DMP & Mutual Support Thread - Part 11

sourcrates

alianza wrote: »

Thanks for the advice(and to the other poster too). The letter I received for the loan debt says they are putting my account on hold for three months to allow me time to set up alternative arrangements etc. they recommended I contact payplan (which I won't do) and also gave some other organisations on the back page including the one that supplies the template for the CCA letter. Anyway my question is I have filled in the letter and ready to print off but is it best to do that ASAP or hold off being as they have said nothing will happen for three months anyway and then hit them with it in mid to late April?

Makes no difference, but can take up to a couple of months to action it.
May as well send it now.

sourcrates

bexbex wrote: »

Hi all
I swapped from my old HSBC account to a new Halifax account.
All direct debits etc etc etc swapped over and I like the account....
I've just had a letter from lloyds who I have a credit card with saying that it's possible that they may try and recover the debt through other lloyds account.
I thought I was safe but I didn't realise Halifax are now part of lloyds.....

How likely is this to happen? I have separate savings in a different bank and the Halifax one is used for my wages to go into and bills to come out of.

X

Yes they can as they are part of HBOS.

You heed to keep your money safe in a bank with whom you have no debt.

Otherwise they can take it through the right of set off.

bexbex

Will they take it out if an account where there are direct debits etc coming out. Only bill money goes in so not much.

sourcrates

bexbex wrote: »

Will they take it out if an account where there are direct debits etc coming out. Only bill money goes in so not much.

This is what the ombudsman Says about it :

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm

BeingDebtFreeStartsHere

Badsaver wrote: »

I gave in yesterday and admitted I needed help with my debt. I should never have been in this situation... but here I am. I spoke to step change via Web chat yesterday and completed my plan. But I rushed and missed stuff off. I've gone through again on the phone today with a grand total of £31400 owed. I feel physically sick that I've got myself into this situation. However I suppose it would have only got worse if I had ignored it.
I've managed to keep pretty much on top of payments but I've had to pretty much borrow more to make ends meet... the viscous circle! My original pay amount equated to around £500 per month. And that was on 19000 (because I'd missed things out!) I'm worried now that I will need to pay a hell of a lot more now as the debt has increased by £10k. I have to ring them back later to finish the process as they were close to closing.

I don't really know what to expect with the DMP (they haven't decided this is the right way to go yet but I'm assuming it will) there is so much information in these threads I'm getting lost! ��

I'm again assuming that the SC folk will explain everything to me but now I'm worried about defaults etc after reading bits on here (not that my credit rating could get much worse!) One of my debts is saying I need to pay them 330 per month alone even on the DMP so I'm worried that they will all do that.

I don't actually know why I'm writing this. I think I just need reassuring that this is the right way to go. I felt a large weight off my mind yesterday, and now I'm getting anxious again thinking that I'm doing the wrong thing and that I should just battle on through and keep struggling to avoid defaults and ccjs. In my head they would stop harassing me but from reading the thread that doesn't seem to be the case.

Do I just start paying straight away? Do I ask SC to start payments in a couple of months? I'm sorry if I'm going over old ground here. I'm just struggling and my head hurts!!

Thanks in advance to anyone that helps! J x

Hi badsaver and welcome to the forum :hello:

Great advice on here already

My advice would be to work things through logically and carefully.

Once you have completed your income and ependiture details with SC, making sure you up some categories a touch to gve you a bit of breathing space, then tell SC you would like your first payment to go out in xxxx month (whichever you feel is best for you). As others have said it is a good idea to give yourself a few months to build up an emergency fund.

Apply for a basic bank account that is not linked to any of your current debts and get your wages and priority direct debits moved to this bank account. You will have to do this manually rather than using a switching service as they would move all direct debits and you want to cancel the cc/loan ones. Make sure all cc/loan/store card direct debits are cancelled and I echo sourcrates' excellent advice to report your debit card stolen to prevent the creditors taking payments straight from your card.

Contact (email/letter) your creditors, tell them you are experiencing financial difficulties and are working with SC to set up a dmp. Tell them SC wil be in touch with them in the near future with a payment plan and ask them to put your account on hold and freeze any interest/charges. There are some great template letters that you can adapt on the national debtline website.

SC will then contact your creditors once they have worked out the income you have available to repay your debts. They will split this across your creditors according to the monthly amount you currently pay.

It just takes a bit of time but if you do things in a systematic way you can get things up and running quickly, saving the money you were paying to the creditors to give you a cushion for when the dmp starts and you have no access to credit.

We have all been where you are and know how daunting it is - but there really are some great people on here with fantastic advice and support to help you every step of the way

I would not change my decision to enter into a dmp, my only regret is not starting it sooner!!

Good luck!!

Take care,

BDFSH x

2017spark

Congrats Ellie, that's amazing. Best wishes for a debt free life!
Bad saver - well done on the first step, it's really hard but you've done the most important thing and I'm sure SC will work with you on the best solution for you. Good luck.

