My Debt-Free Diary

Meatloaf1981

Apologies for posting this as an out-and-out, self-serving thread but I think it will help me in the cathartic sense to have my own thread where I can see my progress day to day or week by week without having to chip in on other threads. I welcome any and all advice, support, constructive criticism and well wishes!

My debt accrued over a long period of time and is largely the result of simple overspending on things I needed and also on things I really didn't need. In total, my debt reached over £34,000 and was entirely unsecured spread over credit cards, loans and an overdraft. I had my light-bulb moment at the beginning of last year when I realised I could no longer sustain my payments to all of my creditors after years of burying my head in the sand.

I contacted an organisation called Workplace Options through my employer and they helpfully contacted all of my creditors and ensured a DMP was set up in short order for all of my creditors except my credit union loan (Who refused to negotiate with them and threatened court action for missing one payment!). Since then, two of my creditors have sold the debt on to DCA's (MBNA & Virgin MBNA) Arrow and Link and all of my payments have been maintained. I have a very good excel spreadsheet I use to ensure I have covered all of my upcoming payments month by month and so I can project into the future and see roughly how things could/should turn out with my future pay rises taken into account. I don't rely on this too much but it allows me to consider my debt free date as per my signature.

Well today I heard from the company that were overseeing my DMP to say they will no longer be performing that function due to a change in their relationship with my employer. It was an employer funded scheme where they gave advice and took on the role of contacting my creditors on my behalf when it came to setting up my DMP. They have referred me to Payplan with a view to establishing whether my DMP would benefit me by being through them or whether I should remain self-administered.

I'm in favour of staying self-administered for several reasons:

1. it seems to have been successful for me so far. I like being in control of my finances in terms of maintaining payments via direct standing order to my creditors.

2. I have a loan that is not on my DMP as it is from a credit union and technically reduces my income each month. I did negotiate lower repayments but it still makes up the bulk of my repayment capacity each month when compared to the total repayments I make, easily 70%.

I am concerned that, having spoken with Payplan when they ring me tomorrow afternoon, that Payplan would insist on this creditor effectively being treated in the same way as all of my other creditors (I can understand why). Therefore, I think it likely I will remain self-administered but by not having an organisation like Payplan to assist me with negotiations and the like in future, I do worry that I could be bullied by my various creditors or threatened with action. I don't know, perhaps it is just understandable nerves at being "weaned off" a previously protective and assured presence and fully "going it alone" but I guess I will probably rely on this place more going forward for the reassuring crutch it has been for so many other people so far.

Eek, just feeling a bit nervy!

Meatloaf1981

Oops, wrong forum. Could this be moved to the diaries forum?

Meatloaf1981

Ok, well the post is still in the main forum but no matter.

I had an email from Payplan but no phone call, offering to help sort things out for me if I give them a ring. I am undecided as to whether I should ring them or not. The issue over my one creditor receiving "preferential" treatment is probably a deal breaker for them and I am not prepared to argue that situation with the "preferred" creditor who last time I tried to get them in on the DMP threatened immediate court action!

Today I have drafted a letter to all of my creditors to inform them that I am no longer using a 3rd party to deal with all my correspondence. I would be grateful if anyone here took a look and let me know what they think of the letter or whether I should just leave out the bit about my payments continuing as before. Here's a copy of the letter:

Dear Sir or Madam,

I write in relation to my account with you, referencexxxx. Please be advised that my previous authority given to COMPANY NAMEto act on my behalf in terms of any negotiations and the receiving ofcorrespondence has now been rescinded by me, effective immediately. I wouldappreciate it if all future correspondence regarding my account is sentdirectly to me at the above address.


This decision will not affect my repayments on theaccount which will continue as previously agreed. Thank you for all yourassistance to date.

Yours faithfully,

Meat

supermum1988

Have you considered Stepchange at all? I have personal experience with Payplan and wouldn't trust them at all. I've read nothing but positive words when it comes to Stepchange although I don't have any experience with them?

Subscribing and I wish you the best of luck.

Meatloaf1981

Hi Supermum, thanks for the follow.

I had considered Stepchange but I am certain they would want all creditors treated fairly (Quite rightly) and I'm not able to do that as my credit union will not accept a DMP so I have to continue in the same vein as previously. Looks like I will remain self-managed.

I changed the letter I've sent to my creditors to remove the acknowledgement of continuing my payments. I figured there is not need to confirm anything and all they need to know is to send further correspondence to me directly from now on. I don't want Barclaycard to think I'm agreeing to the payment plan again so they re-start the 6 month payment plan. I want them to default me on 30th March as per their letters they recently sent me with a formal demand for payment and saying they will default me if I don't pay up or arrange a new payment plan.

Funny how this time last year I was bricking it about defaulting on debts and dealing with DCA's. Now I'd rather deal with a DCA than the original creditor as they have very little power to push me to pay more (Not that I can afford to anyway) and are usually willing to sit back and accept whatever payment I can afford without questioning it or refusing payment. At least, that's the case so far!

Meatloaf1981

Sent all my letters by recorded delivery yesterday having edited it to simply say:

"I write in relation to my account with you, reference xxxx. Please be advised that my previous authority given to COMPANY NAME to act on my behalf in terms of any negotiations and the receiving of correspondence has now been rescinded by me, effective immediately. I would appreciate it if all future correspondence regarding my account is sent directly to me at the above address."

Now just have to wait to hear back if there are any other issues. First thing I'm expecting is to hear from Barclaycard at the beginning of April to confirm they have finally defaulted both my Barclaycards!

zenshi

Barclaycard seem to be awful at issuing defaults! My account still showing up to date when I defaulted nearly 2 years ago :eek:

Meatloaf1981

They are indeed, however they said they will default me if I don't make a new arrangement with me, so I'm hoping they stick to that when I don't actually contact them about it!!

Meatloaf1981

So today I made a complaint to Barclays about my account fees I had paid for 10 years without ever having had the benefit of using the services that came with it. My complaint comes because I remember at the time being told if I wanted an overdraft, I would need to take out an Additions account which later was upgraded to Additions Plus. I am requesting they repay the fees plus interest and any charges. It's a long shot but if I am successful, I hope they will offset it against the account which I am repaying now it is closed.

I have made a separate request for information regarding insurance payments on my Barclaycard which used to be an Egg Credit Card. That will be a longer process I am sure.

Trying to keep a firm grip on things!

sourcrates

Meatloaf just bang out another album, bat out of hell 3 is long overdue !!
That should take care of the money worries !!!!!

Meatloaf1981

Bat Out Of Hell 3 came out in 2006, sourcrates! Get with the times!

My new album is coming out this autumn and is called "Braver Than We Are" featuring songs by Jim Steinman, so if you like that Bat sound, this'll be a kicker!!