DMP & Mutual Support Thread - Part 11

motivated

Hi all

Went AWOL again as long story short OH flipped out about the planned DMP. However after a whole week of me and OH arguing, blaming, tears etc etc. we have finally cleared the air and have both decided that the DMP is the way to go forward.

I actually phoned SC last Monday and was in the middle of going through expenditure and debts etc when I got disconnected. OH saw this as fate and then we argued (again)

Lots of sulking through the week and now we have reached a point where we finally both 100% agree that we need to do this for both our sanities.

OH has even taken his new debit card and will give work the new details for wages to go into. :j

Anyway today we have sat down together and sorted our budget ready for telephone call 2 to SC.

He even sat and read many comments etc on this thread and was surprised at how many are in the same boat as us. Sourcrates and January he was particularly inspired by your comments, support and encouragement of others so thank you for helping him to see sense :A He said these 2 seem to know what they are talking about don't they. :rotfl: Meant as a compliment I promise.

Is this a normal process to argue and stress at the beginning of a DMP or is it just us ?

According to our calculations we should be clear of all debt in (I have to say this quick) 7 years :eek:

I also messaged CCs and informed them that we will be taking advice from SC regarding financial difficulties, They have replied by saying that they will put accounts on hold for 30 days to give us time to set things up and will look forward to working with us and SC.

We do however have one card with a zero balance on it and have asked for a money transfer to go to our new account as an emergency fund. Was this a wise decision? We also plan to delay our starting date to maybe March to help us build a little more up.

Roughly, how long does it take for any paperwork from SC take to arrive?

Just an update really and will definitely get the ball well and truly rolling this week.

sourcrates

motivated wrote: »

We do however have one card with a zero balance on it and have asked for a money transfer to go to our new account as an emergency fund. Was this a wise decision? We also plan to delay our starting date to maybe March to help us build a little more up.

Roughly, how long does it take for any paperwork from SC take to arrive?

Just an update really and will definitely get the ball well and truly rolling this week.

Hi,

All good decisions yes !!

Stepchange usually take a week or so to get paperwork to you, they normally want it back ASAP, but if you tell them your hanging on a bit, I'm sure they won't mind.

If you need any further help, January, through bitter experience, certainly knows her stuff.

motivated

sourcrates wrote: »

Hi,

All good decisions yes !!

Stepchange usually take a week or so to get paperwork to you, they normally want it back ASAP, but if you tell them your hanging on a bit, I'm sure they won't mind.

Thanks again sourcrates :A

My thinking is that I have a week off work from the 11th - 19th of Feb so I would have plenty of time to get paperwork in order and sent back to SC.

When do I tell them my planned first payment date. Do I tell them on the initial phone call or when the paperwork goes back to them?
M

January2015

Hi motivated

Glad you OH is now on board with the DMP

I would advise delaying the start of the DMP until May or even June. I can hear you cringe in horror at not making payments for such a long time but nothing bad will happen and you will build up a decent emergency fund.

Also, make sure you allow yourself a reasonable budget. If you don't have a pet - you do for the budget If you don't smoke - you do for the budget. It's not cheating - it's allowing you room to live and save for those emergencies (if you need your emergency fund how will you replenish it afterwards if you don't have wriggle room in your budget).

I would tell SC when you phone them when you are thinking of starting the DMP. Seriously, think about delaying it a few more months, but it's up to you and you need to be comfortable with your decision.

Enjoy the week off in Feb

motivated

January2015 wrote: »

Hi motivated
I would advise delaying the start of the DMP until May or even June. I can hear you cringe in horror at not making payments for such a long time

Thanks January,

When I read this, I did go :eek: :rotfl:

Can we really do this? that would help us to build up a nice emergency fund too.

Would I send paperwork back telling SC when I am starting payments or would I send it back just before I want to start?

I'm just scared that my creditors will be like :mad:
M

motivated

January2015 wrote: »

I would tell SC when you phone them when you are thinking of starting the DMP. Seriously, think about delaying it a few more months, but it's up to you and you need to be comfortable with your decision.

