DMP & Mutual Support Thread - Part 11

Growurown

butterflyballoon wrote: »

I'm not sure that moving to a self managed DMP is sensible; how easy is it? How much admin is involved?

I went self managed about a year ago. It wasn't difficult but did involve some work. I had to call every creditor and most wanted to go through an I&E form, so a good idea to have your budget clearly written down to go through with them. They seemed very concerned that I wasn't paying them too much! Anyway after an afternoon of phoning everyone, payments were agreed and on the same date that the SC payment went to creditors which happens to be pay day so that was all good. Once everything was set up it has been easy, not much admin at all.

One downside I can see though is if you need to make a reduced payment for any reason. I had to do this with SC several times to pay for the dreaded car repairs, and they notified all the creditors for me. If I had to do it now I would have to call every creditor myself to sort it out so a bit laborious. However being self managed does mean that I make the decisions and don't have to follow SC's methods, so it gives me more flexibility.

Ellieseleven

Well done Paul, what a fabulous achievement;)

neiljmuk

Hi guys. With SC as some of you know. Paying 400 a month across all creditors. Most settled and defaulted.

I failed to head advice re getting a sizable emergency fund. My car is poorly and could cost £800 up! Has anyone any experience of asking SC to drop to token payments for a month or two? What are the likely consequences? Thanks in advance! Stressed.

teeni

neiljmuk wrote: »

Hi guys. With SC as some of you know. Paying 400 a month across all creditors. Most settled and defaulted.

I failed to head advice re getting a sizable emergency fund. My car is poorly and could cost £800 up! Has anyone any experience of asking SC to drop to token payments for a month or two? What are the likely consequences? Thanks in advance! Stressed.

I am with payplan and last month the boiler broke and I had to find £2400 for a new one, hubby paid his half but I had to find mine, I rang payplan as I wanted to reduce my payments for 3 months to allow me to pay the installer over 3 months, they agreed could pay 100 instead of 500 for 3 months but theyhaven't told my creditors, I have had letters from 3 of them and they have reduced my payments for 6 months to allow me to get back on my feet, Payplan have now said that I cant do that as they are not getting equal shares with the other creditors so I have decided to ring all my other credtors tomorrow and see if I can get a reduced plan with all of them for 6 months as I can then pay for the boiler and build up a emergency reserve before going back to the 500 per month payment, 2 of the creditors who have given me a new plan are Barclaycard and they have stopped interest and charges for 6 months, they had reduced to 3% anyway so this may have actually done me a favour . Self managed dmp here I come

Growurown

neiljmuk wrote: »

Hi guys. With SC as some of you know. Paying 400 a month across all creditors. Most settled and defaulted.

I failed to head advice re getting a sizable emergency fund. My car is poorly and could cost £800 up! Has anyone any experience of asking SC to drop to token payments for a month or two? What are the likely consequences? Thanks in advance! Stressed.

I only had to drop my payments for one month. Creditors didn't like it much as I had (in their eyes at least) broken the agreement, but we set it all up again and then it was fine. You have to have a car to go to work, to earn the money to pay the debt, so they can't really say much. Call SC and have a chat to them about it. I always found them to be really helpful.

timetosayenough

Hi everyone,


Well done Patch on starting your payments.


Paul, like Patch I like hearing stories like yours, I too am just setting out on the DMP journey.


SC have agreed I can start my DMP on November 1st. Only problem they already sent letters to creditors saying that I would be starting September 1st so I now need to write to them and explain I won't be starting until November 1st. Not sure what to tell them, should I say I've got outstanding bills to pay?


Haven't heard much from creditors at all.


Got my old dog sorted, got prescription from vets for medication.


Thanks for all your help.

Sazzie23

neiljmuk wrote: »

Hi guys. With SC as some of you know. Paying 400 a month across all creditors. Most settled and defaulted.

I failed to head advice re getting a sizable emergency fund. My car is poorly and could cost £800 up! Has anyone any experience of asking SC to drop to token payments for a month or two? What are the likely consequences? Thanks in advance! Stressed.

