DMP & Mutual Support Thread - Part 10

Growurown

Kate_fixing_it wrote: »

Well, I've bitten the bullet. Sat down with a cuppa and the statements and I now know EXACTLY what I owe to DMP debts: £10,519.53.

Well done Kate!

Just been updating my spreadsheets after July's payment. Total debt is now under £17,000. :j:j

Two more payments should see my biggest debt gone which was a massive £8,000 consolidation loan with Nat West, originally made up of a £6,000 loan and a £6,000 overdraft.

Next in line were two Virgin CCs one for me, one for hubby, a Mint CC and a Nat West CC all with balances of over £5,000. Just over £2,000 left to go on them now. I'm looking forward to seeing those balances going below the 2 grand mark:D

I have a way to go yet, at least another year, but it feels more achievable now. At the start with around fifty thousand to repay it felt like it would never end. I am seeing a pinprick of light at the end of the tunnel and boy it feels good:beer:

Puzzcat

Kate_fixing_it wrote: »

Only one creditor is still charging interest (why is it always the biggest?) but that's my August challenge - take them on! They are receiving £28 per month and charging (a reduced?!?) £27. So prepare yourselves creation finance - you are about to feel the full force of MSE strength!

Hi Kate, Creation are the only one of mine still charging interest but I got it down by complaining to them, they disagreed so I took it to the FOS and so I now pay £10ish interest a month on a £30ish payment instead of £32 interest...


Good Luck. x

Hopelessly_Hopeful

Growurown wrote: »

Well done Kate!

Just been updating my spreadsheets after July's payment. Total debt is now under £17,000. :j:j

Two more payments should see my biggest debt gone which was a massive £8,000 consolidation loan with Nat West, originally made up of a £6,000 loan and a £6,000 overdraft.

Next in line were two Virgin CCs one for me, one for hubby, a Mint CC and a Nat West CC all with balances of over £5,000. Just over £2,000 left to go on them now. I'm looking forward to seeing those balances going below the 2 grand mark:D

I have a way to go yet, at least another year, but it feels more achievable now. At the start with around fifty thousand to repay it felt like it would never end. I am seeing a pinprick of light at the end of the tunnel and boy it feels good:beer:

Great news

HHx

lumpyspaceprincess

Spoke to SC today about the letter - it is my overdraft, and the letter was prompted by me starting the rebudget process online but then cancelling out of it when it told me to ring them.

As I can't change the account (I work for the people, it's part of my contract) they've advised me they won't take the next two payments, instead that's to be used to pay off the OD. I've to write letters to all my creditors to inform them of the situation, and offer token payments for those 2 months. I've applied for a new job with a reduced income, so if I get it I'll have to adjust the plan anyway - so we'll see what happens! I feel better for speaking to them, I just need to find a letter template now!

Kate_fixing_it

Puzzcat wrote: »

Hi Kate, Creation are the only one of mine still charging interest but I got it down by complaining to them, they disagreed so I took it to the FOS and so I now pay £10ish interest a month on a £30ish payment instead of £32 interest...


Good Luck. x

Thanks for this Puzz. At the current rate of £1ish a month coming off the total I'll be paying them for over 2900 months (241 years ) may include this in the letter.

I was feeling a bit down when I added it up but I've allowed myself a little wallow and I'm okay now. I've already seen off two PDLs and a credit card. I'm so so close to repaying my friend and the college course. So if I can get the interest stopped with creation I'll be a third of the way there and if I can beat HSBC into giving me back everything I'll be two thirds of the way there (Yeah, I know that won't happen )

I am considering going it alone once I'm under the £10k. SC have been amazing, I couldn't be more grateful and the work they do is fantastic but I feel like their service should be a kick start to standing on your own two feet. They obviously have limited resources and by hanging on their coattails throughout I'm using up time that could be dedicated to those in greater need. I feel that I still need a bit of support for now but it's an option for the future.

Kate x

loobylou2

Hi Everyone.


