DMP & Mutual Support Thread - Part 10

mummybear14_2

Hi guys

I've been on this site for a while now but generally just reading posts and getting information. I just want to say thanks to everyone who posts and has helped (unknown to them) to get my debt problem in order. I'm now 3 months into my DMP and feeling so much more relaxed. I still keep a tight budget but plan ahead.

So a massive thank you without the information on here I really don't know where I would be now.

Puzzcat

mummybear14 wrote: »

Hi guys

I've been on this site for a while now but generally just reading posts and getting information. I just want to say thanks to everyone who posts and has helped (unknown to them) to get my debt problem in order. I'm now 3 months into my DMP and feeling so much more relaxed. I still keep a tight budget but plan ahead.

So a massive thank you without the information on here I really don't know where I would be now.

Hi mummybear,


That is lovely to hear and well done on getting your dmp sorted. Do pop in and join us we do love company here...!


Puzz. x

Iwanttobefree

Been quiet for a couple of months, it's been a total nightmare.

I really really wish I had gone self managed in the first place and not used Payplan or Stepchange.

One of the biggest headaches was Stepchange insist I open a basic bank account and stop using my current account which has a £500 OD limit that I go into every month, and to add this OD to my plan.

People on here advised me to manage my own plan and not add it (well some did, others said it was right to add it).

Moving the direct debits over has been a nightmare. Payments that never ever came out before say the 15th from my old bank, came out on the 10th etc. I had 4 unpaid direct debits (and charges each time) in the first 3 weeks alone.

My old bank always paid everything even it it took me slightly over my OD limit and their annual charges for my OD etc isn't as high as my charges for my first few weeks of my basic account has been.

I really really wished I had kept my direct debits at my current account and ignored Stepchange.

Luckily, while I did set up my basic account and move my DDs I didn't actually give Stepchange the details of my old banks OD and now I'm self managing, am back using that account as my main account instead.

I'm gradually going to move the DD's back and get rid of the basic account, all it's done is cost me more money I don't have,

Stepchange sent out letters to all my creditors explaining my finances and making an offer, but I went self managed before the first payments were due (but did make all payments).

Creation got my interest rate wrong and I had to phone them, as soon as I said I was self managing, they said they need ALL the info again, even though nothings changed in 6 weeks.

They dropped the interest rate on two accounts to 3% APR, said they would on the other account, one I've made all payments up to date on, so today I receive a statement with the full normal card rate interest, a £12 default charge, £95 interest etc etc etc .

Sure, I've phoned them up, they've removed the charge and the interest and assured me it has been put down to 3% but it's never ever ending.

Today I receive a letter from Capital one saying that I'm in arrears (I've made every payment as per what Stepchange set up) and I don't appear to be with Payplan any more. They don't seem to have had the letter Stepchange sent them, and yet again I've got to spend money on posting them stuff they've already got, try to argue charges etc.

And to be honest I'm almost at breaking point.

Much more hassle and I'm going to say sod it, all you you take me to court, give me loads of CCJs and at least I'll know what I'm paying each month.

I first contacted Payplan around Feb this year. Yet I now owe slightly more money than I did when I contacted them and it's November.

Sorry, I'm in rant mode

Puzzcat

Iwanttobefree wrote: »

Been quiet for a couple of months, it's been a total nightmare.

I really really wish I had gone self managed in the first place and not used Payplan or Stepchange.

One of the biggest headaches was Stepchange insist I open a basic bank account and stop using my current account which has a £500 OD limit that I go into every month, and to add this OD to my plan.

People on here advised me to manage my own plan and not add it (well some did, others said it was right to add it).

Moving the direct debits over has been a nightmare. Payments that never ever came out before say the 15th from my old bank, came out on the 10th etc. I had 4 unpaid direct debits (and charges each time) in the first 3 weeks alone.

My old bank always paid everything even it it took me slightly over my OD limit and their annual charges for my OD etc isn't as high as my charges for my first few weeks of my basic account has been.

I really really wished I had kept my direct debits at my current account and ignored Stepchange.

Luckily, while I did set up my basic account and move my DDs I didn't actually give Stepchange the details of my old banks OD and now I'm self managing, am back using that account as my main account instead.

