DMP & Mutual Support Thread - Part 11

bexbex

I'd like to join you all, I've been reading all your posts for the last few days and I'm ready to join you!
I've come out of an abusive relationship with my ex husband and things have gotten out of control in my life and I'm ready to start to regain control. I know know I've been burying my head in the sand and hoping this will improve on their own when they won't.
I've never ever missed a payment before (still haven't as of yet) but now one of my 0% credit cards are at an end and I'm having to pay double a month what I did before and I can't manage it.
I was working part time whist with my ex and had to rely on credit but for the last year I've been working full time. I've been working for the NHS for over 10 years and have always been in work so I am confident I can get this debt paid off. I know I have myself to blame in a lot of ways but I'm willing to work hard to correct these mistakes.
I'm really scared I'm going to end up losing my house and end up homeless with 2 kids. I've been reading the website and looking at other peoples stories for advice and I've seen other people have come through with worse debt than mine so I am hopeful but very frightened.
This is what I owe now, I'm so embarrassed to look at the numbers....

Very online catalogue - £445.62
Tesco credit card - £7,817
Argos store card - - £505
LLOYDS BANK PLATINUM MASTERCARD - - £3,697.33
Clubcard Credit Card - - £7,662.59
HSBC OverDraft - - £1200
NEXT online- - £1448
HSBC Loan - - £2871
V12 Retail Finance - - £633.97 (AO Limited) needed a washer and dryer
V12 Retail Finance - - £411 (AO Limited) needed a fridge

I've emailed Stepchange today and am sending off forms etc tomorrow morning. I've started the process of changing banks too.

I'm so stressed but reading this forum has helped a lot!

Has anyone had debts with the companies I've listed? Did they give you any problems?


Also, My ex now lives abroad but I still live in the house and pay the mortgage from my own HSBC account. He is still on the mortgage and no payments have been missed. We also have a join HSBC account that is only used when he puts money in it at his end for me to transfer into my own account so it's in credit.
My HSBC account that's just in my name has the overdraft on that I'll be putting on the DMP. Will this effect him in anyway? Will I still be able to access the joint account as that won't be incluced in the DMP. When I log on to HSBC it shows the mortgage, my personal account and the joint account, will that stay the same?

Oh, and Hi everyone! x

Growurown

:xmassign:
Hi everyone, a while since I posted here but I wanted to wish you all a good Christmas, even though it can be a tall order on a DMP.

bexbex - you've come to the right place, everyone here is so supportive and helpful, and non judgemental too. I ended up in a lot of debt through my own (and OH's I hasten to add!) stupidity and bad judgement. Every one's journey is different, and yours sounds like a difficult one. I couldn't believe how much I owed when we took the big step to address our debt, nearly £50,000!!!!

You won't lose your house. None of your debts are priority debts. Your house will, and always will come first, and if that leaves you with a tenner to pay off all your debts then that's all they can have. As we are so fond of saying on this thread, they can't have what you haven't got!

Tesco and Argos were fine with us. HSBC were a bit of a pain, not willing to stop interest completely, but that was a while back now so things may have changed. I wish you luck in your DMP journey.

bexbex

I've been reading some horror stories about HSBC and it's scared me a lot! I have the loan and overdraft in my name through hsbc but also a joint mortgage and joint bank account though hsbc with my ex. I'm not sure how it'll effect those?

sourcrates

bexbex wrote: »

I've been reading some horror stories about HSBC and it's scared me a lot! I have the loan and overdraft in my name through hsbc but also a joint mortgage and joint bank account though hsbc with my ex. I'm not sure how it'll effect those?

Hi,

It wont affect your mortgage as long as the mortgage payments are kept up to date.

People tend to think Businesses will be somehow upset or awkward with them if payments are missed, they wont, its all black and white to them, if you miss payments on one account, it wont usually affect another account held with the same creditor.

Also, and i know you are new to all this, but before you rush into starting your DMP, take some time out, at least a few months, stop paying your unsecured credit, and save up an emergency fund, something to fall back on, should the need arise.

You get a 30 day period of thinking time before the calls and letters start anyway, and i can guarantee nothing will happen if you dont pay for a few months more, i know its a scary prospect, but you really need those accounts to default, otherwise you will be stuck with AP markers for up to 12 years, and that wont be good for your future credit prospects.

January2015

sourcrates wrote: »

Hi,

It wont affect your mortgage as long as the mortgage payments are kept up to date.

People tend to think Businesses will be somehow upset or awkward with them if payments are missed, they wont, its all black and white to them, if you miss payments on one account, it wont usually affect another account held with the same creditor.

Also, and i know you are new to all this, but before you rush into starting your DMP, take some time out, at least a few months, stop paying your unsecured credit, and save up an emergency fund, something to fall back on, should the need arise.

You get a 30 day period of thinking time before the calls and letters start anyway, and i can guarantee nothing will happen if you dont pay for a few months more, i know its a scary prospect, but you really need those accounts to default, otherwise you will be stuck with AP markers for up to 12 years, and that wont be good for your future credit prospects.

Sourcrates is right here. Nothing bad will happen if you don't pay for a few months. Yes you will get letters and maybe phone calls - you don't have to answer phone calls from numbers you don't know (if you have caller ID anyway). Even if you do answer the calls, just explain you are in the process of entering a DMP.

