DMP & Mutual Support Thread - Part 11

Little_Miss_Sunshine

January2015 wrote: »

Nice to see you back on the forum :j

Stuff the predators - nothing as precious as family. Hope your daughter gets the help you both need

Thanks January. Very kind of you to say. She has anorexia. But after seeing the psychiatrist it seems that she is infact autistic. She's only 13. Hopefully we can move forward now.
Debt wise - I'll do some filing this weekend and try and get back on track. I'm not bothered by their letters - I want defaults! :rotfl:

Little_Miss_Sunshine

Bouncybubbles wrote: »

Hi everyone i have just sent my letter accepting my DMP to stepchange! I am incredibly excited to start getting out of debt! Long story short just over 9K to 6 creditors with 7k of that being at interest rates of over 21%!!! Anyway i have now opened a new bank account with a non-linked bank and have yet to transfer any direct debits . I am panicking a bit though as i have not really missed any payments before (only a couple) and as obviously now all the DD are cancelled i will start to miss payments potentially before the DMP is set up? is that ok or should i phone them and pay?

Hi and welcome to the best thread!

I would advise you to not pay anything ( or £1) token payments for as long as you can.. I'm aiming for 6 months token payments for 2 reasons
1. To save an emergency fund ( bang on que the car needed a new clutch. You won't have access to credit so you will need money saved for emergencies.
2. I want all my accounts to default as quickly as possible. It's a line in the sand -6 years from default date they will disappear. It also gives greater bargaining power for f and f settlements.

Take your time. Don't rush. We've had loads of letters, a few phone calls but nothing else. Make sure your budget is accurate. It's really important.
Good luck

Bouncybubbles

Hi and thankyou its all new to me its just that word 'default' is terrifying! when the DMP comes in to play hopefully within a couple of weeks will they still apply defaults regardless? despite a payment being made

lumpyspaceprincess

Apologies for the post and run, but does anyone have any diary threads / insight on going on a self managed dmp? I think that might be the way forward for me but could do with some experiences and my search skills are apparently lacking severely this morning! (I blame the hubby setting the dryer to start at 5am by mistake, waking me up)

Puzzcat

Bouncybubbles wrote: »

Hi and thankyou its all new to me its just that word 'default' is terrifying! when the DMP comes in to play hopefully within a couple of weeks will they still apply defaults regardless? despite a payment being made

Most probably will but one very well known creditor.. bc don't in the main.. lots of chat about it on here, so try and read back through the thread when you have some time and a cuppa..!!

As previously said it usually a good idea to delay the start to your dmp so you can build up an emergency fund. I did 3 months token payments £1 to each with a letter every month until I was ready and then my dmp with sc started.

Puzz.x

sourcrates

Bouncybubbles wrote: »

Hi and thankyou its all new to me its just that word 'default' is terrifying! when the DMP comes in to play hopefully within a couple of weeks will they still apply defaults regardless? despite a payment being made

Default is actually good, it gives you a definite date it will drop off your file, six years from date of default.

If they don't default you, you cound end up with AP markers (arrangement to pay) on your file for up to 12 years, which is not good.

Most people stop paying, or only pay £1 a month, until the creditor does default you, they also use that time to build up an emergency fund, which again, can be essential if you suddenly need cash for something.

Edit, cross posted with puzz !!

Puzzcat

lumpyspaceprincess wrote: »

Apologies for the post and run, but does anyone have any diary threads / insight on going on a self managed dmp? I think that might be the way forward for me but could do with some experiences and my search skills are apparently lacking severely this morning! (I blame the hubby setting the dryer to start at 5am by mistake, waking me up)

Hi,

I have just gone from sc to a self managed dmp. I used nedcab but I decided I wanted to pay the same as I was through sc so amended the figures that it set as they divide up the payments differently. I also opened a new basic bank account purely for my own dmp to operate through. I just spoke to sc, cancelled the plan, they cancel the payment and sent me a list of my creditors/debts. I then wrote to each creditor with my offer. I requested payment details so I could set up a standing order for each and that was it..!

Puzz.x

Bouncybubbles

Hi sorry to keep probing but baffling myself as time is going on, now i have sent my stuff to Step change will the DMP automatically start as soon as they have received it and spoken with the debt people? i could really do with a little break to build up some funds as mentioned even if it was only a month. Or do step change ask when you would like it to start?

Puzzcat

Bouncybubbles wrote: »

Hi sorry to keep probing but baffling myself as time is going on, now i have sent my stuff to Step change will the DMP automatically start as soon as they have received it and spoken with the debt people? i could really do with a little break to build up some funds as mentioned even if it was only a month. Or do step change ask when you would like it to start?

They will stay contacting your creditors when they receive your signed paperwork. You need to ring them and tell them when you want to start. It is your dmp tell them you want to delay the start until ***. Then write to your creditors with a token payment for each month until sc plan starts. Let us know if you need a template letter.
Puzz.x

Puzzcat

I thought I would pop the template up just in case anyone is looking for one.

Account Details
Date

Dear Sir/Madam



I am writing to inform you that I am currently seeking advice and assistance regarding my current financial difficulties.

I am working with StepChange to set up a Debt Management Plan (DMP) – my reference number is ******* They will send you an offer of payment along with a copy of my budget and list of creditors.

I am unable to meet my normal monthly payments, would you please accept a token payment of £1 per month until StepChange contact you with my DMP details. I would appreciate if you could hold any action on the above account until this time.

I would ask that you please consider stopping or reducing interest and any other charges on my account to help me during my financial difficulties and to avoid increasing my debts any further.

I would please note all future communications should be in writing only.
I thank you in anticipation of your assistance and co-operation whilst I am going through this difficult time, and assure you that I am doing everything I can to resolve my current financial situation in a responsible and sustainable manner.



Yours faithfully