DMP & Mutual Support Thread - Part 11

ella2ethan1

StepChange_Kirsty wrote: »

Hi Henry,

I’m sorry you feel the advice you’ve received has not been helpful. I’ve sent you a private message so that we can investigate your concerns further.

Kind regards,

Kirsty

I shall see how Henry gets on before I finish my paperwork, I phoned yesterday morning as I had made an error with my outgoings but am still waiting an email of the new plan anyway.

Is it worth making a token payment while I am waiting for my plan to start (and emergency fund saving)?

Sazzie23

DancingUnicorn wrote: »

Hi, I have posted here before but it was a while ago. My DMP was all set up and ready to start on 1st April having switched from a Token Payment Plan (both with SC).
On my TPP everyone had accepted my £1 payments and all but one (who I will chase soon thanks to the info here) had defaulted me.
I got a letter from SC today saying that one creditor has rejected the payment offered to them. I know I don't really need to worry about this as they will still make the payments and they still have to accept them, but I'm worried why they would accept the TPP payments but not the DMP which will be more and surely better for them?

Also, where do I stand on having a savings bank account? I know we need an emergency fund and stuff, but I worry that having cash "visible" in another account would make it look like I wasn't paying as much as I theoretically "could". I've been drawing out all my spare money after bills and putting some in a pot for saving in a drawer and using the rest as my monthly spending money (groceries, petrol, etc.).
Am I allowed a savings account - there wouldn't be loads in it I just worry that it would go against me continuing my DMP and mean I had to put that money towards it or at least declare it.

Hi

Because creditors have some strange ideas, they sometimes 'reject' payment plans, personally I believe it's so they think they can use it at a later date if they did decide to take further action, but that's only my guess really and in reality it won't matter to SC one jot.

Get your savings plan organised ASAP, remember you are supposed to save up for house and car instance, repairs etc so it's reasonable to have several savings accounts and don't worry.

Saz

Suseka97

Hey all.

Haven't been on for a while - well not in terms of posting, but have been lurking a bit It's good reading how well folks are doing and great to see newbies joining this support thread. I've just completed what will be my last DMP review, so am in my final year :j all is going okay and I'm now counting down the months.

It's been a long haul, but I am so pleased that I started the DMP when I did and my only regret is that I didn't do it sooner. Had I done so the debt would have been smaller and I'd already by debt free. So anyone out there who is still considering and a little unsure whether to jump on the DMP bandwagon - please do it now and don't delay. Happy to help if I can.

Anyway - aside from a quick update and hello - I'm after a wee bit of advice re bank accounts. I'm currently with the N&P who have made the decision to close all current accounts - darnit!. Am pretty peeved off to be honest because now I've got to try and find another and my concern is where I stand with banks due to the defaults me and hubby have on our credit files. I know that in a DMP we are supposed to go for basic accounts, but I'd prefer just a standard one with direct debit facilities and a proper debit (contactless) card - possibly even a tiny overdraft facility (I know - not allowed, but it's a buffer and can help). I'm also concerned because I've read elsewhere on the main forum that DMPers can also get turned down for the basic one.

So- can anyone suggest which would be a good go to - basic or otherwise?

[Deleted User]

Firstly, Suseka, massive congratulations on how successful you've been in paying off your debt so far:T:j:beer:. That's a lot to have paid back in a relatively short time and it must be wonderful to now be counting down to the end in months rather than years:j. Don't forget to come back when you are finally debt-free so we can celebrate with you:beer:


As for bank accounts I'm surprised anyone's said that people on DMPs can get turned down for a basic account:eek:. That's definitely news to me as I was under the impression that everyone was allowed a basic account. I'm sure there was some sort of Government intervention in the banking sector to ensure that no one should be excluded from basic banking facilities. I expect someone else will be along soon to give more details.


