DMP & Mutual Support Thread - Part 10

phoenixx

KID77 wrote: »

Phoenixx - I am starting either from 1st july or 1st aug latest if sc dont set it up on time so havent given myself anytime for emergency fund. Maybe i should ask sc to delay based on this advice, are creditors more likely to default me in these couple of months of token payments as ideally thats what i want?
i had a look at your signature, you've paid of alot, do you oay a high amount each month or have you managed f&f settlements? thanks for all your advice, this site has been so helpful and inspirational for me at a very low point in my life xx

I would think 1st August is more realistic in terms of breathing room. Defaults may happen early on but different creditors behave very differently regarding when or even if (barclaycard and M&S)they will do it. Read blisteringblue's explanation about the situation with BC. You can manage your own DMP (NEDCAB website is excellent for this)which we have moved to but we needed the support of SC in early days when we didn't know anything. Yes - signature reflects our monstrous debts and progress in paying it off. We pay a high amount each month but is still less than the payment we started on (nearly £2000 a month and utterly undo able, hence the advice not to over restrict). I work 5 jobs which is partly how we do it. We have no F&F yet. Barclaycard are by far the most awkward and refuse to default, stop interest etc. We have 5 accounts with them. Other creditors defaulted straight away. M&S not great either. Speak to SC about delaying start of payments - they are usually fine.
phoenixx

KID77

Thanks Phoenix, we have 2 credit cards with Barclays, loan and 3 overdrafts so they are our biggest creditor too. My husband is going to opt into company car scheme at the end of this year as now gets an allowance. This will show a big drop in wages so perhaps if BC haven't defaulted me by then, maybe that's the time for me to go down to stupidly low payments to force default? Maybe will have to be self managed..... How quickly did your other creditors default you? Have you looked at your credit report to see how Barclays have marked you?
Although i don't want credit again in terms of loans and cards, I want to remortgage asap, can't do it now cos of level of debt so not enough ltv but in 6 years time with no debt my ltv would be around 60% so would love to be able to go to a high street lender. If BC don't default me though, my credit rating will still be trashed in 6 years though. Thanks x

blisteringblue

KID77 wrote: »

Blisteringblue: thanks for your reply, im using my phone for this and cant work out how to reply whilst copying your message.....
Anyway, do you think a couple of months of token payments before starting dmp will force bc to default me? Did you receive any more of a hard time from creditors when you went self managed? what did you tell them the reason was? xx

I don't think so, I reckon about 6 months. Their cogs seem to whirl very slowly.

I see on another post you are worried about mortgages and credit ratings. Be very aware that the minute you start your DMP I would forget about a re-mortgage. You are simply a credit pariah at this point. Your credit rating will be shot for the length you are on the DMP plus another 6 years after your last default. Bear in mind a lot of creditors simply do not default you. They mark your credit file as AP (Arrangement to Pay) or DM (Debt Management).

A DMP isn't simply a Debt get out of jail free card, pay it back without any interest and then expect no consequences at the end. A DMP is your last resort before more drastic and hard hitting actions such as Bankruptcy. So think long and hard if you need a decent low interest mortgage at the end of the DMP.

Boldhoof

Hi Everyone,
New to posting. My wife was made redundant just before Christmas so we went straight into the bank (Halifax) on the Saturday and spoke to them. They canceled the direct debit for our loan (£3901), informed my Halifax Credit Card Department (£700) told us to contact an advice agency. We contacted Step Change and they went through everything, we did a token payment of £1 to our creditors which are - Halifax Loan £3901, Halifax Credit Card £700, MBNA £11,300 LlyodsTSB Credit card £12,500 Tesco bank Credit card £5000. They all accpeted the £1 token payment while they decided what to do. We have recieved default notices, which they did say to expect. This month, after 6 months of £1 token payments we are now in a position of paying £318 a month through Step Change. Halifax Credit card have reduced the monthly payment to the amount Step Change offered, and kept the 0% for interest. The Halifax bank loan have told me on the phone a plan has been set up on the 9th June and if things improve to let them know. MBNA and Tesco Credit Card seem okay with it as well, Llyods have said no to Step Change.
I forgot to say when we went and approached all our creditors, we had not missed a single payment, we just though it best to act straight away. I do worry though, each time a letter arrives with the default letter, we get ones around every 2 months so far.

KID77

Blisteringblue: I know this isnt a get out of debt easily plan but our only other option was to sell our house and use profit to pay debt. We have a nice home in a nice area so dont want to sell, just need to hope interest rates dont go sky high whilst we are on dmp. I just want defaulted asap so the negative affect on my credit rating is as close to 6 years as possible.

blisteringblue

KID77 wrote: »

Blisteringblue: I know this isnt a get out of debt easily plan but our only other option was to sell our house and use profit to pay debt. We have a nice home in a nice area so dont want to sell, just need to hope interest rates dont go sky high whilst we are on dmp. I just want defaulted asap so the negative affect on my credit rating is as close to 6 years as possible.

The only way to do that is in all likelihood token payment for 6-8 months before you start. It will let you build up a good emergency fund but you will be seriously chased by your creditors in that time. For a lot of people it really won't be worth the hassle.

There is no real sure and fast way though to get the default. 30% of our debt is with MBNA who have said as we will be clear in 5 years as long as we maintain current payments they will not charge us interest at all in that time, however they also say they will not default us. Personally the 0% far out weighs the default so I know at current levels it will be 2024 before that drops off my file. Not at all bothered by this though, I just want my debt gone.

I'm only trying to force Barclaycard and Opus through to default because they insist on still charging interest.

Good luck as just starting out but I really would recommend you only worry about the debt and not the credit file.

KID77

Thanks Blistering Blue, ive been reading forums all days and notice people manage to get default dates reset if they are applied later so if that happens then i can always try that.

phoenixx

KID77 wrote: »

Thanks Phoenix, we have 2 credit cards with Barclays, loan and 3 overdrafts so they are our biggest creditor too. My husband is going to opt into company car scheme at the end of this year as now gets an allowance. This will show a big drop in wages so perhaps if BC haven't defaulted me by then, maybe that's the time for me to go down to stupidly low payments to force default? Maybe will have to be self managed..... How quickly did your other creditors default you? Have you looked at your credit report to see how Barclays have marked you?
Although i don't want credit again in terms of loans and cards, I want to remortgage asap, can't do it now cos of level of debt so not enough ltv but in 6 years time with no debt my ltv would be around 60% so would love to be able to go to a high street lender. If BC don't default me though, my credit rating will still be trashed in 6 years though. Thanks x

Barclaycard are lovers of the ever unhelpful AP marker I'm afraid!

B0B

I complained to the FOS about Barclays still charging interest.


BC then refunded interest. and settled on 50% of what I owed them and removed all traces from my credit file.

brads39

I.m on a DMP with Stepchange.
Today i got my monthly statement from Aqua and they have started charging interest again. I called them to find out why and they said imy status had changed from Unfair Treatment to Hardship. They will be charging me 1% interest from now on. They said a letter explaining this had been sent to me and Stepchange on May 6th, neither of us received a letter. My circumstances hadn't changed and i have never missed a DMP payment. They say i am close to being referred to a collection agency. I told them to do that as soon as possible as Stepchange say they will be easier to deal with and won't charge interest.
Anyone else had Aqua do this to them?