DMP & Mutual Support Thread - Part 11

GibbsRule_No3

The thing I find is funny is that the credit file defaults are from the two firms who had to pay me PPI, so they took their money before giving me the rest, but because I was paying them the reduced DMP over the months that is what is showing. Accounts settled and closed but the months of reduced payment show. John Lewis who accepted a F&F and Barclaycard who kept adding interest throughout, until they were paid off last, do not have any markers showing. I don't want to lie to my sister about being turned down and believe me she will ask, she is like a dog with a bone. I thought going into the branch and seeing a person who could see the finances written down despite me telling him I had been on a DMP might have an unlock capability, all he said was "look at your credit file with Experian". Nothing constructive. I thought applying for too many accounts in a short time, especially as I've been turned down once, causes more declines? Would I like the 123 gains, yes! Do I really care for me, No! It is just what my sister is going to say that irks me, as she is tight with her money, unlike me but as a single person why shouldn't I enjoy it? The first pension lump sum I got away with by not putting it in an account as I moved home, so bought everything new. My reply was "I'm going to use some of it for furniture etc, and don't know how much I'm going to use, so won't bother yet". This new lump sum really won't be needed for anything because I am still working. I have thrown a nice amount into the current new work pension provider, after IFA advise to take the final salary pension as if it was not being used I would be losing money for the years up to State Pension age while I continue to work. I'm sure some replies will be "what does it matter what she thinks" but I do like my sister and would like not to admit to the DMP.

Sazzie23

GibbsRule_No3 wrote: »

So agree about maybe being the only place to say you are on a DMP. Here is the rub. I finished my DMP two years ago, never told anyone except a union rep at work. So family and friends never knew. Now my finances are exceedingly healthy, due to my age and still working but taking works pensions as well that came with lump sums. My sister has been going on at me to get the lumps sum into the 123 Santander but as expected, due to the DMP and despite going into a branch with a "human being" going through the process (really all he did was what I could have done online) I was turned down. So what do I do when she asks how I got on, confess after all this time about the DMP seems the only way? Not sure how to fudge the issue and just say I was turned down as she will want to find out why and I know it is the DMP, despite it being paid off and the amount of money I now have in my good old Co-op savings account. It doesn't look like I can change the basic bank account. I also don't fancy trying to open other bank accounts because I'm sure they would turn me down as well. Very frustrating with all this money now rattling around and Yes! I have more than enough to fill the full amount of the 123 account with spare for a TSB one as well. Enough money to go in to meet the monthly needed and DDs for both. Good news is the DMP made this possible, bad news the DMP does live on for many years after closure. Main problem telling my sister, who would be good on those shows that do coupon collecting. Forgot to say I am quite happy with the Co-op savings account and if she had not kept going on, because I thought I would be turned down, I would not have bothered myself other than out of curiosity having this amount of money. Wonder what happens to a Lottery winner?

Congrats at not only paying off your DMP but living a lifestyle you that allows you cash to save, I'm truly happy for you as I know DMP life can be touch, so you've earned a break. Sadly credit scores are a bit rubbish, do you noddle, to see what they have recorded and when it wil drop off your file?
Best excuse I could think of for sister is either that you have had a previous account with Santa which you weren't happy with or that you've discovered someone has 'stolen your ID and ruined your credit score.....

On the good side, I opened a Yorkshire bank account with no trouble, and was eligible for the opening bonus. My credit score is pits 1/5, so just because Santa don't want you doesn't mean you wouldn't get anything.

Hope it helps :T

Sazzie23

KID77 wrote: »

Hi All

I did my DMP review today online but it told me I had to call which I did, brought baxk the nerves of last year.
They said as DFD over 10 years they recommended an IVA but I said I would prefer to stay as I am which wasn't an issue, think they just have to be seen as offering the option.
We upped our payment slightly and they are going to send out the offer to creditors so apparently I should recieve letters saying they accept or possibly reject, its made me a little anxious but trying not to think about it.

