DMP & Mutual Support Thread - Part 11

January2015

I've just reconciled my bank and savings accounts to YNAB. I had a strange entry on the savings account - OMG free money:rotfl: It's called interest. It is honestly the first time in my life interest has meant the bank paying me money and not charging me :rotfl:

Nice surprise I guess I knew I would earn interest on our savings towards F&Fs - it still came as a nice surprise though;)

MrsPennyPot

Hi all,

We have spoken with Step Change about setting up a DMP but after advice given on here we are thinking about the possibility of going self managed.

Please could I ask for some advice on a couple of things:-

1. Step Change has advised that whilst we are getting things in place for the DMP we should just pay £1 to all creditors. Should we contact them and tell them we are paying £1 whilst we get things set up or do we just pay it and say nothing and let them chase us as this is obviously a lot less that the arranged payment we are currently making?

2. From reading on the forum and previous advice given it would seem the best outcome for our credit file is for our creditors to put a default marker on the accounts asap so that our credit files become clear in 6 yrs. (Not that I ever want anymore credit!!) What is the best way to get them to do this all bar 1 have put AP markers on?

Also I would just like to say how lovely everyone is on here, very understanding and supportive. Its given us the confidence to attack this problem head on even though we were very unsure about the DMP so thank you for that.

Mrs PP.

BeingDebtFreeStartsHere

carbootcrazy wrote: »

Wishing you and your family a Happy New Year too, BDFSH:beer:

I'm so sorry that you are feeling 'down' at the moment especially after doing so well with paying off a lot of your debt during the year. Plus, you've had Christmas without any more debt, and I'm sure it felt extra good for that. You should be proud of yourself and I hope that you are:)


It must be really hard when you have children that you feel aren't getting what you'd like to give them but I honestly don't think children care all that much especially if they are younger and not having to 'compete' with more well-off friends.


Just remember that, thanks to the efforts you're making now, in a very few years time you'll be debt free:j and will be able to do whatever you want. I suspect though that, like a lot of people who have been on DMPs for a few more years than you, you'll develop a different relationship with money and that 'stuff' gets to matter less as time goes by.


Please don't apologise, you aren't 'whingeing'. We all feel 'down' from time to time and this time of year isn't always a happy one for everyone. Please feel free to come on here whenever you like and say exactly what you like. We're all here to help each other through what can sometimes seem like a long dark tunnel. Just think there's a brand new year to embark on, with each DMP payment taking you nearer to debt-freedom.


Take care:kisses3:

Hi cbc,

Thank you so much for your positive post

This forum is just the best place - so lovely to be able to confide in those in the same boat who all go through the same worries and low times and can understand how I am feeling.

Just going to look for cheap things to do - go for winter walks, bike rides etc. I guess kids don't care about how much you spend on them - it's the quality time that you spend together that counts

Really appreciate all of your support - paid another £416 off our debts today - going to focus on the positives in 2017!

Thanks again and take care,

BDFSH x

BeingDebtFreeStartsHere

January2015 wrote: »

Hi everyone and Happy New Year :beer:
I just wanted to say, especially for those new to DMP land, that I cannot believe how quickly the last two years have flown by It was two years ago, in January 2015, that we had our LBM and plunged into the life changing world of a DMP. It was one year ago that we took the plunge and went self managed.

For those just starting their DMP journies, I can honestly say it was the best thing we could have done. We are far happier on our DMP than we had been in a long, long time. It's strengthened our relationship as a couple because we are both honest with each about money and because we both think about money and what we want/need rather than just what we want/will have on a credit card.

When we started we were looking at a 9 year DMP:eek: If we carry on the path we are on, that is still more or less the case, but we have plans for full and final settlement offers in the next few years (F&Fs). We aim to clear the debts much sooner than the original 9 years calculated by StepChange.

We have re-jigged our budget since starting, and we now retain more funds in our budget and our creditors get less. This gives us flexibility to have the occasional treat, but also to save towards those F&Fs. As someone who only ever spent on borrowed money it's amazing how good I've become at being obsessed at watching the saving pot grow :rotfl:

Finally, I really cannot thank the regulars on this forum enough - you know who you all are - without you lot I know we would not have got this far. You answer all the questions, you keep us sane and motivated to continue. Seeing your progress and achievements is enough to keep us spurred on (god I wish I was as motivated at weightwatchers, but that's another story!)

Wishing you all a happy, debtbusting 2017. Thank you for being my virtual friends. You are all amazing :beer:

Lovely post Jan
You have done brilliantly!! I'll raise my glass to that debt busting 2017!! :beer:

Take care,

BDFSH x

January2015

MrsPennyPot wrote: »

Hi all,

We have spoken with Step Change about setting up a DMP but after advice given on here we are thinking about the possibility of going self managed.

Please could I ask for some advice on a couple of things:-

1. Step Change has advised that whilst we are getting things in place for the DMP we should just pay £1 to all creditors. Should we contact them and tell them we are paying £1 whilst we get things set up or do we just pay it and say nothing and let them chase us as this is obviously a lot less that the arranged payment we are currently making?

