DMP & Mutual Support Thread - Part 11

fermi

neiljmuk wrote: »

Hi all, can I throw this one back out. Any advice much appreciated

MBNA has defaulted one lot of debt and advised it may be sold, that the recipient could litigate blah blah. It's quite bitter in it's tone to be honest, like defaulting me is a defeat for them!

Can I just ask, if this debt which is now defaulted on is sold, will it show the new creditor on my credit file? More importantly will the debt still be defaulted debt irrespective of who it's passed around to?

The collector who it's sold to can have the entry changed or added to show their name, yes. The balances and record of default would have to remain showing the same though, whoever it is with.

Fairyfingers

Hi all, first time posting so a bit nervous.


I had my LBM in mid June and called SC and started DMP in July (next payment 1 Aug), my query is with Littlewoods and Very, all my other creditors are CC and all have replies and accepted reduced payments except Littlewoods and Very. My debts are both Buy Now Pay Later and if paid off in full before the due date no interest will be added, both are quite small amounts £250 approx. but the interest will double the amount due!!
So my question is if I pay the amount off in full before the due date to avoid the interest (have a little bit saved) will this throw a spanner in the works with my other SC creditors?
All my other debts are massive amounts £6 to 10K each so the couple of hundred I have put away wouldn't put a dent in them but could save me hundreds in awaiting interest as the two catalogues have ignored my DMP letters and not frozen my accounts.
Hope this makes sense to you, I'd appreciate any help I can get as am really in a tizzy trying to decide what's best to do.

neiljmuk

fermi wrote: »

The balances and record of default would have to remain showing the same though, whoever it is with.

Thank goodness for that. Almost a rhetorical question but good to have reassurance! Thanks.

racht

Fairyfingers wrote: »

Hi all, first time posting so a bit nervous.


I had my LBM in mid June and called SC and started DMP in July (next payment 1 Aug), my query is with Littlewoods and Very, all my other creditors are CC and all have replies and accepted reduced payments except Littlewoods and Very. My debts are both Buy Now Pay Later and if paid off in full before the due date no interest will be added, both are quite small amounts £250 approx. but the interest will double the amount due!!
So my question is if I pay the amount off in full before the due date to avoid the interest (have a little bit saved) will this throw a spanner in the works with my other SC creditors?
All my other debts are massive amounts £6 to 10K each so the couple of hundred I have put away wouldn't put a dent in them but could save me hundreds in awaiting interest as the two catalogues have ignored my DMP letters and not frozen my accounts.
Hope this makes sense to you, I'd appreciate any help I can get as am really in a tizzy trying to decide what's best to do.

Hi- when I first started my DMP Very still added interest so I sent a letter saying that my other creditors had accepted offer and to continue charging interest would not help my financial difficulties etc- I found a sample letter on the National Debtlline website. This worked and they froze interest. They are the only ones that I had any issues with and I'm a year in now and all ok- except their payments always takes nearly 2 weeks to show up??
I had a few BNPL to be added, I had hoped to pay them off before the date but never managed it- but was pleasantly surprised when the time came they only added interest for however many months in I was when they finally froze interest. So only had 3 months instead of 12!! I know this isn't always the case and the BNPL I had that finished about 3 months after my start date had all the interest added but just letting you know what happened in my case.
Hope this makes sense- would definately write a letter, I'm sure I sent mine to Shop Direct head office rather then Very.

Fairyfingers

Thanks Racht
Nice to know others were in the same boat as me BNPL date 7/8/15 so 12 months interest due... might just raid my birthday money and pay it. Wll give SC a call too.
Appreciate the reply.
Onward and upward Debt free by 44.... Yeah 2044 that is!!!

Sazzie23

Fairyfingers wrote: »

Hi all, first time posting so a bit nervous.


I had my LBM in mid June and called SC and started DMP in July (next payment 1 Aug), my query is with Littlewoods and Very, all my other creditors are CC and all have replies and accepted reduced payments except Littlewoods and Very. My debts are both Buy Now Pay Later and if paid off in full before the due date no interest will be added, both are quite small amounts £250 approx. but the interest will double the amount due!!
So my question is if I pay the amount off in full before the due date to avoid the interest (have a little bit saved) will this throw a spanner in the works with my other SC creditors?
All my other debts are massive amounts £6 to 10K each so the couple of hundred I have put away wouldn't put a dent in them but could save me hundreds in awaiting interest as the two catalogues have ignored my DMP letters and not frozen my accounts.
Hope this makes sense to you, I'd appreciate any help I can get as am really in a tizzy trying to decide what's best to do.

