DMP & Mutual Support Thread - Part 11

timetosayenough

Hi everyone,


Haven't posted for ages. Everything has been so quiet. The only creditors I've heard from are my old bank. Received letters today demanding that I pay my overdraft and personal loan by 22nd September. They know about the DMP and I am currently sending token payments until November 1st. Are these computer generated letters?


The other thing is I keep getting texts from all these different finance companies well, payday lenders I think and have had them ever since creditors told about DMP. Anyone else had them? They're a nuisance I keep replying Stop but still get them.


I can't believe how quiet its been I expected phone calls and letters but nothing. Perhaps its the calm before the storm:rotfl:

2spicy

Every so often I like to post up a little inspiration for those just starting out, who, like us and everyone currently on a DMP, be it with CCCS / Payplan or on their own will have all been there.

Perhaps our circumstances are slightly different to a lot of you.... We had not missed any payments when we started our DMP ... after a few months of making the minimum and paying just "a little more" we worked out we would infact be paying our current debts for over 25 years so really it was (in our eyes) the only way out.
As Mr Spicy's job would terminate if we went down the Bankrupcy route, or the IVA route, the DMP was one only option we had left.

Our total debts exc. Mortgage was in excess of £70k, so, we both spoke to Payplan and decided to take control.

We discussed things as a couple and decided we couldn't offer our creditors the £1 that we were told to send them, so instead drafted out an apologetic letter and included a Postal order for £25 to each creditor.

We continued this for the first 3 months, until the DMP was setup and running. We received calls, morning noon and night, but, as we had kicked things off, quickly adopted the "we donot have it, so you cannot have it" approach.

When we were contacted we told the agents that we could not pay our creditors this month because we needed to feed / cloth our children... the excuses went on and it turned into a polite baiting game.

Eventually, the DMP was setup, Egg Defaulted us immediately and this debt was sold on within 6 months. The other creditors we have all accepted the repayments (which were "engineered" to be just slightly more than the minimum payments on all the cards / loans).

Initially, the debt total was slow to move, but ever month we tracked the repayments on a spreadsheet.. total paid versus outstanding balance.. and without the added interest, we began to see moment.

After 12 months, we increased our repayments to all creditors and, using the annual summary of accounts, we amended the total balances and ploded on.

I have said this numerous times over the years ... its a "Game" .. you can work it in your favor.
You donot have to live like a church mouse... there are allowances for haircuts / pets / dental etc and you should take as much out as you are permitted.
Use this to make life a little more bearable.. put it away for Birthdays or Christmas (or car repairs) .. that way the creditors get their money, you show commitment and, even if its a £5 bottle of wine once a month, you get to remind yourself your not a bad person and shouldn't be punished just for being in debt.

Now, were well passed the half way point and are well into the home straight with less than 12 months to go.Our debt is less than £8000.

After years of making do, weve worked on a plan that will enable us to finally afford new furniture (thanks to 12 months Interest free credit and no deposit).
Mrs Spicy has been banking her overtime for the last 12 plus months and has booked a weekend away to celebrate both our 40th birthdays without the boys too.

Basically, for everyone starting out ... "HANG IN THERE"

Growurown

Katie22313 wrote: »

Hi All I have been reding through and found it very inspiring. I have today started the first steps of self DMP. I have listed all of my creditors down, contacted them all for statements of accounts and next week will be issuing them all with letters of feesable amounts I can pay.


any firther advice for me embarking on the DF journey?

Hi Katie

Totally agree with Puzz. If you don't have any money in an emergency fund I would consider doing a few months worth of token payments and put a bit away for those things that go wrong, which they always do. A couple of months ago our washing machine packed up, then the immersion heater (still not fixed, making do with the electric shower) and yet again the engine warning light has come on in the car, which is due for it's MOT and a service next month. There's always something!

tequilabird

So for those of you who don't know, I currently live abroad and I am managing my debt from here - it's difficult, but my mum contacts me most days to advise me of letters received, etc.

Anyway, I had previously received default notices from all lenders apart from Barclaycard who have now sold my debt on to PRA group. Today, I managed to access my Noddle report from here (wasn't able to before as they don't allow you to access from abroad) only to find that my Barclaycard debts are no longer on there?! Is that normal??

On top of that, it would seem that Nationwide have defaulted me on my credit card, but not my personal loan - just a late payment marker and now debt management plan.

Creation Finance say I am up-to-date with payments?! I have been paying them £1 a month until this month where my DMP kicked in so my file is now marked that I am on a DMP. M&S and MBNA have just marked me as late payment and now DMP.

My questions are:

1.) Is it normal for the BC debts to disappear if they have been sold to PRA group and should PRA group automatically default me?

2.) How do I get Creation, M&S and MBNA to actually default me on file?

3.) Should I contact Nationwide to get them to default my loan as they have already defaulted my cc?

On another note, I switched my mortgage deal with the same lender this morning - no questions asked, better rate, lower payment. It all seems too good to be true - we'll wait and see

Thanks for your help

Puzzcat

HI Tequilabird,

1. I have also had my BC debt sold to PRA group but as yet my BC is still showing on my noddle account, its due for update in 8 days so will maybe know more then..!!

2. Not sure how long you have been running your dmp but my creditors in the majority defaulted me within the first year. Creation won't default me as they still charge nominal interest and I have already taken them to FOS on the interest front, I may have a go at pushing for a default once I see what PRA are doing... You can only write and ask?

3. My N*twest od and cc were defaulted but not my loan so I have recently written to them about this and they have agreed it is wrong and will default loan and sent me £50.. so worth the price of a stamp. I just quoted parts of the lending code and treating debts differently.. The code is easily found by googling..

And well done on the mortgage.

Love Puzz. x

Ellieseleven

Great post 2spicy...and I agree with everything you say, especially about the debt being slow to move in the beginning. I found setting smaller milestones along the way helped enormously with motivation and keeping on track. Each month now sees quite a lot of progress as we move into what I hope will be our final year of DMP.

Most of our debts defaulted in the first year, we just have BC who show AR (we have not been sold on to PRA). Those defaults start to drop off in 2016 as do the debts.

It's been quite a trek so far but one that I now look on as a blessing in disguise. Originally, I was mortified that I was even contemplating a DMP (I had never missed any payments), now it means that I can look forward to a debt free, stress free future.

Ellie xx

[Deleted User]

Although I'm plodding on through my DMP:) I seem to know very little about the whys and wherefores of it:o. I'd really appreciate it if someone could help me please.

I realise that defaults 'drop off' the credit files after 6 years:j but I'm not sure what that means exactly:o. Presumably anyone searching our credit histories will still be able to see that we have had them and were on a DMP in the recent past. Credit histories contain data over a long period of time so will the information that we were once defaulters be accessible to anyone we might want a mortgage or financial product from? Or do searchers just see the current state of our borrowing/debts and not the full details that we can access from our Noddle or Experian accounts?

The answer isn't urgent, my DMP won't end until 2019, but I'm just interested in how it all works.

Thanks for your time:beer:

fermi

When the default drops off a credit report ALL the data and history of the account is removed as well.

As far as anyone checking your credit report is concerned, from then onwards they will not see any sign that the account ever existed.

Obviously the creditor concerned may still keep a record, but no-one else does.

timetosayenough

Morning all,


Had a default notice from my bank yesterday. They acknowledge the DMP and Stepchange in the letter but its a bit frightening reading it. Do I need to do anything? Thanks.

fermi

No. You don't.

The wording in a formal DN is a bit scary, but mostly it's what they have to include in one as set down in law, whether you are on a recognised DMP or not.