DMP & Mutual Support Thread - Part 11

Puzzcat

MrsKM wrote: »

So I have taken the bull by the horns and started a DMP today with Step change very nervous but feeling relieved that I am trying to take control. Any advice for a newbie to DMP's

Hi,

Don't rush to start, pay token payments for a few months to build up an emergency fund.
Allow plenty of wriggle room in your budget, a dmp is a marathon not a sprint!
Make a cup.of tea and start reading this thread and previous one's, loads of information to assist you.
Pop in anytime with questions, there is usually someone around to help!
Well done and good luck, a dmp was the best financial decision I ever made.
Puzz.x

MrsKM

Thank you I'm feeling nervous just making the calls to creditors to inform them of the DMP for the 30 day holding period. I am estimated to be debt free in 5 years I feel like I can see the light at the end of the tunnel although it is a long way off.

phoenixx

MrsKM wrote: »

Thank you I'm feeling nervous just making the calls to creditors to inform them of the DMP for the 30 day holding period. I am estimated to be debt free in 5 years I feel like I can see the light at the end of the tunnel although it is a long way off.

Hi

You should write to them to explain. Lots of templates to be found on this thread. An agreement made on the phone would need to be backed up in writing anyway so you could spare yourself the angst and go postal. In the early DMP days I avoided calling creditors at all costs but 5 years on it holds no fear. Most are very pleasant when you explain your situation and we've also found that when you know what you're talking about they don't argue. I have learnt so much about dealing with different creditors (including DCAs) from this forum. As puzz suggests - read through this and the last thread for reassurance and enlightenment. 5 years is really doable in terms of clearing your debt. We have about 2 years to go. I do wish that at the beginning we'd paid token amounts for longer to build a proper emergency fund. Keep us posted about how you get on.

phoenixx

I was going to wait until we'd gone under £30k owed but since two thirds of debt is now repaid, it's enough of a milestone. I may venture to The Milestone Inn later for a Strawberry Daquiri! :beer:

January2015

phoenixx wrote: »

I was going to wait until we'd gone under £30k owed but since two thirds of debt is now repaid, it's enough of a milestone. I may venture to The Milestone Inn later for a Strawberry Daquiri! :beer:

Way to go Phoenix.

I can so relate to your debt figures....and can't wait until mine look as good as yours.

Enjoy that Daquiri - you thoroughly deserve it:beer:

bsclp118

MrsKM wrote: »

Thank you I'm feeling nervous just making the calls to creditors to inform them of the DMP for the 30 day holding period. I am estimated to be debt free in 5 years I feel like I can see the light at the end of the tunnel although it is a long way off.

Someone's already said this but just wanted to say I was really worried about calling them so I posted letters! I also asked to be contacted in writing by the creditors so I had a copy of everything. So far things seem to have run very smoothly with zero phonecalls other the to stepchange.

bsclp118

Puzzcat wrote: »

Hi,

BC are probably the most difficult creditor, certainly they are the one's that like to charge interest/stop and then restart when your payments reach a certain %. Completely have no idea what the difference is between informal and formal, but I am almost certain that it will have nothing to do with defaulting you as they definitely don't like doing that..! It will more likely be to do with the % of your payment v the original minimum payment and then whether they charge interest or not.

BC finally sold me on earlier this year so I do now have a shiny Red D by my DCA debt, but that is over 2 years into the dmp.

Puzz. x

Thanks Puzz,

Looks like I might have to send another letter saying all my other creditors are in the process of defaulting me - why aren't they? Not sure this would do much good though?

So I guess i might have to go self managed it to force there hand. G'ahh. :-(

Shirt_buttons

Hi all,


I have sent the first lot of letters to creditors advising I am starting a DMP with SC and sent token payments. Most came back and said they would hold off contacting me for a Month and that month is nearly up. I am due to start paying SC at the end of June (that has given me two months to build up a small pot and they will pay creditors 10th July) so my question is ... do I send the same letter advising I am setting up a DMP with SC or is there another template somewhere saying its still on going or is it just a case of rewording.. appreciate all your help.


BTW Halifax are the only ones who have not replied even though I have written twice, they have been calling me 3 times a day too ... I am going to pick up today .. bit nervous
also Santander asked me to call them to discuss a plan ... I never.


Thanks again

Puzzcat

Shirt_buttons wrote: »

Hi all,


I have sent the first lot of letters to creditors advising I am starting a DMP with SC and sent token payments. Most came back and said they would hold off contacting me for a Month and that month is nearly up. I am due to start paying SC at the end of June (that has given me two months to build up a small pot and they will pay creditors 10th July) so my question is ... do I send the same letter advising I am setting up a DMP with SC or is there another template somewhere saying its still on going or is it just a case of rewording.. appreciate all your help.


BTW Halifax are the only ones who have not replied even though I have written twice, they have been calling me 3 times a day too ... I am going to pick up today .. bit nervous
also Santander asked me to call them to discuss a plan ... I never.


Thanks again

Hi,
I would just slightly reword the letter to let them know you are still in the process of setting it up and send another token payment. I did this for 3 months with no trouble. Be brave, pick up the phone and tell them "I am setting up a dmp with sc and this is my reference number", don't be led into further conversation this is all they need to know.
Puzz.x

2spicy

Puzzcat wrote: »

Hi,

BC are probably the most difficult creditor, certainly they are the one's that like to charge interest/stop and then restart when your payments reach a certain %. Completely have no idea what the difference is between informal and formal, but I am almost certain that it will have nothing to do with defaulting you as they definitely don't like doing that..! It will more likely be to do with the % of your payment v the original minimum payment and then whether they charge interest or not.

BC finally sold me on earlier this year so I do now have a shiny Red D by my DCA debt, but that is over 2 years into the dmp.

Puzz. x

BC charged us interest for the life of our DMP at the end, when the account had been paid in full, they recorded it as "Partially Settled".
MrSpicy kicked off, and had an apology and the entry on the credit score amended (they actually removed the entry from the credit file completely).
This pushed our combined scores up almost 200 points, giving us both "excellent" scores !! :rotfl:

Since completing our DMP, we have applied and received credit for home improvements without any issues :eek: