DMP & Mutual Support Thread - Part 11

January2015

make_the_change - have you visited the NEDCAB site?It is really helpful in setting up a self-managed DMP.We used NEDCAB to get started - it produced the I&E statement, and generated letters to each predator. I adapted the letters slightly, but in general NEDCAB was a great starting point.

make_the_change

January2015 wrote: »

make_the_change - have you visited the NEDCAB site?It is really helpful in setting up a self-managed DMP.We used NEDCAB to get started - it produced the I&E statement, and generated letters to each predator. I adapted the letters slightly, but in general NEDCAB was a great starting point.

No, I have seen it mentioned. That's fab, thanks!

January2015

make_the_change wrote: »

No, I have seen it mentioned. That's fab, thanks!

When inputting into the expenditure section - put in a ridiculously high figure for each item, e.g. groceries, and a box will appear underneath and advise what is considered reasonable for your size family. I just then adjusted each box to the highest 'reasonable' figure

make_the_change

January2015 wrote: »

When inputting into the expenditure section - put in a ridiculously high figure for each item, e.g. groceries, and a box will appear underneath and advise what is considered reasonable for your size family. I just then adjusted each box to the highest 'reasonable' figure

Will do.

I assume the trick to getting interest frozen and accounts defaulted is having repayments calculated that are particularly low? Would that assumption be correct?

Puzzcat

Afternoon fellow dmp'ers..

Lots of lively debates on here today....lovely...

So I thought I would throw my experience into the mix...

I have been with Stepchange for just over 2 years and they were an absolute godsend for me. I loved being able to just quote "I am setting up a dmp with SC and this is my ref number" to anyone that called, not sure I would have been able to handle the calls so well if I was self managing at that time. I have fought my own battles with 2 of my creditors and had the FOS involved with one of them.

I like January am now going self managed, I am using NEDCAB but have adapted it so it completely matches my current income and available expenditure because I do not need a break from payments at this time.. (famous last words..) I am very comfortable speaking to creditors now and have confidence that I didn't have when I started this debt journey.

Defaults, well we all want them, but won't necessarily get them without taking the £1 route, which I may do later on, but to be honest I just want rid of the debts and 7/8 of my 9 have or have promised.. a default soon.. Most peeps on here want the clean credit file for mortgage purposes, I haven't seen one person ever say they want to get more cc's or loans... My god why would you....:rotfl: All my creditors have frozen interest, for some it took longer than others, but we got there in the end. Of course this is something you have to battle for self managed or SC/Payplan etc.

Whichever way you do it, you have to be organised, happy to speak to creditors as they will still pop up occasionally despite the 'please communicate in writing' sentence added to your letters..and most of all you must, must, must be able to stick to a budget.. This is what SC have taught me and without that I don't think I would be in the good place I am now.

Good Luck to All..

Love Puzz.x

make_the_change

Puzzcat wrote: »

Afternoon fellow dmp'ers..

Lots of lively debates on here today....lovely...

So I thought I would throw my experience into the mix...

I have been with Stepchange for just over 2 years and they were an absolute godsend for me. I loved being able to just quote "I am setting up a dmp with SC and this is my ref number" to anyone that called, not sure I would have been able to handle the calls so well if I was self managing at that time. I have fought my own battles with 2 of my creditors and had the FOS involved with one of them.

I like January am now going self managed, I am using NEDCAB but have adapted it so it completely matches my current income and available expenditure because I do not need a break from payments at this time.. (famous last words..) I am very comfortable speaking to creditors now and have confidence that I didn't have when I started this debt journey.

Defaults, well we all want them, but won't necessarily get them without taking the £1 route, which I may do later on, but to be honest I just want rid of the debts and 7/8 of my 9 have or have promised.. a default soon.. Most peeps on here want the clean credit file for mortgage purposes, I haven't seen one person ever say they want to get more cc's or loans... My god why would you....:rotfl: All my creditors have frozen interest, for some it took longer than others, but we got there in the end. Of course this is something you have to battle for self managed or SC/Payplan etc.

