DMP & Mutual Support Thread - Part 10

Baybeeboo

Good morning all,

I have often came here and read everyones suggestions and words of wisdom, and find it so helpful (And that was before I registered)

So here it is, my credit rating is shocking! (226 I believe) I have had a problem with debt since the day I turned 18! Now nearly 8 years on, they really are out of hand.

Recently I have came out of a long term relationship and have been abandoned with my 2 children, no child maintenance as of yet and have been forced to apply for pay day loans, to my suprise I was accepted by a few, pounds to pockets, Mr Lender, Wage day advance, and Jeremy Lawrence.

So late today I will be receiving a lump sum of £6000. I am currently in a DMP for some other debts (Some are DCA) I have spoken to the people who deal with my DMP and they have advised that they offer a settlement service, but will charge a minimum of £50 or 18% of what they save me. They are going to send the info out to me.

I don't know how to go about settling my debts, I will list what I have on my credit file...

Capital One Balance: £201.08 paying £1.84 a month in DMP
EOS Solutions Balance: £245.79 paying £2.19 a month in DMP
Idem Capital Services Ltd Balance: £2,622.01 paying £23.94 a month in DMP
Moorcroft Debt Recovery Ltd balance: £362.04 paying £3.34 a month in DMP
NCO Europe Ltd balance: £261.18 paying £2.38 a month in DMP
Provident Personal Loans balance £1955.28 paying £12.02 a month in DMP
Reliable Collections balance: £201.58 paying £2.79 a month in DMP

The pay day loans are not in DMP:
Pounds to pockets £548 - in arrears
Wageday advance £209.49 - in arrears (this is the balance as of today)
Mr Lender £328 - Not in arrears but that is the settlement balance as of today
Jeremy Lawrence £150 - not in arrears.

Total: £7084.45

I also have council tax owing for the past 5 years which total £2,200. but i have an attachment on my earnings, so not sure whethere i should worry about this one?
Would also like to pay my water bill, (£150)

With the above totalling: £9434.45.

Over 3 grand of what I will have! So I have no idea how to prioritise..

I really would appreciate any help or advice!

Puzzcat

Baybeeboo wrote: »

Good morning all,

I have often came here and read everyones suggestions and words of wisdom, and find it so helpful (And that was before I registered)

So here it is, my credit rating is shocking! (226 I believe) I have had a problem with debt since the day I turned 18! Now nearly 8 years on, they really are out of hand.

Recently I have came out of a long term relationship and have been abandoned with my 2 children, no child maintenance as of yet and have been forced to apply for pay day loans, to my suprise I was accepted by a few, pounds to pockets, Mr Lender, Wage day advance, and Jeremy Lawrence.

So late today I will be receiving a lump sum of £6000. I am currently in a DMP for some other debts (Some are DCA) I have spoken to the people who deal with my DMP and they have advised that they offer a settlement service, but will charge a minimum of £50 or 18% of what they save me. They are going to send the info out to me.

I don't know how to go about settling my debts, I will list what I have on my credit file...

Capital One Balance: £201.08 paying £1.84 a month in DMP
EOS Solutions Balance: £245.79 paying £2.19 a month in DMP
Idem Capital Services Ltd Balance: £2,622.01 paying £23.94 a month in DMP
Moorcroft Debt Recovery Ltd balance: £362.04 paying £3.34 a month in DMP
NCO Europe Ltd balance: £261.18 paying £2.38 a month in DMP
Provident Personal Loans balance £1955.28 paying £12.02 a month in DMP
Reliable Collections balance: £201.58 paying £2.79 a month in DMP

The pay day loans are not in DMP:
Pounds to pockets £548 - in arrears
Wageday advance £209.49 - in arrears (this is the balance as of today)
Mr Lender £328 - Not in arrears but that is the settlement balance as of today
Jeremy Lawrence £150 - not in arrears.

