DMP with newly opened accounts

Jono987

Hello, i am currently in the process of setting up a DMP with step change. My total debt is around £12000 but one of the credit cards is only a week old! I did a balance transfer to it while frantically trying to manage my debts but after being recommended to stepchange i contacted them and they advised i go on a DMP.

My question is, will the fact that i only just opened the account effect the chances of the company accepting the DMP? From their point of view, i have just instantly got credit and im now straight away going on a DMP which will be offering reduced payments etc.

Thanks for any help i appreciate it.

Jono987

Also two of my credit cards are interest free balance transfers, can I request step change to pay at least the min payments or keep these two out of my DMP? I don't want the creditors to suddenly start charging interest on them. Thank you

Jono987

Can anyone help before I send my application off later?

SquirrelNuts

Hi Jono

I have a CC card in my DMP which was about 3 months old (and already at max limit) when starting up the DMP.

They seem to be treating the DMP in the same way as all of the other creditors - no special treatment due to it being new.

I guess you wont know what the reaction will be until it starts, but given the whole concept of a DMP is that you are paying only what you can afford backed up by an I&E statement, even if they don't like it there isn't anything they can do differently to any of your other creditors!

As for keeping the 0% deals out of the DMP, I'm pretty sure Stepchange or PayPlan wont allow this as they insist on all credit to be included.

However, you should find that many if not all of your creditors will freeze interest and charges anyway (eventually!) so hopefully you'll end up back in the same position as before.

Also, have a read through the DMP support threads on here - there's loads of advice which I found invaluable before I started...

cheers

Squiz

Jono987

Great, thank you for the reply
Have filled out the application form going to scan it in at work tomorrow and email it over to step change. Then just cross my fingers i guess and hope for the best

SquirrelNuts

Hope it all works out for you and come join us on the DMP thread - lots of friendly folk on there!...

Jono987

Thank you i will

Will i get lots of letters initially demanding payment etc? I havent actually missed any payments yet and im worried about my debts getting sold on etc.

SquirrelNuts

Jono987 wrote: »

Thank you i will

Will i get lots of letters initially demanding payment etc? I havent actually missed any payments yet and im worried about my debts getting sold on etc.

For me things were surprisingly quiet, with the exception of Pounds to Pocket who called me daily for a while until they gave up. I've had the odd letter and phone calls from others too which i have filed for future reference.

If you get any phone calls, just ask for correspondence to be in writing and say you are on a DMP and give them your client reference number. All of the creditors I have spoken to have been polite and understanding.

No need to discuss anything else on the phone e.g offers of payment, i&e etc as Stepchange will sort all of that out for you.

Also, from what I've read there is nothing to worry about the debts being sold on. Sometimes the Debt Collection Agencies are easier to deal with than the original creditors and interest is likely to be stopped if with DCA!

KirstyO

Other posters are right, you wont be able to exclude your 0% credit cards from DMP and you also cant request how much gets paid to each creditor. Stepchange will take your single monthly amount and split it proportionately so that if you did nothing further to reduce your debts then they would all be paid off as soon as possible.


They are VERY good at their job and have supported thousands of people (including me!) through their debts and out the other side.


I found that letters stopped within a few days of DMP being set up, and no new ones came to light until one of the DCA's merged with another, they tried to charge me twice for the same c/c debt. At that point I had settled it Full and Final, I told them this, they asked me to prove it (I only had a letter from the original company with a reference number that I had written on it) - I never got round to sending them proof but I never heard from them again so they must have reconciled it.


I would get your application sent off, get the DMP set up and let the dust settle before worrying about anything else right now. If you do get any letters you're not expecting after DMP is set up, just send them on to Stepchange and they can deal with them however they see fit and ultimately destroy them for you (yipeeee)