DMP & Mutual Support Thread - Part 11

lucy_w86

Hi All,

I posted on here earlier and done my budget with SC. I realised I didn't account for birthdays and travel so have added some in for that. What I really want to do is give myself some breathing space to get some emergency money behind me. Is this the right thing to do?

Also, how do I go about telling creditors I am working with SC? Surely it's best via letter and if so, is there a template?

Sorry I am a really busy mum so it's hard to read back through all the posts and get this info.

Also, any additional advice would be greatly welcome. 2016 is the year to get things rolling, make sure I have some money set aside and not to feel financially restricted to within an inch of my life!

Thanks in advance.

[Deleted User]

Ellieseleven wrote: »

Happy Anniversary January and look how far you have come!

Here's to another debt busting year:j

Ellie xx

And congratulations from me too, January:bdaycake:

[Deleted User]

Sazzie23 wrote: »

FINALLY - and this is for ALL NEW DMPERS don't be tempted to make your payments the highest you can afford, your budget needs to have a little flex and you are more likely to get interest cut in LOWER payments.


Happy debt busting everyone :T

Among all your excellent (as ever) advice, Sazzie, the one above is possibly the most important of all!

It's something I didn't think of when I started my DMP as I hadn't discovered this thread then:o and I've made the journey more difficult than it ever needed to be as a result.

I was in such a hurry to get rid of the debt millstone from around my neck that I steamed in and committed to the highest payments possible. Sometimes these are such a strain to maintain but stubbornness and a stupid need to finish my DMP in the shortest possible time prevents me contacting SC to get them reduced:o. Even at review time I just opt for another year of the same. Luckily, my creditors have kept interest frozen even after 3 years of payments:j

I'm like one of those creatures that needs to eat its own bodyweight every day except in my case it's trying to make a bit of extra money what seems like every waking hour to eke out what I have left :eek:

So, anyone reading this who's starting the whole DMP process, please do as Sazzie advises and cut yourself a bit of slack in your budget:T:beer:

Puzzcat

A first letter template for anyone who needs one..

Your address




Account Details
Date

Dear Sir/Madam



I am writing to inform you that I am currently seeking advice and assistance regarding my current financial difficulties.

I am working with StepChange to set up a Debt Management Plan (DMP) – my reference number is ******* They will send you an offer of payment along with a copy of my budget and list of creditors.

I am unable to meet my normal monthly payments, would you please accept a token payment of £1 per month until StepChange contact you with my DMP details. I would appreciate if you could hold any action on the above account until this time.

I would ask that you please consider stopping or reducing interest and any other charges on my account to help me during my financial difficulties and to avoid increasing my debts any further.

I would please note all future communications should be in writing only.
I thank you in anticipation of your assistance and co-operation whilst I am going through this difficult time, and assure you that I am doing everything I can to resolve my current financial situation in a responsible and sustainable manner.



Yours faithfully

Sazzie23

lucy_w86 wrote: »

Hi All,

I posted on here earlier and done my budget with SC. I realised I didn't account for birthdays and travel so have added some in for that. What I really want to do is give myself some breathing space to get some emergency money behind me. Is this the right thing to do?

Also, how do I go about telling creditors I am working with SC? Surely it's best via letter and if so, is there a template?

Sorry I am a really busy mum so it's hard to read back through all the posts and get this info.

Also, any additional advice would be greatly welcome. 2016 is the year to get things rolling, make sure I have some money set aside and not to feel financially restricted to within an inch of my life!

Thanks in advance.

Absolutely the right thing the do to have an emergency fund. Probably 2 or 3 months token payments should do it. Just tell SC you want to start it from March or April.

Creditors letters should go something like this, I'm not the template queen so hopefully someone better will help out;

Date Your address
Town
Full postcode
Dear Creditor name

Re account number xxxxxx

I am experiencing financial difficulties. I was able to make the last full payment on xxxx date but am unable to continue payments at this rate.

I have consulted Stepchange and I expect to commence a Debt Management Plan with them shortly. MY Stepchange reference is 12345etc.
I enclose a token payment for this month of £1.
Stepchange will contact your collections department in due course.
I authorise Stepchange to discuss the matter with you on my behalf.

Yours Faithfully

Mrs Eliza Debtbuster (use your full name)


Hope this helps. Remember what we've said about not cutting the budget too fine either. Good luck, can't be easy being a mum and trying to sort this.

Sazzie23

See Puzz's much better at this than me, thanks Puzz beat me to it.

lucy_w86

That's so helpful - thanks.

Scared of their reaction :eek: but going to push through!!

