DMP & Mutual Support Thread - Part 11

2spicy

Ali80 wrote: »

Hi everyone,

Hope you're all doing well. My DMP is ticking along fine but I have a problem with mobile phone debt. I have a 2 year contract which has just come to an end. I have lapsed behind on payments (which I was making over the phone, not direct debit) and owe about £400.....stupid of me I know.

They haven't written to me about the debt and my missed payments aren't showing on Noddle.

The problem is I can't pay £400 in one go and my phone is on it's way out. Should I ring them and offer to set up a DD to cover the debt or add it to my DMP? Will they be prepared to issue me a new phone and renew my contract what with owing money on the account and my credit rating being shot?

Be grateful for an advice, thanks.

Get in touch asap ... the longer you leave things like this, the more they will linger and untimely WILL have an affect on you.
Suggest calling them, explain the situation and apologize profusely.

tequilabird

Puzzcat wrote: »

Hi BB,

New noddle report for me today and BC are no longer appearing at all... Guess i will have to wait until the PRA(T) group report to them and see what they mark it as. I have sent the question to the FOS to see if they can give me an answer!

In other news, dmp plodding along can't believe I'm almost 2 years into my journey. Still love my dmp.

Puzz. x

That's what happened to mine Puzz. No contact from PRA other than a letter to confirm new account numbers with them rather than Barclaycard. I've switched everything with SC and will wait to see what happens now.

Puzzcat

blondie_80 wrote: »

Hi all,

I've been reading these forums for years and years, but have only just got my act together and actually done something about my debt!

I entered a DMP with Stepchange in July but so far, it's been pretty stressful. In relation to some I am in a pretty fortunate position, my debt is at 22k but I earn a good salary and am paying £538 monthly on the DMP so if interest is not charged, it won't take too long to pay back. However, I've already made 2 mistakes! First is that none of my accounts were in arrears before the DMP so creditors have not defaulted any of them and are continuing to charge interest, late payment fees etc. No-one at Stepchange explained that I would have to default on payments, or push them to default the accounts in order to get interest frozen. My credit rating is already shot so would rather they all defaulted then dropped off my report after 6 years, than carry on as I am with markers on my file which then hang around for 6 years AFTER the debt has been paid. I need to ring Stepchange about this and try and get it sorted out. The problem is, I suffer from mental health issues and the thought of calling these organisations makes me feel ill! I had a particularly teary call with Tesco Bank last night who were completely unsympathetic and refused to refund any of the £64 late payment fees I have been charged. They are also charging interest every month which then pushes me over the credit limit - and then charge me an overlimit fee!! I remember using the phrase 'you are simply perpetuating the cycle of debt' more than once...how embarrassing.

The second mistake I made is not getting a stash together before starting the DMP - I just panicked and jumped straight into it. I wish I had read this board properly before starting because now I have absolutely no cash set aside for car repairs, house repairs etc and my fridge freezer is on it's way out and the boiler will also probably not last the winter. Not really sure how I am going to pay for these. Ho hum.

Anyway - sorry to rant on, I'm just finding this all a bit more complicated than I originally thought. The other slight fly in the ointment is that I am currently having therapy on the NHS but those free sessions end soon. I realize that in order to stay mentally well, I'll need to start private therapy so I'm going to have to also discuss this with SC and ask them to reduce the payments by about £200 per month so I can pay for the therapy. Not sure how this will go down??

God, I feel so stupid and wish that I had just dealt with all of this years ago when I was young enough for the 6 years of bad credit not to make that much of a difference!

Anyway, thanks to everyone who contributes to this thread - it really is invaluable to have others who understand

Hi,
Two quick points if I were you I would tell SC that you forgot to include the therapy which is a medical essential and rejig your budget now. You can then save this as an emergency fund until you need to pay for it.
With regards to defaults most will do this within the first year, not all mind! Bc are particularly troublesome, you are still very early into your dmp and things are still settling down. Have you written to any creditors requesting they stop charging and including the title complaint? If not, do this now and then you get the FOS involved.
Sorry rushed reply as going out, but don't panic all will turn out fine and I am sure others will pop in later with great advice for you.
Love Puzz.x

Kate_fixing_it

For all those starting out WELL DONE!!! Admitting the problem to yourself is half the battle. I'm one year and 5 months into my DMP and life just keeps getting better (I promise!)

News from me - the F&F is paid. Everything else has stopped interest so the debt remaining total will just keep falling

And in other news the proceeds of the sale of shares has come through today... £245 more than I expected! I've checked and there are no more fees/charges/taxes to come off so with the new childcare arrangements I can afford another F&F to my second smallest creditor. VERY excited!

DD1 is 18 in exactly 3 weeks and unlike the first 16 years of her life NONE of the celebrations will be funded by credit.

If you are having a hard time right now remember it's always darkest right before the dawn of a new day.

Kate x

stormpassing

blondie_80 wrote: »

Hi all,

I've been reading these forums for years and years, but have only just got my act together and actually done something about my debt!

