DMP & Mutual Support Thread - Part 11

January2015

motivated wrote: »

Thankyou so much sourcrates and carbootcrazy

I think the initial shock has set in and OH is having second thoughts about it all. He said "well we won't be able to use CCs ever again and we have to muck about with having wages paid to different account etc :mad: As if we are in a position to use CCs.

He made me second guess myself too for a while but I still think it's the best option for us.

We currently pay approx £1,600 a month just on loans and CCs :eek:

What worries me most are the loans from my bank and the process they will go through to get repayments. I'm thinking bailiffs at the door and the high court enforcement like on the TV. Is it as bad as I am imagining?

Sorry for being so naive and thankyou again for your advice .
M

sourcrates wrote: »

No, your imagination is running away with you.

High court enforcement offices cannot and do not collect consumer credit debts.
All consumer credit debts are heard at county court level, never the high court.
So put that right out of your mind.

You need some reassuring words from one of our regulars, January, she had over 100k of debt, her DMP has been a doddle, I'm sure she'll be along soon, listen to what she tells you.

Hi motivated :wave:

You have a fantastic username - stick with it and keep that motivation to clear those debts going :T
Sourcrates is right - at our worst our debts were over £100k. After several consolidation mess ups, we had our lightbulb moment at £95k. Well over £30k of that was bank loans, the rest credit cards.

My username tells you how long since I had my LBM and recognised we needed help - aka a DMP. January 2015 was it for us. Today we owe just below £70k. It's been an amazing journey. I was initially petrified the bailiffs would come and get us / take my stuff / embarrass us in front of the neighbours (perhaps even on the telly:eek:). The reality is - nothing bad has happened at all. Everything good has happened.

Okay - we have no access to credit, but I love that We actually live better than we did when we were trying to pay all those loans and credit cards. Our marriage is so much stronger (we've always been solid together but the financial strains have gone now). We both love our DMP and know that we have a goal and will be debt free. We literally do not worry about money anymore. We save for emergencies, we save for birthdays and Christmas. That has never happened in our lives before. It's a great feeling to have the budget to do that.

For personal reasons I don't want to disclose we are back to paying token payments and have been for months. The banks and debt collection agencies have been great. No problems. We explain, they accept the payment. We evidence what we can afford at the moment and that's it. They can't have what we don't have.

It is worrying at first, and there does seem a lot to do with changing banks etc. It feels hard changing banks when you've been with your bank for years. Just do it. It's for the best.

I promise you that once you decide to go on a DMP you will feel the strain and worry start to lift. If your mortgage or rent payments go up - no need to worry how to find those extra pounds because the DMP payments just go down. You live within what you have available, making sure the roof over your head and your main bills, including food, are paid first. Only then do your creditors get a share of what's left.

There are so many regulars on here who shout from the rooftops they love their DMP and I am one those. Puzzcat and Sazzie spring to mind as well. There is a whole gang of us supporting each through. If one of us receives a communication from a creditor or DCA and we're not sure what to do - you can be sure someone else has been there, done it, challenged it and come out smiling.

Once you settle into your DMP you will realise you have rights and banks and creditors have to treat you fairly and with respect even though you can't meet the original terms and conditions of your loans and cards. You will realise you can challenge and push back and argue for your rights. We've had hundreds (actually over a thousand) refunded in interest and charges since starting our DMP. We don't physically get the money, but the debt balances reduce. This would never have happened if I hadn't found this forum and the wonderful support from my virtual friends. Sourcrates and Fatbelly deserve special mentions. They've saved me about £10k so far.

Please don't hesitate. You are in a situation where you need to do something. If that something is a DMP then jump right in. There are other options. Because of home ownership and also because of my employment I couldn't opt for bankruptcy or an IVA - so DMP it was.

You do need your OH on board with you - get him to read some of this thread. There are so many posts like yours where people have been unsure and then read several pages later and they are swimming through the initial set up and then yet a few pages more and they are flying and feeling the benefits of their DMP and the sense that the stress and strains of financial worry are lifted.

Don't ever feel you have done anything wrong. Don't ever feel you are alone in this. From the hundreds on this forum - we're all here for the same reason. Some have made it through already, some (like me) are still plodding through, and some (like you) are just starting out. Even on the news they are reporting more and more people are going bust as they like to put it. What you are doing is facing up to the problem and taking steps to put it right in a way that allows you live and have a life at the same time.

My biggest recommendation is start the DMP set up process and don't pay anything for a few (well several) months. The banks and card companies won't do anything. You will get letters saying you are defaulting. So what - defaults are want you want to happen. If they put fees and charges on, write and challenge them and tell them you are working with stepchange to set up a DMP. Most times they refund charges immediately - if they don't then just keep writing - we'll help you formulate the letters and tell you the legislation/regulations to quote. That puts them in their place and they end up refunding eventually.

