DMP & Mutual Support Thread - Part 10

jubilee14

moneyworrier89 wrote: »

Hello all,

Now my DMP is all set up on and online what happens now? Do I wait for letters from my creditors to advise if they've frozen interest or will Step Change ? I am applying for a savings account with my basic bank account so will begin to start saving for an emergency fund also.

I wish I could say I feel relieved but I feel so worried, more so than usual that my creditors will refuse and take me to court. I don't think I will feel relieved until my first payment has come out but now I have down that I have missed my loan payment so that's going to increase my arrears. I have now been put on anti-depressants as I feel so stressed. Any advice would be greatfully appreciated. Is it normal to feel like this?

Hi Moneyworrier i think we all remember that anxious time of making the decision to go down DMP and the limbo between it getting into place and NOT paying that minimum payment to creditors.

The main things are your new bank account and monitoring to make sure all DD 's are transferred over and your employer has put wages into new account. I remember sitting up the best part of the night i was due to be paid to transfer the money over from old bank account to new as was convinced my Bank would be ready to pounce and take all my wages.... they didnt of course.

The other thing is to make sure letters and token payments go out to any creditors in time for when they are due to be paid. Dont be tempted to give them £5 or £10 as £1 is sufficient and what you dont pay as normal goes into the emergency fund.

Some creditors may notify you. Many will start to phone but i found if you just explain to them your in financial difficulties quote the SC ref nr they will likely put your account on hold for 30 days till the DMP process is worked through.

Its a bit scary at the start but really it will eventually settle down.

Worst bit for me was one creditor saying they hadnt received it. Was eventually sorted out and others not freezing interest. You need to be ready to fight that one as you'll probably be a bit exhausted with all the running around for DMP set up.

Anyhooo. Good luck and we're all here for advice on anything needed

moneyworrier89

Hello there,

Thanks for the advice. I have been advised by Debt Change not to make any token payments as they have set up my first payment to come out on the 10th Feb. I have notified all my creditors and most have put a temporary hold on the account so I am unsure whether to leave it payment wise now to Step Change?

Many Thanks

Sazzie23

moneyworrier89 wrote: »

Hello there,

Thanks for the advice. I have been advised by Debt Change not to make any token payments as they have set up my first payment to come out on the 10th Feb. I have notified all my creditors and most have put a temporary hold on the account so I am unsure whether to leave it payment wise now to Step Change?

Many Thanks

Hi MW

It really is normal to be suffering extreme anxiety and panic at this stage so take a keep taking deep breaths and you'll get through.

IMO if you have payments due before 25th Feb which is when SC will pay, then token payments will benefit you as creditors will be able to see that you are taking action and not just, not paying.

If you send token payments by post include a covering letter, only send £1 per creditor. If you pay on line, still only pay £1 but send them an online message or email explaining why you are doing this. Always quote your SC reference.

Keep breathing, it's gonna be ok.

Sazzie23

January2015 wrote: »

Hi
I did receive the debt remedy pdf from StepChange but that just said

"What to do next - f you want a DMP go back to the last screen of StepChange Debt Remedy and click on the ‘Request application pack’ button. It will ask you to give us your personal details so that we can send you all the information you need to set up a DMP."

I did that on 12th January and haven't had anything else at all. I did try and log back on to the debt remedy using my reference number and I can't anymore as it now says

"As you have chosen your debt solution we have saved your Debt Remedy so that we can process your information."

So I guess I am just super impatient I will give it until Friday and if nothing is here by then I will phone them.

Thanks for responding to my questions - it helps to hear some sense from others who have been through the process :beer:

Hi Jan15

I went back through my emails and the one I received with DMP pack attached was this

Dear Sazzie

Your Debt Management Plan

Your client reference number: 1xxxxxxx

Attached to this email is all the information you need to set up your Debt Management Plan (DMP).

Your client reference number is 1xxxxxxx you'll need to provide this each time you call. Your monthly DMP payment is xxx

If you have any questions about how to set up your DMP, please call us on 08442 641 917 or you can email us at dmp@stepchange.org and we'll guide you through the process. We're open Monday to Friday 8.00am to 6.00pm.


Vikki Brownridge
Head of Debt Advice

---

Did you get that one ? Check your spam if not and if still not go online again and enter your DMP ref and see what the system says.

moneyworrier89

Hi Sazzie,

Thanks for being so nice and replying. I am just a little confused- my direct debit comes out on the 10th but SC won't pay it until the 25th then?

So I should still make a token payment of 1.00 to each of my creditors even though SC have sent their repayment proposal off?

I have notified all of my creditors but made no token payment as SC said all payments now go through them.

I am so sorry if I sound silly I am just so worried.

Puzzcat

moneyworrier89 wrote: »

Hi Sazzie,

Thanks for being so nice and replying. I am just a little confused- my direct debit comes out on the 10th but SC won't pay it until the 25th then?

So I should still make a token payment of 1.00 to each of my creditors even though SC have sent their repayment proposal off?

I have notified all of my creditors but made no token payment as SC said all payments now go through them.

I am so sorry if I sound silly I am just so worried.

Hi MW,


Stepchange only pay all the creditors once a month on the 25th, earlier if it falls on a weekend or bank holiday. It is entirely up to you if you want to send a token to cover the missed payments you would usually be paying since your last one and the 25th February.


