DMP & Mutual Support Thread - Part 11

Sazzie23

January2015 wrote: »

I couldn't stop myself - I logged into online banking and paid £15 off one of our debts.....we are now officially in the £60k's.....all be it £1 from being £70k, but it sounds so much nicer to say £60k's :rotfl:

Haha I was going to suggest this, Defo good for morale :money::T:T

Saz

[Deleted User]

January2015 wrote: »

I couldn't stop myself - I logged into online banking and paid £15 off one of our debts.....we are now officially in the £60k's.....all be it £1 from being £70k, but it sounds so much nicer to say £60k's :rotfl:

I don't blame you at all for doing that. Would probably have done the same myself;)

I bet being in the £60Ks feels really good:dance:. Reaching big landmarks like that are always extra special. Here's to your next one:beer:

jellybean08

Thanks for the advice from a few days ago about setting up a basic bank account. It's now all done and stepchange have all my details now to start setting up my dmp. I have sent all my creditors the letter that stepchange suggested saying that I am starting a dmp, so what happens now? Is it likely that they accept the new repayments?

sourcrates

jellybean08 wrote: »

Thanks for the advice from a few days ago about setting up a basic bank account. It's now all done and stepchange have all my details now to start setting up my dmp. I have sent all my creditors the letter that stepchange suggested saying that I am starting a dmp, so what happens now? Is it likely that they accept the new repayments?

Nothing happens, that's it, you make your monthly payments as required.

Makes no difference if the creditors accept it or not, most will anyway, but if any don't, they usually change their mind, or sell on the debt.

Either way it won't affect you, stepchange will continue with paying whoever owns the debt.

It's as simple as that !!

abby1234519

Ugh. Basically Lowells will offer me 20% off the debts but I still pay them at the rate I'd be paying the DMP.

So whilst that's nice, I don't want to accept 20% off and them decline a further discount later on? I mean it's still going to take 5 years to pay them off. What I REALLY want is 50% discount and to pay it upfront!

Triangle

January2015 wrote: »

I couldn't stop myself - I logged into online banking and paid £15 off one of our debts.....we are now officially in the £60k's.....all be it £1 from being £70k, but it sounds so much nicer to say £60k's :rotfl:

Amazing news :j:j:j So pleased for you :T:T:T:

CP2016

January2015 wrote: »

I couldn't stop myself - I logged into online banking and paid £15 off one of our debts.....we are now officially in the £60k's.....all be it £1 from being £70k, but it sounds so much nicer to say £60k's :rotfl:

Ah, as if that was going to be allowed to remain as a smidge over 70k, Congrats on making it to your 60ks. :T

mica2

I have a few questions about setting up a DMP, if someone can help. Been lurking here a while trying to pluck up the courage to get things going but I keep fearing the worst. I was going to do it this month but have already maxed out my overdraft limit and have had to use my credit card to pay for a couple of things so obviously I'm scared to do it while I have no spare income. I have a huge tax bill to pay as I am self employed as an artist (also have a ft day job) but have been paying £100 a month since last spring to pay off my massive bill in installments. Having just completed my next self assessment I owe another £270 on top of over £850 remaining from my previous bill. I managed to sell my bike and have put aside £250 which I was planning to pay my recent tax bill with, Now I'm wondering whether I should pay my tax bill with my credit card (feels wrong) and then keeping that £250 aside incase of emergencies once I start my DMP and no longer rely on credit?
Also, I'm planning on going through Step Change and did a SOA a few months ago but the amount it left me to live in scared me off of doing it. Do they ask for proof of bills and income? Or can you be a little bit dishonest to give yourself a bit more wiggle room?
Finally, I part own my flat but my mum bought the mortgage so I just pay her towards it on top of paying rent and services charges to a housing association. Will SC want to see evidence of paying my mum? Or do they just take your word for what payments you make? As she has kindly held off me paying her whilst I sort my tax out but now she is losing patience and I want to be able to start paying her back again. Sorry if I'm not making myself very clear, just getting over the flu and my head is a bit fuzzy

thanks in advance for any help

January2015

mica2 wrote: »

I have a few questions about setting up a DMP, if someone can help. Been lurking here a while trying to pluck up the courage to get things going but I keep fearing the worst. I was going to do it this month but have already maxed out my overdraft limit and have had to use my credit card to pay for a couple of things so obviously I'm scared to do it while I have no spare income. I have a huge tax bill to pay as I am self employed as an artist (also have a ft day job) but have been paying £100 a month since last spring to pay off my massive bill in installments. Having just completed my next self assessment I owe another £270 on top of over £850 remaining from my previous bill. I managed to sell my bike and have put aside £250 which I was planning to pay my recent tax bill with, Now I'm wondering whether I should pay my tax bill with my credit card (feels wrong) and then keeping that £250 aside incase of emergencies once I start my DMP and no longer rely on credit?
Also, I'm planning on going through Step Change and did a SOA a few months ago but the amount it left me to live in scared me off of doing it. Do they ask for proof of bills and income? Or can you be a little bit dishonest to give yourself a bit more wiggle room?
Finally, I part own my flat but my mum bought the mortgage so I just pay her towards it on top of paying rent and services charges to a housing association. Will SC want to see evidence of paying my mum? Or do they just take your word for what payments you make? As she has kindly held off me paying her whilst I sort my tax out but now she is losing patience and I want to be able to start paying her back again. Sorry if I'm not making myself very clear, just getting over the flu and my head is a bit fuzzy

thanks in advance for any help

Hi Mica :wave:

When we had our lightbulb moment (LBM) in January 2015, we drew out cash on every credit card we could before sending off the DMP paperwork to stepchange. I felt guilty, but I also knew that we needed to survive. Admittedly when I did this I wasn't really aware that I could delay the start of the DMP for several months. However, it was a way for us to get a bit of a safety net behind us. It did increase our debt, obviously, but on the plus side most of the debts went to interest free and no charges almost immediately.

Definitely give yourself a bit of wriggle room when setting your budget with SC. I didn't have to send evidence of costs and as long as they are reasonable they will be accepted. One of our categories was above what SC deem reasonable, but we gave an explanation of why and it was accepted without evidence.

Don't rush to start DMP payments. Go through the process to get it ready to set up and let SC know you want to take a few months to get an emergency fund built up.

Best of luck with it all - and we are all here to support you:beer:

sourcrates

Mica2,

Hi,

A DMP is not a formal process, infact it's very informal, you aren't oblighed to reveal anything to anyone, that you don't want to reveal yea.

You ultimately decide on your budget, no one else, SC may give you guidelines, but that's all they are.

Relax a bit and have a good read up on this thread.