DMP & Mutual Support Thread - Part 11

phoenixx

Dory2016 wrote: »

Just wanted to say hi and thank you. I've read all of this thread (and the previous one!) Since my lbm two weeks ago. I spent that weekend feeling so desperate and anxious as I didn't know where to start with my debts. They're all my own and my husband doesn't know the full figure of what I owe. I wish I could say that I have a lot to show for nearly 16k but in all honesty it's been nearly 15 years of putting a bit on a card here and there. My lbm came when I realised that I'd taken a pay day loan out for the second month in a row and unless I did something drastic it was a cycle that I wasn't going to be able to get out of
So in the last two weeks I've contacted Step Change, set up a new personal account and persuaded my husband to move the joint account without him being aware that the main reason is that I'm scared Santander will set off my debt with them by using the account that we both pay into to pay bills. I've told him that I'm sorting out my debt without being specific about going into a dmp and what I owe.
My main concern at the moment is that with the budget I set my dmp isn't due to finish for nearly 10 years... a few months before our fixed rate mortgage is due to expire. My credit score is already at 1/5 and I'd really like to get it back up before we need to look at other deals. I purposely set my budget the way I did knowing that we have a young child, would like to have another at some point and that actually if we tighten our belts I should be able to pay it all back a lot quicker. It was just the crippling interest charges that were meaning that I wasn't making a dent in the actual debt. I suppose by setting it low I might actually default quicker and be in a position to start building my score back up in 6/7 years?!

Hi Dory2016
Well done for facing the debt and getting your new bank account and plan going. You have taken two really important steps. I would urge you to be completely open with your husband about your debt and of course what you are doing to address it. I speak from personal experience and one failed marriage that telling your partner everything is a must. Have SC recommended a DMP? A DMP will trash your credit rating whatever happens but it was the best thing we ever did and I have never regretted it. We are self managed now after 4 years with SC. Securing 0% interest and getting defaults should bring your debt free day closer and there are other things you can do like offering full and final settlements when in a position to do this. There are many more knowledgeable people on here than me who will give you specific advice. Please though tell your husband everything. Good luck and keep us posted of your progress.
phoenixx. Xx

BeingDebtFreeStartsHere

sourcrates wrote: »

A IVA may be an option for you, again, it would depend on what your contract of employment says in regard to this, maybe look into this a bit more ?


I read your previous posts, struck a bit of a chord with me, I have 3 kids, and if your hard up for money, it can be a real drag, that's why I don't subscribe to the "pay off debt at all costs" theory, you must have quality of life as well, as you will never get this time again with your kids.

There is another option, wont be a popular choice, and I`m not saying you should choose this option, but I`m just throwing it out there for you, if the DMP is leaving you short of money, switch to token payments of £1, or, stop paying altogether.

Save the money up that you would of paid to your creditors, allow yourselves a bit more room in your budget, then with the money you save, if, or when, a creditor threatens to get legal, settle each account on that basis, for as little as possible.

Do this till the debts become statute barred.

The fact is, less than 10% of debts ever get to court, and due to the timescales involved, the process can take years.

Not advising you do this, its purely for information purposes.

Thanks Sourcrates - I'll definitely explore the IVA option a little more but I really don't want to inform my employer - I could not face that. I think that seems to be part of the deal when you embark on an IVA. We really could not afford the fees either, plus I worry about the impact on our mortgage - I really don't want to rock the boat where that's concerned if at all possible.

Thank you so much for all of your advice - I will do a bit more researching on everything you have mentioned - you are all so helpful and knowledgeable

BDFSH x

Ali80

Has anyone got the link to the sample letter asking creditors to consider stopping interest please? All but one of mine has stopped interest and I feel like challenging them (again!)!
Thanks.

sourcrates

Ali80 wrote: »

Has anyone got the link to the sample letter asking creditors to consider stopping interest please? All but one of mine has stopped interest and I feel like challenging them (again!)!
Thanks.

There you go :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Freeze-interest-%28sole-name%29.aspx

For future reference, most template letters can be found on the National Debt-line website !!

Bouncybubbles

Had the confirmation of my DMP start date yesterday as the 1/5 also had letters from two creditors agreeing to freeze charges until they heard from step change! To top it off got a much wanted job yesterday ready for me to qualify in September! There is light at the end of the tunnel keep going!

Sazzie23

Dory2016 wrote: »

Just wanted to say hi and thank you. I've read all of this thread (and the previous one!) Since my lbm two weeks ago. I spent that weekend feeling so desperate and anxious as I didn't know where to start with my debts. They're all my own and my husband doesn't know the full figure of what I owe. I wish I could say that I have a lot to show for nearly 16k but in all honesty it's been nearly 15 years of putting a bit on a card here and there. My lbm came when I realised that I'd taken a pay day loan out for the second month in a row and unless I did something drastic it was a cycle that I wasn't going to be able to get out of
So in the last two weeks I've contacted Step Change, set up a new personal account and persuaded my husband to move the joint account without him being aware that the main reason is that I'm scared Santander will set off my debt with them by using the account that we both pay into to pay bills. I've told him that I'm sorting out my debt without being specific about going into a dmp and what I owe.
My main concern at the moment is that with the budget I set my dmp isn't due to finish for nearly 10 years... a few months before our fixed rate mortgage is due to expire. My credit score is already at 1/5 and I'd really like to get it back up before we need to look at other deals. I purposely set my budget the way I did knowing that we have a young child, would like to have another at some point and that actually if we tighten our belts I should be able to pay it all back a lot quicker. It was just the crippling interest charges that were meaning that I wasn't making a dent in the actual debt. I suppose by setting it low I might actually default quicker and be in a position to start building my score back up in 6/7 years?!