Hi Neiljmuk:
Cars - can't live without em, can't afford to keep em! As GUO says, talk to SC, they should be able to come up with a plan, if not, there is always a plan B that someone on here will come up with.

Possibly too late for you, but this weeks MSE email has good links on keeping motoring costs down, my annual service on the jalopy usually costs around £250 with MOT but at least it passes, I just don't have that sort of dosh available. Considering trying one of the MOT only places nearby.

Sure it will work out, it's just a setback, no reason to panic (though £800!!!!!:mad:)

bsclp118

So I have spoken to StepChange today and decided a DMP is the best course of action. I have two loans (Tesco and natwest), 3 credit cards (MBNA, Barclaycard, Tesco) and an overdraft with Halifax, totalling about £26k.

I'm 30... I hadn't told my partner of 18months about my debt until today. He is being very supportive but I feel I have let him down and I'm jeopardising my dream of having a family and mortgage with him one day.

They DMP is predicted to last about 4 years, but I guess this depends on creditors compliance with freezing interest rates?

I guess I'm just looking for some advice really. How likely are creditors to get on board with a DMP? Am I likely to encounter CCJs? I've read a lot about people seeing its better to default early so it leaves your credit file sooner... this sounds scary?

What about life after a DMP. I'm hoping to clear my debt by the time I'm 34. Luckily my partner will only be 27 then so we are happy to wait to start a family. But will we ever be able to get a mortgage?

Sorry so many questions. I called barclaycard this morning who recommended speaking to step change, but after reading on the forum I'm scared things are going to get much worse with ccjs and defaults and creditors possibly not freezing interest/charges? :eek::eek::eek:

neiljmuk

Growurown wrote: »

I only had to drop my payments for one month. Creditors didn't like it much as I had (in their eyes at least) broken the agreement, but we set it all up again and then it was fine. You have to have a car to go to work, to earn the money to pay the debt, so they can't really say much. Call SC and have a chat to them about it. I always found them to be really helpful.

Sazzie23 wrote: »

Hi Neiljmuk:
Cars - can't live without em, can't afford to keep em! As GUO says, talk to SC, they should be able to come up with a plan, if not, there is always a plan B that someone on here will come up with.

Possibly too late for you, but this weeks MSE email has good links on keeping motoring costs down, my annual service on the jalopy usually costs around £250 with MOT but at least it passes, I just don't have that sort of dosh available. Considering trying one of the MOT only places nearby.

Sure it will work out, it's just a setback, no reason to panic (though £800!!!!!:mad:)

Thanks guys. I've dropped SC an email. The work may not be necessary but if the car keeps overheating it's the head gasket after the other bits they already fixed. Any price from this place will be virtually mates rates believe it or not so the expense / reducing it is not open to scrutiny. It will just need paying. Tomorrow is D day. If they are happy with it, I move on and save the biggest rainy day fund going / learn lots more lessons. If worst comes to the worst I hope that SC will manage a drop from £400 to £50 for two months without fuss. I know I can go self managed but can do without the stress of this transition just now and am looking at it for next year.

KID77

Hi bsclp,
I started my dmp 1st July so still quite new to this but have read back over the last 3 dmp mutual support threads and I think as long as you are showing you are trying to pay your debts then ccjs are very unlikely. If you can pay £26k in 4 years then you are still paying a sizeable chunk each month, my comments on that would that creditors may not freeze interest as you are still paying a high amount. As naughty as it sounds, you may be better to increase some of your outgoings on the dmp budget i.e. petrol, food etc which reduces your payment to creditors and then save the rest. You can use this for settling at a later date for hopefully a reduced amount. As soon as you stop paying minimum payments, your credit file will be ruined and creditors dont seem to mind whether you pay £20 per month or £200 as long as you have shown a reasonable budget and that you commit to that. So if file already ruined then why pay more and risk interest being added.
I hope this makes sense but ive typed it quickly with my children running around, any questions, just ask :-) xx