Puzzcat

Jaydee92 wrote: »

Hello,

Hope I do this right (new to site) I have been reading through the forum and hoping someone can give me some advice.
I will start from the beginning.. Last year we (husband and I) took out a loan with HSBC to pay off all other debts. £12,000 but paying back £20,000! I know this is a lot but I budgeted that we could afford the repayments for the 5 years we signed up for. It was an conditional loan that my husband had to take all the CC's in and they paid them and cut the cards up. Anyway. I was happy with this as I knew each month the balance would be going down. Anyway, skip to the first week of January 2016 when I had the biggest shock to open a statement off MBNA maxed out at £4,000! Seems my husband has been gambling started when his dad died in October after a very short illness! He then admitted that in 5 months he has totalled £8,500 on 4 cards (the cards that were cut up, but given back to him!! Why do they do that?? he still had the numbers to use online) ... Anyway I budget every month and we are always tight but if we have money for rent, council tax, food, kids stuff etc I never felt we were hard up.. But I spent days crying because there was just no way I could not figure this out. So we rang stepchange and they are setting us up on a DMP to start next month. We went through our budget (pretty much the same each month) and were told we do not spend enough on shopping so they put that up to £300 a month. They said the only things we were over the recommendation were sky (we have cancelled to just having broadband with them saving £42 a month) and our mobile bills (contracts end in March, so going for sim only) they have also given us clothing allowance etc which mean we have disposable income of £270. But I am so worried - our loan with HSBC was £330 a month and now £270 has to go around 5 creditors! I suppose I'm just worried that no one is going to except it and hound us. Stepchange said it will take up 8 years 8 months to pay (but what if no one stops interest or fees?) I know this is our only way, we can't do this on our own. Any advice at all will be greatly appreciated on how to deal with creditors etc. Thank you x

lucy_w86 wrote: »

Hi All, floated around this site for a year and a year down the line ended up worse off. So 2016 is my year to tackle it all.

I have just had a lengthy discussion with SC and listed all my income and expenditures and got a full report based on what I can afford each month. Scary part over and wasn't as bad as I thought.

Now I would 'prefer' to self manage rather than work with SC but don't know how to go about it. In previous months my Nationwide overdraft have refused to stop interest. Is it possible to get them to stop interest going alone or should I really work with SC to get this done?

Sorry if I sound a bit silly. Just determined to get mine and my families life back on track, for the better!!

Cregs10 wrote: »

Hi. I have literally joined sc today and agreed a dmp. 1st payment to be made by the -9th. I am worried about a couple of things. Firstly how often do you hear from creditors at the start of the plan? Secondly, so said it was likely the creditors would default my accounts but has anyone been given a ccj for this. Any advice on what to do next would be great.

Welcome, welcome to the best thread on MSE...

My top tips..

1. Don't rush into the dmp, do token payments I did 3 months and save the money for emergency's..

2. Don't make your budget to tight, leave some wiggle room you will need it..!

3. Read back over this thread and as many of the previous as you can manage. I did 3 of them and was very prepared for what was to come and learnt plenty.

4. Don't panic! You will get letters and default notices, you may get phone calls and as Sazzie says just tell them your starting your dmp with.. and give them the reference number.

5. Do remember to check your balances every month. Your debt will go up in the beginning this is normal. However once you have settled in to paying your normal dmp payment hopefully the creditors will freezer interest etc. If you are then still getting late charges you need to contact your creditors and ask them to move the payment date. If you are still getting charged interest, please don't assume you won't be as creditors do not have to freeze interest although most will. You will need to write to them as a complaint and then take it up with the FOS if they don't give in gracefully..! They still may charge but hopefully a reduced amount.. But do check your statements and update your Stepchange (assuming that is who you are with) balances each month.

6. Do keep posting, everyone on here is lovely and will try to help.

Good Luck..

Puzz. x

Emm1234

Hi all
Hope your had a great Christmas. So my first dmp payment went to stepchange on Monday 4th (was meant to be the 1st but obviously we have bank holidays!) However my creditors don't seem to have recieved anything yet. How long does it normally take to see the payments on your debt accounts?
Thank you!

Puzzcat

Emm1234 wrote: »

Hi all
Hope your had a great Christmas. So my first dmp payment went to stepchange on Monday 4th (was meant to be the 1st but obviously we have bank holidays!) However my creditors don't seem to have recieved anything yet. How long does it normally take to see the payments on your debt accounts?
Thank you!

Hi,
You may not see anything until later in the month. Sc don't pay the creditors immediately think it's usually around the 5th-8th but often my payments show on my statements at the end of the month. I wouldn't worry you will hear from anyone who has problems.
Puzz.x