As far as I know everyone who applied for one even at the very onset of their DMP, with a lot more debt than you have now (almost £57000 in my case) got a basic one with no hassle. I wouldn't worry about it, just apply and see what happens. The FlexBasic I have (and others on here do too) is excellent for a basic account and can be fixed up completely online very quickly. Lots of other banks available, just make sure it isn't a bank you have any debt with (or one of the other financial institutions under it's 'umbrella').


I had a very strange situation with my Lloyds account (a 'full' account with a very small overdraft facility). My biggest debt was with a Lloyds credit card (starting debt around £15000:o) and I also had used my bank overdraft to the max. Both started off as DMP debts. I paid off the overdraft eventually a few months ago with an extra payment and throughout the DMP although I've had no online access to my Lloyds credit card account I've always been able to access the bank account online. Last month I received my new Lloyds contactless debit card as the previous one had expired:j. This was a surprise as I fully expected them not to replace it and for them to let the account 'die'. I assume I can still use this account with all its facilities. I understand about them being able to offset funds to pay debts but my credit card debt is now 'only' about £6000 which is probably pretty small beer in the general scheme of things. I hope this means that I still have the 'full' account and I'm really happy about that should I ever be in a place to want one as I would imagine getting a new one with my history could be a problem:o



If you really want a full account I imagine there's some sort of eligibility checker somewhere either on MSE or Noddle. I know there is for credit cards. You won't have lost anything by applying for one even if you get turned down. Who knows, you may be accepted;). I hope someone comes along who has been in your situation and has managed to get one.


Good Luck:beer:

sourcrates

Suseka97 wrote: »

I know that in a DMP we are supposed to go for basic accounts, but I'd prefer just a standard one with direct debit facilities and a proper debit (contactless) card - possibly even a tiny overdraft facility (I know - not allowed, but it's a buffer and can help). I'm also concerned because I've read elsewhere on the main forum that DMPers can also get turned down for the basic one.

So- can anyone suggest which would be a good go to - basic or otherwise?

If you have defaults on your credit file, its likely you may be rejected for a current account, only way to know is to apply.

A basic account is no different to a normal current account in many ways, obviously there is no borrowing facility, but most come with a chip an pin debt card, all do DD, SO, etc, and they are open to anyone, as long as your identity can be established, and you have no history of fraud, and no credit check is required.

zay475

Hi there,

I know this question has probably been asked many times, but I have waded through many pages and havent seen a recent post about it. I am due my yearly review soon and my financial situation has become slightly better than it was a year ago, I was awarded a higher rate of PIP during the past year and basically I was just wondering if I have to provide proof of my income, benefits etc in a yearly review? As I would prefer not to declare a slight rise in my budget if I dont have to.

Any advice would be greatly appreciated, my review isnt for another four months but I tried to do the online yearly budget review and I messed up the numbers. When I had completed it, I recieved a message saying that I had to call to finish it online. I am hoping that this is just because I tried to do it too early, I suffer from anxiety issues and like to get things done early but I think it may have been too early.

Thanks again for any advice.

sourcrates

zay475 wrote: »

Hi there,

I know this question has probably been asked many times, but I have waded through many pages and havent seen a recent post about it. I am due my yearly review soon and my financial situation has become slightly better than it was a year ago, I was awarded a higher rate of PIP during the past year and basically I was just wondering if I have to provide proof of my income, benefits etc in a yearly review? As I would prefer not to declare a slight rise in my budget if I dont have to.

Any advice would be greatly appreciated, my review isnt for another four months but I tried to do the online yearly budget review and I messed up the numbers. When I had completed it, I recieved a message saying that I had to call to finish it online. I am hoping that this is just because I tried to do it too early, I suffer from anxiety issues and like to get things done early but I think it may have been too early.

Thanks again for any advice.

Hi Zay,

All i can say is that your costs must of risen as well.

The slight increase in income, would be compounded by the rise in your cost of living.