Hi Fairyfingers and welcome :hello::hello:


Well done for making a start at repaying your creditors and taking action towards a DFD.
I'm not sure how Very or other catalogues might treat a BNPL, but in terms of a SC DMP, paying off a few hundred quid debt wouldn't affect it, just tell SC, if they ask, which they might not, a relative offered to,pay off that specific debt, but pay VEry direct rather than through SC and then update the balance on the SC website and probably no one will bat an eyelid.

Hope it helps

timetosayenough

Hi all,


Had to re send all paperwork to Stepchange cos the 1st lot I posted didn't arrive. So that's put everything back a while. I've sent token payments off to creditors and although I've contacted all of them some have not replied. Is that normal? Find it a bit worrying, I've had a reply from one loan company and my bank but not the other 2 loans.


I'm a natural worry guts. Other problem is I can't get a balance of loan from one of the loans that haven't replied yet and Stepchange need that information. I've rang them and been put on hold for ages so ended up hanging up. Will keep trying. I've also emailed them so will see if they respond to that. Will this hold everything up, do Stepchange need everything in place before they contact creditors?

patch22

Hi everyone

Timetosayenough - Sorry to hear about the delay with the paperwork. We haven't heard from any of our creditors yet to say that they've declined/accepted the plan and SC contacted them at least 3 weeks ago. Think it can sometimes take a bit of time to get to the right people, or sometimes they might just accept and not let you know. Barclays have sent termination notices for our overdrafts, so know that they've heard at least, and I'm expecting things to start coming through over the next few weeks. Hope you manage to get through to the loan company soon too. I'm a natural worrier too, so sympathise with you!

Still not a lot to report here. The Lloyds/Cabot thing was resolved quite easily thankfully and it's now back on the DMP. OH's pay went into our new account (phew!) and it's so weird seeing a positive balance! It's around 6 weeks since we last used credit to buy anything and using our own money to pay for things is...strange but good. The first payment to SC is due out on the 1st, around the same time as we start missing payments for things, so it's full steam ahead from this weekend.

Triangle

Hi all - hope everyone is well.

Well it's beenn around 6 weeks now since the first token letters went out - and my main news is the world hasn't ended! In all seriousness though, I spent so long worrying about finances and never seeing an end in sight. Since making the decision to do a DMP I am feeling so much happier. Have heard barely anything from our 4 creditors. No phone calls at all, couple of letters to say accounts have been frozen and then the usual statements - that's it. It may well be the calm before the storm but we'll take it as it comes.


Started our emergency fund this month and will be adding to it in August before starting the DMP proper in September (will still obviously be contributing to the EF every month). My only downside is that I feel I have messed up a bit this month with our first ever real proper budget. All monies for allocated saving pots went in fine which felt great and all food/petrol budget was followed. But I set aside an amount to purchase an item we need and now at the end of the month have realised I have just squandered that money. And mainly just on crap (food etc) at local shops etc especially on days I'm at work. Gutted but trying to be too hard on myself - first real monthly budget, I under and what I've been doing and most importantly - no more credit!

Sorry for mammoth post!

Sazzie23

Triangle wrote: »

Hi all - hope everyone is well.

Well it's beenn around 6 weeks now since the first token letters went out - and my main news is the world hasn't ended! In all seriousness though, I spent so long worrying about finances and never seeing an end in sight. Since making the decision to do a DMP I am feeling so much happier. Have heard barely anything from our 4 creditors. No phone calls at all, couple of letters to say accounts have been frozen and then the usual statements - that's it. It may well be the calm before the storm but we'll take it as it comes.


Started our emergency fund this month and will be adding to it in August before starting the DMP proper in September (will still obviously be contributing to the EF every month). My only downside is that I feel I have messed up a bit this month with our first ever real proper budget. All monies for allocated saving pots went in fine which felt great and all food/petrol budget was followed. But I set aside an amount to purchase an item we need and now at the end of the month have realised I have just squandered that money. And mainly just on crap (food etc) at local shops etc especially on days I'm at work. Gutted but trying to be too hard on myself - first real monthly budget, I under and what I've been doing and most importantly - no more credit!

Sorry for mammoth post!

Hi Triangle, it's a real learning process if you haven't been used to budgeting. Some folks are really good and otters take a while.
I found some of the DFw challenges helped, for me the NSD - no spend days - got me through some really tough times, but others have reported success with one extra payment challenge and grocery challenges. Try a few til you find something that helps.

If your budget really doesn't work, go back to the SC budget review and change it, don't put yipurself in the position of not managing every month.

I'm trying to make it to the first of the month before I start spending my food budget, but it's not looking good.