DMP & Mutual Support Thread - Part 11

make_the_change

little_library_lady wrote: »

Good morning all

Just a small update. We started a DMP with StepChange last month so our first DD came out yesterday. I've been in touch with all our creditors and at the minute all but one have agreed to freeze interest and charges (some for the full term of the plan, some just for 6 months). The only one I've not heard back from is NewDay, but I rang this morning and the balance hasn't changed. The CSA advised that no interest and charges would be added so, so far very happy. Just wanted to reiterate a really big thank you to all who post on this thread and especially to those of you who have responded to my naive questions. :T

Barclaycard (2 Accounts): interest and charges stopped (unsure how long for)

Marks and Spencer: (2 Accounts): interest and charges stopped for duration of the plan (36 months) :j

Capital One - Long Term Payment plan in place and interest and charges stopped. We have received a default notice from Capital One :beer:

Virgin - Not enough for a formal arrangement - on an informal arrangement but interest and charges stopped for the duration of the plan

Santander Overdraft - Accepted Plan and interest and charges stopped, but advised they may sell it on.

Next PLC - Accepted Plan and interest and charges stopped for 6 months

Debenhams -

The current debt total is sitting at £24,809 :eek: and DFD is October 2029 but we're looking forward to seeing this go down. With the SC budget and in addition to my SC direct debit I'm also able to save £400 extra each month at the minute to put into a emergency fund for full and finals at some point. This will probably go down to £100 though later this year as ......... (see below)

On the down side I've been told that my redundancy is going ahead in October :cool: At the moment what we plan to do is pay the mortgage off with it (£30K) and hope I get a new post soon after (boss has told me unofficially she'll try to get me extra hours in another dept. whilst I look for work elsewhere). If this doesn't work out I just hope extra tax credits and benefit payments make the shortfall.

Anyhow just wanted to check in and thank you all for all the posts. Feel like I'm learning so much. I could have paid our debt off 20 years ago if I'd known about organisations like SC then. Gosh, when I think of the interest I've paid :eek: (never missed a payment in 20 years - but was paying minimum payments) --- so so stupid :money: Anyway new leaf turned over - Don't care about my credit rating now as I never want credit again!

Sorry to ramble - thanks all - I hope each and every one of you have something wonderful happen today

This post if really helpful as I am at the start of my journey. Well done :T

little_library_lady

make_the_change wrote: »

This post if really helpful as I am at the start of my journey. Well done :T

glad to be able to help someone else make_the_change

2spicy

phoenixx wrote: »

So thrilled for you - well done! I shall from now on know you as 2Spicy - Barclaycard slayer :j I loathe them and your DMP success has spurred me on - go you!

Quick update regarding BC here ... 3 pronged attack, letter to FOS, Letter direct to BC and also raised a dispute with Experian / Equifax.

Confirmation from Experian this morning that the account has been amended.
Quick of credit score reflects 989 as opposed to 433 !!

New rule ... question everything, even if they are right, they "might" be wrong !!

January2015

2spicy wrote: »

Quick update regarding BC here ... 3 pronged attack, letter to FOS, Letter direct to BC and also raised a dispute with Experian / Equifax.

Confirmation from Experian this morning that the account has been amended.
Quick of credit score reflects 989 as opposed to 433 !!

New rule ... question everything, even if they are right, they "might" be wrong !!

Well done - another predator slaying session eh 2spicy

Little_Miss_Sunshine

2spicy wrote: »

ITS DONE !!!!


..... Balance Transfer of £3401.68 has been made, DMP Officially Paid off !
No thanks to BarclayCard for never stopping adding interest and refusing to default us (We shall NEVER use your financial services ever again).

7 Years of "financial re-education" has made us wiser to the pitfalls of credit. Whilst we both agree we will probably use credit in the future, it will be used far more wisely.

:j:beer::beer::j:beer::j:beer::beer::j

Well done !!

blisteringblue

We have a reducing balance on our mortgage which comes off in March, and as it's an offset mortgage / current account we have to find this money. I normally budget for it in YNAB but have been struggling to catch up after buying a cheap car for DD to get to Uni in Sept.

Thought I'd managed it with the payrise in Jan, but the numbers just are not stacking up, and my current forecast is we run out of money come 3rd March !! My spreadsheet is pretty anal

So that is all emergency used up, and nothing coming in for about a week. Luckily Mrs BB is agency so is paid weekly but even that isn't enough.