I'm gradually going to move the DD's back and get rid of the basic account, all it's done is cost me more money I don't have,

Stepchange sent out letters to all my creditors explaining my finances and making an offer, but I went self managed before the first payments were due (but did make all payments).

Creation got my interest rate wrong and I had to phone them, as soon as I said I was self managing, they said they need ALL the info again, even though nothings changed in 6 weeks.

They dropped the interest rate on two accounts to 3% APR, said they would on the other account, one I've made all payments up to date on, so today I receive a statement with the full normal card rate interest, a £12 default charge, £95 interest etc etc etc .

Sure, I've phoned them up, they've removed the charge and the interest and assured me it has been put down to 3% but it's never ever ending.

Today I receive a letter from Capital one saying that I'm in arrears (I've made every payment as per what Stepchange set up) and I don't appear to be with Payplan any more. They don't seem to have had the letter Stepchange sent them, and yet again I've got to spend money on posting them stuff they've already got, try to argue charges etc.

And to be honest I'm almost at breaking point.

Much more hassle and I'm going to say sod it, all you you take me to court, give me loads of CCJs and at least I'll know what I'm paying each month.

I first contacted Payplan around Feb this year. Yet I now owe slightly more money than I did when I contacted them and it's November.

Sorry, I'm in rant mode

Hi,


Oh dear, sounds like a right pickle!! I am a little confused myself and i'm not one of your creditors! Was it SC or PP that you originally went with?


The problem with keeping an account with a bank you have debts with is they have the right of offset, also you are correct in that you are not suppose to have debt whilst on a dmp. A new bank account that doesn't have any overdraft facility forces you into working your budget properly, and allows us to learn all the skills we need for the future when we are debt free. I am assuming you have no other debts with the old current account?


I found cancelling each dd as they were taken the month before and resetting them up by phone or online was easy and I could choose the date I wanted. Did you do a switching service?


Good luck with self managed, many people on here do it successfully and I'm sure once your creditors know exactly what is happening it will all settle down.


Unfortunately it is a well known fact that your debt will always go up during the set up of a dmp but as soon as interest is frozen/reduced those pesky debts start to disappear!


Puzz. x

ForMySister

Hi everyone,

So, things are looking a bit more positive at the minute. My sister took this week off work as leave and we've spent a lot of time talking and trying to sort through everything. I got an email through from StepChange confirming that I had authority to discuss the DMP on my sister's behalf so I called this morning. On top of everything else I have the worst head cold and I'm sure they thought I was a heavy breather to begin with. :rotfl:

They were so unbelievably helpful and supportive that it made me quite emotional. I am now officially a huge fan.

I was able to add the last two debts to her plan and payments aren't going to start until the first of January, which will give her some breathing space. As her payday is the middle of the month I've also arranged it so that she will pay by standing order so that the money is gone from her account and she doesn't have the added worry of holding on to the amount.

The next obstacle will be whether or not the additional two creditors call her at work. I know that's a bridge we'll have to cross when and if it happens but I am going to write to them this week to ask that they remove her phone numbers from their records and only contact her in writing. Thanks so much for the template Mr Lender letter, fingers crossed it works.

I'm still really appreciative of everyone on here. You're making a horrible time so much easier for me. Hopefully one day soon my sister will see that too. The lady I was speaking with today told me that in comparison to a LOT of people who use StepChange my sister's debt is relatively small. I think that it's terrible that people are driven to such depths of despair because of money, but one day at a time. xx

Lighthelamp

so_very_confused wrote: »

Hi Lightthelamp
Just a thought if you do decide to go down the DMP route don't forget to factor into your budget any additional costs incurred by your ill health. I was in a similar position to yourself and did not allow for this. A few months in this became obvious and I went back and negotiated higher food allowance and added categories ie someone to cut my grass and additional travel costs for hospitals/gps. I am with SC and they were brilliant, very understanding. I am back at work now ( not in my original profession) but still require these add ons in order for me to continue to work.
Whatever you decide, good luck.

Thank you so much. I have decided to go ahead with the DMP after a lot of deliberation of should I or shouldn't I go for an IVA...but decision made & paperwork all sent of today. Just have to wait now for the angry letters I suppose. Feels good to be actually doing something rather than sitting helpless and worrying. This forum is brilliant have got so much help and information here.

