DMP & Mutual Support Thread - Part 11

January2015

Polgara72 wrote: »

Now for my real question.

My current DMP with Payplan is with my, now estranged, husband. We notified PP of our intention to separate last year, but stated that because the joints were run up jointly (single accounts, with an additional card holder in most cases), we would like to split the file 50/50. Or continue yo pay as at the time.

PP stated that only official joint debts could be split 50/50. The rest would be the responsibility of the account holder. So we let it continue.

We have separated and are on the brink of divorce. The settlement agreement (all DIY other than that!), states that we will remain jointly liable for the PP agreement.

The annual review is now upon us. I was dismissed from my job last year due to unsatisfactory attendance with MH problems, so am on benefits. We run separate households now. I totted up the individual liabilities the other night: 2/3 of it is in my name.

So I suppose my question is, will the settlement order override PP? And what do I tell them in the annual review?

Thank you in advance

Hopefully your separation/divorce is amicable - in which case you can just both continue to contribute to clearing them. However, technically you are responsible for your own personal debts, ie. if the loans/credit cards are in your name then you alone are responsible for clearing the debt. If the divorce is not amicable then a court could order your ex has to make a payment towards clearing the debts if you can prove the debts were accrued and spent to the benefit of you both and therefore your ex does have some responsibility to aid with clearing them.

Something similar to this happened with my D-in-L. She got an unsecured loan in her name only and it was used to improve the home and then when marriage started falling apart they sold the home and although they cleared the mortgage there was not sufficient to clear all unsecured debts. She successfully argued that she had only taken on this debt for their joint benefit and the court agreed. She was also trying to argue for some her credit card debts to be split in a similar manner but she didn't win that argument (partly because my son had agreed and only taken an 10/90% split of the house sale proceeds).

Polgara72

January2015 wrote: »

Hopefully your separation/divorce is amicable - in which case you can just both continue to contribute to clearing them. However, technically you are responsible for your own personal debts, ie. if the loans/credit cards are in your name then you alone are responsible for clearing the debt. If the divorce is not amicable then a court could order your ex has to make a payment towards clearing the debts if you can prove the debts were accrued and spent to the benefit of you both and therefore your ex does have some responsibility to aid with clearing them.

Something similar to this happened with my D-in-L. She got an unsecured loan in her name only and it was used to improve the home and then when marriage started falling apart they sold the home and although they cleared the mortgage there was not sufficient to clear all unsecured debts. She successfully argued that she had only taken on this debt for their joint benefit and the court agreed. She was also trying to argue for some her credit card debts to be split in a similar manner but she didn't win that argument (partly because my son had agreed and only taken an 10/90% split of the house sale proceeds).

Thank you.

It's relatively amicable - but I just don't know how I can do the annual review when I don't earn now and he has a separate household. Do I just state it's all as it was?

The consent order drafted by the solicitor states that both parties will continue to contribute equally towards the Payplan agreement, as the debts were accrued jointly. Or something like that.

It's made harder by the fact that I can't quite bring myself to apply for the decree absolute :-(.

January2015

Polgara72 wrote: »

Thank you.

It's relatively amicable - but I just don't know how I can do the annual review when I don't earn now and he has a separate household. Do I just state it's all as it was?

The consent order drafted by the solicitor states that both parties will continue to contribute equally towards the Payplan agreement, as the debts were accrued jointly. Or something like that.

It's made harder by the fact that I can't quite bring myself to apply for the decree absolute :-(.

If he is going to give you money to put towards the debts add it as additional income. I don't know if there is an option for additional income, but if not I would add it to my income and write a covering email/statement to note that £xxx is being provided by ex partner to support debt clearance.

The other option you have is to complete the review with your own income and pay less to the debts, ie token £1 payments as you don't earn, and save the money your ex gives you towards offering full and final settlements. Edit: This is what I would do

zenshi

Last summer, I offered a settlement figure for one of my cards. DCA wrote back saying they had passed it to the client and would be in touch. Nothing!

Should I write directly to credit card people with my offer?

sourcrates

zenshi wrote: »

Last summer, I offered a settlement figure for one of my cards. DCA wrote back saying they had passed it to the client and would be in touch. Nothing!

Should I write directly to credit card people with my offer?

I think you'll most likely be wasting your time Zenshi.

The DCA was just acting for the creditor, so has no real interest in your offer, you could go direct, but as original creditors rarely give good discounts, dont hold your breath they will accept.

BeingDebtFreeStartsHere

Hi DMPers

I really need some advice on what to do next month :think:

I will not get any overtime pay in my wage and already know I am going to struggle to make our income for Feb stretch the whole month.

I can think of a couple of options but would like some advice from you knowledgable folk on here please

1. Borrow some money on a credit card that is not linked to our DMP and pay it back over a few months when I get more overtime (not my ideal solution as I do not want to borrow more and also do not want to put our current DMP in jeopardy if our existing creditors notice and feel we are favouring one creditor over the others by paying the minimum payments on the non-linked CC)

2. Contact SC and ask for a reduced payment for Feb's direct debit. If this is the best option how do we go about it? Are SC normally accommodating and are they reliable at altering the DD for just the one month? What then happens if we have an unexpected car repair bill to pay and I have to ask for further reduced payment later on in the year - don't want to rock the boat with the creditors who have been very accommodating.

3. Are there any other options that I haven't considered?

I just know that with all the extra outgoings (school residential payments, swimming fees etc etc) and no overtime that I am going to be lft with next to nothing for food/petrol/day to day living expenses.

Any advice would be so welcome.

Thanks in advance,

Take care,
,
BDFSH x

sourcrates

BeingDebtFreeStartsHere wrote: »

Hi DMPers

I really need some advice on what to do next month :think:

I will not get any overtime pay in my wage and already know I am going to struggle to make our income for Feb stretch the whole month.