Sorry January

I misread this bit and then asked the same question again doh
M

Emm1E

Hi, I set up my self managed DMP in October after joining this wonderful forum and reading lots of great advice. My husband and I had been living off of credit cards, and I was then made redundant so something had to give! So glad we did this as everything is budgeted for and we've started getting defaults which is great 😊 However, we are only currently paying token payments to all our credits and can't see that this is going to change for the foreseeable. I have a new job but salary is half what I used to get as now work term time so don't have to worry about childcare in school hols (don't have family that can help). Husband just found out he's being made redundant too! Although we will have some redundancy money, it's nowhere near enough to clear debts. Even when he finds another job, if it's around the same salary we still won't be able to pay more. How long will creditors continue to accept token payment of £1 and what could eventually happen? Any advice would be greatly appreciated. Thank you

January2015

Emm1E wrote: »

Hi, I set up my self managed DMP in October after joining this wonderful forum and reading lots of great advice. My husband and I had been living off of credit cards, and I was then made redundant so something had to give! So glad we did this as everything is budgeted for and we've started getting defaults which is great 😊 However, we are only currently paying token payments to all our credits and can't see that this is going to change for the foreseeable. I have a new job but salary is half what I used to get as now work term time so don't have to worry about childcare in school hols (don't have family that can help). Husband just found out he's being made redundant too! Although we will have some redundancy money, it's nowhere near enough to clear debts. Even when he finds another job, if it's around the same salary we still won't be able to pay more. How long will creditors continue to accept token payment of £1 and what could eventually happen? Any advice would be greatly appreciated. Thank you

Well done on setting up your DMP.

Don't panic about the creditors - they can't have what you don't have.

My advice is that you shouldn't be tempted to use the redundancy money to settle debts. Save it. You may need it to live on for a while, but if you or your OH are fortunate enough to find new jobs you can use it towards offering full and final settlements (partial settlements to close accounts).

Creditors will accept token payments for a long, long time. Keep in touch with them and don't ignore them. That's when creditors get fed up and turn to legal action. It's not worth them taking legal action to recover debts if they know you don't have any money anyway.

heavenlyharry01

Hello

I have posted before...not sure if anyone is familiar with my 'story'.
Anyway I'm not paying anything towards my creditors at the moment, last contact I made with them was December when I said I would do a budget in the near future!

Any advice what I should say when getting calls (some have come through even though I asked for no phone contact).

Should I say we are in the process of drawing up a budget? Wait another couple of months without contact? Do the budget sheet and send it off?
Tell them we can only afford token payments at the moment and start them?

Obviously I'm trying to get accounts defaulted, and I'm probably just looking for reassurance that court action is miles off! (A lady today told my husband that we could start getting charged for letters and phone calls and that because interest is front loaded if accounts get defaulted they still add charges??)

Someone posted a while ago about a letter which you should not ignore and certain wording it has, but I can't seem to find that post.


Sorry to ramble and ignore other posters, I'm afraid I can't offer advice as this is so new to me too x

January2015

heavenlyharry01 wrote: »

Hello

I have posted before...not sure if anyone is familiar with my 'story'.
Anyway I'm not paying anything towards my creditors at the moment, last contact I made with them was December when I said I would do a budget in the near future!

Any advice what I should say when getting calls (some have come through even though I asked for no phone contact).

Should I say we are in the process of drawing up a budget? Wait another couple of months without contact? Do the budget sheet and send it off?
Tell them we can only afford token payments at the moment and start them?

Obviously I'm trying to get accounts defaulted, and I'm probably just looking for reassurance that court action is miles off! (A lady today told my husband that we could start getting charged for letters and phone calls and that because interest is front loaded if accounts get defaulted they still add charges??)

Someone posted a while ago about a letter which you should not ignore and certain wording it has, but I can't seem to find that post.


Sorry to ramble and ignore other posters, I'm afraid I can't offer advice as this is so new to me too x

Hi

I assume you are going down the self managed DMP route - correct me if I have assumed wrong.

I wouldn't ignore the creditors. You need to communicate to at least get them freeze the interest and charges. Yes you want those defaults, but ignoring them is not the way to achieve it.

If you just ignore them completely you are likely to rack up interest and charges and your debt will just increase. It's okay to not pay them - but let them know you can't pay them.

Contact them and advise you have sought advice from Stepchange/National Debtline/PayPlan/NEDCAB for free debt advice (pick one - it doesn't matter if you haven't spoken to them - you can get free advice on their websites so you will not be fibbing). Explain that due to your financial situation you can only make a token payment to the amount of £1 - or that you cannot currently afford to make payments (whichever is your preferred option). Confirm that whilst you are committed to clearing your debts you are not in a position to do and request creditors freeze interest and charges so that your debt does not increase. Ask they acknowledge receipt of your letter and confirmation they will freeze interest and charges. I would send an interest and expenditure statement to evidence you cannot afford to make payments, or only make token payments. Let them know you will update them if your situation changes.

That's what I would do. Nothing bad will happen.