Can I join the thread please? I feel as if I've reached the end of the road in trying to sort everything out myself and so have spent a good portion of this afternoon on the Payplan and Stepchange websites. Feel really sad that it has come to this but cannot see any other option really as for the last 12 months I've been supporting 5 people on my salary alone and cannot continue to do so. OH was diagnosed with Alzheimers last summer and has refused to contribute a single penny towards household expenses, bills etc since then. He has money going into his bank account which is his state pension and which has always been separate to my bank account but refuses to contact them about his account and sorting money out for myself and our children so I've basically been keeping him, myself and the children aged 16,14 and 8. However I have now managed to get Social Services involved and I'm hoping and praying that they will help to sort something out for myself and for him as I cannot continue to do so.


My debt is just short of £10 K and according to Stepchange if I take out a DMP with them I should have cleared it in 2 years and 11 months. I'd be paying £282 a month to them. What I'd really like to know though is should I continue making payments until the DMP is set up? I've defaulted on 2 payments so far out of 9 creditors and was hoping that I would have been able to pay off a loan by the end of this year as I was fortunate enough to be able to make a lump sum payment towards reducing the balance earlier on this year. I wondered if I should include this in the DMP or to try and continue paying it separately. Any help or advice would be much appreciated. Thank you.

Kate_fixing_it

Sounds like you need some support Lou, welcome to the thread. You'll find all sorts of advice here and hopefully a few laughs along the way. Token payments are frequently suggested for a few months so you can build up a buffer in case of emergency. Once things are up and running it'll be a massive load of your shoulders.

Generally all unsecured debt should be included in the DMP but I'm sure there are exceptions. I'm with SC and I've found them invaluable.

Have a read back through this thread and you'll find loads of help and advice.

Kate x

Kate_fixing_it

Emotional day here. The car is officially up for sale as are all but two of my high end high street dresses (kept two just in case I go anywhere formal - one long one knee length) no point having a wardrobe full of nice labels if I never go anywhere!

Don't know what is up with me but I feel quite low today after doing it. They're just "things" that I don't use but getting rid seems to have got to me a bit. Of course I won't be complaining if they all sell (especially if the car goes for the asking price!) but it's kind of saying goodbye to the old lifestyle I thought I had.

All very silly of me. Having a glass of wine and relaxing now whilst trying to turn my frown upside down because DH got a raise today! Considerably more than we expected too which takes him just a tiny bit under his salary from the previous job I'm so pleased for him and incredibly proud but just a teeny tiny bit jealous (which of course I'll never say!)

Oooh will one of you slap me out of this ridiculous mood please?

Kate x

toots82

Hopelessly_Hopeful wrote: »

Hi


I know where you are coming from in terms of interest rates.


Re the mortgage your defaults need to be three years old and have 20% deposit. Your defaults will be mature enough when you finish to give you the options.


My view is it is better to stash the cash and hit all the creditors at the same time to pay off the DAS early. Unless you are still being charged interest, then I'd aim to pick that one off etc. The challenge of overpaying is that some creditors use it as an excuse to say you are no longer in financial difficulty and reintroduce interest. That's why I think safest strategy is to save the balance and finish early if that makes sense.


Good luck

HHx

We're lucky enough to be in Scotland so on DAS as opposed to DMP so nobody is allowed to charge us interest, it all had to be frozen as soon as approved.

Makes perfect sense though, I shall open a separate account and pile as much as possible in there.

Thanks for the advice re:mortgage, sounds achievable but am worried about the AP markers, some say worse than default, not sure how to deal with this.

Our max we would ever spend on house would be 200k, have around 35k in this house so should be able to get up to the 20%.

First things first though, breath a bit and enjoy sleeping at nights!!!

toots82

Growurown wrote: »

Well done Kate!

Just been updating my spreadsheets after July's payment. Total debt is now under £17,000. :j:j

Two more payments should see my biggest debt gone which was a massive £8,000 consolidation loan with Nat West, originally made up of a £6,000 loan and a £6,000 overdraft.

Next in line were two Virgin CCs one for me, one for hubby, a Mint CC and a Nat West CC all with balances of over £5,000. Just over £2,000 left to go on them now. I'm looking forward to seeing those balances going below the 2 grand mark:D

I have a way to go yet, at least another year, but it feels more achievable now. At the start with around fifty thousand to repay it felt like it would never end. I am seeing a pinprick of light at the end of the tunnel and boy it feels good:beer:

wow amazing, 50k and now another year or so to go, its just about in touching distance!! well done