I can think of a couple of options but would like some advice from you knowledgable folk on here please

1. Borrow some money on a credit card that is not linked to our DMP and pay it back over a few months when I get more overtime (not my ideal solution as I do not want to borrow more and also do not want to put our current DMP in jeopardy if our existing creditors notice and feel we are favouring one creditor over the others by paying the minimum payments on the non-linked CC)

2. Contact SC and ask for a reduced payment for Feb's direct debit. If this is the best option how do we go about it? Are SC normally accommodating and are they reliable at altering the DD for just the one month? What then happens if we have an unexpected car repair bill to pay and I have to ask for further reduced payment later on in the year - don't want to rock the boat with the creditors who have been very accommodating.

3. Are there any other options that I haven't considered?

I just know that with all the extra outgoings (school residential payments, swimming fees etc etc) and no overtime that I am going to be lft with next to nothing for food/petrol/day to day living expenses.

Any advice would be so welcome.

Thanks in advance,

Take care,
,
BDFSH x

Hi,

Ok, your over thinking this situation, it's never good to borrow to pay debt, and I think you know that.

Your best solution is to stop your DMP payments for a few months until this phase has passed, a simple letter to stepchange, and your creditors, explaining the situation, will suffice.

Don't ask for a payment break, tell them your taking one, and will resume payments in six months, or whatever timescale your comfortable with.

While your at it, I would also reassess your budget, as it sounds like your DMP is unaffordable to you at its present level.

BeingDebtFreeStartsHere

sourcrates wrote: »

Hi,

Ok, your over thinking this situation, it's never good to borrow to pay debt, and I think you know that.

Your best solution is to stop your DMP payments for a few months until this phase has passed, a simple letter to stepchange, and your creditors, explaining the situation, will suffice.

Don't ask for a payment break, tell them your taking one, and will resume payments in six months, or whatever timescale your comfortable with.

While your at it, I would also reassess your budget, as it sounds like your DMP is unaffordable to you at its present level.

Thanks Sourcrates

You're totally right - I do know that borrowing is not the solution and that would have been a last resort - I do not want to end up in more debt after coming so far. Have you, or anyone else, taken a payment break whilst with SC? Is it better to ring, write or email?

Are we best paying SC's recommended £5 per creditor per month whilst we get back on track? I will definitely do a budget review as we are always too close to the edge the last week before pay day and I'm not liking it!! I am right in thinking a review can be done anytime?

Thank you

BDFSH x

Sazzie23

BeingDebtFreeStartsHere wrote: »

Thanks Sourcrates

You're totally right - I do know that borrowing is not the solution and that would have been a last resort - I do not want to end up in more debt after coming so far. Have you, or anyone else, taken a payment break whilst with SC? Is it better to ring, write or email?

Are we best paying SC's recommended £5 per creditor per month whilst we get back on track? I will definitely do a budget review as we are always too close to the edge the last week before pay day and I'm not liking it!! I am right in thinking a review can be done anytime?

Thank you

BDFSH x

Sourcrates is spot on, borrowing to repay debt is a nasty vicious cycle you don't want to get into (again?).

How SC deal with it seems a bit dependant on who you get responding. Because of the urgency, I'd call them, but also message them, so they can see what you asking for... But ,What are you asking for ? I'd do a non overtime dependent review, which will likely show your repayment is too high. Then if you get extra money on the following months, stash it for F&f or pick off your lowest debts one at a time.

Saz

[Deleted User]

BeingDebtFreeStartsHere wrote: »

Have you, or anyone else, taken a payment break whilst with SC? Is it better to ring, write or email?

Are we best paying SC's recommended £5 per creditor per month whilst we get back on track? I will definitely do a budget review as we are always too close to the edge the last week before pay day and I'm not liking it!! I am right in thinking a review can be done anytime?

Thank you

BDFSH x

Hi BDFSH

Easy to say I know but please stop worrying. We're all here to help you through this and SC will do the same. You will get through this anxious time:beer:


If ever I've had a major problem I've always phoned SC. Like Sazzie said, it depends on the operative that you get, they all seem to interpret their 'rules' slightly differently;). Also, it sometimes takes ages to get through on the phone especially at this time of year when they seem exceptionally busy. Just persist, someone will be available to talk to you eventually.


I had to ask for help from SC early last year after a series of major expenses (such as unexpected big vet's bill, washing machine and cooker completely dying, car needing endless essential bits replacing etc etc) I just didn't know how I was going to cope or who to turn to for money. I didn't have the 'luxury' of getting into more debt to pay for it all:(


I asked SC for a month of non-payment (although this would barely have touched the sides but I was scared to 'rock the boat' with them:o). It would have meant an extra £730 though and would have been a major help.


The operative suggested I take 3 months not just the one I asked for so I could pay for everything and maybe have a bit of an emergency cushion for next time as I'd spent every penny of my 'savings'. She suggested £5 a month token payments to creditors (which they dealt with on my behalf, I had to do nothing myself such as contacting anyone:j). She rejigged my budget there and then and amended the DD.


They are perfectly amenable to people doing this as emergencies and unexpected events can happen to anyone but she did warn me that creditors don't like this happening on a regular basis. It is much better to have a budget which caters for life's needs (with a cushion for emergency savings built in) rather than keep going back to request payment breaks.



When the 3 months was up I phoned them again as agreed to set things in motion and she did a full budget review. I wasn't going to change some of the category amounts I had in my budget and she seemed surprised as most people's insurances, council taxes etc had gone up in that time. She almost suggested I should claim more as I was cutting the money I had to live on to the bone.


I hope this helps you but I appreciate that we all have different needs and ways of getting through the scary times. Good luck and, as I said at the start of this longer than I intended post:o, please stop worrying:)