DMP & Mutual Support Thread - Part 10

kb_soma

Hi Patch22, welcome to the thread.

Well done for taking the steps to address your debt.

As sazzie says, there are many of us that wish we had started the DMP sooner.

timetosayenough, great post, so glad your card has finally arrived.

timetosayenough

Had a missed call today from loan company I failed to pay on Wednesday. Didn't want to ring them back (coward, I know) so sent email. Got an email back saying thank you for informing us, sent the template letter via email, they should have had letter by now.


Thanks KB. Think I'm getting my head around it a bit more now and that's thanks to all you guys on here.

DanielleNic87

Evening everyone

I am more of a lurker... But just need to ask something?

Has anyone had difficulty fixing their mortgage (with same provider) whilst on a DMP?
Hubby called Santander today to see what they could offer and they could only offer us rubbish fixed rates... They went on to ask if any of us had trouble with credit. Hubby told them about my DMP.

I assumed because we are not borrowing more then it should be ok and wouldn't need a credit check.
Apart from my bank statements showing a payment to SC they wouldn't know.

Jon81

There's no connection, a move to another fixed rate with the same lender wouldn't trigger a credit check. More likely the question was to illicit if more borrowing would be on the cards

I changed to a better fixed rate with no issues, no questions and no checks that was with nationwide

Rates, depending on your equity can be rubbish and your options limited while on a dmp limited, but it's a long game, get the lowest rate they offer and at least you have certainty of a set amount for a period of time.

patch22

Thank you all so much for the lovely posts, really do appreciate that you've taken the time to read and reply. Sazzie, one of the things keeping me awake has been the thought of people coming to the door and trying to get in! We've decided to keep things to just us at the moment, though my mum does know we're in trouble and looking at sorting it. She doesn't know how much we owe though and I won't tell her as don't want her worrying. Timetosayenough - good luck starting your dmp. Looks like we may be on the journey together.

We spoke to Stepchange earlier and they were really helpful. We're a bit worried about a few things though. When we went through the budget ourselves before phoning we identified that we'd have about £200 a month spare and that it would take around 9 years to clear everything assuming earnings etc stayed the same (which they hopefully won't). The advisor bumped up quite few of our outgoings, though, so that we'll only have £91 a month to offer 6 creditors and it'll take over 17 years to clear everything! Worried that creditors won't accept such low payments and we'll be in even more trouble. I understand that SC don't want things to be too tight for us, but in some ways I'd rather it was going toward the debt

I'm also really scared of all the phone calls and letters that we're going to get. Don't feel brave enough at the moment, but also know that the alternative is carrying on the way we are and that's far worse. Husband is being amazingly supportive though considering he's going through it all too. I've been a blubbering wreck for the last few days!

DanielleNic87

Jon81 wrote: »

There's no connection, a move to another fixed rate with the same lender wouldn't trigger a credit check. More likely the question was to illicit if more borrowing would be on the cards

I changed to a better fixed rate with no issues, no questions and no checks that was with nationwide

Rates, depending on your equity can be rubbish and your options limited while on a dmp limited, but it's a long game, get the lowest rate they offer and at least you have certainty of a set amount for a period of time.

It's strange because they said we would be limited to what we could be offered. They could only offer 4.29% however when hubby asked what they could offer if I had ok credit they replied with 2.5%.

Almostthere78

Hi patch 22.
I know it's easy for someone else to say but try not to worry - I know it's terrifying but it's the unknown that is frightening and you are doing something about your situation so feel proud. If you have £91 left over at the end of the month then that is what you have left at the end of the month, nobody can make you pay more if you don't have more. I must admit that I could make larger payments each month but when you are in it for the long haul then paying an extra say £50 each month doesn't necessarily bring your DFD that much closer but it is the difference between having a life and just existing for the duration of your DMP. If you have a good sized emergency fund put to one side and you can spare some more money each month then you could make extra payments directly to your creditors and just update the balance with Stepchange or even save it up so that you can offer your creditors full and final settlements.
I owed more than you do and nobody ever came knocking on my door, I think they save those visits for people who don't communicate with them and try to ignore their problems. The letters are all computer generated, if you get one that particularly worries you then you can call Stepchange and ask them for their advice on the content.
Stepchange must have received about a dozen calls from me at the beginning where I just cried at them for fifteen minutes each time! Dry those eyes and chin up x

Scaredofdebt_2

patch22 wrote: »

Thank you all so much for the lovely posts, really do appreciate that you've taken the time to read and reply. Sazzie, one of the things keeping me awake has been the thought of people coming to the door and trying to get in! We've decided to keep things to just us at the moment, though my mum does know we're in trouble and looking at sorting it. She doesn't know how much we owe though and I won't tell her as don't want her worrying. Timetosayenough - good luck starting your dmp. Looks like we may be on the journey together.

