DMP & Mutual Support Thread - Part 11

sourcrates

Teddy, I appreciate all this is new to you, but as I have said before, the debt collection process can take years, they won't even blink an eye for 6-9 months your creditors, if you don't pay.

Your starting your DMP shortly, that's all you need to tell them, ideally, you should refrain from any payment until you are defaulted, but I don't think your quite ready for that yet to be honest.

All I can say is take the advice of people who have been there.

zenshi

It's hard when you start the process. You over think, you panic, you fear the worst.......

And then strangers on here tell you not to do what you're thinking......

We have all been where you are and most on here will offer advice, usually gleaned from their own experience of being in debt etc

I agree with the others, tell them your DMP is due to start and leave it at that

As for your creditors, you are just a number in their system.

I'm self employed and when I set up my DMP, I didn't know if I would earn any money from one week to the next, so I offered token payments of £5 per month. My highest single creditor I owed nearly 7K......3 years down the line, they're still only getting £5 per month. Have I had any hassle..NO. A phone call once a year to assess my income and that's it

Honestly, don't stress, it will be fine

[Deleted User]

rogertb wrote: »

I'm about to complete an soa on the bfw forum but have a dmp question. Looking into the dmp device it seems too good to be true, the pros ... it will consolidate my 4 c/cards which will make it so much easier for me to manage my debt, stop me worrying so much, I can cut up my cards to remove future temptation and, it seems, might even save me some money.

I could probably continue to pay my c/card debts but am not managing it very well so this seems an excellent option ... so what's the catch, why doesn't everyone with a few card debts go for a dmp ? ie what are the cons please ?

As ever thanks for any advice.

Roger

Hi Roger:hello:

Some things that you mentioned struck me so I'll make a few short comments. I'm on a DMP myself and after the payment goes out on 1st October I'll have hit the halfway mark:j. I'm no expert on everything DMP but I can tell you about my experiences.


Firstly, make sure you choose a FREE company to manage your DMP if you decide to opt for one. Stepchange seems to be the one most of us on here use. I've been very happy with their help and advice and can honestly say I wouldn't be in the happy (well, relatively happy with so much debt still to pay off:o)situation I am now without the help of SC and a DMP. I did start off with a massive debt of £56804 in 2013 though:eek:.


Secondly, in your later post you mention being able to cut up your credit cards. It's not a choice you'll have though as once on a DMP your creditors will cancel your cards anyway so you will have no access to credit whether you want it or not. Think very carefully if you can cope with this situation as your life will change totally when you only have the money that actually belongs to you to rely on. This will continue for the length of your DMP, probably longer, as you will find it nigh on impossible to obtain a new credit card for years.


Also, many things that we apply for these days require a credit check and as your credit file will reflect that you are on a DMP it would probably be impossible for you to negotiate such things as a new mobile phone contract. I think people have had problems with car-leasing contracts. I haven't done any of these myself but as I understand it any kind of finance agreement would be hard to obtain. Maybe others who have managed to do it may be able to tell you otherwise.



A DMP is not just a debt-consolidation process like one you might negotiate with a bank. Yes, you'll just make one monthly payment to SC who will pay your individual creditors on your behalf but your debts will still be with your original creditors, unless they sell them on to other companies. They probably will all freeze interest so you will be paying less in the long term but if your balances on your cards are already 'maxed out' you'll still have all that to pay off. They just won't add any more interest going forward so at least you'll see all that you pay each month going towards decreasing the balance.


I think I've covered all that I planned. Sorry if any of it isn't clear. Sorry too that the post turned out longer than I intended at the start:o

bullinn1

Well "carbootcrazy", what can I say ... your post has really clarified the DMP process for me ... I was thinking (in the wee small hours) about the number of times I use a card on-line, that and Paypal, losing that facility would hardly be the end of the world but it certainly would make life a lot more problematic.

I'm thinking I should maybe just tighten the belt and have a year or two of abstinence from all the fun things I've been indulging in. There's always a price for profligacy ... I'll maybe ask Sam Allardyce for a small contribution, he seems to be making easy money at the moment !

[Deleted User]

rogertb wrote: »

Well "carbootcrazy", what can I say ... your post has really clarified the DMP process for me ... I was thinking (in the wee small hours) about the number of times I use a card on-line, that and Paypal, losing that facility would hardly be the end of the world but it certainly would make life a lot more problematic.

I'm thinking I should maybe just tighten the belt and have a year or two of abstinence from all the fun things I've been indulging in. There's always a price for profligacy ... I'll maybe ask Sam Allardyce for a small contribution, he seems to be making easy money at the moment !

You'll still be able to use Paypal, I use it all the time for online purchases, but mine is linked to my bank account/debit card. If I don't have the money in there to cover payments I obviously can't buy it:o.


I think your plan to tighten your belt is a very sound one:T. A DMP is something of a last-resort solution when all the usual methods have failed and you don't know where to turn for money to pay for even the basics never mind extras in life.


Also, there are so many threads on here and elsewhere about how to make a bit of extra money each month. I belong to the 'Make £10 a Day' thread and it's easily do-able most months if I really put my mind to it. If I can do it anybody can;). Having a bit of surplus money certainly makes life a bit more comfortable every month. Loads of good ideas on there so please join us if you want:beer:.


Good Luck with whatever you decide. Keep us posted if you do eventually go down the DMP route, we're all here to help:beer:

bullinn1

I can't tell you, carbootcrazy, how helpful your responses have been, makes me realise there's a light at the end of the tunnel. I'm going to try the tight belt method, it should be made easier by the enormous amount of weight I will lose when i stop spending so much on beer !

[Deleted User]

rogertb wrote: »

I can't tell you, carbootcrazy, how helpful your responses have been, makes me realise there's a light at the end of the tunnel. I'm going to try the tight belt method, it should be made easier by the enormous amount of weight I will lose when i stop spending so much on beer !

Thanks for your thanks, Roger:beer:

Glad I could be useful. I'm nowhere near as knowledgeable as most people who post on this thread though.:o

Good Luck!

Teddyuk85

sourcrates wrote: »

Teddy, I appreciate all this is new to you, but as I have said before, the debt collection process can take years, they won't even blink an eye for 6-9 months your creditors, if you don't pay.

Your starting your DMP shortly, that's all you need to tell them, ideally, you should refrain from any payment until you are defaulted, but I don't think your quite ready for that yet to be honest.

All I can say is take the advice of people who have been there.

Hi everyone thanks for the advice.

I've had confirmation that my plan starts on 1st November.

Just glad to be getting sorted doesn't bother me not being able to get credit etc for the next few years.

Just with regard to the above quote about accounts defaulting? Can you advise what you mean by you don't think I'm ready for that yet?! Confused.

Thank you to everyone, you probably get fed up of all the newbies asking the same questions but everyone has to start somewhere eh!

sourcrates

Teddyuk85 wrote: »

Hi everyone thanks for the advice.

I've had confirmation that my plan starts on 1st November.

Just glad to be getting sorted doesn't bother me not being able to get credit etc for the next few years.

Just with regard to the above quote about accounts defaulting? Can you advise what you mean by you don't think I'm ready for that yet?! Confused.

Thank you to everyone, you probably get fed up of all the newbies asking the same questions but everyone has to start somewhere eh!

Answered on your other post, a lot to take in I know.

CrazyCatGirl_2

Hello....I'm new here (1st post so be gentle!!) I've just set up a DMP with SC, I have 3 credit cards, Capital One, M&S and MBNA. My question is when will I know if they have accepted my proposal and stopped the interest?


Thank you all in advance for your replies, I have been reading lots of the advice from you all and feel happy with my decision to go with the DMP, just cant wait to see it coming down now.