DMP & Mutual Support Thread - Part 11

Bouncybubbles

As far as i can gather also you can phone them with your token payment or do it online if possible

Puzzcat

Pipkin89 wrote: »

I posted in another thread, but someone recommended I ask for help here...

I am in the process of setting up a DMP with Step Change. My creditor is Natwest, with whom I have two loans and an O/D.

I have never missed a loan payment with them, but have recently amassed a huge O/D debt, which means I will no longer be able to make the loan payments successfully. I have acted quickly and should still be able to make this month's loan payments, but won't be able to contribute to the O/D balance. Someone has suggested I make token payments towards the loans in order to help clear the O/D... Can someone please explain what a token payment is and how I go about doing it?

Do I need to speak to Natwest or simply cancel the direct debit? I am very confused!

Hi Pipkin89,

Glad you found us okay..!!

Right so first you need to open a basic bank account with someone you have no debts with. If you can do this before the loan payment is due and then move any money you have into the new account and ensure your income/wages are directed to the new account. The od will just become another debt for your dmp.

You will need to communicate with your creditor/s, I will post up a template letter in a minute that you can adapt/use. A token payment is literally what it says. I sent a £1 by cheque for 3 months with a covering letter for each month until my dmp with SC started. Others have paid online with a debit card or you can send a postal order but they do cost 70p on top of the £1. It is important to save up some pennies for an emergency fund., hence why we don't encourage that you rush into starting the SC dmp. Ensure you leave yourself some wiggle room in your SC budget, for most of us a dmp is a long journey..

When you have time, make yourself a cuppa and try to read back this thread and some of the others if you can.

Puzz. x

Puzzcat

A template..

Your address




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

Pipkin89

Many thanks for your help.

I have amended the letter you have given and offered £5 a month as a token payment. I shall post this today. Is it best to send this recorded delivery or does this not matter? Also, where can I find the correct address to send this to? I don't want it to be delayed because I have sent it to the wrong place.

Due to one of the loan accounts being new and me not making a monthly payment yet it is not showing up online as one of my direct debits, so I'm unsure how I can cancel this? Natwest haven't been very helpful over the phone! I also wouldn't know where to send a token payment to, or how to pay online! I feel very in over my head!

I already have a separate account, as I don't usually use the Natwest account for anything (apart from amassing debt, apparently!) so that's not a concern. I shall focus on putting some money aside. My OH feels if we have spare money it is better to contribute it to paying off the debts and making overpayments. Is this correct, or should I just stick with the DMP and any residue money keep as an emergency fund?

Puzzcat

Pipkin89 wrote: »

Many thanks for your help.

I have amended the letter you have given and offered £5 a month as a token payment. I shall post this today. Is it best to send this recorded delivery or does this not matter? Also, where can I find the correct address to send this to? I don't want it to be delayed because I have sent it to the wrong place.

Due to one of the loan accounts being new and me not making a monthly payment yet it is not showing up online as one of my direct debits, so I'm unsure how I can cancel this? Natwest haven't been very helpful over the phone! I also wouldn't know where to send a token payment to, or how to pay online! I feel very in over my head!

I already have a separate account, as I don't usually use the Natwest account for anything (apart from amassing debt, apparently!) so that's not a concern. I shall focus on putting some money aside. My OH feels if we have spare money it is better to contribute it to paying off the debts and making overpayments. Is this correct, or should I just stick with the DMP and any residue money keep as an emergency fund?

Hi,

This is the address I sent my letter to for a loan and od with Natwest..

NATWEST REGISTERED OFFICE
135 BISHOPSGATE
LONDON
EC2M 3UR

You can cancel dd's online but if it isn't set up then not sure how you go about this...!
I would ultimately stick with the dmp payments and save any extra for the emergency fund as you will have no access to credit.

Puzz. x

MitziB

I was just wondering about what you said about not having access to credit when on a DMP, Puzz. It doesn't affect me really as all my CCs are part of the DMP anyway, but I just wondered what would happen if someone on a DMP has a Credit Card that they don't owe money on. Do they still need to declare it to StepChange? I know it's slightly different but my basic bank account with Nationwide shows up on my Noddle credit history but has never had an figures attached to it. Just shows as zero regardless of how much money is in the account.


Someone I know who is thinking of going on a DMP wants to keep quiet about a current but unused CC (to keep for a real emergency only and hopefully never have to be used) but is worried to ask SC about keeping it in case they say no!

Puzzcat

MitziB wrote: »

I was just wondering about what you said about not having access to credit when on a DMP, Puzz. It doesn't affect me really as all my CCs are part of the DMP anyway, but I just wondered what would happen if someone on a DMP has a Credit Card that they don't owe money on. Do they still need to declare it to StepChange? I know it's slightly different but my basic bank account with Nationwide shows up on my Noddle credit history but has never had an figures attached to it. Just shows as zero regardless of how much money is in the account.


Someone I know who is thinking of going on a DMP wants to keep quiet about a current but unused CC (to keep for a real emergency only and hopefully never have to be used) but is worried to ask SC about keeping it in case they say no!

Hi,
When on a dmp with sc you are not meant to take out additional credit, which they would be if they used it. I just wouldn't mention it but if they use it they would need to be sensible with it or it would just lead to more debt.
Bank accounts don't show balances, well mine don't but cc's do on noddle.
Puzz.x

Pipkin89

Thanks for all your help, Puzzcat. I have sent the letter off today, but not to the address you've given... It was one to the Customer Relations Manager. Either way I think it'll get there!

I shall keep any extra to one side then. My OH believes it'd be better to clear the debt, but with a baby on the way I'd rather with had an emergency fund available to us!

Puzzcat

Pipkin89 wrote: »

Thanks for all your help, Puzzcat. I have sent the letter off today, but not to the address you've given... It was one to the Customer Relations Manager. Either way I think it'll get there!

I shall keep any extra to one side then. My OH believes it'd be better to clear the debt, but with a baby on the way I'd rather with had an emergency fund available to us!

I'm sure it will land on the correct desk, and if you get any calls in the meantime just say "I am setting up a dmp with sc and this is my reference number, goodbye!"
:T Congratulations on your news!
Puzz.x

Scottishmummy

Pipkin89 wrote: »

Thanks for all your help, Puzzcat. I have sent the letter off today, but not to the address you've given... It was one to the Customer Relations Manager. Either way I think it'll get there!

I shall keep any extra to one side then. My OH believes it'd be better to clear the debt, but with a baby on the way I'd rather with had an emergency fund available to us!

In that situation you definitely want to have an emergency fund. Congratulations :T