DMP & Mutual Support Thread - Part 11

Challenger71

Puzzcat wrote: »

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

My car is on 0% finance and finishes in a little less than 2 years and my husbands car is on personal lease finishing in just over 2 years.

sourcrates

Challenger71 wrote: »

My car is on 0% finance and finishes in a little less than 2 years and my husbands car is on personal lease finishing in just over 2 years.

I don't know how stepchange would regard these payments, but I assume they would be classed as essential.

If you self managed they would be essential, so cant see why they would be treated any differently.

Don't forget, a DMP is an unregulated, informal arrangement, you can dictate pretty much what you consider to be essential payments.

Challenger71

sourcrates wrote: »

I don't know how stepchange would regard these payments, but I assume they would be classed as essential.

If you self managed they would be essential, so cant see why they would be treated any differently.

Don't forget, a DMP is an unregulated, informal arrangement, you can dictate pretty much what you consider to be essential payments.

Thank you, I really do apprciate all the advice being given.

Challenger71

What would be a reasonable amount to put down for food / clothing for: Husband, wife, teenager and dog on an SOA?

Puzzcat

Challenger71 wrote: »

What would be a reasonable amount to put down for food / clothing for: Husband, wife, teenager and dog on an SOA?

Hi,
If you go onto stepchange website you can play with the debt remedy which allows you to enter your figures and from what I remember tells you if it thinks it is too much. Just keep changing until you get the highest allowed! Add other items like magazines, smoking, dry cleaning etc. You need to ensure you have wriggle room as a dmp can be a long process and you still need to live too and have occasional treats....
I did the whole process online, submitted when I was happy with the figures but then didn't send back the paperwork until I was ready for it to start.
Puzz.x

LadyMorticia

January2015 wrote: »

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.

Thank you.

I do have things on BNPL with Littlewoods, but when I 'bought' them, they took off the amount of the item and any interest that I would accrue after the BNPL period from my available to spend so I'm not sure how it would work in this circumstance.

Challenger71

Direct Debits
Mortgage £868.93
Life Insurance - Legal and General £27.22
Life Insurance - AIG £52.38
Home Insurance - Nationwide £19.26
Electricity £61.58
Gas £18.02
Water £39.50
Council Tax £146.15
Tesco Mobile - 3 x mobile phones £132.00
Specsavers £22.00
Specsavers £25.00
TV licence £12.12
Sky - TV, Phone and broadband £68.82
Advent Ipad school £22.15
BT £1.60
CAR HP 1 £177.32
CAR HP 2 £375.33
Petplan £41.08
Total £2,124.41

Other monthly outgoings
Car Insurance 1 & 2 £100.00
Car Tax £12.00
Petrol 1 £60.00
Petrol 2 £90.00
Food £700.00
Clothing £100.00
Full Total £3,186.41

Salary 1 - DO £2,158.00
Salary 2 - DA £1,125.00
Child Benefit £82.00
Total salary £3,365.00


Credit Cards Monthly
Barclaycard 1 - DO £480.00
Barclaycard 2 - DA £285.00
HSBC - DA £80.00
MBNA - DA £100.00
Hilton - DO £400.00

Catalogue monthly
Littlewoods £130

Overdraft £1000

Total credit card, catalogue and overdraft debt £49,000

Can we do a DMP with that sort of debt? We do have around £50,000 equity in the house but no one will lend to us due to debts - we have no defaults. Can they make us sell the house? Will debt collectors / baliffs come to our house?

Puzzcat

Challenger71 wrote: »

Direct Debits
Mortgage £868.93
Life Insurance - Legal and General £27.22
Life Insurance - AIG £52.38
Home Insurance - Nationwide £19.26
Electricity £61.58
Gas £18.02
Water £39.50
Council Tax £146.15
Tesco Mobile - 3 x mobile phones £132.00
Specsavers £22.00
Specsavers £25.00
TV licence £12.12
Sky - TV, Phone and broadband £68.82
Advent Ipad school £22.15
BT £1.60
CAR HP 1 £177.32
CAR HP 2 £375.33
Petplan £41.08
Total £2,124.41

Other monthly outgoings
Car Insurance 1 & 2 £100.00
Car Tax £12.00
Petrol 1 £60.00
Petrol 2 £90.00
Food £700.00
Clothing £100.00
Full Total £3,186.41

Salary 1 - DO £2,158.00
Salary 2 - DA £1,125.00
Child Benefit £82.00
Total salary £3,365.00


Credit Cards Monthly
Barclaycard 1 - DO £480.00
Barclaycard 2 - DA £285.00
HSBC - DA £80.00
MBNA - DA £100.00
Hilton - DO £400.00

Catalogue monthly
Littlewoods £130

Overdraft £1000

Total credit card, catalogue and overdraft debt £49,000

Can we do a DMP with that sort of debt? We do have around £50,000 equity in the house but no one will lend to us due to debts - we have no defaults. Can they make us sell the house? Will debt collectors / baliffs come to our house?

Hi,
Well done on the so a. Now go on the sc website fill in the debt remedy and it will help. I had debts of 60k, also homeowner with equity, dmp is due to run for 9 years in total and then the debt will be gone...forever!
Puzz.x

Challenger71

Puzzcat wrote: »

Hi,
Well done on the so a. Now go on the sc website fill in the debt remedy and it will help. I had debts of 60k, also homeowner with equity, dmp is due to run for 9 years in total and then the debt will be gone...forever!
Puzz.x

Thank you, I have done the SOA in more detail again on the SC website and it says to call or live chat, which I will do Tuesday when they reopen. I have also opened a new current account with Nationwide and will be taking in ID on Tuesday, cancelled payments due to go to credit cards Tuesday so that we can start off the new account with some money.

Puzzcat

Challenger71 wrote: »

Thank you, I have done the SOA in more detail again on the SC website and it says to call or live chat, which I will do Tuesday when they reopen. I have also opened a new current account with Nationwide and will be taking in ID on Tuesday, cancelled payments due to go to credit cardHi,s Tuesday so that we can start off the new account with some money.

Hi,
Well done taking control already. We are here to help whenever you need us.
Puzz.x