Most people have a more gentle run in to the start of a dmp in order to save what they would normally pay debts with as an emergency fund. In this case they would write and make a token payment £1 is fine for each 28 day period to show willing to pay, whilst setting up the dmp.


Squizz posted a link to a letter a page or so back if you want to do this to cover the current payment period.


I really would strongly suggest that you sit down and read back at least this thread if not the previous one as well. I read 3 before setting up my dmp and learnt so much from all the information provided here.


Take Care
Puzz. x

charmed1318

Hi all.

I have just got my credit report via callcredit, just the £2 stat report, to check default dates, however I have noticed there is one debt from virgin for £183 that I did not know about, no-one has contacted me, virgin or otherwise (and it's not like they couldn't find me, been a virgin payg customer for years). I thought all my debts had caught up with me. I can't think what it'd be for...? Do I say nothing? But if I want a mortgage in the future I would have to declare it? Do I just query it and then wait for a DCA letter to come through my door?
Thanks

BeingDebtFreeStartsHere

Hi Puzz and Jubilee,

Thanks for your replies. I have checked our DMP statement online and they are showing as the payment sent to LLoyds. They are not in red so I am assuming that SC have successfully sent them to LLoyds?? Lloyds are not being very helpful, we did inform them that there seemed to be an issue with them crediting the payment to the loan account and they said they wiuld hold the account for 30 days to allow us to rectify it only to break their word and send the account to the DCA!

My husband finally got through to someone at LLoyds by pressing various buttons (!) however she wsas very unhelpful and said she was unable to tell us who the debt had been passed on to as the account no longer sat with them. She said they should contact us soon, when he asked if that would be by phone or letter she had no idea!

Surely someone at LLoyds could tell us who now has the debt. We are now at risk of January's payment to Lloyds (due to be paid on 25th) being lost in the ether as where will this payment go if Lloyds no longer hold the debt? That will be £86.66 that has not gone off the debt however we have paid this to SC who has issued the payment to Lloyds in the same way that they did at the beginning of the DMP when 2 successful payments were made.

Soooooo cross and just want to get this sorted but we can't contact the DCA as no-one will tell us who it is!!!!

Arrgghhhhhhh!!!!!

BDFSH x

Puzzcat

BeingDebtFreeStartsHere wrote: »

Hi Puzz and Jubilee,

Thanks for your replies. I have checked our DMP statement online and they are showing as the payment sent to LLoyds. They are not in red so I am assuming that SC have successfully sent them to LLoyds?? Lloyds are not being very helpful, we did inform them that there seemed to be an issue with them crediting the payment to the loan account and they said they wiuld hold the account for 30 days to allow us to rectify it only to break their word and send the account to the DCA!

My husband finally got through to someone at LLoyds by pressing various buttons (!) however she wsas very unhelpful and said she was unable to tell us who the debt had been passed on to as the account no longer sat with them. She said they should contact us soon, when he asked if that would be by phone or letter she had no idea!

Surely someone at LLoyds could tell us who now has the debt. We are now at risk of January's payment to Lloyds (due to be paid on 25th) being lost in the ether as where will this payment go if Lloyds no longer hold the debt? That will be £86.66 that has not gone off the debt however we have paid this to SC who has issued the payment to Lloyds in the same way that they did at the beginning of the DMP when 2 successful payments were made.

Soooooo cross and just want to get this sorted but we can't contact the DCA as no-one will tell us who it is!!!!

Arrgghhhhhhh!!!!!

BDFSH x

Hi,
If Lloyds have sold the debt on the new dca would contact you with there account details etc. Looks like you have 3 options...
1. Keep trying with Lloyd's, are you getting through to the right department?
2. Or send a letter signed for requesting the info.
3. Can stepchange hold the next payment until it is sorted, can they chase up Lloyd's at all for you?
Hopefully someone else will pop along shortly with more ideas!!
Puzz.x

System

Evening everybody.....I still feel like I am going round in circles and not the relief that I thought I would feel after we decided to get this started. We are just waiting for the new joint account details, which NatWest say should be by middle of next week , we have sort code but not account number yet. Then we can set about getting our DD's set up with the new bank and advising SC of our bank details.

Have printed off letters to send to creditors, advising of £1 token payment and with our SC ref. Can I still make the payment online and just send the letter stating I have done this?

Looks like first payment with SC will be 10th of March by the time we get everything set up....so that means 2 months before creditors start getting payments from them, which means it will have mounted up and actually take us more than the 6 years and 7 months that they said. I suppose they update all that info online?
Feel like because have started the process half way through the month we only have half months of hubby's wages this month as he gets paid weekly, and I am trying to sort out it all out.....just a bit confused at the moment, but luckily council tax and water rates don't have to be paid Feb or March.
I just seem to be doing too many different things with it all at the moment, so have bought myself a BIG diary so I can keep notes of what I need to do and what has been done etc. .....seem to have paperwork every where at the moment.

I am sure it will all sort itself out in a few weeks and everybody on here has been so helpful so far, so thanks to you all.

On a brighter note, I received a "compliments" card from British Gas today for signing up to their latest tariff.....£50 which can be spent in a variety of shops.....yay.

Just one question.....I presume that if I get overtime at work, I wouldn't have to tell SC everytime. It is very few and far between, for example, this month I had 1 hour and next month I have 6 hours.