DMP & Mutual Support Thread - Part 10

Sazzie23

ploppy57 wrote: »

Ok...really silly blonde moment coming here....I understand now all about defaults...luckily we have one already:T. But I keep reading about AP's...Don't understand what one is and is it good or bad??

Hi Ploppy, AP is an Arranged or Agreed Payment on your credit file. The problem with an AP marked on your credit file is that they continue while you are,paying the debt, so if you will pay off your debt in 2020 the AP marker would still show on your credit file until 2026.
The default you got in 2015, would fall off at 6 years, so would be gone in 2021. Does that help ?

Ellieseleven

AP's are bad because they remain on your credit file 6 years after you finish paying off the debt whereas a default drops off 6 years after it is placed on your file. For example, I have several defaults that will drop off in 2016 (placed on my file in 2010) but I have one AP which I won't finish paying until late 2016, this will be on my file potentially until 2022:eek:

System

Aah...I? understand now, thanks . What are the chances of getting them then? Are they more common than defaults

Sazzie23

melysion wrote: »

So, I called stepchange about my problem with my personal loan being from the same bank that I've been banking with. They suggest canceling my personal loan direct debit, letting things like my mortgage and utility bills go out and then take all my other money out and deposit in a new bank account which I can have open tomorrow (apparently) if i go in the branch. Quite apart from the fact that I can only draw £500 per day on my card (I'm not going in Lloyds bank itself - that would make me too nervous) it seems a horribly dishonest and underhand way of doing things. I am the one in the wrong here after all. I owe the money and should be paying it back at the agreed rate rather than trying to squirrel my money away before they can take it due to some "offset" policy I believe banks have.

Being someone who is extremely honest and probably way too idealistic for my own good, I'm going to find this really uncomfortable to do and then, no doubt, the horrible phone calls will start.

Oh well. All my own doing so no point complaining about it now. If I ever see a credit agreement again it will be too soon.

Could I have a tardis please to fast forward a few months so that the setting up and fall out is all over and done with? lol

Hi Melysion,

I see you've had good advice about an on line transfer, I know this seems really hard and dishonest, but remember the bank won't think twice about charging whatever they can to get their money back.

I take full responsibility for my own debts, like you I was in a position to pay and then something happened.....things do happen, but I did discover there is a thing called a loan to income rate, I can't remember what it is but I was, way way over that which meant I was well over extended, even before my income fell. Doesn't excuse that I couldn't pay back my debts but made me feel grateful that I could no longer be drawn more down that road of debt.

Your loan payment doesn't deserve any greater priority than your other unsecured creditors, and your mortgage, rent and utilities do require a higher priority, having your electricity cut off will not aid you in repaying debts. It's not about being dishonest, it's sound financial advice and it's given for a reason, yes it feels sneaky, but the bank won't hold it against you.

For me being on a DMP is not about being dishonest, it's about paying what you can now. I am aware there are some people who see a DMP as a way of getting out of paying debts, by reducing payments and the making F&f, and that is for their conscience to deal with, there may be reasons that methodology is justified for them. My mindset is to pay what I owe, in a reasonable timeframe. We didn't clear out our old savings accounts as there were only small amounts left in and the bank offset that against the debts, so we felt that was reasonable.

Sazzie23

ploppy57 wrote: »

Aah...I? understand now, thanks . What are the chances of getting them then? Are they more common than defaults

Depends,on what you are paying and the creditor, if they are changing interest you will probably have an AP, if it's gone to a DcA you'll get a default, and many variations between the two.

Do you Noddle,? it's free, and then you can track what's happening and it'll seem clearer.

Sazzie23

minkeymootoyou wrote: »

My mobile phone contract runs out this year. how hard is it to get a new contract with bad credit, as they run credit checks. Do you need to stay with the same provider ?

Thanks for asking this, I have to change my phone and was thinking of ringing round, I'll keep in mind the answers, and I least I won't be shocked if they query it.

I was also thinking of getting rid of the home phone, broadband, tv package, I can go to freeview, and I don't need a home phone but not sure I can live happily without broadband, will I have the same problem if I try to go to a new broadband provider?

System

Sazzie23 wrote: »

Depends,on what you are paying and the creditor, if they are changing interest you will probably have an AP, if it's gone to a DcA you'll get a default, and many variations between the two.

Do you Noddle,? it's free, and then you can track what's happening and it'll seem clearer.

Yes we signed up to Noddle last month. T***co have defaulted us straight away, BC charging 3% interest and will review again in a year, M**A, Ll*yds & H***ifax CC stopped interest and will review again in 6 months but Ll**ds loan are not playing ball at the moment and still waiting to hear from Debenhams.
Noddle say our new updates are due on 25th, so I will check then. Thanks

tequilabird

Some advice needed.....so I'm currently in a situation where I have written to my creditors offering a £1 token payment on a temporary basis. Things went sour after Christmas when my father died, I had to resign from my job because my boss was bullying me and I found myself in a position where I had no money and a lot of debt! So, I'm in the process of renting my house out - tenants due to move in at the end of this month, I've sold my car and I'm currently sharing with my mother, I've switched my bank accounts (although I'm not sure what to do because I have 2 Halifax cc's and I've switched to a Lloyds account - hmm) and I've changed or cancelled DD's. My problem is that I am due to move abroad next month and although I've done all this, I haven't told my mother and I'm conscious of the fact that mail is going to be sent and I'm going to have to keep in contact with my creditors and SC. Can I request that I only receive communication by email? Can I communicate with my creditors by email? Can I make online payments until I can arrange a DMP with SC? Aaargh! Too many questions, so confused, need advice! Please help!

neiljmuk

Thats funny as! SC have not only got the amounts back to front for my wife and my MBNA cards, but they've done it too for the Barclaycards so my wifes higher balance has a lower amount agreed for payments against it than mine with the lower balance lol. As a result, my interest is now 3% but my wife's interest is frozen! Boom!


They have, credit to them, tackled my grievance re 'AP's head on but unfortunately they have simply advised that the AP situation is the correct reflection of what has occurred which well, an arranged payment and that to issue a default is not correct because I'm paying them!

I think the only way to mitigate lingering APs is going to be to save up and pay these off early then tell SC my Nan gave me the money to do a full balance payment. Will the APs go after 3 years if I keep the barclaycard accounts open? If I want to keep them open to get quicker AP removal I'm guessing a reduced FF settlement negotiation is out the window?


With regards to Lloyds just doing 6 months plan. Anyone got any advice what they will do after the first 6 months. What marker they will apply now and after 6 months?

N

neiljmuk

ploppy57 wrote: »

Yes we signed up to Noddle last month. T***co have defaulted us straight away, BC charging 3% interest and will review again in a year, M**A, Ll*yds & H***ifax CC stopped interest and will review again in 6 months but Ll**ds loan are not playing ball at the moment and still waiting to hear from Debenhams.
Noddle say our new updates are due on 25th, so I will check then. Thanks

See my previous post. BC are going to stick us with APs for the duration I think. Need ideas!! :eek:

Lloyds loan battle and a response from Argos now needed but half the problem is stepchange getting advice on whats been agreed and not telling me. Asked them about Capital ones response 5 days ago and silence! SC are starting to annoy me a bit on that front if I'm honest. They can manage it top to bottom if they are not going to tell me what my creditors have said about the payment proposals they have sent!!!! :mad::mad::mad:


It's stressing me a little for the first time but it's the long wait for the first SC payment. I never expected instant default though and most interest is frozen or nominal so I need to chill out. The debts going to go DOWN even if Lloyds loan goes up for 6 months... Thats the key in the first 6 to 12 months I guess.....:o