DMP & Mutual Support Thread - Part 11

heavenlyharry01

“
One of my creditors is refusing to freeze interest or accept my repayment offer until I send my last 3 payslips and bank account statements for the last 3 months.

I have nothing to hide so could do this.

Can anyone think of any drawbacks?

Should I try refusing and quoting the lending code which states that people self managing shouldn't be treated differently than if they went through a debt charity?
Originally posted by Keezing
”Hi,

As others have said, do what your comfortable with, personally i`d tell them to sing for their supper, they have enough information required to make an informed decision, they dont need any more, its just there way of exercising control over you really.

If it were me, i`d pay them nothing until they have defaulted me, and sold on my debt, you can bet your bottom dollar you wont have this problem with the collector that buys your debt.

Creation called today to say they wouldn't be able to accept our offer of payment until they see evidence of pay slips and bank statements. They said as they are ruled by the fsa they need evidence! Erm, no, other creditors have not insisted on the same proof.
They said if we didn't provide evidence they will hand it over to a third company and they will default us, and we will get more phone calls and letters, added interest...blah blah blah.
We won't send evidence and told them that we've already asked that they don't call and contact by letter only!

In other news 4 other creditors have agreed to our token payments and Barclaycard have said we've not made contact. Will resend our offer again

mica2

So I'm about to sign and send off my DMP agreement with Step Change. I'm feeling hopeful but when I saw that it's going to take me 18 years to clear my debt I nearly wept! I filled in my budget to give me some wiggle room but looking back I don't think I can afford to strip it back anymore as having less to live off was how I got into this mess, I'm still only going to have £100 a week to cover food and socialising. Plus I just received a letter that my rent it going to increase by £60 a month in April I know it will take me a long time to clear it but for now I think the best position to be in is to get back control and stop worrying about it. I just can't believe what a struggle it constantly is to live off my salary in London. I work so hard and for what?I'm not even sure I can see a light at the end unless I move house or find a better job.
I wanted to also ask how people contacted their creditors to tell them about their DMP? As I have yet to contact mine and have already been receiving calls and letters but I;m scared to call. I would rather email or write. Is this possible?

sourcrates

mica2 wrote: »

So I'm about to sign and send off my DMP agreement with Step Change. I'm feeling hopeful but when I saw that it's going to take me 18 years to clear my debt I nearly wept!

Mica2,

18 years is far too long, and not sustainable in my opinion.

Just looking back at your original SOA, you have £61.00 a month left after all your essential expenses, you only need to shave £10-20 off that, and you may qualify for a debt relief order.

I'm amazed stepchange haven't told you this ?

Have you looked at a debt relief order ?

If not I would do so smartly, I don't think signing up for an 18 year DMP is your best course of action here.

motivated

mica2 wrote: »

I wanted to also ask how people contacted their creditors to tell them about their DMP? As I have yet to contact mine and have already been receiving calls and letters but I;m scared to call. I would rather email or write. Is this possible?

Hi mica
I contacted my CCs through the secure messaging centre on our accounts. They replied within a couple of days saying they accept our financial situation and will wait to hear from SC
Good luck

2017spark

motivated wrote: »

Hi mica
I contacted my CCs through the secure messaging centre on our accounts. They replied within a couple of days saying they accept our financial situation and will wait to hear from SC
Good luck

I posted mine letters first class. Cheap and easy. I'm too chicken to talk to them!!

2017spark

mica2 wrote: »

So I'm about to sign and send off my DMP agreement with Step Change. I'm feeling hopeful but when I saw that it's going to take me 18 years to clear my debt I nearly wept! I filled in my budget to give me some wiggle room but looking back I don't think I can afford to strip it back anymore as having less to live off was how I got into this mess, I'm still only going to have £100 a week to cover food and socialising. Plus I just received a letter that my rent it going to increase by £60 a month in April I know it will take me a long time to clear it but for now I think the best position to be in is to get back control and stop worrying about it. I just can't believe what a struggle it constantly is to live off my salary in London. I work so hard and for what?I'm not even sure I can see a light at the end unless I move house or find a better job.
I wanted to also ask how people contacted their creditors to tell them about their DMP? As I have yet to contact mine and have already been receiving calls and letters but I;m scared to call. I would rather email or write. Is this possible?

18 years is far too long, there may be a better option for you. I'd ring SC Again and ask what else is available xx

motivated

2017spark wrote: »

I posted mine letters first class. Cheap and easy. I'm too chicken to talk to them!!