So - a huge welcome from me to you and your hubby. We look forward to getting to know you both and helping you become debt free......and you will soon be helping others (I was the newbie 2 years ago and look at me now;) )

At no point during our DMP have we got anywhere near being threatened with court/bailiffs or anything even close to that. It's all been quite civilised actually lol.

Finally - just to say I cannot believe how quickly the last two years have flown by. The length of a DMP may look scary but once you are settled into and happier with your life in general (financial worries are good at pulling you down right across your day to day life), you will be amazed at how quickly the time does fly.

Sorry for the long, long post - hope it helps :beer:

January2015

Hi motivated

When we set up our DMP we had never missed a single payment on anything. We had borrowed from credit card A to pay credit card B, we had taken payment holidays on loans but we were 'coping' or so we thought.

In the month before our DMP I was drawing cash out on credit cards just to get through. Every credit card was maxed by the time I woke up on 7th January 2015 and thought OMG we need to sort this (well I say woke up - I never slept the night before for laying awake worrying about it).

You'll find many of us on here were the same - never missed a payment anywhere and then straight into a DMP. The banks and card companies won't be surprised and they won't be upset. They are used to this happening and you are not an individual to them - just another account number so don't worry.

Sazzie23

motivated wrote: »

Thankyou so much sourcrates and carbootcrazy

I think the initial shock has set in and OH is having second thoughts about it all. He said "well we won't be able to use CCs ever again and we have to muck about with having wages paid to different account etc :mad: As if we are in a position to use CCs.

He made me second guess myself too for a while but I still think it's the best option for us.

We currently pay approx £1,600 a month just on loans and CCs :eek:

What worries me most are the loans from my bank and the process they will go through to get repayments. I'm thinking bailiffs at the door and the high court enforcement like on the TV. Is it as bad as I am imagining?

Sorry for being so naive and thankyou again for your advice .
M

Hi motivated,

Very few DMPers ever even get CCJs as its generally a long way down the road before a creditor wants to go to court to get the same or less repayment than they get through a DMP.

It is totally confronting acknowledging any level of debt, and accepting it's a problem is the first step. Sounds like you are ahead of the OH, most seem to come round after a while, maybe get them to read through some of the stuff on here.

It will be OK, I pay currently £130 per month on an initial total of around 35K. As I'm just about all defaulted and my income seems stable for now, I may increase that slightly. Don't make the mistake of wanting to pay too much too quick, especially with high levels of debt and repayment you will be less likely to get your interest cut.

Your DMP will change your life, let it be a positive change for the future.

Saz

motivated

Hi all and thank you all so much for your reassurance and your non judgemental advice. :A

I am feeling quite positive about it all to be honest and am looking forward to tackling it all head on. However I tried to talk to OH this morning and we rowed

:mad: All he keeps on saying is " yes but we will be ****ed as we will not get anything on credit ever again and we will have defaults etc " :mad:

He cannot see that this is the last thing we need and if we carry on this will happen anyway.

. I do have a question though. Roughly how much would we be paying a month towards a DMP. I only ask as I am trying to give him an idea of how much we would be left with to hopefully save a little for a couple of treats (nothing extravagant)

our outgoings at the moment just on loans and CCs is approx. £1600 :eek: and we also have been robbing CC A to pay CC B and so on. I constantly think about money and worry every month until I know everything is paid. Although every single penny of my wages goes on bills and debt payments with nothing left for a small treat and its actually not enough now.

Feeling quite fed up at the moment as my head is racing with it all

I'm not looking for pity I just wanted to vent a little
Thank you again
M

January2015

motivated wrote: »

Hi all and thank you all so much for your reassurance and your non judgemental advice. :A

I am feeling quite positive about it all to be honest and am looking forward to tackling it all head on. However I tried to talk to OH this morning and we rowed

:mad: All he keeps on saying is " yes but we will be ****ed as we will not get anything on credit ever again and we will have defaults etc " :mad:

He cannot see that this is the last thing we need and if we carry on this will happen anyway.

. I do have a question though. Roughly how much would we be paying a month towards a DMP. I only ask as I am trying to give him an idea of how much we would be left with to hopefully save a little for a couple of treats (nothing extravagant)

our outgoings at the moment just on loans and CCs is approx. £1600 :eek: and we also have been robbing CC A to pay CC B and so on. I constantly think about money and worry every month until I know everything is paid. Although every single penny of my wages goes on bills and debt payments with nothing left for a small treat and its actually not enough now.

