DMP & Mutual Support Thread - Part 10

Sazzie23

phoenixx wrote: »

Thanks sazzie - you are right about colleagues - everyone is asking everyone for lifts! Is like a sitcom if we weren't all so desperate...In terms of the freezer, the insurance will pay but excess is £75. Not sure it will be worth risking it going up.

It is apparently illegal not to pay us but some small print in contracts means they have until last day of the month so that's over a week! :eek: I will not borrow even from family so going to see if there is any Jewelry I can part with - tough decision as most of it comes from relatives that are no longer with us. Is a quandary but I may have no choice...

Phoenixx

Phoenix totally get where you are coming from with the jewellery sale, but please do not part with anything you are going to regret, I did in my pre DMP days, and I'm sorry now but I can't change anything.

However in the end I do understand they are only 'things' and sometimes there are other priorities.

Pants about the not being paid to end of month, carp like that we can all do without, boo.

Sazzie23

Had an interesting conversation tonight with a friend who I know is doing a fee paying DMP. i had suggested she try SC - as they are free & her payments should be going towards her debts!

She tried the debt remedy and the payment suggested by SC was massive compared to what she pays now. Now I realise this means she will be paying for longer, and that is her choice, I've said my piece to her, but the point I wanted to make was that people worry that their payment won't be accepted by creditors, but in fact probably the SC payment suggestion may be way higher than that suggested by some fee paying DMP providers.

At this point I have to say **** DO NOT USE A FEE PAYING DMP PROVIDER *** for lots of reasons, not least they could take your money and not pay your creditors ! It has happened btw.

However what I would take from this that if you are the sort of person that finds you would rather have some 'home comforts' and are not so worried about how long it takes (be realistic though, life changes, you could regret that point of view) maybe consider going self managed with a different payment schedule to that suggested by SC?

Only a thought peeps, hopefully it helps someone somewhere

Brogden

Sazzie23 wrote: »

Had an interesting conversation tonight with a friend who I know is doing a fee paying DMP. i had suggested she try SC - as they are free & her payments should be going towards her debts!

She tried the debt remedy and the payment suggested by SC was massive compared to what she pays now. Now I realise this means she will be paying for longer, and that is her choice, I've said my piece to her, but the point I wanted to make was that people worry that their payment won't be accepted by creditors, but in fact probably the SC payment suggestion may be way higher than that suggested by some fee paying DMP providers.

At this point I have to say **** DO NOT USE A FEE PAYING DMP PROVIDER *** for lots of reasons, not least they could take your money and not pay your creditors ! It has happened btw.

However what I would take from this that if you are the sort of person that finds you would rather have some 'home comforts' and are not so worried about how long it takes (be realistic though, life changes, you could regret that point of view) maybe consider going self managed with a different payment schedule to that suggested by SC?

Only a thought peeps, hopefully it helps someone somewhere

Fantastic post Sazzie There are many ways to skin a cat (I don't mean it Puzz x)

I believe it comes down to what is on your I&E statement and it makes little difference whether you are through SC or (like me) dealing direct and self-managed.

The I&E for SC would be virtually identical to that used for any of the banks. It all depends on what expenses you put on it and this will then show what you should reasonably pay . You have a hell of a lot of control :T.

If anybody looking at this post is mega-stressed worrying about how they can ever have enough income to pay all that debt well....relax! You can pay it quickly or take ages - just stick to your payment arrangements no matter how small they are and a peaceful life awaits :T

I have stressed and my stomach has churned. Sure.......I am ashamed of this debt and so cross with myself that I have it but........stressed about whether I can afford to keep paying it now.........NO .

And yes.........I treat all predators differently

Brogden.

spiffyiffy

blisteringblue wrote: »

Hi Spiffyiffy, are you 100% sure Post Office have defaulted you? Does it show as a default on your credit report? You can get a free one with Noddle.co.uk

I've had a few defaults are all are now interest free.

Unfortunately you will have to leave Stepchange to reduce to token payments again. SC are very regimented and will always pay creditors the even % split no matter what.

I had to leave SC and go self managed to get into my position to go back to token payments for my 3 debts that were still charging interest.

It's worked for Barclaycard but my last little one as posted above is digging its heals in.

Yes I check my Noddle report a few days a go and it shows up on there.

I may have to do that in next couple of months if they don't default straightaway to leave SC.

Time_to_face_the_music wrote: »

Have you written official letters of complaint (you need to state it is a complaint) to your creditors and then followed up via the FOS? This is the first path you need to take, then if it doesn't work, I would suggest going self managed as blisteringblue has already mentioned.

If you haven't already complained, please let us know if you need a letter template and/or help with contacting the FOS.

TTFTM x

I did write what was like an unofficial complaint if you will, but never mentioned complaint. What i will do is write a similar letter again and write complaint on it and when it comes back I will then write to the FOS.

Could I have a letter template for help with contacting the FOS?

Thanks

Mikedfw

Hi All

I am new to the forums on here but have been reading for the past couple of days everybody's experiences of being in debt and how you have or are getting out of it with the help of a debt management plan.

