DMP & Mutual Support Thread - Part 11

2spicy

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

Well Done !!!

As others have said, Dont rush things.

Secondly, this is something Ive posted over the years, so Ill repost now as many people are just starting off.

Rule 1. Remember your a human!. <-- You have a right to live, a right to food / clothes etc. BEFORE they have a right to their money back.
If you dont have it, they cannot have it. Simples.
They will call & write to you ... be calm, polite. Squeezing a few extra £££ out of you is their brief. Stay strong, "Your on a DMP (or starting a DMP), I dont have it.)
In your initial contact with creditors, some will default you asap (This is good!), others you will have to force them into defaulting you.
Some will be understanding, others can (not always) be rude to you. Just keep your chin up and remind yourself "I dont have it, so you cannot have it"
Rule 2. Its a Game !.. Learn the rules and how to play within them. These rules cannot be broken, but they can be manipulated for your own benefit.(See Rules 3, 4&5)
Rule 2a. Defaults are your friend!. They take 6 years to expire from your credit file, so the sooner they are issued, the sooner they will be gone.
Some Creditors will try to emphasis how "Damaging" a default can be, but remember, if your looking at a DMP, your already up the creak (only this time you have a paddle and a guide!)
Rule 3. Dont live like a church mouse.. keep a little back to remind yourself of Rule 1. (Bottle of wine / month, the odd icecream in the sun, something special to treat yourself)
Rule 4. This ties in with Rule 3... claim for everything your entitled to .. Pets, Haircuts, Prescriptions, Glasses, Dentists. (even if you dont require any of the items, your entitled to offset money for them before the "spare cash" is calculated). --< use this money to make life a little more comfortable, for school trips for children, or put aside for those unexpected occurrences (car maintenance / washing machine breakdown etc)
Rule 5. You are a victim here, there is nothing to be ashamed about. Were all either going through it with you, or lucky enough to have traveled the journey and are now older, wiser and debt free.
Rule 6. This is the most important rule, and in some ways contradicts all the above rules. If you have debts to the Government (Council Tax), or debts to your Mortgage these Must be your No.1 Priority. Defaulting on these debts will result in Bailif visits and they have powers of entry / removal of goods and ultimately eviction.
Rule 7. Unless Rule 6 had been broken, or you have been taking to court and a CCJ issued, no debt collector will be knocking at your door with any powers of entry or removal. If they do, its against the law, (call the police). Some creditors will send out a leaflet advising a "representative will be calling" ... this is highly unlikely(unless you live next to the creditor!). Neither will they be camping outside your house waiting for you. <-- there is a code of conduct they have to follow too.

If you need to post because your having a bad day, or want to shout how happy you are because you found 10p, Do it here !!.. No one will judge.

Shirt_buttons

Puzzcat wrote: »

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

Thank you for you reassuring reply...
I was going to ask SC for three months grace but was too embarrassed too .. they sent me a text saying it was going to start on 10th May I was mortified as had completed all paperwork and sent back to them and also put on email that I needed a couple of months to get an emergency fund together so wanted to start end of June so it came from my June salary. Anyway I rang them straight away and the lady I spoke to was fantastic and reassured me they wouldn't start it on that date and would wait for me to call at the end of June so by then I would have some cash from April and Mays salary put aside ... I was thinking of going for June as well but was as I said too embarrassed to ask . Will I have to complete all the paperwork again when I call them to start it as a couple of the creditors have not said they will not stop interest so the total I owe them will be higher now ? I am definately going to pick up the telephone today as am off work so can speak freely ... cringe:o

Puzzcat

Shirt_buttons wrote: »

Thank you for you reassuring reply...
I was going to ask SC for three months grace but was too embarrassed too .. they sent me a text saying it was going to start on 10th May I was mortified as had completed all paperwork and sent back to them and also put on email that I needed a couple of months to get an emergency fund together so wanted to start end of June so it came from my June salary. Anyway I rang them straight away and the lady I spoke to was fantastic and reassured me they wouldn't start it on that date and would wait for me to call at the end of June so by then I would have some cash from April and Mays salary put aside ... I was thinking of going for June as well but was as I said too embarrassed to ask . Will I have to complete all the paperwork again when I call them to start it as a couple of the creditors have not said they will not stop interest so the total I owe them will be higher now ? I am definately going to pick up the telephone today as am off work so can speak freely ... cringe:o

Hi
Its your dmp, you can choose when it starts! Just give SC a ring and say you want to delay until ***. Do it as soon as possible though as you don't want them to be telling the creditors a different date. I didn't send my paperwork back until I was ready so don't know when they approach them.

Unfortunately with a dmp the debts do rise before its set up, mine went up about 1%. But then they start to fall and that's.. :D:D

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

Puzzcat

Excellent post 2spicy..:T

craftingqueen_2

Now that we have changed over to Stepchange and sent off the forms (last week) do we need to contact them and when will the DD be setted up? Many thanks for your replies.

Puzzcat

craftingqueen wrote: »

Now that we have changed over to Stepchange and sent off the forms (last week) do we need to contact them and when will the DD be setted up? Many thanks for your replies.

Hi,
If you sent back a dd mandate I expect they will set it up to start next month. Why not give them a call to confirm.
Puzz.x

craftingqueen_2

Thank you puzzcat.

LadyMorticia

Hello.

I'm extremely nervous about posting in this thread. I have only just really admitted to myself that I am in an awful lot of debt and I really need to take control of my situation.

One of my debts is with Littlewoods and they have actually been really helpful and have put me in touch with Step Change. I've done their Debt Remedy tool, but there didn't seem to be anywhere where I could input the monthly costs I have relating to my disabilities. I'm in receipt of DLA, but most of it goes towards the costs that I incur because of my disabilities but I couldn't find where to put this on the form.

Am I just being incredibly dense?

Thank you.

sourcrates

LadyMorticia wrote: »

Hello.

I'm extremely nervous about posting in this thread. I have only just really admitted to myself that I am in an awful lot of debt and I really need to take control of my situation.

One of my debts is with Littlewoods and they have actually been really helpful and have put me in touch with Step Change. I've done their Debt Remedy tool, but there didn't seem to be anywhere where I could input the monthly costs I have relating to my disabilities. I'm in receipt of DLA, but most of it goes towards the costs that I incur because of my disabilities but I couldn't find where to put this on the form.

Am I just being incredibly dense?

Thank you.

Hi,

DLA is not counted as income for debt repayment purposes.

It's there to provide you with the care/service you need, it's not for repaying debts, so don't include it in your income.