:rotfl: I am usually so confident ( that's what I call it). DH calls it mouthy :eek: But even I was too scared to phone creditors
M

Sazzie23

mica2 wrote: »

So I'm about to sign and send off my DMP agreement with Step Change. I'm feeling hopeful but when I saw that it's going to take me 18 years to clear my debt I nearly wept! I filled in my budget to give me some wiggle room but looking back I don't think I can afford to strip it back anymore as having less to live off was how I got into this mess, I'm still only going to have £100 a week to cover food and socialising. Plus I just received a letter that my rent it going to increase by £60 a month in April I know it will take me a long time to clear it but for now I think the best position to be in is to get back control and stop worrying about it. I just can't believe what a struggle it constantly is to live off my salary in London. I work so hard and for what?I'm not even sure I can see a light at the end unless I move house or find a better job.
I wanted to also ask how people contacted their creditors to tell them about their DMP? As I have yet to contact mine and have already been receiving calls and letters but I;m scared to call. I would rather email or write. Is this possible?

Hi Mica

It's a difficult time, but well done for making a start at dealing with your debt. While I agree with the others that 18 years is well outside the norm, people on here have done it and my own is still quoted as 15 years, though when I started it was about 5 years and in reality it will be around 9-10 years as I should be able to pay more once my mortgage is paid off. Newcastle Paul springs to mind, I know his was expected to very long, but with help from here and a little but of luck, he is now debt free I believe?

There may be reasons why a DMP is your best option, I do hope SC have given you the other options. SC make me call them at review every year as I stil sit outside the 10 year max recommendation. I'm pretty sure they'll have discussed it with you, if not make sure you do look at other debt options.

The great thing about a DMP though is that if you decide to change, you can. I know of a few that started as DMP and changed to IVA along the way which has a max of 5-6 years. There are sometimes reasons why IVA is not suitable though so perhaps this is ruled out?

Having said all that, 18 years with a finely cut budget is going to pretty miserable at times, so other options are, boost your income with overtime, second job, other income options (don't declare it to SC so you can either make life more comfortable or save for an emergency fund and put it towards F&f, picking off one debt at a time).
Other options might be to consider moving out of London maybe if it's just draining all your money, earning less but spending less could give you a better quality of life.
Then of course there's the PPI/CCA/misold account reclaims which might go towards your debt payments. Use the MSe pages to help you or ask on here if you get stuck.

As far as telling creditors, your original question:o, I only told one I think and let SC do the rest. I was in no state to contact them as I couldn't even talk to SC without sobbing. However if I was doing it now, and maybe had the inner peace that I seemed to have gained round debt repayments, I'd email or emessage them, backed up with a phone call saying, this is what's happening, I'm calling you to say so but after that, all communication must be in writing as I can't deal with you:D.

Hope some of this helps, don't think because we feel there are better options to an 18 year DMP that we can't help you, we will, we just want to try and steer you to the best options.

Saz

Keezing

Keezing wrote: »

Argh American Express!

For 2 months I have been trying to get them to respond to my Holding Letter, Offer of Repayment and subsequent reminders and got nothing back other than notices of charges and threats.

I called them up today and the annoying person who kept talking over me before I could finish my point insisted that all they needed was the reference number from CAB and they would collect my repayments from CAB.

I kept trying to explain that CAB do not operate as an intermediary for DMPs, they have simply advised me to enter into a DMP and that I am self-administering the plan, but I was told I was wrong and didn't understand how DMPs work.

Eventually she got annoyed with me and said they would be sending my debt to a specialist firm and they will contact me to arrange repayments.

Fine!

So as expected, I received a default notice from American Express today.

Unbelievably, the letter is not dated and the 'date to resolve breach' is blank. I understand the default notice is therefore invalid. I suspect this is just a tactic and I'll receive a valid default notice in the future.

It would be interesting if they proceeded to default me after issuing the invalid DN, sold the debt and I was then taken to court by the DCA. Would I then be able to present the invalid default notice and get the case thrown out? I assume I could then receive a valid default notice later?

sourcrates

Sazzie23 wrote: »

There may be reasons why a DMP is your best option, I do hope SC have given you the other options. SC make me call them at review every year as I stil sit outside the 10 year max recommendation. I'm pretty sure they'll have discussed it with you, if not make sure you do look at other debt options.

They will only advise a client, using the information provided to them.

Mica2 had a monthly surplus of £61, thats £11 over the threshold limit for a DRO.

So that option may not of been recommended, the only other options are Bankruptcy, and IVA, neither of which would be suitable.

Get your outgoings to total just over £11 more, and the option of a DRO would of been there.