DMP & Mutual Support Thread - Part 11

bsclp118

Generally, they will write to you - though some don't and you'll just have to keep an eye on the statements.

Initially BC and MBNA both accepted my payments and said they would reduce, but not stop, interest. However, I took a 2 month token payment break at the start and realized my initial repayments were too high and I hadn't allowed enough wiggle room in my budget. When I submitted my second budget proposal MBNA wrote to say they wouldn't accept the offer and since then my MBNA debt has been defaulted and passed onto the PRA group.

It is always worth writing and complaining if they do continue to charge interest, or if they charge you interest during any token payments (I received quite a bit of interest/fees back that banks had charged me during the time I was making token payments).

Sorry I can't be any less vague - there aren't any rules as such....

heavenlyharry01

Always something!

First payment is yet to go out to step change....and today a letter from the Inland Revenue informs us they have paid us too much tax credits and we owe them £800.
We just haven't got that money!!
Husband called them and the guy was really unhelpful, didn't care we were on a debt plan.

I'm guessing call StepChange tomorrow and try and defer payments to the creditors for two months so we can pay IR back??

Sazzie23

carbootcrazy wrote: »

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!

CBC. you've shown your excellent knowledge, you definitely know more than you give yourself credit for.

Roger, take a look at the snowball calculator, it'll tell you how to pY your debts off quickest. I'm have to say, many people who've landed into a DMP wish they've done it sooner, but you do have to be ready.

Regards PayPal,, I link both my debit card and my pre-pay credit cards. I've learnt to live without credit, and it has /is been blimen hard, but I'm glad. I think I've actually learnt the value of money, I certainly know the true cost of debt.

Saz

Sazzie23

heavenlyharry01 wrote: »

Always something!

First payment is yet to go out to step change....and today a letter from the Inland Revenue informs us they have paid us too much tax credits and we owe them £800.
We just haven't got that money!!
Husband called them and the guy was really unhelpful, didn't care we were on a debt plan.

I'm guessing call StepChange tomorrow and try and defer payments to the creditors for two months so we can pay IR back??

:eek:Yes I'm not sure whether you can add this to your DMP or if you have to stop the DMP and pay it but either way, call SC. and don't worry, it'll get sorted out, couple of months isn't going to be a problem in long run. Reduced tax credits income will also affect your budget I guess?

I do know that there have been many miscalculations and I'd strongly recommend you take some advice on this overpayment from a benefits advisor. Or try the benefits thread on Mse to start.

Saz

Sazzie23

CrazyCatGirl wrote: »

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.

Hi crazycatgirl,

Welcome to DMP land and the best and most supportive thread.

As Bsclp has said there are no rules, each creditor does things differently with different debts with different customers, so you might have 2 debts with one creditor and they won't contact you the same way nor treat you the same (though they should). Assume it's all ok until you here otherwise. If they write to say they reject your offer, that's tough SC will just say to pay.

Good luck with and look forward to your joining our free advice thread :T

Saz

sourcrates

heavenlyharry01 wrote: »

Always something!

First payment is yet to go out to step change....and today a letter from the Inland Revenue informs us they have paid us too much tax credits and we owe them £800.
We just haven't got that money!!
Husband called them and the guy was really unhelpful, didn't care we were on a debt plan.

I'm guessing call StepChange tomorrow and try and defer payments to the creditors for two months so we can pay IR back??

You can negoatiate a repayment plan with HMRC, bacically whatever you can afford will be aceptable.

Unless your proposal will take longer than 10 years to repay, then they will require a SOA.

Sazzie23

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!

Hi Teddy,

One way to start your DMP is to stop paying and let all your debts default and go to DCA before setting up the DMP. This means your interest is stopped and your debt sold on.

Whilst I haven't tried this myself, you may have to be prepared for a little bit of hassle from creditors and the potential of Ccjs, and I think Sourcrates may have been suggesting that this would cause you a lot of anxiety.
In reality I think many people have taken your route and started with a DMP provided like SC or PayPal and then perhaps move to self managed although there are also many in here who started with self managed.

Just wanted to add I didn't do tokens myself as I was in a such a state when my DMP started I couldn't even look at the paperwork or talk to SC without sobbing. Nothing bad happened, got a couple of calls but they were fine for the 3 months or so it took for the DMP to start.


Saz

sourcrates

Sazzie23 wrote: »

Hi Teddy,

One way to start your DMP is to stop paying and let all your debts default and go to DCA before setting up the DMP. This means your interest is stopped and your debt sold on.

Whilst I haven't tried this myself, you may have to be prepared for a little bit of hassle from creditors and the potential of Ccjs, and I think Sourcrates may have been suggesting that this would cause you a lot of anxiety.
In reality I think many people have taken your route and started with a DMP provided like SC or PayPal and then perhaps move to self managed although there are also many in here who started with self managed.

Just wanted to add I didn't do tokens myself as I was in a such a state when my DMP started I couldn't even look at the paperwork or talk to SC without sobbing. Nothing bad happened, got a couple of calls but they were fine for the 3 months or so it took for the DMP to start.


Saz

That was precisely my point, and so eloquently put !!!

Little_Miss_Sunshine

Just thought I'd add that we didn't pay anything for 6 months. I've let all accounts default as well as CCA ing all accounts. I've set up a self managed dmp and once defaulted with correct paperwork we've started paying. Phone calls have come in flurries but nothing too bad.
I feel it's given us breathing space.

heavenlyharry01

sourcrates wrote: »

You can negoatiate a repayment plan with HMRC, bacically whatever you can afford will be aceptable.

Unless your proposal will take longer than 10 years to repay, then they will require a SOA.

Thanks
StepChange said it needs to be treated the same as the other debts.
It gets added to the long list and they will be offered a proportion.
I've informed HMRC, and I guess I just have to wait and see. The guy at StepChange said they are usually compliant!