Hi Dory

Welcome to the thread and well done for making such a great start at dealing with debt. Can I echo Phoenix, in that telling DH is probably a good move, as secrets like this get very complicated and are not good for relationships. I had 'the conversation' with my partner at that time, and it's definitely not easy but I think most on here who've done it would say it's horrid but better for doing.

You're plan of budgeting for low repayments and then shortening the DFD seems a good plan but that might the sort of thing that takes some explaining to DH.

BeingDebtFreeStartsHere wrote: »

Thanks Sourcrates - I'll definitely explore the IVA option a little more but I really don't want to inform my employer - I could not face that. I think that seems to be part of the deal when you embark on an IVA. We really could not afford the fees either, plus I worry about the impact on our mortgage - I really don't want to rock the boat where that's concerned if at all possible.

Thank you so much for all of your advice - I will do a bit more researching on everything you have mentioned - you are all so helpful and knowledgeable

BDFSH x

Sound advice from Sourcrates, I think there is an IVA thread on the board probably worth a read if you have questions.
You are doing well remember, it's just hard sometimes. Get that budget review done and give yourself a breather.

Saz.

Ali80

sourcrates wrote: »

There you go :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Freeze-interest-%28sole-name%29.aspx

For future reference, most template letters can be found on the National Debt-line website !!

Thank you

Puzzcat

Ali80 wrote: »

Has anyone got the link to the sample letter asking creditors to consider stopping interest please? All but one of mine has stopped interest and I feel like challenging them (again!)!
Thanks.

Alternatively go back to page 118, I posted one recently!
Puzz.x

MitziB

Well, here I am again with what might be a pretty dumb query but I'm sure it was a poster somewhere on this thread who said no question is stupid so here goes. Thanks in advance for everyone's good-natured help and patience:beer:

I know sourcrates keeps referring us back to the National Debtline website (and a mine of information it is too, thanks:T) but I can see no real answer to my query. I've been on so many websites and forums (reading not posting) searching for information that I have totally confused myself (but it doesn't take much these days:o)

Long story short. I am on a DMP and one of my debts is a bank overdraft. Only about £230 remaining from a start of £700+ but I am very concerned about all the excess overlimit fees, late fees, returned-unpaid DD charges etc from the couple of years prior to my DMP. Charges on charges if you know what I mean:eek:.

I had paperless statements so have no record of all the transactions and since being on the DMP my online access to all my bank and credit card accounts accounts has been removed so I have no way of reading/printing old statements.

How can I get copies of the actual statements from 2011 and 2012 please?

I read somewhere that copies of individual statements have to be paid for and are expensive so I thought maybe I could CCA the account for just £1. I'm talking about 24 months-worth. I see from the National Debtline's website's advice on CCA:

You might want a statement of account to check what the creditor thinks you have paid on the account and when.

Would a request result in copies of actual statements for the years mentioned or is there some other method/request I need to use to get access to the information I need please? I don't just want a summary/current state of play. Not totally sure what the quote above means:o.

I hope you are all enjoying the sunshine (it's free after all:j) and not stuck in front of a laptop like me poring over debt websites.

sourcrates

MitziB wrote: »

Well, here I am again with what might be a pretty dumb query but I'm sure it was a poster somewhere on this thread who said no question is stupid so here goes. Thanks in advance for everyone's good-natured help and patience:beer:

I know sourcrates keeps referring us back to the National Debtline website (and a mine of information it is too, thanks:T) but I can see no real answer to my query. I've been on so many websites and forums (reading not posting) searching for information that I have totally confused myself (but it doesn't take much these days:o)

Long story short. I am on a DMP and one of my debts is a bank overdraft. Only about £230 remaining from a start of £700+ but I am very concerned about all the excess overlimit fees, late fees, returned-unpaid DD charges etc from the couple of years prior to my DMP. Charges on charges if you know what I mean:eek:.

I had paperless statements so have no record of all the transactions and since being on the DMP my online access to all my bank and credit card accounts accounts has been removed so I have no way of reading/printing old statements.

How can I get copies of the actual statements from 2011 and 2012 please?

I read somewhere that copies of individual statements have to be paid for and are expensive so I thought maybe I could CCA the account for just £1. I'm talking about 24 months-worth. I see from the National Debtline's website's advice on CCA:

You might want a statement of account to check what the creditor thinks you have paid on the account and when.

Would a request result in copies of actual statements for the years mentioned or is there some other method/request I need to use to get access to the information I need please? I don't just want a summary/current state of play. Not totally sure what the quote above means:o.

I hope you are all enjoying the sunshine (it's free after all:j) and not stuck in front of a laptop like me poring over debt websites.

Hi,

Unfortunately CCA does not apply to bank accounts, only to running credit agreements such as loans, credit cards etc etc.

Different legislation applies to bank accounts.

If all you want to know is how much you paid in charges on this account, simply write to the bank concerned and ask them outright.


Dear Bank,


Re acc no : xxxx xxxx


"COMPLAINT"


What my complaint is about.

I am concerned about the amount of charges and fee`s applied to my account between (date) and (date).


Why I believe my complaint is valid.


I believe these charges were excessive because (enter your reasons).


What I want the bank to do.


I would like a full refund of all over limit charges, late payment fees, failed direct debt fees etc.


Yours sincerely


MitziB

The bank should respond with details of the charges.
If they don't, or you really want to know beforehand what they have charged you, then a SAR (subject access request) would be the way to go, but that will cost you a £10 statutory fee.