DMP & Mutual Support Thread - Part 10

Monkeyballs

Hi Doc,

It's a tricky one to call since you're biding your time before going into a DMP...

I guess that you could continue to pay the token £1 and accept that charges and interest will continue to be applied until you go onto a DMP (even then they don't have to agree but it's not likely) or you could take them up on their offer and then include them in the DMP when it's set up...

I'll be honest and say I've not read all of your past posts but is there a reason you've not gone into a DMP yet? I'm guessing it's to get those early defaults but you could always look at entering into a DMP and only making token payments for the first three months which should give you a bit of wiggle room while having the same "oomph" behind you that a charity like SC can offer?

As for the "Finally, we will also look to sell your account to a doorstep collection agency" sounds like an empty threat to me really, they might sell it to a debt collection agency (which is no bad thing) but a home visit for less than £500? Nahhh... I can't see it personally

What would you prefer to do?

MB of G

Growurown

Time_to_face_the_music wrote: »

Sorry to hear that GUO

I know it's probably a daft question but have you googled it and/or checked if there is a forum for your make/model of car where you can ask?

I haven't as yet. PBP gave some advice and haven spoken to people at work it would seem that it isn't too much of a problem atm. It's just bad timing, both cars need taxing, my landlord wants to put my rent up:( and OH's car goes in for the MOT next month (which starts tomorrow:eek::eek:)

I will get looking to see if there is an MSE style fix. Blooming cars:mad::mad:

drhuxtable

Monkeyballs wrote: »

Hi Doc,

It's a tricky one to call since you're biding your time before going into a DMP...

I guess that you could continue to pay the token £1 and accept that charges and interest will continue to be applied until you go onto a DMP (even then they don't have to agree but it's not likely) or you could take them up on their offer and then include them in the DMP when it's set up...

I'll be honest and say I've not read all of your past posts but is there a reason you've not gone into a DMP yet? I'm guessing it's to get those early defaults but you could always look at entering into a DMP and only making token payments for the first three months which should give you a bit of wiggle room while having the same "oomph" behind you that a charity like SC can offer?

As for the "Finally, we will also look to sell your account to a doorstep collection agency" sounds like an empty threat to me really, they might sell it to a debt collection agency (which is no bad thing) but a home visit for less than £500? Nahhh... I can't see it personally

What would you prefer to do?

MB of G

Hey thanks for the reply, I was 99% setup for a SC DMP but decided to delay it slightly (which they have acknowledged) as I have an Amigo loan with 800 left to pay and I didn't want to include it in the DMP as my guarantor would get hassle, didn't want any chance of this happening. SC don't know about the Amigo loan, I didn't declare it. My plan is to token pay for a few months while I pay the amigo off, sort my finances out etc. I quoted the SC ref number in all my letters, asked if they could freeze interest etc. It looks like MRL have ignored all this. I'm thinking that I'm going to get quite a lot of hassle from the PDL creditors. I owe wonga 1.5k, due tomorrow but I have cancelled the CPA with them already. Owe about a 150 to a PDL Sunny was due 27th, have a few high interest loans, 6, 12, 18 months, plus the usual credit cards and catalogs. Its about 14k the debt. Is it best to ignore this email?

Thinking about it yes it does seem rather excessive stating door step collectors for that amount.

If I hadn't of had the Amigo loan I would have activated the SC this month definitely. I think I negotiated the monthly payment to be 717, which would leave me with enough to pay all my rent bills, child maintenance, food etc and have a touch left over if you know what I mean.

I'm waiting for a barrage of phone calls and letters this week, my phone is already going off constantly. Had a few letters from credit cards saying I've had a late payment charge. Its rather quiet at the moment but I think this will blow up in my face very soon. Especially when they receive my letters. I'm wandering how in general I handle these creditors for a few months. Suppose you just have to react to each one case by case??

Any advice most appreciated
Thanks

edwardo27

Can someone give me a quick overview of DMPs. The websites just seem to keep saying "help with debts" but how, they seem vague?


I am in around £4.5k of debt. I know it doesn't sound much compared to some people (which what puts me off) I have 2 credit cards. 1 loan. 1 store card. Sofa and car are both on finance too.


I really struggle monthly. I just afford to pay the interest on the credit cards so the debt goes no where. My credit rating is really bad, so I assume it cannot get any worse with a DMP??


