DMP & Mutual Support Thread - Part 10

SquirrelNuts

ploppy57 wrote: »

So should I do that before the DMP is set up? A standard account would never have been allowed to have a overdraft of that amount so should I tell them we are setting up the DMP or not? Its all so confusing

Admittedly my overdraft is smaller than yours (mine is £500) but Lloyds didn't discuss it at all during my downgrade request.

If you don't downgrade then the monthly AVA fee will still be charged each month (I had a £5 club lloyds fee added in Dec which is why i phoned to downgrade).

During my phone call I explained that I was starting a DMP and that was the reason for me downgrading. The customer advisor didnt seem to bat an eyelid and even wished me the best of luck with it, so I wouldn't worry too much about the timing...

Squiz

Puzzcat

You can't close an account with an outstanding balance like an overdraft. I had a premium account with natwest, they froze interest immediately and never continued to take a monthly fee. Hopefully the same will happen with your account.
And yes the debts are still yours to manage so keeping on top of balances and statements is down to you.
Puzz.x

Sazzie23

ploppy57 wrote: »

So should I do that before the DMP is set up? A standard account would never have been allowed to have a overdraft of that amount so should I tell them we are setting up the DMP or not? Its all so confusing

Hi Plops

IMO would be safer to contact Lloyds after you have new account ready and when all essential bill DD have been transferred to new account. You don't really want them freezing your account and stopping you paying regular bills until you are ready. Don't use the automated account switcher as you don't want your CC to come over to the new account. I just called folk like gas and water and they either did it over the phone or sent me a form.

Regards OD like Puzz I was with Nat West and they froze the account and we stopped paying the monthly fee etc.

ploppy57 wrote: »

So will they continue to send monthly statements from CC companies even though we will be paying via DMP, or will I have to check them all online?

Different companies vary, and if you get defaulted and sold to DcA then probably won't get statements. My John Lewis has sent me statements for 12 months then stopped, BOS and BC continue to send statements monthly, MBNA sold one debt to Link and closed the online access and they send statements every 6 months, but I joined Noddle so I can keep track of them all.

SC statements assume interest and charges have been frozen, but they allow you update balances so you can track your DFD.

Oh and do you know about token payments and emergency funds ?

Remember for at least 6 years you have no access to credit, what will you do if, car breaks down, washer blows up, need new guttering etc etc ? The SC budget should allow you to build a little wiggle room but the rookie mistake here is to make your budget so tight (because you want to pay it all off ASAP) and then it's not sustainable and you get into trouble, get overwhelmed, stop enjoying life etc etc.

Enough from me for now, keep going you are doing great so far. Worth reading back through the thread if you have time, we talk a lot on here!

System

Sazzie23 wrote: »

Hi Plops

IMO would be safer to contact Lloyds after you have new account ready and when all essential bill DD have been transferred to new account. You don't really want them freezing your account and stopping you paying regular bills until you are ready. Don't use the automated account switcher as you don't want your CC to come over to the new account. I just called folk like gas and water and they either did it over the phone or sent me a form.

Regards OD like Puzz I was with Nat West and they froze the account and we stopped paying the monthly fee etc.



Different companies vary, and if you get defaulted and sold to DcA then probably won't get statements. My John Lewis has sent me statements for 12 months then stopped, BOS and BC continue to send statements monthly, MBNA sold one debt to Link and closed the online access and they send statements every 6 months, but I joined Noddle so I can keep track of them all.

SC statements assume interest and charges have been frozen, but they allow you update balances so you can track your DFD.

Oh and do you know about token payments and emergency funds ?

Remember for at least 6 years you have no access to credit, what will you do if, car breaks down, washer blows up, need new guttering etc etc ? The SC budget should allow you to build a little wiggle room but the rookie mistake here is to make your budget so tight (because you want to pay it all off ASAP) and then it's not sustainable and you get into trouble, get overwhelmed, stop enjoying life etc etc.

Enough from me for now, keep going you are doing great so far. Worth reading back through the thread if you have time, we talk a lot on here!

Thanks so much for all your advice, I will definitely take heed of everything you say. What is Noddle? Never heard of that...

SquirrelNuts

ploppy57 wrote: »

Thanks so much for all your advice, I will definitely take heed of everything you say. What is Noddle? Never heard of that...

https://www.noddle.co.uk

It's a website where you can check your credit report held on Callcredit for free. Handy for checking default dates, latest balances, ccjs, etc

Squiz

Growurown

ploppy57 wrote: »

Right, so SC don't keep an eye on the balances then? They just pay the credit card companies and leave it at that?

