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DMP & Mutual Support Thread - Part 10

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  • neiljmuk
    neiljmuk Posts: 186 Forumite
    Very have stopped interest / charges for me on my 'standard' balance.

    The bad news for me is that I still have £800 of BNPL still accruing interest at 45%APR which matures around June and July.

    I found out a couple of months ago that this interest would still be applied by a staff member at Very, so am trying to work out a way to clear it beforehand otherwise a massive backward step!

    Squiz


    I have two lots of BNPL's and would need £260 in the next 30 days to clear the first to prevent £40 interest (over 6 months) and another for £500 that I'd need to pay by September to avoid £150 interest (over 12 months) and I aint gonna find £760, so I'll have to take the hit for nearly £200 over the next 6 months. 7 payments and a debt reduction of about £175 will be nullified as of the end of September which is a bit harsh but then it will hopefully be plain sailing.

    I need to write Argos a letter to ask what their conditions are in regards to what seems to be an agreement to the DMP with a bit of interest and strange charges left on. What to understand why I get two lots of interest applied and 3 purchase finance charges applied every month, though the broken down nominal amounts are the equivalent of being charged around 6% interest. With fixed plans on there that are apparently due in full as soon as you miss a payment I'm not going in too hard on them re these little charges just yet, but on the flip side, if they don't default me I reckon they will be nice and easy to upset and push in the direction I want to push them in (selling on the debt etc...).
    LBM October 2014 :idea: DMP with StepChange as of March 2015
    Debt at Start of DMP 01/03/15: [STRIKE]£36,282.69[/STRIKE] :eek:
    Debt Now: £33,993.48 :j
  • We kept our BNPLs completely out of our DMP and saved to pay them off with adjustments to our budget and some ebay selling.

    I know this advice isn't really useful to someone who has already included this type of debt in an existing DMP but it may help someone who is reading and thinking about taking the DMP route.

    TTFTM x
    LBM 10/1/12 ~ DFW Start 6/2/12: £82,344 ~ Now Zero
    :staradmin:starmod::staradmin Debt free 17th April 2015 :staradmin:starmod::staradmin
    Eternal thanks to the DMP & Mutual Support (no.439) and Payment a Day Threads
    Mortgage free 3rd July 2014 - Grateful thanks to the 2013/14 MFW threads
    "Debt is normal. Be weird!" Dave Ramsey
    Proud to have dealt with our debt :)
  • lucy_w86
    lucy_w86 Posts: 827 Forumite
    Two steps forward, one step back :(:(

    Hi All,

    I started looking at this page a couple of months ago due to financial difficulty and spoke to SC. We came up with a plan and I checked my finances and thought I could do this alone..... Now I have just found out my housing benefit is being cut by £200 a month and is going to really mess my finances up.

    When I did a check with them when my partner started work, it said what I was entitled to. Now as it seem we get a little working tax credit, its being taken off my housing benefit plus more.

    I am already behind with rent thanks to housing benefit stopping my payments whilst they re-calculated and as I have done all my figures based on the old calculation, I now know with the new one, I wont meet my rent this month. I am going to have to default somewhere else to pay this :(

    When I spoke to SC they mentioned a DRO which scares me a lot :eek: and I have been trying to make extra cash on the side through some work at home schemes but at the moment, breaking even.

    I dont know what to do, especially with my work at home plans I am trying to put into place for extra income. DRO scares the living daylights out of me. I negotiated with creditors about payments but now with the recalculation, I can nowhere near meet these.

    Feel so sick going round in circles, thinking we were all sorted and now not :(:cry::cry::cry:
  • Puzzcat
    Puzzcat Posts: 4,200 Forumite
    lucy_w86 wrote: »
    Two steps forward, one step back :(:(

    Hi All,

    I started looking at this page a couple of months ago due to financial difficulty and spoke to SC. We came up with a plan and I checked my finances and thought I could do this alone..... Now I have just found out my housing benefit is being cut by £200 a month and is going to really mess my finances up.

    When I did a check with them when my partner started work, it said what I was entitled to. Now as it seem we get a little working tax credit, its being taken off my housing benefit plus more.

    I am already behind with rent thanks to housing benefit stopping my payments whilst they re-calculated and as I have done all my figures based on the old calculation, I now know with the new one, I wont meet my rent this month. I am going to have to default somewhere else to pay this :(

    When I spoke to SC they mentioned a DRO which scares me a lot :eek: and I have been trying to make extra cash on the side through some work at home schemes but at the moment, breaking even.

    I dont know what to do, especially with my work at home plans I am trying to put into place for extra income. DRO scares the living daylights out of me. I negotiated with creditors about payments but now with the recalculation, I can nowhere near meet these.