We spoke to Stepchange earlier and they were really helpful. We're a bit worried about a few things though. When we went through the budget ourselves before phoning we identified that we'd have about £200 a month spare and that it would take around 9 years to clear everything assuming earnings etc stayed the same (which they hopefully won't). The advisor bumped up quite few of our outgoings, though, so that we'll only have £91 a month to offer 6 creditors and it'll take over 17 years to clear everything! Worried that creditors won't accept such low payments and we'll be in even more trouble. I understand that SC don't want things to be too tight for us, but in some ways I'd rather it was going toward the debt

I'm also really scared of all the phone calls and letters that we're going to get. Don't feel brave enough at the moment, but also know that the alternative is carrying on the way we are and that's far worse. Husband is being amazingly supportive though considering he's going through it all too. I've been a blubbering wreck for the last few days!

Just wanted to say hi and that you are not alone. We started our dmp 4 months ago and I too was a blubbering anxious wreck to start with but I can honestly say it's not been as bad as I expected. Don't know who your creditors are but we experienced no phone calls and only the generated letters. Write to all your creditors to keep them informed, we spoke to ours on the phone and I can't tell you enough how sympathetic they all were. Not the scary monsters I envisaged!! It does get easier but don't leave your budget too tight, it's tempting to throw everything at your debt but if you are in it for the long haul you need to realistically live. Hope this helps. This forum has really helped me.

kb_soma

patch22 wrote: »

We spoke to Stepchange earlier and they were really helpful. We're a bit worried about a few things though. When we went through the budget ourselves before phoning we identified that we'd have about £200 a month spare and that it would take around 9 years to clear everything assuming earnings etc stayed the same (which they hopefully won't). The advisor bumped up quite few of our outgoings, though, so that we'll only have £91 a month to offer 6 creditors and it'll take over 17 years to clear everything! Worried that creditors won't accept such low payments and we'll be in even more trouble. I understand that SC don't want things to be too tight for us, but in some ways I'd rather it was going toward the debt

There's honestly no need to worry about this. When I first set up my dmp I worked out that I would be able to afford exactly what I was paying my creditors before hand.

What I didn't take into account was that I was borrowing credit to pay credit and that I wouldn't be able to afford this anymore. The advisor at Sc was really helpful and told me to make allowances for haircuts, more for household costs etc so that I could live comfortably - at first this is the most important thing.

Over time, I cut out things such as hair cuts and travel costs for visiting family, cut my food budget, switched to basic brands and cheaper brands (mainly as a challenge and joined lots of frugal and challenge groups in here). This allowed me to make over payments to my dmp, Sc are really good about accepting over payments.

I suggest going with your budget as it is for now, and then maybe assess it again if you feel like you have cash left over at the end of every month.

Emergencies do come up, and if there is a bit of spare cash building up, you could always keep this for this and if it adds up to a lot then pay if off your dmp.

Advice I will give you, if you are going down the frugal route, do it a little at a time. Starving yourself of all things at once is not nice and will more likely push you off the wagon.

I started with a spending diary and by leaving my bank card at home. I do a regular cupboard and freezer inventory to make sure that I don't collect too much food just to throw it out. And when things are tight, I eat from the freezer for a few weeks in the month.

Good luck. Xx

patch22

I really can't thank you all enough. You've eased our worries no end. We both have a token payment to make on a credit card each before the plan starts on 1st August so will use that as an opportunity to ring around and explain to creditors. Is a cheque ok for the token payments? We were told by SC to make the payments for £5 each so will do this next week. I've been busy making lists of things to do as well. Helps to be focused I think. Also been cancelling direct debits and setting them up on the account we'll be using now. Must admit that I've talked myself in and out of going for the plan so many times over the last few days (the old 'oh, we'll be ok!' thing! Look where that's got us!) but we're on the right track now hopefully.

Thanks again to everyone, really do appreciate your help and support.