DMP & Mutual Support Thread - Part 11

Dandytf

Bouncybubbles wrote: »

Has anyone else had to add an unexpected debt (final electric/gas bill which was huge!) on to their DMP at a very early stage? I have only made one DMP payment and my creditors seem to be relatively reasonable about it all even though some are still charging interest it is at a reduced rate. I feel that by having to add this debt on it may upset the apple cart right at the start!

I did add a Scottish power bill after a year or2 into sc dmp, was a few hundred and SC added it no probs though went through budget again. I think SC advised they wouldn't accept adding lots more if I kept calling during dmp, though that was just for my electricity at the time.

LadyMorticia

Please may I ask a stupid question?

Why are defaults deemed a good thing when in debt? I was always told that they weren't a good thing to have on a credit report.

zenshi

LadyMorticia wrote: »

Please may I ask a stupid question?

Why are defaults deemed a good thing when in debt? I was always told that they weren't a good thing to have on a credit report.

Firstly, there are no stupid questions, just ones you don't know the answer to

You want defaults early because they stay on your report for 6 years. Imagine if you have been in DMP for 5 years say and have nearly paid one off, then they default....that's a further 6 years on your file

blisteringblue

BeingDebtFreeStartsHere wrote: »

Guess what arrived in the post on Friday............................

A default notice from BC!! :j:j:j:j

We were definitely not expecting that!!

They will still play games though, I've had mine OK, but Mrs BB got her default notice last September and it still has not appeared on the file. In the past month it has become a closed account with Barclaycard though, so fully expect it to pop up as PRA Group soon like mine has. We have been paying a token payment for 13 months at this point to even get this far.

Scottishmummy

LadyMorticia wrote: »

Please may I ask a stupid question?

Why are defaults deemed a good thing when in debt? I was always told that they weren't a good thing to have on a credit report.

They are not a good thing when you want more credit but when you are already in debt or on a dmp, you don't really want more credit do you?
If a debt was to take ten years to repay, if defaulted early it disappears after 6 years so no longer shows on your credit report even if you are still paying it off. We have been on our dmp 12 years now and all of our debts except one have disappeared. The one that is still there was defaulted by Scabot in 2010 so will be removed in November even though it will take another few years to finish paying them. If they don't default, they can just keep putting late markers which will remain on your report until six years after your final payment.

LadyMorticia

zenshi wrote: »

Firstly, there are no stupid questions, just ones you don't know the answer to

You want defaults early because they stay on your report for 6 years. Imagine if you have been in DMP for 5 years say and have nearly paid one off, then they default....that's a further 6 years on your file

Scottishmummy wrote: »

They are not a good thing when you want more credit but when you are already in debt or on a dmp, you don't really want more credit do you?
If a debt was to take ten years to repay, if defaulted early it disappears after 6 years so no longer shows on your credit report even if you are still paying it off. We have been on our dmp 12 years now and all of our debts except one have disappeared. The one that is still there was defaulted by Scabot in 2010 so will be removed in November even though it will take another few years to finish paying them. If they don't default, they can just keep putting late markers which will remain on your report until six years after your final payment.

Thank you both. That makes alot of sense.

Definitely don't want more credit!

LadyMorticia

Hello. Me again.

Please may I ask you about interest being suspended? I currently have debts with Littlewoods and Very (who are both Shop Direct), Argos, Capital One, Vanquis, Aqua and H&M. Has anyone successfully had the interest suspended on any of these when they know you're on a DMP with SC?

Littlewoods were the ones who actually put me in touch with SC and SC say they have a good relationship with creditors, but as someone who suffers severely with anxiety, I'm still worrying immensely.

Thank you.

sourcrates

LadyMorticia wrote: »

Hello. Me again.

Please may I ask you about interest being suspended? I currently have debts with Littlewoods and Very (who are both Shop Direct), Argos, Capital One, Vanquis, Aqua and H&M. Has anyone successfully had the interest suspended on any of these when they know you're on a DMP with SC?

Littlewoods were the ones who actually put me in touch with SC and SC say they have a good relationship with creditors, but as someone who suffers severely with anxiety, I'm still worrying immensely.

Thank you.

Lady morticia, love the name by the way, what exactly is it that worrys you ?
Ive read hundreds of posts similar to yours, from people who don't know what to expect when entering a DMP.

To you it's the big Unknown, to people like me, I've been there done that, lived through it, you should not worry about how your creditors will view your DMP, they either like it, or lump it, if they lump it, they simply sell your account on, and stepchange deal with another creditor.

What I'm trying to say is that things will carry on no matter what, whoever owns your debt, sc will deal with them, they will always ask for interest and charges to stop, and once an account gets sold, this happens anyway, try not to worry about things you have no control over, it will work out eventually.

Sazzie23

LadyMorticia wrote: »

Hello. Me again.

Please may I ask you about interest being suspended? I currently have debts with Littlewoods and Very (who are both Shop Direct), Argos, Capital One, Vanquis, Aqua and H&M. Has anyone successfully had the interest suspended on any of these when they know you're on a DMP with SC?

Littlewoods were the ones who actually put me in touch with SC and SC say they have a good relationship with creditors, but as someone who suffers severely with anxiety, I'm still worrying immensely.

Thank you.

Hi Ladym
Welcome to DMP land, it is normal to worry, and many will understand your anxieties. As Sourcrates says, try to look at your reasons for worry and deal with them rather than worrying about the whole situation, as it will work out OK, it just takes time.

We usual suggest to expect a couple of hiccups, they often happen at the start, perhaps a creditor will take a while to sort out the details and keep sends you reminders to pay, or a creditor might 'reject' the plan, SC will tell you to keep paying and the world will not fall in.

I found being informed about stuff, defaults, credit files, DCA etc reduced the anxiety when I got letters or had to contact the creditors for any reason.

Come on here and rant, question, share your worries or curse and we'll always try to help, sympathise and point you in the right direction, so you are not doing this in your own.

Saz

Sazzie23

BeingDebtFreeStartsHere wrote: »

Hi everyone,

Hope you're all doing ok

Guess what arrived in the post on Friday............................

A default notice from BC!! :j:j:j:j

We were definitely not expecting that!!

The last creditor now that we need to issue us with a default notice is The Co-Operative. We'll be pursuing that one!

Take care

BDFSH x

Woohoo, at last. How long did it take ?

Signature is looking good