    Feel so sick going round in circles, thinking we were all sorted and now not :(:cry::cry::cry:



    Hi,


    Sorry I am unclear, are you in a managed dmp with sc at the moment or are you self managing? Either way your priority bills come first, and your creditors get what is left. If its a £1 each then that's what they will get. If you are with SC are they reducing your payments?
    Puzz. x
    Christmas 2020 £109
    I love my dmp started in Nov 13 with SC. Self Managed 2016 57% done
    £60062/25384.84 - 13222.60k UE

    MY DIARY
    http://forums.moneysavingexpert.com/showthread.php?t=4768685
  • lucy_w86
    lucy_w86 Posts: 827 Forumite
    Puzzcat wrote: »
    Hi,


    Sorry I am unclear, are you in a managed dmp with sc at the moment or are you self managing? Either way your priority bills come first, and your creditors get what is left. If its a £1 each then that's what they will get. If you are with SC are they reducing your payments?
    Puzz. x

    I got lots of help and advice from SC and decided to manage alone... this would be my first month managing and its all gone wrong as now my finances are inaccurate and as we are into the month, my scheduled payments cant be made.
  • Puzzcat
    Puzzcat Posts: 4,200 Forumite
    New noddle report out today and I have collected a new default so up to 6 now.. :j My old current account has now been defaulted which just leaves 2 cc's and a loan left with markers. I don't think these will change as one is BC. On the upside they are my 3 smallest debts so will finish earlier so the clock will start to tick before the end of the dmp... And this Puzz is never having credit again.. well apart from the mortgage of course but I have no plans to move provider so will just keep my fingers crossed when the fixed rate ends that I can get a new one...


    Puzz. x
    Christmas 2020 £109
    I love my dmp started in Nov 13 with SC. Self Managed 2016 57% done
    £60062/25384.84 - 13222.60k UE

    MY DIARY
    http://forums.moneysavingexpert.com/showthread.php?t=4768685
  • Puzzcat
    Puzzcat Posts: 4,200 Forumite
    lucy_w86 wrote: »
    I got lots of help and advice from SC and decided to manage alone... this would be my first month managing and its all gone wrong as now my finances are inaccurate and as we are into the month, my scheduled payments cant be made.



    Ok, well I think you will have to re-do your I & E to reflect your new fianancial positon and write to all your creditors offering what you can. Sorry I know nothing about DRO's so can't help with that. Alternatively maybe give sc another go and let them manage it until you are back on your feet?
    Puzz. x
    Christmas 2020 £109
    I love my dmp started in Nov 13 with SC. Self Managed 2016 57% done
    £60062/25384.84 - 13222.60k UE

    MY DIARY
    http://forums.moneysavingexpert.com/showthread.php?t=4768685
  • daisy8786
    daisy8786 Posts: 3 Newbie
    edited 11 March 2015 at 5:34PM
    Hello There All,

    Just a quick thanks to Puzz who directed me here from the debt free wannabe forum.

    Long story short I have just started a DMP with Stepchange for £10,539 held across 10 creditors with an end date of around 6 years at current payments.

    The letters have been sent out and I have had once creditor respond so far (Halifax Loan), however, they stated they will accept a lower payment but keep adding interest at the usual rate.

    I do know DMP's are informal and no interest freezes are promised, but I am curious, is this just an initial strong arm attempt to get me to increase payments or will companies possible stop adding interest over time?

    I am also slightly concerened about a CCJ should a creditor not accept, though I don't have a huge amount with any one company (highest creditor owed: Natwest: £3,000). I have accepted my credit file will take one hell of a slump for the next few years but could anyone else in a DMP please share experiences with interest and possibility of CCJ? I would be very grateful to know.

    Thank you all

    Daisy
  • sjb16888
    sjb16888 Posts: 19 Forumite
    Hello there. I think I'm going to get in touch with stepchange to get on top of my debts.
    Does everyone seem to be dealing with them ok? Also wondering if I happened to get a lump sum or something (not very likely) could I pay stepchange this to go towards my debt?

    Debts are in signature x
    LBM 11/2/19
    Current Debt £7224.43

    DMP DEBT FREE DATE 19/2/2026 - SOONER HOPEFULY!

    SAVINGS POT £0.00
  • Puzzcat wrote: »
    New noddle report out today and I have collected a new default so up to 6 now.. :j My old current account has now been defaulted which just leaves 2 cc's and a loan left with markers. I don't think these will change as one is BC. On the upside they are my 3 smallest debts so will finish earlier so the clock will start to tick before the end of the dmp... And this Puzz is never having credit again.. well apart from the mortgage of course but I have no plans to move provider so will just keep my fingers crossed when the fixed rate ends that I can get a new one...


    Puzz. x

    Puzz....you've just sent me into a whirlwind of panic! I don't plan on changing providers for my mortgage either, but is it likely that my mortgage will be affected when the fixed rate ends in September? :huh:

    On another note, my noddle account does not seem to have been updated since the end of Jan - is this normal? I've only just set up token £1 payments and I'm waiting to sort out my DMP with SC, but some of my creditors have said they will default me straight away - is this a good thing? Can you (or someone else) explain why please?

    Thanks for all your amazing advice :)
    Lightbulb Moment: 18/01/2015 :j
    Current Debt: 31,869.62 :eek:
    DMP Start Date: 01/09/2015
    DFD: TBC but sooner rather than later, I hope! :beer:
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