Total: £7084.45

I also have council tax owing for the past 5 years which total £2,200. but i have an attachment on my earnings, so not sure whethere i should worry about this one?
Would also like to pay my water bill, (£150)

With the above totalling: £9434.45.

Over 3 grand I will have! So I have no idea how to prioritise..

I really would appreciate any help or advice!

Hi and welcome..


I am a little confused.. you say you are in a dmp yet have taken out more credit which isn't allowed? Also how are you planning on paying back the new payday loans you have taken out? I think some more information is needed so we can try and point you in the right direction.


Puzz. x

Baybeeboo

Thankyou for your reply

I have been in DMP for around 3 or 4 years, and have managed to pay off £2000 off the creditors under the plan. Should be a LOT more, as I pay my DMP £89 a month and they take nearly 50% for themselves. I didn't think much of it, was just thankful to get them kinda under control!

I shouldn't have got further credit, I know, but out of desperation I did anyway. So with this lump sum I am getting, I will be paying the pay day loans off first.

Then with what is left, I need to either pay it all by offering settlements (Which is what I have no idea of going about) or just paying some of them off. I'm not sure how to go about paying the creditors as they total more than what I have.

Please forgive me, I find it hard to put things into words at times, even though at the time it makes sense in my head!!

x

Puzzcat

Okay Baybeeboo, Thanks for providing more info! So you are currently in a fee paying dmp but wish to do full & finals with your creditors on the dmp.


There are one or 2 experts on full & finals on here that will pop on soon i'm sure with some good advice on how to get the most out of your money!


However i think what will be recommeded is you cancel your dmp asap and do the legwork yourself as you don't want to be wasting any of those precious £££. You need to get up to date balances from your creditors and account details so you are able to write to them with appropriate offers.


Sorry I can't advise you how to do it but if you have time to read back some of this thread I'm sure there was some recent conversations about full & finals.


All the best
Puzz. x

Brogden

Baybeeboo wrote: »

Thankyou for your reply

I have been in DMP for around 3 or 4 years, and have managed to pay off £2000 off the creditors under the plan. Should be a LOT more, as I pay my DMP £89 a month and they take nearly 50% for themselves. I didn't think much of it, was just thankful to get them kinda under control!

I shouldn't have got further credit, I know, but out of desperation I did anyway. So with this lump sum I am getting, I will be paying the pay day loans off first.

Then with what is left, I need to either pay it all by offering settlements (Which is what I have no idea of going about) or just paying some of them off. I'm not sure how to go about paying the creditors as they total more than what I have.

Please forgive me, I find it hard to put things into words at times, even though at the time it makes sense in my head!!

x

Hi,

I would be very surprised if you cannot bin all of that debt with £6,000 and quite possibly have plenty of change for an emergency fund.

You must do this yourself. Please don't pay these people to do it and IF for whatever reason you do carry on with a DMP (I doubt you will need to) but cancel your payment instruction to them and go to Step Change.

The best idea is to call them (the biggest debts first.) I cannot advise what you should offer but advise them this is money from a relative, is a once ina lifetime offer and if they do not accept you will have to carry on paying the amounts they are receiving through the DMP.

I don't know how pushy you are Why not start with a figure of around 20% to 30%? Make sure they know you are struggling!!!

Good luck

Brogden

Brogden

Sorry........everything I say is on the basis that you are safe and secure and priority bills are being paid too. Do not satisfy your creditors unless this is the case!!!

Brogden

Baybeeboo

Thank you all for your time in replying... I do appreciate it all..

I am willing to be as pushy as needs be! I am finally ready to take them on, whereas before I would hide and try and forget about it all, I think I have finally grown up!

