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DMP & Mutual Support Thread - Part 10

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  • Boldhoof
    Boldhoof Posts: 78 Forumite
    Fifth Anniversary 10 Posts Combo Breaker
    KID77 wrote: »
    Hi Everyone,
    So a pile of post this morning as follows:-

    MBNA x 2 accounts - accepting DMP payments and freezing interest and charges for duration of agreement as long as these payments are kept up to date. It does say that this offer is not sufficient to stop them registering a default but they will give me 30 days notice. So i presume I will get default notice in next few months maybe......

    Barclays Overdraft
    Letter from SC saying they wont accept but not to worry they will still make payments so will contact them myself to explain situation as hadnt done that with actual bank yet.

    Barclayloan
    Default Notice - kind of scary as very official looking but suppose i wanted defaults so should be happy......

    Barclaycard
    They replied to my email saying they are glad i am speaking to SC and they are waiting to hear from them but will freeze all interest and charges til they do.

    Only one yet to hear from is Tesco.

    K
    xx

    Hi Kid77,

    We have MBNA debt, and they sent us a similar letter back in December, we were on the £1 payment which was until June, now on DMP and out first payment went out this month. MBNA will send you default notices, they have with us. Tesco Credit Card, also in December accepted the £1 payment and wrote to us saying so. Not heard anything from them since. One thing with Tesco Credit Card, when we initially contacted them they told us to contact Step Change.
  • KrazyKel
    KrazyKel Posts: 492 Forumite
    Hi All!
    I had been thinking of going into a DMP for a long time now (prob about a year) but kept putting it off! - Filled in the DMP thing on Stepchange website in December but gave myself another 6 months to see If I could manage on my own!
    Started well, managed to reduce my OD by £1000 ish... but as usual, things happened and im almost back to where I started so its time to consider the DMP again

    Thing is, I can make the min payments ... just! But doesnt give me much left over and all my debts have interest which the min payment covers but not much more... Have a large OD too which is expensive on fees (£80PM just on interest/fees)

    Ive looked at getting a consolidation loan (Know a lot don't think thats a good idea - was refused anyway, and declined on 0% balance transfers)
    - Did get a 0% one from my existing one at Virgin credit card, but don't have a big enough limit to make much difference If I did transfer..

    I am just torn between keeping paying as I am in hope of some 0% offers coming up once my credit score improves... if it will! (Have had payday loans in the last 12 months but no missed payments for any credit cards, but a large debt overall) or DMP... its just making that first step!
    Make £10 a day Challenge June - £170
  • Growurown
    Growurown Posts: 5,498 Forumite
    Debt-free and Proud!
    Hi everyone can I have a number please?

    hope to be debt free - 446
    Puzzcat wrote: »
    Hello..


    May I have a number please....!


    Love Puzz. x

    Puzzcat - 447

    fermi wrote: »
    Sazzie's post or the DMP member list?

    Or both?

    Sazzie's post, members list is fun but not as important!
    DMP Mutual Support Thread No. 421

    Debt free date 25/11/2015 - Made It!
  • Sazzie23
    Sazzie23 Posts: 2,634 Forumite
    Ninth Anniversary 1,000 Posts Combo Breaker Post of the Month
    KrazyKel wrote: »
    Hi All!
    I had been thinking of going into a DMP for a long time now (prob about a year) but kept putting it off! - Filled in the DMP thing on Stepchange website in December but gave myself another 6 months to see If I could manage on my own!
    Started well, managed to reduce my OD by £1000 ish... but as usual, things happened and im almost back to where I started so its time to consider the DMP again

    Thing is, I can make the min payments ... just! But doesnt give me much left over and all my debts have interest which the min payment covers but not much more... Have a large OD too which is expensive on fees (£80PM just on interest/fees)

    Ive looked at getting a consolidation loan (Know a lot don't think thats a good idea - was refused anyway, and declined on 0% balance transfers)
    - Did get a 0% one from my existing one at Virgin credit card, but don't have a big enough limit to make much difference If I did transfer..

    I am just torn between keeping paying as I am in hope of some 0% offers coming up once my credit score improves... if it will! (Have had payday loans in the last 12 months but no missed payments for any credit cards, but a large debt overall) or DMP... its just making that first step!

    Really busy at the moment and no time to post, but please, please don't consolidate, been there, more than once got several of the T shirts, doesn't help if you can't stick to budget you'll just run up more debts...IMO.

    If you can make the min payments, and get plenty of 0% s it's worth looking at the calculator....can't remember what they call it, someone help me out ....but you have to be able to stick to your budgets and if it's too tight you simply won't be able to.

    Good luck, I'll try to post something more useful later
    Debt -it's a fight that I'm winning, dealing with debt one day at a time.
    Estimated DFD August 2018 - 2031 - now 2027 :T

    Guide dog Tess, missing Scotland 2 years

    DMP support no438.
  • Ellieseleven
    Ellieseleven Posts: 2,118 Forumite
    1,000 Posts Combo Breaker Debt-free and Proud!
    KID77 wrote: »

    I can't believe how reasonable MBNA seem so far, freezing interest and they have worded it in a way that sounds like as long as I keep paying them each month they will continue to freeze interest, My new payment to them is about 17% of my old payment so huge difference but they seem to be fine with it. Am I being naive and maybe in a few months they will change their tune?

