DMP & Mutual Support Thread - Part 11

Sazzie23

FunBrum wrote: »

Hi folks.
Just to recap. I was four years into a DMP that wasn't managing my account properly and charging me just to rub salt into the wound! :mad:
Thanks to the advice on here, I cancelled my direct debit with them. Cancelled my plan with them and contacted StepChange.
They have advised me to go down the 'Pay £1 token payment' route, as my income is so low.
They were great and so I'm just waiting for the paperwork to come through.:T

I just want o thank all the guys on here especially Sourcrates, puzzcat and many more fore all their advice and endless support. :T

I'm sure I'm going to have a fight on my hands but I'm stronger thanks to the support on here and will no doubt be asking more questions as things transpire.:)
Thanks again :A

Hi FunBrum,
Sounds like it's working out well at the moment, well done for making the move.

ploppy57 wrote: »

Hi guys, need a bit of advice again. The DMP was going along nicely and then when I got made redundant we reduced to token payments for 3 months until I got sorted in a new job. Well the new job didn't work out and I now only have something a few hours a week, but I have just also managed to get some casual work, but because it is casual there is no guarantee of how much I will get each month ( if any at all sometimes). WE have been paying £670 a month originally and then reduced to £80 for the 3 months. Well I have just worked out that we can only afford £250 a month, based on my guaranteed wage but may be able to offer extra some months with the casual work.
So question is, would it be ok to explain this to SC and ask if we can pay extra some months? Has anybody had any experience of this at all?

Have you considered telling SC that you have the guaranteed hours to make the payment of £250, and then just making extra payments to creditors as and when you get extra casual work?

I know SC don't admit to letting you do this, but there's many hardcore SC DMPers have done this.

Sorry about the job stuff, it's never easy but with a DMP it's added pressure, well done for getting the work you've managed to secure.

SuperMario3 wrote: »

Hi guys, first time poster but long time reader! I'm currently in debt with credit cards (4) and 1 loan totaling over £30k. After everything is paid off per month, i'm left with around £200 to live on. I've recently heard of StepChange and have applied. I just wonder if people can talk me through what I am to expect if I go the StepChange route. I've always made payments and have never missed anything so that has me a little worried. Also, I live with family. Will my credit rating changes have any affect to them?

Hi SuperM

Many DMPers started off with having never missed a payment but had just got to the stage where they couldn't keep shuffling money to keep up the repayments any longer. When you can't make headway with your debts it's time to consider options such as DMP.

Have you been through your SC budget yet, what will the repayments be like compared to what you pay now? There's no guarantee of interest frozen and a high payment just encourages creditors to keep the interest on. As you will have read, some creditors have a reputation for reducing interest but not freezing it.

Your family shouldn't be affected by the DMP unless you have any joint accounts, debt or otherwise.

Have you considered other options for your debt such as IVA etc with no property to consider it might be more of an option for you?

Hope this helps

Saz

January2015

ploppy57 wrote: »

Hi guys, need a bit of advice again. The DMP was going along nicely and then when I got made redundant we reduced to token payments for 3 months until I got sorted in a new job. Well the new job didn't work out and I now only have something a few hours a week, but I have just also managed to get some casual work, but because it is casual there is no guarantee of how much I will get each month ( if any at all sometimes). WE have been paying £670 a month originally and then reduced to £80 for the 3 months. Well I have just worked out that we can only afford £250 a month, based on my guaranteed wage but may be able to offer extra some months with the casual work.
So question is, would it be ok to explain this to SC and ask if we can pay extra some months? Has anybody had any experience of this at all?

Hi Ploppy

Sorry the job didn't work out. Just talk to SC - they are there to help you and life is rarely simple. I'm sure they will understand and support you through this. £250 per month is massive compared to token payments so don't feel bad about it. Just keep SC in the loop and don't skimp on what you need to live.

As Sazzie says, I would just tell SC what you can pay and if you get any extra then either save it for an emergency fund (which is what I would do), or make extra payments directly to creditors when you can. Remember, unexpected expenses crop up and can throw your plans right out of the window - so think about building up a decent emergency fund first with any extra hours you get.

Lovely to see you on the forum - take care :beer:

SuperMario3

Thanks for the reply, Saz. My repayments via DMP would be about £530, alot better than I am currently paying. Not really looked at an IVA, is it worth a check?

MitziB

Thanks to everyone who has offered their really valuable advice over the queries I've posted recently:T. Advice has already been acted upon and I'll keep you posted of any results. It's lovely to know that there is somewhere to go for non-judgemental help. Being in debt can be a lonely and scary place so it's reassuring to know you are all here:A

Yet another question, I'm afraid:o. I would like to change my internet/landline phone service provider but am worried that because of my poor credit score and the fact that I'm on a DMP I would get turned down. I know I could get a much better tariff if I were to switch my supplier. All my utility bills have always been paid on time and in full, they are nothing to do with the DMP, but I wonder if a new provider would do a credit check of my general credit-worthiness and refuse to have me:eek:.

