DMP & Mutual Support Thread - Part 11

Puzzcat

ramblehan wrote: »

Thanks BB - that's what I was hoping!
Still feeling like I need to be a bit brave. I'm going to write to everyone, cancel direct debits and make manual payments. Am I likely to get hassled by phone at all? Or just letters? All the guidance I have read seems to couch everything in worse case scenarios, but I would die if anyone called my work!

Hi,
Just include all correspondence in writing in your letter to creditors..
Puzz.x

Sazzie23

ramblehan wrote: »

Thanks BB - that's what I was hoping!
Still feeling like I need to be a bit brave. I'm going to write to everyone, cancel direct debits and make manual payments. Am I likely to get hassled by phone at all? Or just letters? All the guidance I have read seems to couch everything in worse case scenarios, but I would die if anyone called my work!

I had the same worry, but I got very few calls at all apart from HBOS who seemed to take ages to find the SC stuff but got there in the end.
No one ever called my work, but I don't think many of them had my works details. If you can get on the on line sites. Take you phone number out or put a 123456 etc in if it insists to you put a number in.

Also as Puzz says add 'correspond in writing only' to your letters to them.

I think most people on here would say the worry far outweighed the reality.

Saz

Emm1E

Hi, I'm a complete newbie and have spent hours reading through a lot of the posts in this thread but need some advice please.
My husband and I are in a lot of debt that we can no longer afford to pay. Through reading the advice on here, we have completed a monthly budget so we know what we can afford and I've worked out pro rata offers to each creditor and the letters are ready to go! Very scary! Couple of questions though...
1) I'm being made redundant at the end of October but we cannot afford to pay NOW as my husband has been off long term sick for over 2 years and hasn't received full pay for over a year (not sure when he'll be back as going in for 4th surgery on Wed). We've managed to keep up repayments up to now. Even with my redundancy payout it wouldn't settle the debt and until I get another job I need to use it each month. Are we doing the right thing setting up DMP now? Also, when we we tell our creditors I've been made redundant?

2) I've read a lot about a safe bank account. What will happen if we continue to use the bank account we have? We are not in the overdraft on this one but have small credit card with them. But my husbands bank account has small overdraft and Liam and credit card. Can they take any money that goes into his account??? Would we even get approved for another bank account elsewhere?
Apologies for all the questions, I just want to make sure we are doing everything right. Thank you.

Puzzcat

Emm1E wrote: »

Hi, I'm a complete newbie and have spent hours reading through a lot of the posts in this thread but need some advice please.
My husband and I are in a lot of debt that we can no longer afford to pay. Through reading the advice on here, we have completed a monthly budget so we know what we can afford and I've worked out pro rata offers to each creditor and the letters are ready to go! Very scary! Couple of questions though...
1) I'm being made redundant at the end of October but we cannot afford to pay NOW as my husband has been off long term sick for over 2 years and hasn't received full pay for over a year (not sure when he'll be back as going in for 4th surgery on Wed). We've managed to keep up repayments up to now. Even with my redundancy payout it wouldn't settle the debt and until I get another job I need to use it each month. Are we doing the right thing setting up DMP now? Also, when we we tell our creditors I've been made redundant?

2) I've read a lot about a safe bank account. What will happen if we continue to use the bank account we have? We are not in the overdraft on this one but have small credit card with them. But my husbands bank account has small overdraft and Liam and credit card. Can they take any money that goes into his account??? Would we even get approved for another bank account elsewhere?
Apologies for all the questions, I just want to make sure we are doing everything right. Thank you.

Hi Emm1E,

Welcome to the dmp mutual thread!

I can answer point 2.. Yes you will need to open a new bank account BEFORE you notify your creditors of your dmp. Banks have the right to offset so can take money from accounts.. Set up your safe bank account first. If you currently have a good credit rating then you shouldn't have a problem opening one, otherwise opt for a basic account everyone is allowed one of these and obviously when on a dmp you can't have an overdraft or credit card.

Do you own your house? Reason I ask is there are other debt solutions but they do depend on home ownership.. and how much you owe!

I would make sure you start your dmp with token payments for a few months so you can save an emergency fund, by that time you will hopefully have found a new job so the redundancy won't be an issue. You will need your redundancy payout to live off if you haven't got another job so don't go offering it all up for payments.

Puzz. x

Emm1E

Thank you Puzzcat. This thread is so helpful.

We do own our home but on shared ownership. It's frustrating as we have around £60k equity but you can't remortgage on shared ownership.

I've already cancelled Direct debits as cannot afford for them to come out. Hubby goes into hospital Wed for operation so not sure if we will have time to set up a new account before the letters have to be posted as payments will be due out around the 25th. Arghhh.

Would they really take our money? If they did we wouldn't be able to pay our mortgage which is also with them. The other factor is that we will have missed payroll cut off to get our salary paid to a different account in time.

I'm finding it all so stressful at the moment. We've never missed any payments, and feel so ashamed about all of this but we should have done something a long time ago. Thanks for your help.

KID77

Hi Em

Welcome to the thread :-)

I would open a new account online with a bank you have no debt with, you can try for a normal account but if rejected they will offer you a basic account.

We managed to do ours with Halifax and all was fine, our credit rating wasn't great at that time either, obviously not as bad as it is now though

If you can't get wages transferred in time you will need to move money on the day you are paid. I dont see the bank taking your money straight away anyway, I think thats something that would happen further down the line....

As for your redundancy money, I wouldn't offer this up for payment yet, wait until you are settled into a new job and know that the money is "spare". Others may disagree but in my opinion, once you have broken the terms of the agreement, they mark your credit file negatively regardless of whether you are paying them £25 per month or £250. So giving them a chunk of your redundancy doesnt really help and you may as well save it and try to use it for partial settlements further down the line. However, if the redundancy does cover or come close to your debts then its probably best to pay them all off than risk any court action.

Keep us updated on how you get on xxx

nextyeartina

If my debt is currently defaulted, will partially satisfied knock the default off? If so, would the partially satisfied remain on my credit file for another 6 years?


Tina x

Puzzcat

nextyeartina wrote: »

If my debt is currently defaulted, will partially satisfied knock the default off? If so, would the partially satisfied remain on my credit file for another 6 years?


Tina x

Hi Tina,
The default will remain on your file for 6 years regardless if paid, not paid or partially satisfied.
Puzz.x

LadyMorticia

Hey everyone.

Our bathroom is finally finished! Woohoo!

With regards to creditors, Vanquis were very quick to issue a default and to stop interest etc and have accepted SC's offer. However, they've said that my minimum payment of £6.44 (which is the amount that will be going to them from my monthly payment to SC) is due on the 27th June, but my DMP doesn't start until 1st July.

Should I pay this payment for June myself or should I explain to them that my DMP doesn't kick in until July?

LadyMorticia

Tis very quiet in here today!