DMP & Mutual Support Thread - Part 11

January2015

neiljmuk wrote: »

Thanks guys!

What were SC like with you, when you told them you were going self managed? Did you phone / email them? Worried about telling them that I'd rather do this than give then a new SOA which they want right now (to invoke after the token payments this and next month).

You mention as long as they will be paid off in 5 years. My DMP is likely to exceed another 10. Was there anything specific in stating 5 years?

Appreciated all. Good to be back in the thick of it. Need to stick around this time and be more pro-active with all of this....

I did email SC and advise them I was going self managed and informed them I had cancelled my direct debit with them. I just thanked them for their support in helping me move forward with resolving my financial problems and explained that I now felt able to manage my debts and my creditors myself. This was more a courtesy email than because I actually needed to contact them though.

Edit: meant to say my DMP has always had a date longer than 5 years. Just under 10 years originally. No problems with any of our creditors.

neiljmuk

blisteringblue wrote: »

5 years seems to be how long creditors like a DMP to last. 30% of our debts are with MBNA and at the very start of the process I got a letter saying DMP will be fine and as long as we made the agreed payments they would stop interest for the whole of the DMP because it was under 5 years in total. OK means I am being marked as up to date on my credit file for the whole of the DMP but I'm done with credit so it doesn't matter.

So are you not defaulted on those debts? I'm guessing it becomes less important if you are fully defaulted as most are aiming for but would like anyone who can do to reassure me that going self managed won't get messy as a result of a much longer repayment period.

Sorry for all the questions and requests for clarification etc etc.

[Edit] Just seen January2015's update, re not being a problem repaying ~10 years. Thanks.

blisteringblue

neiljmuk wrote: »

So are you not defaulted on those debts? I'm guessing it becomes less important if you are fully defaulted as most are aiming for but would like anyone who can do to reassure me that going self managed won't get messy as a result of a much longer repayment period.

No, they have stated in the letter they will not default because they have accepted my payment.

I could force a default using the BC method, but 0% was my goal in all this, defaults were just a bonus. I want to be debt free to live within our means, not get more credit at the end.

neiljmuk

blisteringblue wrote: »

No, they have stated in the letter they will not default because they have accepted my payment.

I could force a default using the BC method, but 0% was my goal in all this, defaults were just a bonus. I want to be debt free to live within our means, not get more credit at the end.

That explains the 5yr thing then. Great! Works well for you then. I'd be less hung up on getting the defaults and a clean file as quick as possible if I had a mortgage already. I have to give myself a chance of a late jump on to the property ladder but there still a good 6 or 7 years to work at the debt primarily...

blisteringblue

neiljmuk wrote: »

That explains the 5yr thing then. Great! Works well for you then. I'd be less hung up on getting the defaults and a clean file as quick as possible if I had a mortgage already. I have to give myself a chance of a late jump on to the property ladder but there still a good 6 or 7 years to work at the debt primarily...

Yes, in that case an early default is in your interest. I know of people that start their DMP with token payments to all for 6 months. Usually enough to get them all to default and then start the DMP proper after this.

Of course be prepared for constant creditor mither this way, but if you ignore the phone, no big deal really.

snowbean

I so wish I'd realised back when we started our DMP almost 3 years ago that being defaulted quickly was a good thing. We have a mortgage already, but ideally would like to move in the not hugely distant future (4 or 5 years or so maybe, it's a bit of a pipe dream I guess!). Sadly, nearly 3 years in and still no default from BC or NW overdraft. I'm not sure if it matters now though, given that we're now in a position to make partial settlement offers? Is there any point in trying to get them to default now, or just better to get on with trying to agree a figure for partial settlement?

Thank you all for your advice so far (both now and way back when we set up the DMP), and sorry if I'm repeating myself or asking silly questions. I think I'm probably over thinking things, but just trying to make sure I do things right / in the best order possible for the best overall outcome, especially seeing as the money for settlements will be coming from my parents. It feels like a huge responsibility. Not having been in this position themselves, they weren't aware of the possibility of agreeing reduced settlement figures, and did initially offer to help us with an amount which would just clear the debts in full. However, knowing that reduced settlements are often possible, I'm obviously keen to do this wherever possible, as I'd prefer to be taking as little as possible from my parents.To be honest, I'd rather not take anything at all from them, but I really do appreciate that they want to help us, and to see us in a better position now, rather than struggling with repayments for another 13 years or so.

Given that most of our debts were defaulted 2-3 years ago, am I right in thinking that there'd be very little advantage to settling the debts in full, rather than trying to settle at a reduced amount? And would the same count for the 2 debts which still haven't defaulted? The BC had been being marked on noddle as AR each month, but just looking now, it seems in May was marked as DM / UC and in June as OK - what does that even mean?! The NW overdraft is being marked as AR too.

Sorry for all the waffling!

grant1wish

Hi all,


Has anyone tried to get a mobile phone deal whilst on a DMP with a shot credit history. I need to get my daughter a phone now she has started high school and didn't know if there was any point trying to get a monthly contract. Is it worth trying anyway, is there anything to lose other then the embarrassment of rejection?


Thanks


G1W

flowerpotter_2

Another vote for the CAB self managed DMP. Great site with template letter tools etc. :beer:

flowerpotter_2

G1W - Personally I know nothing about contract phones but PAYG are easy to get and to control money wise. :cool:

Puzzcat

grant1wish wrote: »

Hi all,


Has anyone tried to get a mobile phone deal whilst on a DMP with a shot credit history. I need to get my daughter a phone now she has started high school and didn't know if there was any point trying to get a monthly contract. Is it worth trying anyway, is there anything to lose other then the embarrassment of rejection?


Thanks


G1W

If you have a contract already can you get another phone on that?

Puzz.x