older post if I can, as it's also worth flagging up again I think. I think this statement is reassuring for me. I've been tip top with payments apart from a bit of a faff with Citicard a number of years ago and my credit rating is only bad due to the amount of borrowing. It's all green, and I always thought that most people that started a DMP would have done so after months of failing to pay on time or the correct amount.

I felt that it would look stupid that I enter a DMP on the back of immaculate payment records with all creditors, and am delighted that this is clearly not the case.

Quick question: If I get defaults and then they all drop off after 6 years but there are payments left for say another year or so on the DMP, how are those payments marked and are they hurting my credit rating in real time until paid up in full?

neiljmuk

sunnyskies2 wrote: »

Hi all and glad things are looking bright on the work front Kate:)

Great news FuzzyDF with the acceptances - always look for the positives:) -

I've received a few acceptance letters all at 0% interest and fees - Barclaycard, MINT, m&s and Lloyds for bank account and cc - funny we've heard nothing about the 3 loans with them (and biggest debts) still early days I guess as DMP payments don't start until September.

Sarah

I have Barclaycard, Mint and Lloyds for CC, OD and loan so that's encouraging

I have an argos card. A few interest free until paid inside 12 month type debts on it, and 3 fixed payment plans. All just totaled up on the same store card. Anyone had experience with Argos? I'm guessing they could go brutal on me as the fixed plan agreements state 'miss a payment, you pay in full NOW' to put it bluntly. Guess that could work in my favor if they just go crazt wanting all the fixed payment plan balances in full, by way of forcing them to to pass to DCA....

Puzzcat

neiljmuk wrote: »

Replying to a much older post if I can, as it's also worth flagging up again I think. I think this statement is reassuring for me. I've been tip top with payments apart from a bit of a faff with Citicard a number of years ago and my credit rating is only bad due to the amount of borrowing. It's all green, and I always thought that most people that started a DMP would have done so after months of failing to pay on time or the correct amount.

I felt that it would look stupid that I enter a DMP on the back of immaculate payment records with all creditors, and am delighted that this is clearly not the case.

Quick question: If I get defaults and then they all drop off after 6 years but there are payments left for say another year or so on the DMP, how are those payments marked and are they hurting my credit rating in real time until paid up in full?

Hi, Not sure its answer, maybe someone who has reached this point can let us know? The problem is that some creditors may not default you and mark the report ap (arrangement to pay) or similar which stay on your report for 6 years from settled....Barclays are known for this..pesky creditors...

moneypit2014

Puzzcat wrote: »

Hi, Not sure its answer, maybe someone who has reached this point can let us know? The problem is that some creditors may not default you and mark the report ap (arrangement to pay) or similar which stay on your report for 6 years from settled....Barclays are known for this..pesky creditors...

On Noddle my default completely dropped off my credit file after 6 years, give or take a few months, even though I'm still paying.

neiljmuk

moneypit2014 wrote: »

On Noddle my default completely dropped off my credit file after 6 years, give or take a few months, even though I'm still paying.

What do the payments show up as? Just regular payments, all green so to speak. Arrangement to pay is a nuisance. Be all about winding em up enough to default you as early as but appreciate risk of being knackered for up to 6 years after. If it starts to look like a creditor is forcing it to pan out that way I'll get shut with a F&F and go self managed if SC start crying about it. Initial DMP prediction is 6.5 years to pay. Want DMP and nasty credit report markers done with in 8.5 years ideally......

BeingDebtFreeStartsHere

Evening everyone,

Just a quick question - how often do Noddle update your credit file? Mine hasn't been updated for what seems like ages! Still showing last payments on some CCs as being paid end of Aug and I have paid since then.

Many thanks,

BDFSH x

Puzzcat

BeingDebtFreeStartsHere wrote: »

Evening everyone,

Just a quick question - how often do Noddle update your credit file? Mine hasn't been updated for what seems like ages! Still showing last payments on some CCs as being paid end of Aug and I have paid since then.

Many thanks,

BDFSH x

They are always a little bit behind, maybe 1 or 2 payments.