I am currently considering setting up a DMP with Step Change but would be very grateful of a bit of advice/reassurance on it from people who have experience of dealing with it. I have put all of my details into their online form and it has advised that a DMP is the right option for me, however it feels very daunting at the moment and I'm not really sure what the next few weeks/months/years will hold if I do decide to go ahead with it.

I have approx. £24k of personal unsecured debt on credit/store cards and overdraft. This has been building up for the last 12/13 years (always only paying minimum or just above minimum payments) and I have always told myself that I will be able to clear it soon and everything will be fine. However, it's obviously not that easy and it's clear to me now that unless I do something about it soon I will be paying these debts for many, many years to come. We have 2 young boys who are very quickly outgrowing our house and in our current situation it seems impossible that we will ever be able to move to a bigger house that we need.

At the moment I pay approx. £650 per month just to cover the minimum payments on my unsecured debt, which are RBS, Mint, M&S, Barclaycard, Natwest CC and overdraft, Next and Very. After submitting my income and outgoings to Step Change they have advised that with them I could be paying approx. £500 per month and the whole debt would be paid off in around 4 years (providing all interest and charges were stopped which I understand they don't have to be). After now realizing that it would probably take me about 30 years to pay the debt off at my current rate, 4 years seems fantastic and I'm eager to get the ball rolling! However, I have a few questions/concerns that I would like to find out a bit more about before I take the plunge:

* Do my employers have to be informed? I don't think that a DMP would have any impact on my job at all but at the moment I feel quite embarrassed about my situation and I wouldn't want my bosses and colleagues to know.
* What long term affect will a DMP have on my credit file? I know that once defaults are put on my file they are there for 6 years but what happens after that 6 years? Can I start building it back up again. I can honestly say I will probably never have another credit/store card for as long as I live, but what about mortgages? At some point during this process we will probably have to sell our house and move to a bigger one which will almost certainly mean renting. We are happy to rent for a few years if it means our boys can have more space and a garden to play in. However, once my debt is gone will I struggle to get a mortgage again, or is it just another case of building my credit back up?
* What is the likelihood of my creditors not accepting the DMP and taking matters further? Can I expect baliffs knocking on my door in the future?!?

Apologies for the long post and thank you for taking the time to read it. I would be very grateful for any comments or advice if anybody has any.

Thanks,
Mike

joee

Hello Mike,


Firstly I would like to say welcome to one of the best threads on MSE!


Setting up a DMP with Stepchange sounds as though it would be a really good and positive step for you (I had a DMP with StepChange and I can't say enough good things about them)!


I am by no means an expert but I am going to try and answer your questions -


1. Generally your employers do not need to be informed, however if you work in the financial sector or certain public services they may need to know. Have you got your employee handbook available to look at? If not perhaps you could contact your HR department anonymously to ask them


2. You are absolutely correct that Defaults stay on he credit report for 6 years. After this they just drop off and they will no longer be on your report at all (I hope that makes sense as I have just done a night shift!). Creditors try to scare with the "threat" of a default but a lot of a time Defaults are good because all interest and charges are stopped!


Sorry I can't really answer about applying for mortgages as I have no experience.


3. The simple fact is you can only afford what you can reasonably afford, some creditors play ball and some others are sticky. I think it is really positive that you have contacted Stepchange and are taking steps to clear your debt.


I don't believe that it will be in the companies interest to send bailiffs round as you have made the minimum payments and are sorting out a plan. As far as I am aware bailiffs are sent to the people who are ignoring their situation.


Have you seen this on the StepChange website about the setting up a DMP, I hope that it reassures you http://www.stepchange.org/Existingclients/DMPclients.aspx


Setting up a DMP is a very scary process and the first few months can be very scary, but please remember we are here and have got your back! I wish you all the very best and I hope that when you are able to keep us updated on here.


Here's to your debt freedom! :beer:
Lucy xx

Puzzcat

Brogden wrote: »

Fantastic post Sazzie There are many ways to skin a cat (I don't mean it Puzz x)

Now come on Brogs, time you came up with a less personal saying me thinks......I love my fur as much as I love my dmp.....:D

Sazzie23

Mikedfw wrote: »

Hi All

I am new to the forums on here but have been reading for the past couple of days everybody's experiences of being in debt and how you have or are getting out of it with the help of a debt management plan.

I am currently considering setting up a DMP with Step Change but would be very grateful of a bit of advice/reassurance on it from people who have experience of dealing with it. I have put all of my details into their online form and it has advised that a DMP is the right option for me, however it feels very daunting at the moment and I'm not really sure what the next few weeks/months/years will hold if I do decide to go ahead with it.

I have approx. £24k of personal unsecured debt on credit/store cards and overdraft.

At the moment I pay approx. £650 per month just to cover the minimum payments on my unsecured debt, which are RBS, Mint, M&S, Barclaycard, Natwest CC and overdraft, Next and Very. After submitting my income and outgoings to Step Change they have advised that with them I could be paying approx. £500 per month and the whole debt would be paid off in around 4 years (providing all interest and charges were stopped which I understand they don't have to be

* Do my employers have to be informed?

* What long term affect will a DMP have on my credit file? I know that once defaults are put on my file they are there for 6 years but what happens after that 6 years?