Remember, its your budget, no one else`s, a DMP is not a formal solution that requires your figures to be 100% accurate, its an informal arrangement where you call the shots, you decide who gets what.

On your other point, wait until your review date, four months early is a no no !!!!

zay475

Hi sourcrates,

Thanks so much for your quick reply, it is much appreciated. Do you know if stepchange ask for proof of income in the yearly review? I had to give them proof when I started the DMP last august, however I can't see any recent posts saying whether or not they ask for it in an annual review. I found a post from dec 2015 saying they don't, but on their site they mention that they are bound by the FCA to do a yearly review now, even though they always have. I can't seem to find out whether showing proof of income is a new mandotary rule too. It's very confusing lol.

henrryyyy

January -
My only thoughts there are that with delaying reapplying to stepchange in june/july, my interest and fees will probably skyrocket.
I get the whole credit report thing I was just frustrated I couldnt make her understand it(tbh I wouldnt have if you guys didnt explain to me), thats something that isnt my biggest concern, my current mindset is im never borrowing a penny again in my life. But I know thats not realistic, and I dont know what I'll need in 6 years etc etc.
But the emergency fund is something that is concerning, I'll be able to save £500 this month if my plan does start in may, which will be a start, and I have a really good friend/colleague who I have trusted with all my debt problems in the past month who has said he would help me out should I have an emergency(but becomes more debt )
With not being given the option of creating the emergency fund, I "overbudgeted" when she went through it with me to compensate, so I "should" be able to save £150 extra a month.

while not the ideal situation, I think for now this is how I will proceed with a view to self managing at some point. This will give me a bit of time to mull over the defaulting stuff.

heavenlyharry - people who I see have started self managing seem to be very positive about it, were your creditors not feeling like they were being messed about?
with selfmanaging do you need to supply SoA and your "proposed offers to each creditor" to all creditors? were they quite fair in freezing interest?

sazzie - thats the point I was trying to make to the advisor, if i save the "emergencies" £30 a month for 2 years then it would help if something happens in 2 years, but if something happened in 1 month, i'd only have £30 backup to repair a boiler for instance.

carbootcrazy - I wouldnt let it discourage you from recommending them to anyone, without them I wouldnt have even made the move for a DMP, they are at the very least a very good stepping stone to get you started(which is how I am probably going to use them now).

I appreciate your help and contact Kirsty

ella2ethan1 - I'd get your paperwork done and get the ball rolling, sooner the better, I still feel 100x better than I did 2 weeks ago before I decided to take the plunge of a DMP

so I am definitely back to being in a positive mood, its my first payday not paying my creditors in 3 days, not going to have to juggle minimum payments between credit cards, get a pdl to pay other pdls etc, I'll for the first time in forever have a positive balance in my new bank account(even thats going to help mentally)

this thread is amazing for advice and support, and I it feels much better getting advice from people who have "been there done that".

BeingDebtFreeStartsHere

zay475 wrote: »

Hi there,

I know this question has probably been asked many times, but I have waded through many pages and havent seen a recent post about it. I am due my yearly review soon and my financial situation has become slightly better than it was a year ago, I was awarded a higher rate of PIP during the past year and basically I was just wondering if I have to provide proof of my income, benefits etc in a yearly review? As I would prefer not to declare a slight rise in my budget if I dont have to.

Any advice would be greatly appreciated, my review isnt for another four months but I tried to do the online yearly budget review and I messed up the numbers. When I had completed it, I recieved a message saying that I had to call to finish it online. I am hoping that this is just because I tried to do it too early, I suffer from anxiety issues and like to get things done early but I think it may have been too early.

Thanks again for any advice.

Hi,

Not sure if this applies to you but if your DFD is over 10 years away SC will always ask you to call them just so that they can make sure that a DMP is still the best option for you. Nothing to worry about - they just check to make sure IVA/bankcruptcy are not better options for you. I always politley decline and tell them I am happy to stick with my DMP - never had an issue

Take care,

BDFSH x