DMP & Mutual Support Thread - Part 11

January2015

BeingDebtFreeStartsHere wrote: »

Every day is a naff day at work for me too Jan - glad I am not alone!!

Strangely now tho - I look forward to pay day to put my income into my budget spreadsheet and work out how much I have to live on each week. I quite enjoy it (weird I know!!) 3 years ago I would have been going deeper into my OD with my head in the sand. How I've changed!!!

Take care,

BDFSH x

OH is laughing at me because I want pay day to come more quickly this month so I can put some figures into the web version of YNAB :rotfl: He says to me you've been using YNAB for 2 years, it must be just the same.... he just doesn't understand me :rotfl:

DJB343

Evening good people!

Just a little update as to where I currently am.

I've now switched bank accounts and certain dds. I've also cancelled all credit cards DDs, but unable to cancel my bank loan SO, assuming I leave this be?.

The next step would be to inform all creditors via stamped letter to explain that I'm unable to make payment and have spoken to SC about a DMP and you'll be hearing from them shortly so please don't call? Or something along those lines? (Any templates)

I'm hoping to collect around 4-5 months of emergency fund, then within the last months collection get in contact with SO and get the DMP rolling.

I've been reading many posts, and this seems to be the most general advice - it would be great to know if I'm missing anything out or doing something wrong.

Look forward to any replies, thanks guys!

January2015

DJB343 wrote: »

Evening good people!

Just a little update as to where I currently am.

I've now switched bank accounts and certain dds. I've also cancelled all credit cards DDs, but unable to cancel my bank loan SO, assuming I leave this be?.

The next step would be to inform all creditors via stamped letter to explain that I'm unable to make payment and have spoken to SC about a DMP and you'll be hearing from them shortly so please don't call? Or something along those lines? (Any templates)

I'm hoping to collect around 4-5 months of emergency fund, then within the last months collection get in contact with SO and get the DMP rolling.

I've been reading many posts, and this seems to be the most general advice - it would be great to know if I'm missing anything out or doing something wrong.

Look forward to any replies, thanks guys!

Cancel the bank loan SO as well. Why do you think you can't? It's your bank account and you say what can and what cannot be paid from it.

Regarding the 'please don't call' - make it stronger. Write something like........

[FONT=&quot]Please ensure all future communication regarding this account is via written letter only. I do not give permission for you to contact me by telephone. I will always respond promptly to any letters received. [/FONT]
[FONT=&quot][/FONT]

[FONT=&quot]
[/FONT]Emergency fund plans sound great - save for as long as you can. You will need that behind you in case of ....well, an emergency

DJB343

Ha fantastic advice as always January2015!

I tried doing it via my online banking, - and it said 'unable to cancel standing order please call us, quoting 'ref' '

It's a first direct loan with whom I also bank. Thinking they'd probably want to know why I'm cancelling the SO from them, hence why they won't just let me cancel it online...

heavenlyharry01

Hi there

I know it was asked a few pages back, but wondered thoughts on his.

Creation have asked for 3 months pay slips or bank statements. They asked for this over the phone, and we said that we were not willing to provide them as no other creditor has asked for that information.

They have now written to ask for it and 'require' a response in 14 days.
Should we respond (repeating what was said on the phone) or just ignore?

January2015

heavenlyharry01 wrote: »

Hi there

I know it was asked a few pages back, but wondered thoughts on his.

Creation have asked for 3 months pay slips or bank statements. They asked for this over the phone, and we said that we were not willing to provide them as no other creditor has asked for that information.

They have now written to ask for it and 'require' a response in 14 days.
Should we respond (repeating what was said on the phone) or just ignore?

You need to do what you are comfortable with.

Personally I would not send them these documents. That's just my view though.

Think about it - what will happen if you don't send the documents. You will still be making DMP payments to Creation. They are not going to send those payments back just because you haven't sent the documents.

Creation are, I assume, the original creditor. They will get fed up and they will default the account and pass it on to a debt collection agency (DCA) sooner rather than later.

I would also request that all communication regarding the account is done in writing. Stop them phoning you and making you stressed over requests for documents. They can write and ask. You can write back and advise you repeat your offer of payment and that no other creditor requires this information.

Edit: I would not ignore the letter but would respond that all communication must now be in writing and as said above advise you repeat your offer of payment and that no other creditor requires this information.

Keezing

heavenlyharry01 wrote: »

Hi there

I know it was asked a few pages back, but wondered thoughts on his.