I'd be grateful for any help from anyone who has been there and done it please.

System

January2015 wrote: »

Hi Ploppy

Sorry the job didn't work out. Just talk to SC - they are there to help you and life is rarely simple. I'm sure they will understand and support you through this. £250 per month is massive compared to token payments so don't feel bad about it. Just keep SC in the loop and don't skimp on what you need to live.

As Sazzie says, I would just tell SC what you can pay and if you get any extra then either save it for an emergency fund (which is what I would do), or make extra payments directly to creditors when you can. Remember, unexpected expenses crop up and can throw your plans right out of the window - so think about building up a decent emergency fund first with any extra hours you get.

Lovely to see you on the forum - take care :beer:

Hi Jan

I have spoken with SC now and they agree that we can pay £255 a month DMP and when I get any extra send it to them and they will share it out between preditors. I notice you mentioned paying preditors directly. Is this ok, or would SC look down on this? I would quite like to do this as we have a few debts that are quite small....£300-800 each and could easily pay these ones off first if we pay directly. What is SC's view of doing it this way though?

System

Sazzie23 wrote: »

Hi FunBrum,


Have you considered telling SC that you have the guaranteed hours to make the payment of £250, and then just making extra payments to creditors as and when you get extra casual work?

I know SC don't admit to letting you do this, but there's many hardcore SC DMPers have done this.

Sorry about the job stuff, it's never easy but with a DMP it's added pressure, well done for getting the work you've managed to secure.



Saz

Hi Saz,
I notice you say basically what Jan says, pay creditors directly when I get the extra money. What do you think SC will say to that? When I spoke to them, they said to pay extra via them, so they could share it out, but I would rather pay a lump sum off each of the smaller ones. Especially as the smaller ones have all been sold to DCA and defaulted already, we may be able to get a P&F settlement? Not sure if SC would look down on that though. Did consider going self managed but not sure if it is best to wait a while for that.

cat1978

Sazzie23 wrote: »

Hi Cat

Yes to claiming PPP, bank charges and anything else you can think of.

Regards the proceeds of house sale, where are you planning to live, will you need anything for deposits/fees etc ?

Saz

We are currently living in my house which is mortgaged. However just to complicate things, we are hoping to sell and move to the Isle of Man!!! Bit worried about jumping off the property ladder, especially as not sure if we'll ever get a mortgage as OH is already 47 and will be another 5 years or so, before the defaults will drop off his credit file.


Thanks for the advice, it's kind of what I thought, but wanted a fresh pair of eyes without telling anyone i know what our situation is

Cat xx

make_the_change

Hi All,

Me again! I contacted my creditors regarding my home situation and needing to fund this and therefore wanting to make token payments. Well continue to. They have replied saying until I give them and income and expenditure list and prove that I can only afford £1.00 a month there is nothing they can do and will continue to charge interest etc....

My only fear is if I send this and then do find somewhere, I will then need to update my income and expenditure and they will question how I managed to tighten things so much to save to move and then suddenly still can't afford much when I start my DMP. I haven't started a DMP but I manipulated a few figures to give wriggle room, if that makes sense?!

What should I do? Just not send it, ignore the calls and keep referring them to my StepChange reference number until I am ready to start a DMP and thus save as much as I can in the meantime?

Thanks

System

Trying to get BC to stop interest as they are the only ones still charging it :mad:and now that we have had to reduce payments, we will never get it paid with them as their interest is more than the payments now!. :mad:

Lady at SC said that there is a bit in the Lending code about them having to treat people fairly when in financial difficulties etc. Can anyone point me in the direction of this great piece of writing?

Thanks again guys.

Puzzcat

make_the_change wrote: »

Hi All,

Me again! I contacted my creditors regarding my home situation and needing to fund this and therefore wanting to make token payments. Well continue to. They have replied saying until I give them and income and expenditure list and prove that I can only afford £1.00 a month there is nothing they can do and will continue to charge interest etc....

My only fear is if I send this and then do find somewhere, I will then need to update my income and expenditure and they will question how I managed to tighten things so much to save to move and then suddenly still can't afford much when I start my DMP. I haven't started a DMP but I manipulated a few figures to give wriggle room, if that makes sense?!

What should I do? Just not send it, ignore the calls and keep referring them to my StepChange reference number until I am ready to start a DMP and thus save as much as I can in the meantime?

Thanks

Hi,

I don't really think there is anything else you can do except ignore the request for the i & e, unfortunately the debts will keep rising until you are up and running with your dmp but realise your house move is the most important thing at the moment. With luck they will all get defaulted/sold on and then the interest will get frozen anyway..!

Puzz. x