Can anyone say which ones we are most likely to have problems with?? We have debts with Lloyds, Halifax, MBNA, Barclaycard and Tesco bank

No SC don't check the balances for you. When your account with SC is all set up you can go online and manually alter the balances yourself.

MBNA and Tesco stopped all interest and charges for us. Can't comment on BC as I never had one, and Halifax have been the most difficult one. They are still charging interest on a CC although it has been reduced a bit. We had two CCs with them and two bank accounts. They stopped interest and charges on two of them that had low balances and were being paid back at about ten pounds a month, but on the other two accounts that had high balances they continued to charge.

ploppy57 wrote: »

So will they continue to send monthly statements from CC companies even though we will be paying via DMP, or will I have to check them all online?

Some of my CC still send me regular monthly statement with balances. Others don't and send an annual statement, but I phone mine on a regular basis just to check everything is OK and that they haven't introduced charges again. The ones passed over to DCAs don't give monthly statements either.

Coinmachine

I posted this on the charging order myth thread but also posting here as may get more replies of thats ok.

I have been on a DMP since last March, due to end in Jan 2024 on current payment rates. One of my creditors has written to me to state that they intend to issue proceedings and that if they get a court judgement they may apply for a charging order. The letter goes on to state that so long as I continue to make my reduced payment each month they do not intend to take any further recovery action.

Having read the information here, and spoken to StepChange, I understand that this is just that lender protecting their position, also as the property is in joint ownership, it would be a restriction and only on my half of the proceeds (we have no intention of moving house).

This creditor is not my main creditor, in fact there are three others I owe mor emoney to, are they likely to follow suit if they find out that this lender is taking this course of action. Would there be any worth in me writing back to the lender, asking them to reconsider thie course of action, on the grounds that I have been making payments back every month, I would hope to increase these over time if my overall financial situation improves, I owe more money to other creditors who so far have not taken this course of action, and that the property is jointly owned? Or, shoul dI save all this for when/if they take the action?

System

Growurown wrote: »

No SC don't check the balances for you. When your account with SC is all set up you can go online and manually alter the balances yourself.

MBNA and Tesco stopped all interest and charges for us. Can't comment on BC as I never had one, and Halifax have been the most difficult one. They are still charging interest on a CC although it has been reduced a bit. We had two CCs with them and two bank accounts. They stopped interest and charges on two of them that had low balances and were being paid back at about ten pounds a month, but on the other two accounts that had high balances they continued to charge.



Some of my CC still send me regular monthly statement with balances. Others don't and send an annual statement, but I phone mine on a regular basis just to check everything is OK and that they haven't introduced charges again. The ones passed over to DCAs don't give monthly statements either.

Thanks for all that, Halifax is the one I am most worried about as read a lot of people saying they had trouble with them. Both me and hubby have a CC with them and hubby also has a current account with a £800 overdraft. If they keep adding the interest we will never get it paid off!:(

System

Hi...its me again....sorry. Just wondered if anybody else on here gets wages paid weekly? I am monthly paid but hubby is paid weekly....(so old fashioned IMO, he works for a family run company and apparently they don't have the computer software to pay monthly....never heard such a load of rubbish....), anyway it is very hard to work out money when you have DD's coming out on different days of the month etc and trying to make sure all the money is in the bank for the right time. Its like we need a bit of a buffer to start us off IYSWIM, so we always have money there. I have spent the last 10 years or more constantly checking our online banking to work out if there will be enough money on certain dates and if we didn't he would take it off CC and put it in bank and then pay it back to CC when he got paid in a day or two....Obviously we will not be able to do that now, so just hoping it works out ok.

Puzzcat

:A

ploppy57 wrote: »

Hi...its me again....sorry. Just wondered if anybody else on here gets wages paid weekly? I am monthly paid but hubby is paid weekly....(so old fashioned IMO, he works for a family run company and apparently they don't have the computer software to pay monthly....never heard such a load of rubbish....), anyway it is very hard to work out money when you have DD's coming out on different days of the month etc and trying to make sure all the money is in the bank for the right time. Its like we need a bit of a buffer to start us off IYSWIM, so we always have money there. I have spent the last 10 years or more constantly checking our online banking to work out if there will be enough money on certain dates and if we didn't he would take it off CC and put it in bank and then pay it back to CC when he got paid in a day or two....Obviously we will not be able to do that now, so just hoping it works out ok.

Hi,
As you will need to move your dd's why not try and get them all moved to the end of the month so you can save hubby's wages as you go along?
Halifax were fine with me, cc with 6k froze interest and sold to a dca in first few months. Dca lovely and interest frozen permanently so hopefully the same for you.
Puzz.x