Creation have asked for 3 months pay slips or bank statements. They asked for this over the phone, and we said that we were not willing to provide them as no other creditor has asked for that information.

They have now written to ask for it and 'require' a response in 14 days.
Should we respond (repeating what was said on the phone) or just ignore?

I had a similar request from Virgin. Against all advice I went ahead and sent them the evidence they asked for.

I wondered if it was just me because a lot of my debt could look like fraud (most of the debt was originally on my wife's cards but I balance transferred and super balance transferred to put the debt onto my cards to help her mental health, and then stopped payments), but I'm now wondering if this could become a regular policy.

Creditors must be worried about people exploiting DMPs. I do cringe a little bit every time I see advice to exaggerate outgoings on a financial statement, for example. I understand the reasoning for this - in fact it means the DMP is more likely to succeed for both parties - but I can imagine people who work for the creditors reading that and thinking they are being taken for a ride.

Requesting this evidence seems like a win-win for the creditor. They can position it as them being "responsible" and making sure you can afford the offer of repayment while people who can't back up their financial statement might be scared into restarting regular repayments.

Nevertheless I still think the advice to reject their request is probably sound. If anything it could expedite a default and get the debt into the hands of someone who will be more cooperative with you. I was just worried about the suspicion of fraud on my accounts!

Sazzie23

Hi all

Great to see the board so busy with questions and replies. I think it's the post-Christmas newbie start-up time.

Newbies, if we don't answer your questions, come back at us, when it's busy it can be hard to keep up, but please do try to read through at least the current thread, and I know it's an awful lot but it will help you.

Regulars, your input is invaluable, great idea of someone to have a sticky, I think we did consider it once before then didn't do it? As everyone knows we are one of the friendliest threads and for DMPers who don't get support elsewhere, it's crucial it stays that way so anyways to improve it can only be a good thing.

Saz

EmmaMicawber

Sleepysophie wrote: »

Hi There EmmaMicawber,

As you will see, I am not a seasoned poster but there are a few things you've said that I totally understand and I just wanted to tell you that. I started a DMP in Sept 14 and I did feel complete relief when I arranged that first payment through SC but I can also tell you that I asked myself so many times over the last 29 months whether we did the right thing. This is mainly because some of the creditors never stopped charging us interest and our once 'excellent' credit score became 'very poor'. We have struggled to meet bills when our car needed repairing and when the garage roof blew off in the wind! (Insurance Company said it was wear and tear!) :mad: BUT we did manage in the end after lots of scrimping and saving which we wouldn't have ever done if credit had been available to us. The reason we are in this mess in the first place, I suppose! We always went for the easy option.....
There is still times even now I wonder how great it would be to walk into a dealership and by a much needed 7 seater vehicle for our family but that is not an option unless I take a 30% offer of finance, which I will never do. :eek: The great thing is, we have now repaid over half of our debt and are looking like we may be debt free in 2018 if things continue as they are :T This would NEVER have happened without doing it the hard way and telling ourselves we had a problem and owning that problem!
When we started out, 4 years seemed like a lifetime away, now it just seems the end is round the corner. I admire people who say they never looked back after making the decision to enter the DMP - I'm not one of them, but, if you talk through the alternatives you may see it is the only realistic option you have to eventually live your life debt free in the future.
Good luck !!:A

Thanks so much for posting- this really resonates with me. I can see that being forced to be disciplined, being unable to get anymore credit and having to rely on saving (for the first time in our adult lives) will mean a much better future when we get to the end. And it must mean that we'll be debt free sooner and more predictably than if we struggle through on our own. I think a DMP is the way to go, just have to persuade OH- your post may well help, thank you.
You've done amazingly well, it must be such a good feeling to have the end in sight with the prospect of no more debt. Good luck for the home strait.

EmmaMicawber

Sazzie23 wrote: »

Hi all

Great to see the board so busy with questions and replies. I think it's the post-Christmas newbie start-up time.

Newbies, if we don't answer your questions, come back at us, when it's busy it can be hard to keep up, but please do try to read through at least the current thread, and I know it's an awful lot but it will help you.

Regulars, your input is invaluable, great idea of someone to have a sticky, I think we did consider it once before then didn't do it? As everyone knows we are one of the friendliest threads and for DMPers who don't get support elsewhere, it's crucial it stays that way so anyways to improve it can only be a good thing.

Saz

Thanks Saz - It's good to know you're a friendly bunch:)
A sticky would be great- I worked out that even for the current thread, if I took an optimistic 15 seconds to read each of the 4750 posts, that would be 20 hours nonstop reading!