DMP & Mutual Support Thread - Part 10

james_joyce

Hi charmed1318, thanks a lot for that. I will probably post a whole series of questions for you later on!

charmed1318

I'm never far away

Time_to_face_the_music

blisteringblue wrote: »

Another tip to all newbies, when doing your Stepchange plan claim for everything you can get away with, ie claim you smoke even if you don't. They have guidelines about what is "fair" and take the lot. I think you can have £25 for pay TV etc etc.

There really is no point nailing your budget to the bone just because you think your creditors might appreciate it. Seriously, leave yourself as much "wiggle room" as you can.

Your credit rating is knackered now anyway, you are paying them back, but make your life a little easier while you do it.

Partly agree and partly don't. My budget cutting is all about wanting to get out of debt as soon as possible and start our real life again, rather than wanting to please our creditors.

I think somewhere in the middle is a good line to walk

TTFTM x

james_joyce

charmed1318 wrote: »

Hi James,

I am doing a self DMP, didn't even know I was until i started coming on here . It has been about a year since finally getting all my DCAs sorted and the only contact I have is about every 6/12 months where they will write to you (I don't do anything over the phone, and if they ask for a phone number I say I don't have one at the time) and ask for an updated Income and Expenditure statement.

I keep envelopes for all the individual debts with the original company then who it has been transferred to, ref number and then put in all correspondence from them, and I keep a spreadsheet with amounts owed at the start of each year, and each month update it when the standing order has been paid and how much it is standing currently, so I know if I come into some money which one I may be able to pay off or make a f+f offer to.

I have recently wrote to them and asked what figure is currently owed to them, so I can check against my own records (they are all with DCAs so no interest is now being applied). Some haven't got back to me, but I have also the £2 reports from the credit agencies and as they are updated monthly my figures match some of those so I am not worried.

Well done for taking the step and good luck for journey ahead. :)

Okay so here's my first question: have any of the DCAs made any settlement offers to you yet? I'm not clear how that bit works, whether we have to request settlement or if they eventually start sending us begging letters with suggested settlement figures.

Karen777

I would approach them with an offer if you want to and are able to settle. There is a standard letter and a thread on here about all this sort of stuff - sorry flying at the moment by but have found it by searching before...

charmed1318

james_joyce wrote: »

Okay so here's my first question: have any of the DCAs made any settlement offers to you yet? I'm not clear how that bit works, whether we have to request settlement or if they eventually start sending us begging letters with suggested settlement figures.

Sorry for the late reply
I have had one or two but they have been 'we are doing you a favour' sort of thing and about 85% of the total at the time. I wasn't able at the time to pay these amounts.

I was directed to this thread when I asked the same question
https://forums.moneysavingexpert.com/discussion/115430

It would seem it would depend on if the debt is with the original creditor, how long you have been making token payments/missing payments altogether, then you start small and keep EVERYTHING in writing, don't do a deal over the phone. Explain that the money is coming from a third party and that you only have access to this money for this reason only etc etc, explains more at NDL below.

Found some letter templates at
https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Page-02.aspx

I will be in the postition in a month or two to maybe try with a couple of smaller ones.

B0B

blisteringblue wrote: »

Another tip to all newbies, when doing your Stepchange plan claim for everything you can get away with, ie claim you smoke even if you don't. They have guidelines about what is "fair" and take the lot. I think you can have £25 for pay TV etc etc.

There really is no point nailing your budget to the bone just because you think your creditors might appreciate it. Seriously, leave yourself as much "wiggle room" as you can.

Your credit rating is knackered now anyway, you are paying them back, but make your life a little easier while you do it.

Good advice. Put any extra you have into savings, incase the worse happens, or towards early settlements. Its what I am doing. Feels better to be paying it off, and then having extra money incase I need it, or what I am planning is to pay the rest off early.

System

Can anyone tell me the address they used when sending the standard letter to Lloyds Credit card? On the statement there is an address on the back about sending payment slips to Sheffield and then on the front it says Lloyds credit services, Brighton ( but not the full address). Don't want to send it to the wrong place and then it have to go round in circles before it actually gets read.
Thanks

Just an extra question.....where would I send a letter re a Lloyds Loan....can't find address for that anywhere. Would I send it to the branch or what??

BlueFuzzy

Hi all! About a week ago I got in touch with StepChange and I’ll be starting a DMP from 1st March. I’m looking forward to finally fixing all the debt problems my partner and I have been having for several years now, especially now that my partner is out of work due to mental illness and it’s become impossible to keep up with minimum payments!

The DMP will make things very manageable once it’s all set up, but it’s the month leading up to the start of it that’s the scary part. StepChange mentioned that it’s a good idea to make token payments during this time, paying only as much as we can afford to each creditor and explaining the situation. I wondered if anyone had any advice on how best to go about this. What’s the best method of communication with the creditors?

Now for the finer details that I’m worried about:

• Two of my debts are credit cards (Aqua and Capital One). Currently there’s about £1 available on each card, but interest will charged during the month. I can’t afford to pay enough money onto each card to cover the interest that will be charged, so I’m not sure what to do about it. Any opinions on what I should do? I plan on making token payments to both, but I’m worried that being over-limit is going to affect the DMP.

• Similar situation with my Natwest current account, but I think I’ll be able to afford to pay some money in to cover the planned overdraft fees. Is it a good idea to pay the money in the day before this is due to come out? I’ve heard that banks can take any money in your accounts to cover what you owe (by this point I will have passed the due date for a monthly payment on a loan I have with them, but will have only made a token payment).

goingtosavein2015

I am new to the forums and feel strangely nervous pstin here so please bare with me.


I am coming to the end of a DMP with stpchange and I have a quick question. I have just opened a current account with Halifax and I wondered if there was a way of asking them for no overdraft and no credit card. I have selected no for all of the mcontacted by my post, text aand phone.


What do you guys thnk?