I entered a DMP with Stepchange in July but so far, it's been pretty stressful. In relation to some I am in a pretty fortunate position, my debt is at 22k but I earn a good salary and am paying £538 monthly on the DMP so if interest is not charged, it won't take too long to pay back. However, I've already made 2 mistakes! First is that none of my accounts were in arrears before the DMP so creditors have not defaulted any of them and are continuing to charge interest, late payment fees etc. No-one at Stepchange explained that I would have to default on payments, or push them to default the accounts in order to get interest frozen. My credit rating is already shot so would rather they all defaulted then dropped off my report after 6 years, than carry on as I am with markers on my file which then hang around for 6 years AFTER the debt has been paid. I need to ring Stepchange about this and try and get it sorted out. The problem is, I suffer from mental health issues and the thought of calling these organisations makes me feel ill! I had a particularly teary call with Tesco Bank last night who were completely unsympathetic and refused to refund any of the £64 late payment fees I have been charged. They are also charging interest every month which then pushes me over the credit limit - and then charge me an overlimit fee!! I remember using the phrase 'you are simply perpetuating the cycle of debt' more than once...how embarrassing.

The second mistake I made is not getting a stash together before starting the DMP - I just panicked and jumped straight into it. I wish I had read this board properly before starting because now I have absolutely no cash set aside for car repairs, house repairs etc and my fridge freezer is on it's way out and the boiler will also probably not last the winter. Not really sure how I am going to pay for these. Ho hum.

Anyway - sorry to rant on, I'm just finding this all a bit more complicated than I originally thought. The other slight fly in the ointment is that I am currently having therapy on the NHS but those free sessions end soon. I realize that in order to stay mentally well, I'll need to start private therapy so I'm going to have to also discuss this with SC and ask them to reduce the payments by about £200 per month so I can pay for the therapy. Not sure how this will go down??

God, I feel so stupid and wish that I had just dealt with all of this years ago when I was young enough for the 6 years of bad credit not to make that much of a difference!

Anyway, thanks to everyone who contributes to this thread - it really is invaluable to have others who understand

Hi there,

I'm new to DMP with SC too. The news about Tesco CC is a little disconcerting as I haven't heard from them yet other than to tell me my DD has been cancelled (I already know this, I cancelled it ).

As for having no EF for crisis and breakdowns, SC told me that if anything breaks to ring them and they would reduce the payment that month to enable me to replace whatever broke, hope that helps ease the worry a little. As for ringing them please try not to worry. I did everything over the telephone as I needed the reassurance of speaking to another human being. Everyone was really nice, no judgement. SC encourage you to ring with any changes even if this means payments reduce. They are there to ease stress and not increase it.

Also it might be worth looking at the DFW challenges. I didn't have an emergency stash but have picked up extra shifts and joined a couple of the challenges to help me save in a manageable way with encouragement and support.

Good luck with the DMP, hope things settle down soon.

SP x

lewpster

Just checked my Noodle report and Barclaycard has vanished from my account - why would this be?!!

In a few weeks my house with my ex completes and I will get quite a lot of money.

I've only been on my DMP 11 months so should I store the money away, keep paying SC and then offer F&F settlements a little later?

Thanks x

Daisy2015

Hi everyone, I am just waiting for my paperwork from sc so I can start my DMP.
Been reading through these boards the last few days and it's helped enormously ....I've felt terrible over the last year always thinking I can somehow make a dent in my debt but all its done is get higher :embarasse:embarasse

I was going to start the DMP right away but reading here it seems it would be better for me to make token payments for 2 months or so to save up an emergency fund.

How do I write to my creditors to tell them? Does this have to be in writing as in a paper letter? Or can I email? Also I have a loan with my bank, lloyds (loans direct it says on my online account) but I can't seem to find the correct address to contact them. If anyone could advise on this I'd be really grateful.....thank you!

January2015

My energy company has advised they 'need' to increase my monthly direct debit payments by about £40.

Do I need to do a complete budget review with SC or can I just tell them of this increase and they adjust the amount they collect from me?

Puzzcat

January2015 wrote: »

My energy company has advised they 'need' to increase my monthly direct debit payments by about £40.

Do I need to do a complete budget review with SC or can I just tell them of this increase and they adjust the amount they collect from me?

Hi January,
I believe you can just go online and do the review early updating the necessary part of your budget and submit it, this should update your Monthly payments. If any issues give sc a call.
Puzz.x

Sazzie23

Daisy2015 wrote: »

Hi everyone, I am just waiting for my paperwork from sc so I can start my DMP.
Been reading through these boards the last few days and it's helped enormously ....I've felt terrible over the last year always thinking I can somehow make a dent in my debt but all its done is get higher :embarasse:embarasse

I was going to start the DMP right away but reading here it seems it would be better for me to make token payments for 2 months or so to save up an emergency fund.

How do I write to my creditors to tell them? Does this have to be in writing as in a paper letter? Or can I email? Also I have a loan with my bank, lloyds (loans direct it says on my online account) but I can't seem to find the correct address to contact them. If anyone could advise on this I'd be really grateful.....thank you!

Hi Daisy and welcome
I found this link if it's any help
https://www.loans-directuk.net/Home/Question/How_can_I_contact_you

Yes it's ok to email creditors, although some people prefer the security of a letter recorded delivery. Don't get over anxious about these letters, I never wrote any, I just went to pieces when we couldn't pay and froze until SC wrote to all the creditors. Although we got a few phone calls, mainly the creditors didn't bat an eyelid about the 3 months or so it took to get started.

I'd really recommend some sort of emergency fund, if only because it stops you having a panic meltdown if some unexpected expense crops up, new kettle, fridge, extra tank of fuel etc.