Ellieseleven

Hi Formysister,

I'm so glad to read that things look a little more postive for your sister.

I've been on a DMP for 4 years now and in the beginning everything is so scary and the worry and stress that you feel under manifests itself in many ways. I remember being in a very dark place and told myself that there was no way out:(

Eventually, I had to take the plunge and go onto a DMP and I can honestly say that for us it was the best solution. These days I sleep well, I don't stress over money and in a couple of years we will be free from debt.

This forum and the folks on this thread have kept me sane and I will be eternally grateful for their advice, tips and humour:T

You just need to help sort out the mechanics of your sister's DMP and once up and running, things will usually settle down. I couldn't believe that I had put things off for as long as I did and wished that I entered into a DMP sooner, as soon as I did it was as though a huge weight lifted. The down side is that your credit rating is trashed and you can't have any more credit but with the aid of a good budget and help from these forums, that doesn't really matter (I never want credit again!)

An emergency fund is a must for those unexpected expenses so a start date in January is positive.

Regarding phone numbers, I remember accessing any of my accounts on line where possible and removing my phone numbers or entering incorrect numbers but I'm not familiar with your sister's creditors so this may not be an option. I have 11 creditors and only one tried to reach me in work but I sent off the letter to say that communication should be in writing only and I didn't hear anything further.

Take care
Ellie xx

ForMySister

Ellieseleven wrote: »

Hi Formysister,

I'm so glad to read that things look a little more postive for your sister.

I've been on a DMP for 4 years now and in the beginning everything is so scary and the worry and stress that you feel under manifests itself in many ways. I remember being in a very dark place and told myself that there was no way out:(

Eventually, I had to take the plunge and go onto a DMP and I can honestly say that for us it was the best solution. These days I sleep well, I don't stress over money and in a couple of years we will be free from debt.

This forum and the folks on this thread have kept me sane and I will be eternally grateful for their advice, tips and humour:T

You just need to help sort out the mechanics of your sister's DMP and once up and running, things will usually settle down. I couldn't believe that I had put things off for as long as I did and wished that I entered into a DMP sooner, as soon as I did it was as though a huge weight lifted. The down side is that your credit rating is trashed and you can't have any more credit but with the aid of a good budget and help from these forums, that doesn't really matter (I never want credit again!)

An emergency fund is a must for those unexpected expenses so a start date in January is positive.

Regarding phone numbers, I remember accessing any of my accounts on line where possible and removing my phone numbers or entering incorrect numbers but I'm not familiar with your sister's creditors so this may not be an option. I have 11 creditors and only one tried to reach me in work but I sent off the letter to say that communication should be in writing only and I didn't hear anything further.

Take care
Ellie xx

Thank you Ellie, that's great advice. I think it's going to be a tough Christmas, but hopefully 2015 will be a turning point in my sister's life and this time next year everything will be very different. Her DMP is only going to run for about 18 months (less if she can manage to save a bit) and this may actually be a positive (am I stretching here, lol).

Ellieseleven

ForMySister wrote: »

Thank you Ellie, that's great advice. I think it's going to be a tough Christmas, but hopefully 2015 will be a turning point in my sister's life and this time next year everything will be very different. Her DMP is only going to run for about 18 months (less if she can manage to save a bit) and this may actually be a positive (am I stretching here, lol).

It's amazing how things change in a short space of time and I'm sure that this time next year your sister will look back on this time in her life and be glad that she has taken the steps to sort out her finances.

It certainly is a positive but at the beginning it just doesn't always feel like it :cool:

Take care
Ellie xx

Growurown

ForMySister wrote: »

Thank you Ellie, that's great advice. I think it's going to be a tough Christmas, but hopefully 2015 will be a turning point in my sister's life and this time next year everything will be very different. Her DMP is only going to run for about 18 months (less if she can manage to save a bit) and this may actually be a positive (am I stretching here, lol).

Making great progress there FMS, and even though Christmas this year will be a bit of a challenge at least you have a way forward and 18 months will fly by. I'm hoping this Christmas will be our last one on the DMP, if all goes to plan. Fingers crossed!