I will report back :-)

Have a good bank holiday weekend everyone xx

Standard practice from SC, and when I reviewed under similar circs, I don't recall any of the creditors so much as blinking about the very slightly increased payments? Why would they complain, they are getting more money...wouldn't give it another thought.

LadyMorticia

January2015 wrote: »

Yes - stop making payments to creditors immediately. If you can cope with phoning your creditors and advising your are setting up a DMP with SC then they will start a 30 day no contact, no interest period straight away. Give you peace of mind whilst the DMP is being set up. Even if you have already contacted your creditors and advised you are setting up a DMP with SC - then still stop making payments to them immediately. Don't panic, nothing bad will happen - honestly

Thank you. I'm on a reduced payment plan with Littlewoods and Very and I wasn't sure if I should keep paying them the reduced amount until my DMP kicks in or just not pay anything until then.

January2015

LadyMorticia wrote: »

Thank you. I'm on a reduced payment plan with Littlewoods and Very and I wasn't sure if I should keep paying them the reduced amount until my DMP kicks in or just not pay anything until then.

Let them know now you are organising the DMP and, as mentioned above, they implement 30 day no contact, no interest straight away.

The only thing I would say about catalogue debts, is if you have any buy now pay later debts with them, they allow you to drop to token/reduced payments, but if you don't clear the debt before the buy now pay later (BNPLA) kicks in then they whack on the interest that has accrued and you debt with them soars. I was with Stepchange, but opted to make separate additional payments to the catalogue as and when I could to ensure the debt was cleared before the BNPL kicked in.

Challenger71

KID77 wrote: »

Hi Patch
I agree on emotions and I still think about debt 24/7, not as worried as i was before starting dmp but it still conerns me obviously.
I started mine July 1st and have heard back from all creditors confirming they accept plan and agreed to freeze interest. So as far as dmp plans go, its going well so far.
Good luck and keep us posted
xx

Can I ask who you DMP with? Did you contact creditors yourself?

If our interest could be frozen it would make such a difference to being able to reduce the debt and seeing light at the end of the tunnel. thank you

Challenger71

An utter newbie here, just coming to my senses.

What happens with car payments on a DMP? Husband and I need the cars for work so will they be classed as a priority debt and we still pay them?

Puzzcat

In case anyone needs this..

Your address




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

Challenger71 wrote: »

Can I ask who you DMP with? Did you contact creditors yourself?

If our interest could be frozen it would make such a difference to being able to reduce the debt and seeing light at the end of the tunnel. thank you

Challenger71 wrote: »

An utter newbie here, just coming to my senses.

What happens with car payments on a DMP? Husband and I need the cars for work so will they be classed as a priority debt and we still pay them?

Hello again..!

Creditors are under no obligation to freeze or reduce interest but in the main they do. It will be down to you to challenge anyone who keeps charging interest when your dmp is up and running but we do have a template for that so feel free to ask if you need it later down the line.

Do be aware that your debt will go up in the beginning especially if you do the token payment route for a few months (as proposed by me on your other thread). This is normal but all settles reasonably quickly! Mine went up 1% over the 3 months of tokens.

What sort of car payments are you talking about? Are these on finance/lease/loan??

Puzz. x

FunBrum

Hi folks.

Just wanted to update you on my situation.
I came on here for advise a few months ago. I was with a debt management company that was fleecing me, and because of my change of income, I couldn't afford the monthly payments. To cut a long story short, you advised me to contact StepChange who were fab, and I'm now paying my 4 creditors a token payment of £1 each month until my circumstances change.
This has been a huge weight off my shoulders and has given me breathing space to think what my next move is.

I've been able to save over £2000 in 2 months and hopefully, I will have enough saved by the end of the year to pay them all off and become debt free! I just need to stay focused and reading the advise on here helps me immensely.

Thank you so much to all you lovely people for your help!