So while I have not had to do this before and because I am self managed, I just thought F*%K IT, and have knocked 75% off my debt repayments this month. Not bothering to tell any out with DCAs, they can just do one, but have written to any still with the original predators.

Ooh, it's just so liberating. Power to the People !!!
:rotfl:
:A
:T

muppetscotland

Hi everyone

We have decided to embark on a DIY DMP as we have been crippled by several rate cuts to husband's day rate (self employed oil industry) due to the plunging oil price. We kept all the "balls in the air" last year despite having less coming in than was due out (ye up savings), but having just taken yet another cut we have to be realistic and take action.

I have written to all creditors (mainly credit cards plus RBOS 3 loans) and offered token £10 monthly till we have our budget etc in place. I have also opened a new bank account. Planning to save for 3 months then make everyone offers of reduced payments (around half of minimum monthly). I've asked them all to freeze interest and charges. We took advice from debt line Scotland first and have mentioned this in all letters.

Should we be doing anything else at this stage?

Scary as hell as we have always paid our bills. Living in fear of losing our house as our children are small and we have no extended family. I know I'm being daft!

I've read heaps on here and am confused by one thing - why does everyone seem to want defaults ASAP?

On a related point, are creditors likely to CCJ during a DMP?

Thanks everyone for your honesty in posts. It has helped me very much to feel less alone.

KID77

Welcome Muppet (love the name)

Well done for starting a DMP, its a bug decision but such a relief once you start it.

You've let your creditors know so that's the main thing, keeping in touch with them is important. You have a new bank account, you are saving an E. Fund so I think you have done everything!

Make sure you don't make your DMP payments too high, some people find if they are paying a high amount, the creditor may not freeze interest and plus you don't want to leave your budget so tight that you are struggling.

We want defaults as once defaulted the account is officially closed and no interest is charged. Also, once the account is registered as a default with the credit reference agency, this starts the 6 year clock and at the end of the 6 years, any traces are removed from your record regardless of whether you have paid it off or not. Some creditors don't default and mark the account as late payment or some other marker. This means that once you have paid the debt i.e. in 5 years, it will still show on your credit file with the negative markers for a further 6. Hope I am explaining that well enough.

If you don't need to remortgage, the credit file part shouldn't really be important but I know it has affected a couple of people on here with their jobs and personal issues in regards being cheque signatory and that sort of thing.

I can't recommend enough that you should read through this thread 10 and also try 8 and 9. I read them over the course of a few weeks and it answered questions I didn't even know I had.

With regards to CCJs, they aren't mentioned on here but doesn't mean they won't happen but I think as long as you are paying what you can and staying in touch with creditors then it is unlikely, I believe.....

Good luck and stay in touch xx

Boldhoof

Brogden wrote: »

PRAT - A bit like Leicester City.......came from nowhere and are now the biggest thing in the world (for the wrong reasons though unlike Leicester )

PRAT used to send 'money off vouchers.' Not sure if you received any? A gimmick where they offered a discount of 30% so you paid 70% to clear a debt. I got a few of these over a year or two. I thought when I engaged with them that I would beat a 30% discount big style....but.....NO !! They offered 35% discount , asking me to pay 65%.

My feeling is they are not as flexible as some. I would be very surprised if you couldn't nail them for a 65% settlement though !! Try a little below if you like......I did and they came back with a counter offer. Just for information, they allow payment of reduced settlements over three months

Thanks for your excellent reply. We haven't received any money off vouchers, or a counter offer. I will write to them again next week, make one final offer after some discussions with the person offering the help.

sourcrates

muppetscotland wrote: »

I've read heaps on here and am confused by one thing - why does everyone seem to want defaults ASAP?

On a related point, are creditors likely to CCJ during a DMP ?

Hi,

Once a creditor has defaulted you, it's like drawing a line in the sand, as you know that whatever happens, it will be gone 6 years from that date, some creditors put "arrangement to pay markers" on your file instead, this can extend the default status by a further 6 years, so 12 in total, which is not good.

Original creditors very rarely take legal action, they just sell debts on instead to specialist buyers, as long as you have some kind of arrangement in place, things usually go smoothly.

On a seperate note, I see a lot of posts from people this week getting court claims from Lowell for supposedly statute barred debts, must of bought a job lot and are now trying to collect on them !!

Bunch of chancers the lot of em !!!