DMP & Mutual Support Thread - Part 10

Sazzie23

Newbie message - this is a repeated post for anyone just joining us

I know there is not so much activity on the thread at the moment, but we have a few newbies who are posting, and quite a few lurkers at a guess (that's ok, we don't mind, one day you'll feel up to posting and smile about how worried you were).

I agree with what's been posted already by the regulars, and I think all the queries have been answered.

So general Newbie Advice, setting up and starting out is probably to most difficult time you will face in your DMP, so don't panic if it all seems scary and too much . Facing up to the fact you can no longer pay your debts is a massive step and very confronting for many people, this is life changing stuff so worrying is absolutely normal.

Now you've done the horrid thing of adding it all up (often a shock) you've worked out (with SC or whoever) how much you can pay back, that's the crucial bit done, just a matter of getting the paperwork sorted.

Despite SC being the largest debt charity, some call centre people know nothing about them, that's ok, they are just ignorant, don't let it worry you.
All debt collection sections know about SC, some are better equipped to deal with it than others. Often the people at the front end that you speak to know nothing about how the system works, remember you do, you are better equipped than them, don't let them scare you.

It doesn't matter if you choose to DIY DMP or SC, the plan is the same, you are paying them what you can afford and they can't have anything else. They 'reject' the plan, tough luck, keep paying it just the same, they'll get with the programme at some point.

Some creditors will let you know they have accepted, some will just accept it and show something on the statement, some will not say anything but just stop or reduce your interest, HBOS and BC will probably still charge you interest in some form, don't panic over it, it extends your DFD but there are things you can do, start on page 1 of the thread when you have a spare few hours and then decide what to do.

Overtime and non regular bonus payments, no you don't have to declare these, and you can choose to save them to your emergency fund, make some extra repayments to reduce your DFD, save up for F&f payments when you get enough, or even....shhhh ...spend them on a little treat but don't tell anyone. Most people go for a combination of the above, all depends on your priorities.

When you start out and your DFD is generally 4-10 years away, you think, I want to pay as much as I can straight away so the creditors think I'm doing my best. Actually I don't think they care much, as long as you keep in touch and keep paying what you agree - so don't cut your budget so fine that you are having 4 years of hell instead of 6 years in moderate comfort. I'm not saying do your shopping at M&S, and have 4 holidays a year, but just leave yourself the option of buying a cake at birthday time, a new pair of shoes for DD and maybe a very cheap caravan break once a year.

Default letters are good, they look scary but they mean the creditor is actually looking at what you pay and putting your account into limbo. If your account goes to a DcA this is usually good and they are mainly not the scary people you see on the Tv, they have all been very reasonable, and just want you to keep in touch and keep paying.

There will be wobble times, if you have to reduce a payment, when a creditor starts grumbling or just because DFD seems a long way off, but we've all done it, you come here log on and we'll all get throu it together.

If you are having trouble with creditors, eg Lloyds troubles BDF, when they shift to a DcA I'd continue to pay, the payments seem to get to where they should eventually, but if you are worried, send a recorded delivery letter to the collections team at the creditor, quoting your account number and SC ref and saying this is what is happening, these are the payments that have been made, please make your sure your accounts are up to date and let ask them to reply to you in writing so you have confirmation. It does take several months for an account to get over from creditor to DcA and often the information is limited but it's just like the original set up and the DcA will let you know to change the payments in SC, and you can just log in and do it.

I hope this helps, there are lots of scenarios I haven't covered, but in the main it's grit your teeth, keep plodding through and it will all settle down.

One day soon, you will be able to say: I will be debt free next year

Scaredofdebt_2

Sazzie23 wrote: »

Dunno why they always seem to arrive on a Saturday when the offices are shut, but they do. Despite the very formal language, they are not a bad thing;
if you are already in a DMP, DEFAULTS are a GOOD THING.:T

Thanks Sazzi, I'm sure they do it on purpose!! Can I ask what the next step after a default is, I know I've read it somewhere but could use a reassuring reminder. They were charging me a huge amount of interest before so am keen to get this sorted. Thanks.:beer:

so_very_confused

Another great post Sazzie :T:T:T:T

Hopelessly_Hopeful

so_very_confused wrote: »

Another great post Sazzie :T:T:T:T

Here here

HHx

System

How long does it normally take for SC to update your account each month? Ours is showing the first payment has been made by us to SC, but does not show the debts as having been reduced by the relevant payment yet?

sourcrates

ploppy57 wrote: »

How long does it normally take for SC to update your account each month? Ours is showing the first payment has been made by us to SC, but does not show the debts as having been reduced by the relevant payment yet?

Dont quote me on this, but i think SC make payments around the 25th of the month, so would update shortly after that.

Puzzcat

ploppy57 wrote: »

How long does it normally take for SC to update your account each month? Ours is showing the first payment has been made by us to SC, but does not show the debts as having been reduced by the relevant payment yet?

The payment doesn't go to the creditors until the 25th of the month you will then get a new statement from sc. You then have to check your own statements and update the debts if interest has been added.
Puzz.x

Sazzie23

Scaredofdebt wrote: »

Thanks Sazzi, I'm sure they do it on purpose!! Can I ask what the next step after a default is, I know I've read it somewhere but could use a reassuring reminder. They were charging me a huge amount of interest before so am keen to get this sorted. Thanks.:beer:

Yeah I actually believe it is done on purpose, either to worry the heck out of us, or to give us time to find out what its really about:o

Next step, is actually to see if they have defaulted you, or if it was a letter saying they might. Check on Noddle usually shows up after a couple of months, not sure if there is another way to find out. I find the letters not clear. Next thing depends on the creditor, keeping it in house will probably not change much, but I think most sell the debt on at default and that usually means a DCA so no interest and often easier to deal with. if its going to a DCA, can take a while to transfer, just keep paying til they tell you otherwise, but keep extra care of records in case any payments go astray, but this seems very rare from the reports we get on here.

Sazzie23

Puzzcat wrote: »

The payment doesn't go to the creditors until the 25th of the month you will then get a new statement from sc. You then have to check your own statements and update the debts if interest has been added.
Puzz.x

Just to add to Puzz's reply, the SC will only show the balance minus the payment, SC assumes the creditor has frozen interest. Many on here update their balances monthly with SC (me included).

System

Thanks for the replies guys. I will keep an eye on it.:)