Feeling quite fed up at the moment as my head is racing with it all

I'm not looking for pity I just wanted to vent a little
Thank you again
M

It will be 6, maybe 7, years for your credit file to sort itself out. You won't be able to get credit - but believe me that is a good thing. You won't be able to buy what you don't need, and when you do need something you will either have an emergency fund, or (like us) will drop to token payments for a while to use the DMP money to pay for what you need. It does work - believe me.

As to how much you would be paying on your DMP - that's impossible for us to tell. You need to complete an income and expenditure form (or statement of affairs. aka SOA). Once you have paid priority debts and living expenses then creditors get their share of what's left. Bulk up what you need to live on - don't skimp on things. You need to live and you need wriggle room.

You could play hardball with your husband and tell him you will DMP your debts because you can't cope any longer and therefore he will need to take on responsbility for his debts. If you have any linked finances, e.g. mortgages, your being on a DMP will be reflected in some way on his credit file so he might as well just sort his finances out in a joint DMP. That's hard to do though, I must admit.

I hope you can bring him round, but seriously - if you can't then at least think about finances which are in your name and start sorting them out.

January2015

Hi motivated

I read this thread this morning and thought of you - especially post no. 3 from our lovely Ellie in which she says her hubby didn't see the point of / want a DMP. Ellie is just about through her DMP and she has done it without the moral support of her husband - so it can be done. Obviously neither of them could access credit during this period though.

Just thought it might help to read others who have gone the DMP route don't always have their partners support for the journey but still get there and come out the other side with their marriage still in tact and happy.

motivated

Thank you January :A

I have been reading your posts and following you on your journey (not stalking I promise)

You are evidence along with many others that its is possible to pay down debt and also live a little.

our bank account is joint but the loans were done online as the online banking is just in my name so I don't know if they are in joint names or not. 2 CCS are in my name and 1 is in OHs name. I just want us to pull together and plod along together. We are both in our 50s and will take all of this mess well into retirement and I don't want that.

We are also paying a debt to HMRC I think its called for an overpayment from hundreds of years ago. We pay this at £50 per month. Balance is approx. £1600 left to pay. They are constantly trying to get us to up the payments but I stuck to my guns and said NO!!!. I felt quite proud of myself

I will keep trying to convince him to come on board with me. I think one of the reasons is he has another CC with a limit of £14,000 and a zero balance. its his safety net I think. Imagine if we spent on that as well :eek:
M

motivated

Sorry forgot to add that he is worried about his mobile phone he currently has a sim only deal and I am going sim only in March. But how do you go about having a mobile if you cant get credit. Would it be PAYG?

January2015

motivated wrote: »

Thank you January :A

I have been reading your posts and following you on your journey (not stalking I promise)

You are evidence along with many others that its is possible to pay down debt and also live a little.

our bank account is joint but the loans were done online as the online banking is just in my name so I don't know if they are in joint names or not. 2 CCS are in my name and 1 is in OHs name. I just want us to pull together and plod along together. We are both in our 50s and will take all of this mess well into retirement and I don't want that.

We are also paying a debt to HMRC I think its called for an overpayment from hundreds of years ago. We pay this at £50 per month. Balance is approx. £1600 left to pay. They are constantly trying to get us to up the payments but I stuck to my guns and said NO!!!. I felt quite proud of myself

I will keep trying to convince him to come on board with me. I think one of the reasons is he has another CC with a limit of £14,000 and a zero balance. its his safety net I think. Imagine if we spent on that as well :eek:
M

We are both in our 50s. Our DMP will be cleared a couple of years before we retire - although we aim to complete it before then if we can

Edit: Ask your husband to work out a plan with you to clear the debts before your retirement - paying interest you will not be able to do it and he will hopefully see that eventually. Retirement is what brought my other half round to seeing how dire our problems were.

Stalk away :rotfl: No secrets on here. That's the good thing about the forum - no-one really knows you and you can be honest and talk about your worries and hopefully soon, your successes with your DMP and clearing those debts.

Credit cards are not meant for living on. That's the point we reached before starting our DMP. We were paying the debts and needed the CCs for fuel, groceries, etc. We had no money to live on each month. Your husband needs to realise you are either at this point or very close to it.

Whatever happens, try to have a good day - you deserve it. :beer:

January2015

motivated wrote: »

Sorry forgot to add that he is worried about his mobile phone he currently has a sim only deal and I am going sim only in March. But how do you go about having a mobile if you cant get credit. Would it be PAYG?

I'm on a contract for my phone and have no problems with upgrades etc. However, I've been with my provider for years. You will both still have mobile phones but you may not be able to upgrade the handsets. Does that matter. If it makes calls, receives texts etc....does it matter if it's not the latest handset?