If anything "else" comes up like car issues, birthdays, trips home to Manchester I am screwed. I have just took on a 2nd job to help with more income, and I want to finally get serious and debt free.


You guys have any advice?

Monkeyballs

Ah yeah, I remember reading about the Amigo loan and fair play to you for not wanting to drop your guarantor in it.

If it's any consolation, Wonga are normally pretty helpful even if it's just with an offer to enter into a repayment plan similar to what Mr Lender has offered.

Most if not all creditors should agree to a 30 day freeze on your account once you tell them you're entering into a DMP with someone like SC as this allows time to receive details like I&E form, offer of payment, etc. so that will help to shorten the painful spell which I think you're heading into...

Have you considered speaking to your guarantor though to let them know what your position is and asking them to pay on your behalf and then reducing the amount of income you declare to SC and paying the amount to the guarantor? You mention it's about £800 left but no mention of time/months left?

After it's paid then you could tell SC you've had an income boost...

Not strictly playing by the rules but it's only a few months I'm guessing? Maybe someone else on here can comment?

MB of G

igaveupnowimback

Still dithering re DMP and now this month can't make payments on two catalogues. Apart from fear of calls, threats etc, my main debts are over £1k with Shop Direct and £4k CC with one of the banks almost everyone else is changing to, so that's ruled out for swap. I am fearful of SD massively increasing debt due to piling on interest, (as they have done with others) and worry that bank will take action on a pretty huge CC debt. Don't know what to do for best.

Monkeyballs

edwardo27 wrote: »

Can someone give me a quick overview of DMPs. The websites just seem to keep saying "help with debts" but how, they seem vague?


I am in around £4.5k of debt. I know it doesn't sound much compared to some people (which what puts me off) I have 2 credit cards. 1 loan. 1 store card. Sofa and car are both on finance too.


I really struggle monthly. I just afford to pay the interest on the credit cards so the debt goes no where. My credit rating is really bad, so I assume it cannot get any worse with a DMP??


If anything "else" comes up like car issues, birthdays, trips home to Manchester I am screwed. I have just took on a 2nd job to help with more income, and I want to finally get serious and debt free.


You guys have any advice?

Hi Ed,

Basically the debt charity you contact (lets say Step Change as an example) will run through an Income & Expenditure sheet with you to understand realistically how much of your income you have left after paying priority bills and budgeting for the month ahead for such things like food, travel, etc.

Then they contact your creditors with a copy of this form which shows how much is left for debt repayment and an offer which is normally an equivalent %age to debt. Eg;

If you have £10,000 can afford £200 pcm to repay debts and you have 3 creditors 1) is owed £6000 2) is owed £3000 and the 3) is owed £1000 then they would roughly get 1) £120 2) £60 and 3) £20 = equaling £200 in total. In the meantime your creditors either freeze or reduce interest and charges.

You'd make a single payment each month to Step Change and they'd dish it out

You don't wash your hands entirely though as they need you to maintain balances and also keep them informed of any changes.

I've tried to keep it as simple as possible, hope it helps?

MB of G

sourcrates

igaveupnowimback wrote: »

Still dithering re DMP and now this month can't make payments on two catalogues. Apart from fear of calls, threats etc, my main debts are over £1k with Shop Direct and £4k CC with one of the banks almost everyone else is changing to, so that's ruled out for swap. I am fearful of SD massively increasing debt due to piling on interest, (as they have done with others) and worry that bank will take action on a pretty huge CC debt. Don't know what to do for best.

Stop dithering may be ?


Sooner you stop dealing with shop direct, sooner they will sell debt on, let it get to DCA stage they are much easier to deal with, does mean account will default, but SD are horrendous to deal with as they never listen to you.

Monkeyballs

igaveupnowimback wrote: »

Still dithering re DMP and now this month can't make payments on two catalogues. Apart from fear of calls, threats etc, my main debts are over £1k with Shop Direct and £4k CC with one of the banks almost everyone else is changing to, so that's ruled out for swap. I am fearful of SD massively increasing debt due to piling on interest, (as they have done with others) and worry that bank will take action on a pretty huge CC debt. Don't know what to do for best.

Hi,

Is there a reason for dithering? It's not scary...

MB of G x

antonic

Ironically enough I was recommended to start my Pay plan DMP by my biggest creditor - Halifax Bank of Scotland.

It was the best piece of advice they gave me as 9 years later I am now DF. ☺