Tell your creditors.They will immediately implement a 30 day no charges/interest period whilst you are setting up. This can be extended and once you have sent through your income and expenditure statement many creditors will stop interest altogether straight away. Some won't (barclaycard are notorious for this), but I'd recommend just stop paying them if they continue to charge interest. They will eventually default the account and sell the debt on to a debt collector - at which point interest is stopped anyway and you can negotiate affordable payments. If you don't tell your creditors why your payments have dropped to token payments they will continue to whack on interest and even worse, late payment charges. You do not want that to happen.

MrsPennyPot wrote: »

2. From reading on the forum and previous advice given it would seem the best outcome for our credit file is for our creditors to put a default marker on the accounts asap so that our credit files become clear in 6 yrs. (Not that I ever want anymore credit!!) What is the best way to get them to do this all bar 1 have put AP markers on?

In all seriousness the best way to achieve faster defaults from all creditors is to cease paying them anything. Some creditors default fairly quickly and others it seems to be a battle (thinking BCard again!). Personally, I would have found that very difficult at the beginning of the DMP. If I had my time over, I would have done that. However, it's what you feel comfortable with doing.

MrsPennyPot wrote: »

Also I would just like to say how lovely everyone is on here, very understanding and supportive. Its given us the confidence to attack this problem head on even though we were very unsure about the DMP so thank you for that.

You will get fantastic support and advice on this forum. They really are a wonderful bunch of people who are, or have been, in the same situation you find yourself in. No-one judges anyone else for the options they decide to take. Each person approaches their DMP in the way that they feel is best for them and they are most comfortable with. Welcome to DMP land - it's a lovely place:beer:

January2015

BeingDebtFreeStartsHere wrote: »

Hi cbc,

Thank you so much for your positive post

This forum is just the best place - so lovely to be able to confide in those in the same boat who all go through the same worries and low times and can understand how I am feeling.

Just going to look for cheap things to do - go for winter walks, bike rides etc. I guess kids don't care about how much you spend on them - it's the quality time that you spend together that counts

Really appreciate all of your support - paid another £416 off our debts today - going to focus on the positives in 2017!

Thanks again and take care,

BDFSH x

Thanks BDFSH

I'm so pleased you are feeling more positive. I have very down days sometimes, but in general the positive days very much outweigh the down days. We will get there eventually. I just cannot believe how quickly time has flown already. It seems like just a few months ago i was the newbie asking the questions, and now I feel so confident in what we are doing, how we handle our creditors/DCAs and what we can get away with . Amazing the change it has made in our lives.

Keep smiling :beer:

MrsPennyPot

Thank you so much January2015.:)

Would you say it's better to write to creditors advising of token payments or will phone calls be ok?

Thanks again.

sourcrates

MrsPennyPot wrote: »

Thank you so much January2015.:)

Would you say it's better to write to creditors advising of token payments or will phone calls be ok?

Thanks again.

Hi,

Not wanting to contradict the good advice already given to you, but token payments are really a waste of time, a £1 token payment ends up costing the creditor approx £1.30 to process, so it costs them money, and isn't really worth bothering with.

A simple letter informing each creditor of your intentions is all that's required.
Tell them when you will be starting your DMP, how much you will pay them, and when.

That's it, don't over complicate things.

January2015

sourcrates wrote: »

Hi,

Not wanting to contradict the good advice already given to you, but token payments are really a waste of time, a £1 token payment ends up costing the creditor approx £1.30 to process it, so it costs them money, and isn't really worth bothering with.

A simple letter informing each creditor of your intentions is all that's required.
Tell them when you will be stating your DMP, how much you will pay them, and when.

That's it, don't over complicate things.

I totally agree, and as I said, if I had my time over this is what I would do. However, I do realise some people just venturing into a new DMP are very nervous of this approach as the advice of 'the professionals', e.g. Stepchange and other such charities, is to make token payments. Since starting my own DMP I've learnt the true professionals with actual experience and knowledge of what will happen are those that have been, or are still going through this journey. :beer:

January2015

MrsPennyPot wrote: »

Thank you so much January2015.:)

Would you say it's better to write to creditors advising of token payments or will phone calls be ok?

Thanks again.

I would write. I would also take the opportunity to add that all communication regarding the debt must be in writing. We did that and all creditors were good with it. At the beginning of our DMP journey my other half especially didn't feel able to cope with phone calls etc. from creditors/debt collectors. Edit: If you feel able to phone your creditors then I would do that, but confirm the conversation with a follow up letter just so you have a written record. Keep all communications from all creditors (and copies of what you send them). You will be amazed how often one call centre person says one thing and then another 'department' doesn't know what's been agreed. Once the accounts are defaulted and move to a DCA this is much less of a problem, but it's still a good idea to keep all letters safe and sound

As mentioned by Sourcrates, if you feel able to, I would just not make payments for a while, but let creditors know you are not ignoring your debts but are working to organise a DMP.

Don't rush to set up payments because a) you want those defaults sooner rather than later and b) because you need to build up an emergency fund. Remember you will no longer have access to credit so it is important to build up a pot of money to keep to one side for unexpected emergencies - and believe me, they do crop up;)