Banks/credit card companies subscribe to The Lending Code (2011) and this is in place to support customers as much as banks. It has a section specifically entitled "Breathing space for personal customers". It states:

201. Where a customer can demonstrate to a subscriber that they are making a genuine effort to develop a repayment plan, using either a debt advice agency or a self-help tool10, the subscriber should suspend collections activity related to the customer’s current account, credit card and/or unsecured personal loan while discussions continue, for a period of 30 days.

202. The subscriber should confirm with the customer and/or their adviser that collections calls and letters will be suspended during the ‘breathing space’ period (except where required under Consumer Credit legislation/the Consumer Credit Sourcebook) and should discuss with the customer and/or their adviser how the account will continue to operate during the 30 day period.

203. Where the customer and/or their adviser provides clear evidence of demonstrable progress being made in developing a genuine repayment plan, but work has not yet concluded, subscribers should extend the breathing space for up to an additional 30 days.

If they've written that, you can be sure they know there are going to be many people who need to access that option. From my experience the 30 days was extended because we started our DMP process in January and didn't start payments until March. Don't panic and think you have to have everything in place in 30 days, or even 60 days. Even when the extra breathing space is up, you need to force those accounts to default as quickly as possible and the best way is not to pay them. It's difficult to comprehend when you have been struggling to keep them up to date - to suddenly not pay them anything, but it is going to worth it in the long run.

bexbex

Thank you both.
I sent off my application and details of debts to them earlier on, will they just set it up on my behalf or will they contact me first to confirm a date?
You're right, it just doesn't feel right to not pay after managing to pay and stay afloat for so long.

sourcrates

bexbex wrote: »

You're right, it just doesn't feel right to not pay after managing to pay and stay afloat for so long.

Honestly, this feeling will pass, most of us have been there, inc myself.
I was nearly 60 grand in debt, no money to pay minimums, stuck basically, had to do something, at that time I was quite nieve, went with the first company I could find, after a few months I realised there were free alternatives, so cancelled the plan.

Eventually choose an IVA to clear my debts.

You can't keep up unsustainable payments, there's lots of good advice on this thread, I suggest you read up as much as possible, and feel free to ask any stupid questions you may have.

CP2016

bexbex wrote: »

Thank you both.
I sent off my application and details of debts to them earlier on, will they just set it up on my behalf or will they contact me first to confirm a date?
You're right, it just doesn't feel right to not pay after managing to pay and stay afloat for so long.

You can get in touch with them and tell them when you want to start. Taking some time to get an emergency fund behind you is good advice - I went straight from full payments into the DMP (where I'd cut my outgoings to the bone) and I struggled a lot for the first 18 months until a couple of pay rises gave me the wiggle room to start saving a bit here and there. It just never occurred to me to make some allowances for broken washing machines and cars when I did my budget.

It's a big step and it can seem scary at first but in a few months when everything has settled down you'll wonder why you struggled with those unaffordable payments for so long.

Sazzie23

bexbex wrote: »

Thank you both.
I sent off my application and details of debts to them earlier on, will they just set it up on my behalf or will they contact me first to confirm a date?
You're right, it just doesn't feel right to not pay after managing to pay and stay afloat for so long.

Hello Bexbex and welcome

SC will get in touch to confirm you want to start, but if you have your reference already you can contact them and say you need to delay the start. Meantime contact your creditors and tell them you are in financial difficulties and won't be making the next payment.

Cancel your creditor DD's and find yourself a savings account away from any creditors or existing bank accounts that you share with ex.

Because I'm a cynical soul (grump), I'd suggest removing overdraft facility from any account ex has access to, for your own peace of mind. Also Banks do have right of offset so consider or discuss with SC how to approach this with your own accounts.

You can do this, you will get through and be better off in the end but there can be a short term pain to get everything settled, so expect a few hiccups and remember we are here:)

Saz

Puzzcat

Good Morning Fellow Dmp'ers.. and a very merry christmas to you all.... :xmastree:

Sorry I have been rather AWOL for a long time.. all still ticking along and I am still on mse everyday, just generally on my diary..!

I wanted to post a little update from me that I posted on my diary..

Have been looking back at the year and we did fall behind quite a bit with the proposed payments for 2016. Unfortunately most of this couldn't be helped with car trouble and getting dd sorted for uni, not to mention the rent needed so i am not going to beat myself up but celebrate the positives...

So achievements..

I have paid off £4515 of my dmp in 2016...:T
I have paid off £1625 to my lovely mother loan and the rest was written off.. :T
So total debt payment for 2016 = £6140 :T
I also saved £600 for the first rent payment and have £1200 saved for the next 2 payments..:T

Positive v Negative...... I have bought a new car, well new to me.. so a new loan needed of £4000 from lovely father. This has bought me a tremendous amount of pleasure... I think my old car was causing some of my anxiety, always worrying when she will go wrong again, how much will it cost etc... So this is a massive plus.. I know its increased my debt and subsequent speed at repayments but its so worth it....I will continue to save my car money each month but hopefully as I have a years warranty and don't have to pay tax that pot will grow instead of being constantly depleted....

I am paying reduced dmp payments until April to most of my creditors and have a few complaints I am waiting to have resolved. I love being self managed and still love my dmp..all £40700 of it.... (Better than the £60062 we started from..)

I probably won't drop into the top of the £30k bracket until the middle of the year but that's okay with me, I am finally getting my life back and I love a good marathon...

Hope you all have a fantastic christmas and here's hoping to a debt smashing 2017...

Love Puzz. x