    K
    xx

    MBNA froze the interest for me and they defaulted me quite early on in my DMP. They sold the debt on after about a year so the interest has never been reinstated. This was one of our biggest debts to start with.

    ...In the same boat as everyone else re: BC - no interest but AP markers on our credit file:(

    Between me and my OH we have 11 credit cards, all have defaulted apart from BC - most have now been sold on, only C1 and BC remain with the original creditor. I have been on a DMP for almost 5 years and the defaults all start to drop off from 2016:)

    Ellie x
  • Puzzcat
    Puzzcat Posts: 4,200 Forumite
    KrazyKel wrote: »
    Hi All!
    I had been thinking of going into a DMP for a long time now (prob about a year) but kept putting it off! - Filled in the DMP thing on Stepchange website in December but gave myself another 6 months to see If I could manage on my own!
    Started well, managed to reduce my OD by £1000 ish... but as usual, things happened and im almost back to where I started so its time to consider the DMP again

    Thing is, I can make the min payments ... just! But doesnt give me much left over and all my debts have interest which the min payment covers but not much more... Have a large OD too which is expensive on fees (£80PM just on interest/fees)

    Ive looked at getting a consolidation loan (Know a lot don't think thats a good idea - was refused anyway, and declined on 0% balance transfers)
    - Did get a 0% one from my existing one at Virgin credit card, but don't have a big enough limit to make much difference If I did transfer..

    I am just torn between keeping paying as I am in hope of some 0% offers coming up once my credit score improves... if it will! (Have had payday loans in the last 12 months but no missed payments for any credit cards, but a large debt overall) or DMP... its just making that first step!

    The one saying you will often hear on this thread is I wish I'd known about dmp's sooner. The majority of us have been where you are now, most have gained debt from consolidating, it rarely works. The snowball calculator is great if you have enough funds to do it. If not the sooner you start a dmp, the sooner you finish. And as Sazzie says budgeting will be your new best friend, and us of course!
    Good luck.
    Puzz.x
    Christmas 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=4768685
  • Ellieseleven
    Ellieseleven Posts: 2,118 Forumite
    1,000 Posts Combo Breaker Debt-free and Proud!
    Puzzcat wrote: »
    The one saying you will often hear on this thread is I wish I'd known about dmp's sooner. The majority of us have been where you are now, most have gained debt from consolidating, it rarely works. The snowball calculator is great if you have enough funds to do it. If not the sooner you start a dmp, the sooner you finish. And as Sazzie says budgeting will be your new best friend, and us of course!
    Good luck.
    Puzz.x

    I second that Puzz, we struggled on for far too long before admitting defeat and we racked up even more debt in the process. For me, it was the feeling of failure and having never missed any payments, it was a huge step but one that I am now so very glad that I have taken;)

    Ellie x
  • Karen777
    Karen777 Posts: 416 Forumite
    I second that Puzz, we struggled on for far too long before admitting defeat and we racked up even more debt in the process. For me, it was the feeling of failure and having never missed any payments, it was a huge step but one that I am now so very glad that I have taken;)

    Ellie x

    I third it!
    Debt at highest - June 2013 - 26k/ March 2018 - 2500
    Proud to be dealing with my debts
  • Brogden
    Brogden Posts: 1,173 Forumite
    Part of the Furniture Combo Breaker
    MBNA froze the interest for me and they defaulted me quite early on in my DMP. They sold the debt on after about a year so the interest has never been reinstated. This was one of our biggest debts to start with.

    ...In the same boat as everyone else re: BC - no interest but AP markers on our credit file:(

    Between me and my OH we have 11 credit cards, all have defaulted apart from BC - most have now been sold on, only C1 and BC remain with the original creditor. I have been on a DMP for almost 5 years and the defaults all start to drop off from 2016:)

    Ellie x

    Somehow I ended up with two BC's but I paid them both off at a time when I used to behave myself. This may have been a blessing rather than having to drag them into a DMP!

    My experience with MBNA was just the same as Ellie. At first though they offered me the chance to pay an amount below the contracual minimum with a reduced interest rate of 3% and would not default if I stuck to this. I had PDL's and arrears on everything you can think of at the time and the arrangement went belly up. They then defaulted and sold the debt to Active Krapital who then renamed themselves P.R.A.T. Group and that's where I sit now.......hoping they will take a lower settlement figure than they have agreed so far :) !!

    Brogden.
  • Brogden
    Brogden Posts: 1,173 Forumite
    Part of the Furniture Combo Breaker
    I second that Puzz, we struggled on for far too long before admitting defeat and we racked up even more debt in the process. For me, it was the feeling of failure and having never missed any payments, it was a huge step but one that I am now so very glad that I have taken;)

    Ellie x

    In 2012 I raided the food budget to try to stop the Gnats Vest from defaulting me. I was doing everything I could to avoid late payment markers and defaults - what a nutcase I was. I just needed to accept the position and stop trying to keep up with the demands. Finally I had no choice and a new DMP (a chaotic one) was born :D !!

    Brogden
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