I have spent most of my time researching F&FS (Getting used to the lingo!) and believe I should start off on offering 20%-30% on my first initial offer, and then let the haggling begin! I think I have found a template which I shall use;

Your name and address
Date

Name and address of creditor
Dear Sir/Madam
Account No
I am writing to you with reference to the debt which you are claiming for the above account.
Unfortunately I am unable to offer to pay the full amount in which you are owed (details of your circumstances and financial situation). However, I can raise £ (the amount you can afford to pay). This offer is made on the understanding that, once accepted, neither you nor any other organisation will take any further action against me to pursue this debt in any way and that I will be released from any liability. I also wish to request that, if accepted, you will mark any entry on a credit reference agency file as “satisfied” in full.
I can make the payment within (number of days or weeks) of receiving your written agreement of my offer and method of payment.
I look forward to hearing from you.
Yours faithfully

Does this cover everything it needs to? I am hoping to pay out as little as poss, but pay every single one off.
All my priority bills are up to date, excluding the council tax who take what they are due out of my wages, so I think I am happy to leave that as it is, saves me worrying every month! Rent is spot on, gas and electric are key meters so no worries there and water bill is due now so will pay that too.

I feel a slow release off my shoulders, even though I haven't paid anyone yet, but learning so much from everyone here, and knowing I am not the only one!

lewpster

roadtohappy wrote: »

@lewpylew was this in response to a Temporary payment arrangement or something more formal? I have been advised to write to creditors offering £1 / month until my situation changes. MBNA is one of them.

This was a response to them getting a letter and budget from Stepchange showing my monthly payments

dad2one

Indeed lewpylew, so far so good then? When presented with a budget and a proposed payment plan based on that budget, it's hard for creditors to refuse (though it does happen), especially I reckon when it comes through Stepchange.

I take it roadtohappy that you are not on a DMP yet, or that you are not in a position to do more than your token payments for now. Your payments will be accepted and cashed but don't expect an agreement accepting this long term. But, just as with a DMP, what you've got it was what you've got, and what you haven't is what you haven't, so there is little point in creditors spending more money kicking a fuss once they realise this.

neiljmuk

Kate_fixing_it wrote: »

I'm two years younger than you and I too would like to own my home one day - I see it as a "rent free" retirement if that makes sense?

Try not to focus on the defaults for now. Yes, it's a pain in the backside that it'll be at least 6 years until we can consider it but there is an upside. For me it means that that once the debt is gone (I'm hoping to be clear before I'm 40) I'll have a couple of years of living within my means and saving while the defaults drop off followed by a couple of years of credit file repair that'll make me 44, debt free and a fair amount of deposit saved. I have four children, two of whom have university aspirations that lead to 100% employment upon qualification.

When I'm 44 they'll be 25 and 24 and in work (apparently as a vet and an architect :eek:) and unlikely to want to live with me after 5 years of studying away from home. I won't need a home the size we have now so it'll cost less. At that time the younger ones will be 15 and 13. By that point I'll also be qualified in my chosen career and hopefully on a better salary (like to be double what I have now). I'll still have 24 years until retirement to pay down a mortgage and fewer outgoings.

So in short DON'T PANIC! My plan is pretty vague (although probably doesn't look it there!) but it's just an illustration that buying property isn't off the cards for people our age.

It's important to remember that plans and life change, the financial security I crave now might not be as important in a few years. Life has a funny way of giving us what we need as opposed to what we want - even if we don't know it.

Kate x

Hi kate,

Sorry I've not replied earlier. I've not been on since I read your reply last week now. Thanks for the insight in to your situation and the advice and support!

I have to say for all the experienced posters and as fantastic as everyone is, your posts have made the biggest impression on me in term of advice and in particular the reassurance they give. The fact that in this post you turn out to be the similar age, with similar issues pertaining to still having to rent and with late in the day mortgage aspirations makes your situation so similar. Thats even more reassuring and the way you think and come accross. It's all good Don't go anywhere! You and the others will be needed to lean upon for a bit of support when I get this show on the road at the end of the year! :beer:

Hopefully I can be a mentor as opposed to a newb one day. The knowledge gained from this one 97 page thread is unreal! :T