Update from me, I'm all ready to go but I have just contacted SC and asked that my plan doesn't start until April or even May. (Was due for March) I have both the dentist (first visit in a long time so work expected) and optitions (usually need a change in prescription glasses) coming up and will need to pay for those so hoping I can delay. This would then give me a little emergency fund too. I know they have done this for others so I'm hopeful!

Not looking forward to the arrears/ chasing letter which must be coming soon, but I feel positive about being with SC.

Good luck all xx

Puzzcat

Sazzie23 wrote: »

Hi Puzz

Nice to see you around, How are things ?

Saz

Hi Saz,

All plodding on in the right direction albeit at a very slow pace. I have been paying £5 a creditor for the last few months as getting sorted with finances now my dd is at uni.... what a cost...:eek:

Have a couple of complaints in process, one is now with the FOS. I can't believe the audacity of what was my main bank for many, many years actually lying to me in a letter.. unfortunately for them they have tripped up as I have a letter from them proving it.. shall see how it all pans out...!

I also have increased my total debt as had to invest in a new car, my much loved 15 year old one died in December so bank of lovely dad came into play...

Hope all going well with you Saz?

Still love my dmp, still love being self managed, I know its a long journey for all of us but we will get there in the end..

Hello and welcome to all new dmp'ers.. your in the right place on this thread..

Much Love,
Puzz. x

Sazzie23

Puzzcat wrote: »

Hi Saz,

All plodding on in the right direction albeit at a very slow pace. I have been paying £5 a creditor for the last few months as getting sorted with finances now my dd is at uni.... what a cost...:eek:

Have a couple of complaints in process, one is now with the FOS. I can't believe the audacity of what was my main bank for many, many years actually lying to me in a letter.. unfortunately for them they have tripped up as I have a letter from them proving it.. shall see how it all pans out...!

I also have increased my total debt as had to invest in a new car, my much loved 15 year old one died in December so bank of lovely dad came into play...

Hope all going well with you Saz?

Still love my dmp, still love being self managed, I know its a long journey for all of us but we will get there in the end..

Hello and welcome to all new dmp'ers.. your in the right place on this thread..

Much Love,
Puzz. x

Hi Puzz,

Good to hear you've got everything under control, who'd have thought we'd be so unbothered about paying what are essentially token payments. You will most certainly get there in the end, and with DD and her shiny new degree along the way.
Thank goodness for bank of Dad, these old cars can be a problem, least you were able to take action, and it's debt you'd have accrued either way, not a frivolous purchase.

All plodding for me, despite threats of no overtime, I still seem to be working plenty so I'm thinking of upping my payments by another £30 (extra £5 per creditor) at the review and that might get my DFD down a year or 2. Been a tough start to the year with another bereavement and head all over the place, but getting back on it again. Started a very, very long overdue de-clutter, but it makes such a mess to get things out if you know what I mean.

Saz

Sazzie23

Ellieseleven wrote: »

Hello everyone,

I've not posted on this thread for a while but I have been plugging away at my debt and now I have just 19 days left before I am debt-free:j

For all of you that are starting out, it is daunting at the beginning and you are going into the unknown but now you have made that decision, stick with it, you won't be disappointed:)

It might not always be plain sailing but the rewards are huge and are worth it. I started out with over £46k of debt and I had sunk to levels of despair I didn't even want to think about. Going onto a DMP has been my saviour.

I now have a debt-free life to look forward to and I have changed my attitude to money, I budget for the things I need and still live a decent life. I won't lie, it has sometimes been very hard but I wouldn't change a thing.

Good Luck to you all;)

Ellie x

Hi Ellie,

Absolutely life changing, 17 days to go I think now, or maybe 16. Looking forward to to seeing your name on that debt-free roll of honour, well deserved, especially as you look at signature and see how you've dropped 4 years off that DFD. :T:T

Saz

Ellieseleven

Sazzie23 wrote: »

Hi Ellie,

Absolutely life changing, 17 days to go I think now, or maybe 16. Looking forward to to seeing your name on that debt-free roll of honour, well deserved, especially as you look at signature and see how you've dropped 4 years off that DFD. :T:T

Saz

Thanks Sazzie,

You're right, it is life changing. I'm a great believer that things happen for a reason, I remember vividly how I felt with the burden of over £46k of debt and I fought against a DMP for so many reasons (all invalid really). I was frightened and ashamed of the situation I found myself in and thought there was no way out.

Now, when I am so close to being debt-free, I am thankful for that DMP. It has brought peace of mind and my attitude to money has changed so much. It hasn't been a joy ride, it's been very hard at times but with each passing month the determination has carried me through.

My last payment to SC is 1st March so I count that day in...17 days to go;) I know my payment doesn't go to my creditors until after that date but as far as I'm concerned once I've made the payment, that's it:)

Take care
Ellie x