DMP & Mutual Support Thread - Part 11

phoenixx

January2015 wrote: »

No idea of a template letter, but I wouldn't stress over it and I would write something along the lines of....

We are writing to update you as our financial situation has changed. We enclose a financial statement for ourselves giving full details of our situation. Our situation has changed due to an unexpected bill from HMRC. Please note this has been included in our financial statement as a priority debt.


We are committed to repaying our debts and are not simply walking away from them, but as you can see from this financial statement we will struggle to manage our priority commitments. We are writing to advise that we will only be able to make token payments of £1.00 per month until our situation improves. Whilst we appreciate that this offer is small, we feel it is the only realistic one in the circumstances. We anticipate we will only be able to pay £1.00 per month for the next 4 to 5 months.


We would also ask that you agree/continue to suspend interest on this account to enable us to make some inroad into the debt.

Wishing you all the best with this situation:beer:

Thanks January2015 - this looks good. I guess if I haven't got it, they can't have it. I am feeling a bit worn after the problem at work with the cheque signing. I knew I had £1750 to pay to HMRC (had this put aside) but they are claiming over 5k!! Bit of a difference. I am looking into it but realistically, my employers are so pants with HR stuff that I would not be surprised at all if it is right.

make_the_change

Quick question, sorting our DMP and have a debt of £8500 and after completing expenditure form says payments of £250 a month as part of the plan. Does this sound right?

January2015

make_the_change wrote: »

Quick question, sorting our DMP and have a debt of £8500 and after completing expenditure form says payments of £250 a month as part of the plan. Does this sound right?

That sounds high for a DMP. Payments will vary depending on your available funds are priority debts/bills are accounted for.

Usually the payments to predators from DMPs are around the 1% mark. However - as I said above it depends on each individual person/couples disposable income after priority debts. Some can be slightly over this percentage and some can be massively lower, i.e. when folks are making token payments of £1.

The amount you have quoted is about 2.95% which cannot be far of the agreed payments for your debts (or at least I would have thought not far off). At that rate I am surprised you are moving to a DMP.

Are you in a managed DMP or are you organsing this yourself? If managed - go back to whoever is managing and query this figure. If self-managing, you may need to revisit your calculations.

As I said, each person's figures will be different but as an example one of our debts is just un £13k and we pay £168 p/month on our DMP

Sazzie23

make_the_change wrote: »

Quick question, sorting our DMP and have a debt of £8500 and after completing expenditure form says payments of £250 a month as part of the plan. Does this sound right?

I'm presuming you have gone with SC or Payplan etc, the amount you pay is not related to the amount you owe. The amount to pay is calculated by the amount you have available to pay once the budget is calculated.

If you feel the payment is too high, look at the budget you have entered and see if you have missed anything or undervalued anything. Remember that this is a debt management plan, not a fast route to paying off debts. Your credit will be screwed so you may as well make it a doable budget. Also if you read the thread you'll find that creditors are more likely to freeze your interest the lower the payment, so better to staff off low and then increase as you find you have more cash available.

phoenixx wrote: »

Well - the tax bill is awful and DH has worked out that we can only pay it if we go to token payments for four months! :eek::eek:I have had to do token payments before but not for 4 months. Does anyone have any suggestions about letter template etc...I am really anxious about it and fed up as my employers (2) got it wrong meaning I have built up a huge amount owed. Any advice would be very gratefully received.

Shucks that sucks :eek: do HMRC allow for budgeted payments, then you could do slower HMRC repayment and just lower your DMP rather than go to tokens. I accept that HMRC is a priority creditor, but if you put yourself on tokens and something else was to happen??? :eek::eek::eek:

Have your called HMRC to see what they say? Explain you are in 2 jobs and the employers pay folk messed up. Make sure they know you are willing to pay. Finally have you taken some advice to check that your tax is correct and you are claiming everything you are entitled too? Some unions will do a free tax checker, you pay them 25% of what they save you though so better if you can get cheaper advice.

And don't worry, you'll get through this. Also I just thought you need to reduced your budget income to account for the same thing next year......

Sazzie23

Puzzcat wrote: »

Hello dmp'ers..
Just a quick :j from me as I have today been interviewed for my job (been doing it 27 years, and 13 years where I am now!) And have just had the call to say I have my job still...so I can keep paying my lovely dmp....
Puzz.x

Sorry Puzz I missed this yesterday, many congratulations, :beer: what a relief. The hoops we jump through these days

Happy debt busting :j

Sazzie23

January - sorry I can't find your post - I'm sure I read you had opened a Yorkshire bank account. I'm thinking of moving my current DMP account to another bank, just wondered how you went on with the credit check etc ?

make_the_change

Thanks for the replies. I will re-visit my SC DMP figures and see what I have missed. These repayments would make every month quite tight for us still so I think I need to allow some extra funds somewhere. Especially with three small children. We know what they can be like. Feel like a massive weight has been lifted off my shoulders though with all your advice everyone. Thanks again :T

January2015

Sazzie23 wrote: »

January - sorry I can't find your post - I'm sure I read you had opened a Yorkshire bank account. I'm thinking of moving my current DMP account to another bank, just wondered how you went on with the credit check etc ?

Hi Sazzie

It was all done online. They asked some questions about various accounts, e.g. I had a loan account and was the balance between £5,000 and £7.500 or between £7.600 and £10,000. Those sort of multi choice questions. I had to quickly open noddle because one of the questions was when did I open an account. This was the identity security check bit.

Anyway - all sorted immediately and they gave me the sort code and account number instantly. My credit file is totally trashed and it was no problem whatsover. Online banking was set up instantly as soon as the application was approved.

The bank card came within a few days and I also got some paperwork and had to post back a sample signature.

A couple of days before opening the Yorkshire Bank readycase account I had applied online for an HSBC basic account. They have just, yesterday, sent me some paperwork to take to a local branch to verify my identify (I have to take documents such as passport, licence etc) and then they will contact me within 10 days to let me know:eek: Don't bother then:D

The Yorkshire Bank process was very quick, simple and pain free.

zenshi

Why is it called 'full and final' when it's not full only final

Anyway, I digress slightly...... My tax rebate has hit my bank, so am looking for a link for the F & F letter to send to my lowest creditor. Can anyone help?

January2015

zenshi wrote: »

Why is it called 'full and final' when it's not full only final

Anyway, I digress slightly...... My tax rebate has hit my bank, so am looking for a link for the F & F letter to send to my lowest creditor. Can anyone help?

It's actually a partial, final offer but seems to be known as full and final.

Template from National Debtline here
https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx


Where it says...

However, I can raise £ and I want to offer this as full and final settlement of the account.

I changed that to advise that 'a relative has offered £x.xx to support me to clear some of my debts and will offer this as full and final settlement of this account.