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DMP & Mutual Support Thread - Part 10
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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
Hi Daisy,
Glad you found us and welcome to the best thread on the forum.
When you have some time it would be worth your while to try and read this thread from the start, it will answer many questions you may have and some you haven't thought of yet!
I read 3 of the previous threads before and whilst setting up my dmp so felt reasonably in control and knew what was coming and how to deal with it.
As for ccj's, I believe there are one or two posters who have them but they are very rare and not worth worrying about at this point.
Good luck in getting started and do join in, we love company!
Puzz.xChristmas 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=47686850 -
tequilabird wrote: »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
Hi tequilabird
Sorry didn't mean to worry you! Obviously our credit ratings take a mighty hit when doing a dmp so new credit would be hard if not impossible to obtain as in a new mortgage with a different provider. As Ellie has successfully been offered a new fixed deal with her provider I am hoping for the same when my current one runs out in 2018.
Defaults are good as they fall off your credit file 6 years from when first placed. Other markers like dm - debt management, ap - arrangement to pay etc stay on for 6 years after the debt has been settled, hence we like the defaults!
Puzz.xChristmas 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=47686850 -
Ellieseleven wrote: »Tequila, when my fixed rate came to and end, my mortgage provider moved us onto the standard variable rate (which was lower than the fixed one!). We now have the option to move to a new fixed rate with the same provider.
You will be fine as long as you don't want to move provider or increase your mortgage debt.
Ellie x
Thanks Ellie! That's good to hear....I had this awful sinking feeling for a moment there! Hopefully, the standard variable rate will remain low for when my fixed rate runs out in September
TB xLightbulb Moment: 18/01/2015 :jCurrent Debt: 31,869.62 :eek:DMP Start Date: 01/09/2015DFD: TBC but sooner rather than later, I hope! :beer:0 -
Hi tequilabird
Sorry didn't mean to worry you! Obviously our credit ratings take a mighty hit when doing a dmp so new credit would be hard if not impossible to obtain as in a new mortgage with a different provider. As Ellie has successfully been offered a new fixed deal with her provider I am hoping for the same when my current one runs out in 2018.
Defaults are good as they fall off your credit file 6 years from when first placed. Other markers like dm - debt management, ap - arrangement to pay etc stay on for 6 years after the debt has been settled, hence we like the defaults!
Puzz.x
Thanks Puzz! How do I get them to default my accounts then? Some of them have already mentioned defaults with my token payments in place. Some haven't.
TB xLightbulb Moment: 18/01/2015 :jCurrent Debt: 31,869.62 :eek:DMP Start Date: 01/09/2015DFD: TBC but sooner rather than later, I hope! :beer:0 -
Hiya all.
Just a quick pop in and wave while I update my diary thread (every 6 months is fine, right? lol) x¤ £25k paid off with Stepchange DMP ¤ Debt Free 01/09/17 ¤¤ Saving for a house deposit by '19 ¤ Savs @ £20,000 ¤
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carlyfarley wrote: »Hi
my total payment per month is £243 which means our dfd is about 12 years away. BUT, we both have a lot of overtime which I haven't declared so hoping to shorten the date. We have a 3 year old and a 6 year old, plus a very old car so it's an expensive time so I over estimated everything. The advice on here was to start low, we can always increase payments once we are settled.
we are making £1 token payments at the moment so trying to save like mad. First payment is due out on 25/5 .
Good luck on your journey, we can be twins! Keep in touch xx
Thanks Carly! :beer:
I need to get back in contact with SC now and advise them that my token payments are in place. Problem is, I don't have an income at the moment other than rent from my property, which isn't a great deal! Once I get back into work, things will be different.
Good luck DMP twinnie! Defo keep in touch! xLightbulb Moment: 18/01/2015 :jCurrent Debt: 31,869.62 :eek:DMP Start Date: 01/09/2015DFD: TBC but sooner rather than later, I hope! :beer:0 -
tequilabird wrote: »Thanks Puzz! How do I get them to default my accounts then? Some of them have already mentioned defaults with my token payments in place. Some haven't.
TB x
Hi,
Unfortunately we don't have the power! As you are only doing token payments they may well default you quickly. It is down to the creditor how they choose to mark your file. There have been many threads about challenging markers especially BC who love Ap markers and involving the FOS. Some have been successful some not so. Personally if I'm not paying any interest on a particular debt I am not making waves!
Puzz. xChristmas 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=47686850 -
On the subject of interest payments, I feel like I have been single handedly keeping hellifax in business for years now - they are the only creditor who has steadfastly refused to help me out in any way. I daren't event think about how much interest I have paid them all in, it would drive me bonkers. I'd be debt free and loaded I think! I have been to FOS with them once already but they refuse to accept hardship. So after much umming and aahing I am trying again with them today. I have sent them an up to date I and E form, having used the NEDcab site to produce it, and also realised that they have been treating me inconsistently because I have an OD with them which they froze interest and charges on right from the start - as a recognition of my financial difficulties. So once that penny dropped from someone's post on here that they had been treating two accounts differently, I thought it was worth another shot. So now it's winging it's way to them. Fingers crossed! I have nothing to lose and quite a lot to gain!!
rang today - no record of them receiving my letter.... went through I&E with very nice man... and all interest and charges stopped from today, default very soon.. I think I need a lie down in a dark room.
Am now trying to get interest refunded..... am feeling mighty (but not overly optimistic!) with my DFW sword!!
seriously can't believe it... this will make a huge huge difference... just goes to show we should never give up!Debt at highest - June 2013 - 26k/ March 2018 - 2500
Proud to be dealing with my debts0 -
rang today - no record of them receiving my letter.... went through I&E with very nice man... and all interest and charges stopped from today, default very soon.. I think I need a lie down in a dark room.
Am now trying to get interest refunded..... am feeling mighty (but not overly optimistic!) with my DFW sword!!
seriously can't believe it... this will make a huge huge difference... just goes to show we should never give up!
Brilliant news Karen, well done :T :j
TTFTM xLBM 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 ThreadsMortgage free 3rd July 2014 - Grateful thanks to the 2013/14 MFW threads"Debt is normal. Be weird!" Dave RamseyProud to have dealt with our debt0 -
rang today - no record of them receiving my letter.... went through I&E with very nice man... and all interest and charges stopped from today, default very soon.. I think I need a lie down in a dark room.
Am now trying to get interest refunded..... am feeling mighty (but not overly optimistic!) with my DFW sword!!
seriously can't believe it... this will make a huge huge difference... just goes to show we should never give up!
Well done Karen, a great result and good luck with the interest refund, we are all behind you... xxChristmas 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=47686850
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