* What is the likelihood of my creditors not accepting the DMP and taking matters further? Can I expect baliffs knocking on my door

Thanks,
Mike

hi Mike,

Thanks for joining in the forums, you'll be surprised how many people you help just by posting yours questions.

You are right to be wary of starting a DMP, I love my DMP (like Puzz:T) but I wouldn't recommend it if there was another way. Whilst I haven't had to give up everything I love, I've had to work very hard to manage on my budget. For me that has been a great exercise, but I could imagine it being extremely tough on family life.

I would suggest posting a SOA on the main DFW thread, although you might have to be strong to take some of the comments, they are tough DFW cookies on there, but they do mean well and take their comments in the spirits intended. :eek:

Regards your specific questions

Boss - no one will contact your boss, unless they are a guarantor for your loans or CC, no one else needs to know. You may get phone calls depending what info you have given creditors previously, always have a good story ready...something went wrong at the bank and we are trying to sort out the new Dd etc....

Rebuilding credit file: kinda depends as different individuals have different experiences, a DMP certainly isn't good for your credit file, but equally increasing debt over 10+ years will have been harmful to your credit file anyway. Mortgages, depends and what is created now may well have changed by the time you get there again. Bear in mind some people have had trouble renting as rentals do credit checks, again varied experiences
Remember also those things you forget about, like mobile phone contracts, swiping your CC when you stay at a hotel, insurance instalments can all be affected, not so much if you stay with same firm and some have Ben ok moving to new firms, depends how in depth their check goes and how screwed your file is.

Re - not accepting DMP - tough, if SC says you can be in a DMP, whilst they don't have to say they accept, they have to accept. I have heard of one who had further action taken (coin machine where are you lately.) however the vast majority don't get as far as I threat of a ccj. Suggest you read in the SC pages what bailiff can and can't do just for peace of mind, but most unlikely to se one, especially if you are paying a substantial repayment and keep to it.

Final point, if your current minimum is £650 but you'll be paying £500 it's most likely some creditors will charge some interest, possibly less than you pay now, but possibly significant (hbos!!!) these are the problem ones. Dealing with your own DMP would allow you to tailor the repayments so that either you cut the repayments making interest less likely or you make greater repayments to pay it off faster and leave the non interest chargers to last. Nedcab is the best reported single source for self managed DMP if you decide to go that way.

Good luck, let us know how you get on, and feel free to ask more questions.

Ps all this is IMO and I only know from own experiences and what I've found out here.

Time_to_face_the_music

spiffyiffy wrote: »

Yes I check my Noddle report a few days a go and it shows up on there.

I may have to do that in next couple of months if they don't default straightaway to leave SC.

I did write what was like an unofficial complaint if you will, but never mentioned complaint. What i will do is write a similar letter again and write complaint on it and when it comes back I will then write to the FOS.

Could I have a letter template for help with contacting the FOS?

Thanks

Use something like this and adapt it for your situation and each of your creditor(s):

You

Date

Them

Dear Sir/Madam

Complaint re: [Creditor name] account No: XXXXXXXXXXXXXXX

Thank you for your letter/statement concerning the above account. I am sorry that you feel unable to suspend interest/charges on the above account.

As you are aware, I/we am/are in a DMP with XXXXXXXX, reference number XXXXXXXX. The majority of my/our other creditors have agreed to the offer of payment and agreed to suspend any interest charges still accruing. They have accepted that to continue to charge interest would not assist us in my/our present financial difficulties, and can only serve to increase my/our total debt.

I/we have already paid considerable sums in interest to my/our account. If interest charges continue, the monthly instalments I/we am/are paying will not even cover that interest. Also, the cooperation of my/our other creditors who have agreed to freeze interest already would be put at risk.

I am aware that XXXXXXX subscribes to the Lending Code which states that lenders will consider reducing or suspending interest and charges if these would cause the debt to increase or lead to the repayment term becoming too extended. I would therefore be grateful if you would reconsider your decision not to freeze the interest. This would mean that the monthly payments I/we make would actually reduce the balance outstanding to your company.

Please consider this letter as a complaint about the interest charges you are continuing to apply to my account. I would like to see these stopped immediately and previous interest charges refunded.

If you are unable to help me with this issue, I will have no alternative but to take this case to the Financial Ombudsman Service.

I look forward to hearing from you as soon as possible.

Yours faithfully

You

___________________________________________________________

The FOS will tell you that you need to have complained to the creditor first and received their final answer within the set time limits - they have 8 weeks to respond. You don't need a letter for the FOS, you can do it all by phone

More information here:

http://www.financial-ombudsman.org.u...complaints.htm


TTFTM x

ldhme

Been a while and my sig is out of date.
But i am now at just above 15k of debt, down from 17k, so all going well.
Recently got promoted into a managers role and that will bring in a substantial increase in wage (but lose half of it to loss of child tax credit etc).
My target of being debt free and having a deposit by 35 is now very feasible.
HSBC flexi loan are being awkward and charging me as much interest as I'm paying and Barclaycard are charging me 3%, the other 5 accounts are frozen.
All in, not too bad 10 months into my DMP.