Whichever way you do it, you have to be organised, happy to speak to creditors as they will still pop up occasionally despite the 'please communicate in writing' sentence added to your letters..and most of all you must, must, must be able to stick to a budget.. This is what SC have taught me and without that I don't think I would be in the good place I am now.

Good Luck to All..

Love Puzz.x

Thanks Puzz

blisteringblue

Brogden wrote: »

Blisteringblue is right and there is no place for a 'Step Change bashing session.' Step Change have turned lives around and may also have saved some lives too. However.......does everybody need them? Simply....no they don't.

make_the_change wrote: »

That all makes perfect sense and at first I felt I needed that middleman to assist me in something that was possibly quite complicated and daunting. But reading all these posts, it's been of great assistance to me. I guess my worry is how to tackle things on my own...


I feel these are my main concerns but if I am ready and confident to tackle them, then I am more than capable of going at it alone.

January2015 wrote: »

For me SC was a starting point in discipline myself and my DH about our finances We had clearly not been disciplined in previous years and the debt piled up - borrowing more to service the existing debts.

I needed the first year with SC to give us both that discipline and structure to our financial lives. I needed SC to bring my DH onboard that this was an acceptable way forward with our lives.

Exactly, think of Stepchange as a DMP with Stabilizers

I used them for my first year too, it was only when BC wanted over £100 of interest a month and Stepchange were not interested that I had to go it alone.

I would say do exactly that, carry on with Stepchange as they will do the initial creditor contact etc, but once you are settled and understand more, its the easiest thing to break off and go it alone.

January2015

make_the_change wrote: »

Will do.

I assume the trick to getting interest frozen and accounts defaulted is having repayments calculated that are particularly low? Would that assumption be correct?

Some of our predators immediately froze interest/charges regardless of the amount we were paying them. MBNA were fantastic, as were VirginMoney (although I think they were closely aligned at that time).

BC reduced, but refused to zero interest because were paying above 1% - which they advised us was the deciding factor in whether interest was charged or not. Frustrating as the SC payment was 1.03% so for paying just a few pounds (literally) over the 1% we were paying about £125 each month and being charged almost £30 in interest each month. Overall debt reduction each month was £95.

Had we been paying 0.99% we would have paid about £115 each month and all of it would have gone off the debt. Frustrating or what:eek: Not anymore though;);)

blisteringblue

January2015 wrote: »

We moved from StepChange to self-managed this month. I had been paying creditors for almost one year through SC. Some payments as low as £14 per month and some as high as almost £200. In total we were paying just under £1,000 per month. However, when we changed to self-managed I wrote and advised them all of this and advised we would be making token payments of £1 for Feb and March. I didn't give a reason, I just advised the amount they would get from April. All but one have written and accepted and the one that didn't is only a few pounds a month anyway. Our income and expenditure statement clearly identified we could afford to pay more than £1 each month in Feb and March - I just told them they were only getting £1 though. No explanations of why.

You have learned well young Skywalker :T:rotfl::A

Maximum respect, DMP gold star from me

[Deleted User]

January2015 wrote: »

Some of our predators immediately froze interest/charges regardless of the amount we were paying them. MBNA were fantastic, as were VirginMoney (although I think they were closely aligned at that time).

BC reduced, but refused to zero interest because were paying above 1% - which they advised us was the deciding factor in whether interest was charged or not. Frustrating as the SC payment was 1.03% so for paying just a few pounds (literally) over the 1% we were paying about £125 each month and being charged almost £30 in interest each month. Overall debt reduction each month was £95.

Had we been paying 0.99% we would have paid about £115 each month and all of it would have gone off the debt. Frustrating or what:eek: Not anymore though;);)

I'm confused about this 1% 'rule' and would really appreciate some help please:o

The payments agreed with creditors via SC according to what I could afford at the outset of my DMP haven't gone down in the 3 years I've been on it. I've been paying off £730 in total each month to all creditors. It looks as if I am now paying more than 1% of the outstanding balances on some of my debts.

All my creditors froze interest at the outset and haven't asked for any since but I'm beginning to wonder now whether they might start to whack some interest onto the outstanding balance soon as it will appear to them that I can afford it:eek: