DMP & Mutual Support Thread - Part 11

Puzzcat

Triangle wrote: »

Hi all, hope everyone is well.

Been away for a week (family holiday, already paid for and saved up spending money - so proud of my budgeting) and returned home to a default notice from BC. I couldnt believe it, from reading lots of here I thought they were notoriously hard to get a default out of! DH was a little concerned but I explained it was better in the long run - so happy that this thread exists :T

Need to get cracking on with that diary ASAP!

Tx

Unfortunately BC like to send default notices and don't default, hope it is different for you.
Puzz.x

SpamTomorrow

Brogden wrote: »

I have previously been asked for bank statements. Like everybody else I hate this :mad:.

They are only asking for these for the sake of it. Do they really need them? I agree it is a great idea to say it is not your policy to share your bank statements You can give them your own I&E and they must be happy with that.

The thing is we have broken agreements and they could escalate things but will sending them bank statements make any difference? Almost certainly not! A PDL will almost certainly not escalate matters !

Insist you just need an agreed payment arrangement and accuse them of being obstructive. Complain if necessary and if really necessary take them to the FOS if their final response is anything other than you would want .

Brogden

The irony is they didn't show this level of interest in my financial position when they lent me the cash.

Ill take the opportunity to 'thank you' as your diary was definitely a factor in me deciding to go self managed. :beer:

cydney11

stupid-fool wrote: »

I haven't been on the forum for quite some time, but wanted to share my story in case it helps others.

We had our lightbulb moment in late 2012 and started a DMP with Step Change. I can't praise Step Change highly enough and for anyone considering a self managed DMP I can only say that they gave us a sounding board and someone to lean on, as well as managing much of the communication with the creditors.

So we ran our DMP and were able to stick to our budget every month having been realistic about our outgoings. Our creditors all stopped interest with the exception of Creation Finance who needed a complaint with FOS to get them to co-operate with our difficulty.

In August 2014 my wife decided that she couldn't face another 3-4 years of DMP life as the stress was taking its toll so we put our home on the market. We were lucky to have more collateral in the house than our total debts, and so could raise a deposit for a new home with the proceeds.

In April 2015 we moved house - downsizing in the process - using the proceeds to clear our DMP in full, cover the moving costs and paying a sizeable deposit for a new home. We had been worried about getting a mortgage but Step Change Financial Services managed to help us and we got a mortgage via a specialist lender which isn't as expensive as some of the more widely advertised lenders.

For us, releasing collateral from our home his been a really good way of clearing out debts quicker, but we did have many sleepless nights worrying if we would be given a mortgage. You can be equally proud if you stick to a DMP to the bitter end.

We are now renovating a house at our own pace as and when we have the money in the bank to do things - we will not be borrowing a penny for this, but instead use our budgeting skills acquired as part of the DMP process.

Now we are debt free and much more relaxed, we actually have money available every month as we no longer have to pay the DMP. In fact we also learned how to live within our means so this has been a great lesson for us. I just got approved for a credit card - on a very poor interest rate but we will never carry a balance forward, just use it to rebuild our credit score which is shot to pieces at the moment.

Our only problem is that our cars are both now getting old and unreliable. This is a particular issue as I need mine for work and having looked I can't get any kind of finance, PCP or Lease deal on a replacement even though we can now easily afford it.

The shot credit file, and lack of savings in the bank will hurt us for a few years, but it will be worth it in the long run.

For anyone contemplating their options, I urge you deal with your debts today as tomorrow is always too late. Read the advice on here such as opening a new bank somewhere independent and having a month of £1 offers to creditors to build an emergency fund at the start of the DMP cycle before sending up the flares as you will be destroying your credit score. I would also highly recommend Step Change who have been brilliant throughout - I was highly skeptical of anyone offering to help with my debts, and in particular someone who said they didn't charge for their services.

Lastly, don't bury your head - speak to your creditors. I remember bursting into tears after calling one lender at the start. They were so understanding, not judgemental, and helpful that it took me by total surprise.

Thanks for this post SF. I have also not been on this forum for some time, but pleased to see new thread and lots of new people setting out and benefitting from its wisdom. I've been on SC DMP since 2011 and consider myself a plodder, but when i see £21000 paid on my SC statement £7000 to go I can barely believe i will soon be debt free. I have not been without debt since I was £20, 30 years ago! I too couldn't commend SC highly enough as I would not have had the skills or nerve to go self managed at the start.
I have learned to have a little wiggle room in my payments, and newbees; broken boilers, damp, car repairs really do happen!
I am now using wiggle room to try to bring dfd forward considerably;
a final sprint. My incentive is that i would
really like to move home. I bought a modest house in 2006 and for a time was probably in negative equity. I now have some equity in my home, but worry also that I wont get another mortgage even when debts cleared. I have a decent income and secure ( as it can be job). I was curious about your experience of SC financial, as i will need advice and had noticed them recently but wondered if they might be more finger waggy than other IFA or better?

Congratulations on df and new home.

Cyd

Brogden

Puzzcat wrote: »

Unfortunately BC like to send default notices and don't default, hope it is different for you.
Puzz.x

Yes Puzz and it's not just BC who send default notices and then don't default.

If the default is a serious issue for us we must all watch them and Noddle (or whatever) like a halk .

For some predators, I have received default notices several times on the same debt. These are just computer generated confetti and we can only be properly 'happy' when we have been formally advised of 'termination.'

Its great for Brogs to talk about checking Noddle. I haven't looked at my credit file for a few years. Just can't bear the thought currently but seeking therapy .

B x

Triangle

Puzzcat wrote: »

Unfortunately BC like to send default notices and don't default, hope it is different for you.
Puzz.x

Thanks Puzz, been reading a bit more about it and not quite as positive now! So can a company send default notices and never actually default you then? How will I know when I have had an official default?

Thanks

Tx

Brogden

SpamTomorrow wrote: »

The irony is they didn't show this level of interest in my financial position when they lent me the cash.

Ill take the opportunity to 'thank you' as your diary was definitely a factor in me deciding to go self managed. :beer:

Ooooh shucks and thanks !!

I do hope you are pleased with what you are doing then !!

Leave a calling card next time

Brogden

Brogden

Triangle wrote: »

Thanks Puzz, been reading a bit more about it and not quite as positive now! So can a company send default notices and never actually default you then? How will I know when I have had an official default?

Thanks

Tx

Don't be 'unpositive' T.

Give BC a hard time and push them / complain / FOS as necessary. They're going to default you ultimately if you hold them to their promise. It's just likely they might forget their promise as you can't trust them as far as you can throw them.

We don't have to be nice to BC !!

B

Sazzie23

charmed1318 wrote: »

This maybe a stupid question, but if it wasn't I wouldn't have anything to talk about! And I know after 6 years it is unenforceable (though is it the same if it is a mobile contract debt)

If a debt is passed to a DCA after falling off of your credit file, will it then go on your credit file as a debt from the DCA?
Sorry if it's been asked before, the thought only just came to me

TIA

Hi Charmed,

Took me a moment to work out what you were asking, but i see what you are saying now, if you've had a debt that defaults 6 years after the default it falls off your credit file but then gets passed to a DCA, does it reappear on your credit file?

I think most defaulted debts would have already gone to a DCA long before the 6 years were up as otherwise they wouldn't have been enforceable, or have I got the wrong end of the stick here ?

Brogden

Sazzie23 wrote: »

Hi Charmed,

Took me a moment to work out what you were asking, but i see what you are saying now, if you've had a debt that defaults 6 years after the default it falls off your credit file but then gets passed to a DCA, does it reappear on your credit file?

I think most defaulted debts would have already gone to a DCA long before the 6 years were up as otherwise they wouldn't have been enforceable, or have I got the wrong end of the stick here ?

The debt can only default once. If it is subsequently sold on (even years and years later which certainly does happen on occasion) it will not reappear on the credit file in a different name - it is gone from the files for good .

Unenforcability is a different matter and nothing to do with the credit file unless anybody wants to discuss that one?

Brogden

bertman

We are now two and a half years into our DMP, we have paid off 32% of our debts and are about to start paying off some of the smaller ones over the next few months towards Christmas, one will be paid off next month, another two months after that and a third in December. Still a long way to go but at least we are being there. Barclaycard have sold of two of our debts this month but have retained three other's which we find strange but as we have found out there are no hard and fast rules with these guys. At least we can offer full and finals with the new companies eventually as they have paid less than the outstanding balance.