DMP & Mutual Support Thread - Part 11

stormpassing

January2015 wrote: »

Go straight back to Halifax and quote Section 224 of The Lending Code. Halifax subscribe to The Lending Code, which means they agree to abide by it. Section 224 states:

Halifax have accepted your DMP, and hence your financial situation. They obviously realise your £16 payment is all you can afford. They should not be increasing your debt with fees and charges. We had to go back and fight our case with Halifax. They immediately stopped fees and charges on our overdraft (which was almost just over £2k at start of DMP). We did put our challenge in writing and it took a few weeks, but once sorted they reversed all the charges from the start of the DMP.

Good luck, stand your ground, threaten to complain to ombudsman,....and keep us updated:beer:

Thanks so much for the response January2015,

Did you use a template letter for this and if so please could you point me in the right direction? If not I'll try and hash something together using the quotes you have provided. It's so helpful to know others have been here and thank you for taking the time to share your knowledge/experience :A

SP x

January2015

stormpassing wrote: »

Thanks so much for the response January2015,

Did you use a template letter for this and if so please could you point me in the right direction? If not I'll try and hash something together using the quotes you have provided. It's so helpful to know others have been here and thank you for taking the time to share your knowledge/experience :A

SP x

I've sent you a message

stormpassing

January2015 wrote: »

I've sent you a message

Thank you January2015 you are a superstar. All received, I will have a good look on my day off tomorrow and action Tuesday. I will let you know how I get on

Very much appreciated,
SP x :beer:

luhrmann

hi all, newbie here!

my oh (who i don't live with) has finally confessed to me after months of trying to get it out of him that he has serious debt. so i'm hoping you'll have some advice for me, as i'm really lost as to how to help. i don't have the money myself to magic his problems away, and don't think this would be a good idea anyway, even if i did.

as it stands, he is almost £11,000 into debt... £1500 of this is payday loans, which the silly boy thought would be a good short term option, using one to pay off another etc etc. he also has just over £4000 in a loan from lloyds, as well as maxing out his overdraft of £2000. another £300 on a next account plus a credit card, and now he's in a pickle. he doesn't have enough money to pay all his debts now the paydays loans are sucking most of his money.

i'm more than a little frustrated, as he still lives with his parents rent free and doesn't have large outgoings in the first place, but he was stupid and lived far beyond his means while he was a student and says he saw the loans as "free money." and now he's stuck in a spiral of debt.

i'm very concerned about these payday loans as i've heard the horror stories and the interest just builds up and takes whatever you pay toward it. i know he has totally screwed his credit, so i was looking into a DMP or a DRO as an option for him. i think his parents would help out despite him saying they have already bailed him out once before and doesn't think they would help again, but he forbid me from discussing this with anyone else which is fair enough.

i'm looking for some advice because this is all really new to me and i don't have anyone really to talk to about it, and he is unwilling to seek help from friends or family. i think he still expects me to help him out, but i know that given his history with money, even if i do help him with his bills, he is likely to just spend the extra money i give him on something else and not put it towards his debt. i still don't think he is fully facing the issue.

would a DMP or DRO be a viable option, do you think? i looked at the SC debt remedy calculator and they suggested a DMP. i'm most concerned right now with trying to reduce the interest on the payday loans to give him a real chance of paying these off ASAP.

January2015

Just checked my DMP online with SC and I have a new forecast debt free date:j:j:j:j

It's only one month sooner than before, but (and this is the important part) it moves debt free date from being in the year 2024 to the year 2023.....so it may only be one month earlier in reality, but in my mind it feels like one year earlier:rotfl:

Gotta take all the motivation one can find, even in little things like this;)

Growurown

luhrmann wrote: »

hi all, newbie here!

my oh (who i don't live with) has finally confessed to me after months of trying to get it out of him that he has serious debt. so i'm hoping you'll have some advice for me, as i'm really lost as to how to help. i don't have the money myself to magic his problems away, and don't think this would be a good idea anyway, even if i did.

as it stands, he is almost £11,000 into debt... £1500 of this is payday loans, which the silly boy thought would be a good short term option, using one to pay off another etc etc. he also has just over £4000 in a loan from lloyds, as well as maxing out his overdraft of £2000. another £300 on a next account plus a credit card, and now he's in a pickle. he doesn't have enough money to pay all his debts now the paydays loans are sucking most of his money.

i'm more than a little frustrated, as he still lives with his parents rent free and doesn't have large outgoings in the first place, but he was stupid and lived far beyond his means while he was a student and says he saw the loans as "free money." and now he's stuck in a spiral of debt.

i'm very concerned about these payday loans as i've heard the horror stories and the interest just builds up and takes whatever you pay toward it. i know he has totally screwed his credit, so i was looking into a DMP or a DRO as an option for him. i think his parents would help out despite him saying they have already bailed him out once before and doesn't think they would help again, but he forbid me from discussing this with anyone else which is fair enough.

i'm looking for some advice because this is all really new to me and i don't have anyone really to talk to about it, and he is unwilling to seek help from friends or family. i think he still expects me to help him out, but i know that given his history with money, even if i do help him with his bills, he is likely to just spend the extra money i give him on something else and not put it towards his debt. i still don't think he is fully facing the issue.

would a DMP or DRO be a viable option, do you think? i looked at the SC debt remedy calculator and they suggested a DMP. i'm most concerned right now with trying to reduce the interest on the payday loans to give him a real chance of paying these off ASAP.

Well a DMP is certainly an option. Does he meet the criteria for a DRO? I copied this from the CAB website

Who is eligible for a DRO

You may be able to get a DRO if all of the following things apply to you:

You're unable to pay your debts
Your debts are worth up to £20,000
You’ve got £50 or less left over each month after you’ve paid your usual household expenses
You don’t own your home
Other savings or things of value you own, called assets, are worth less than £1,000 (some assets are ignored when working out the value)
You don’t own a car worth £1000 or more, unless it’s one that’s been specially adapted because you have a disability
You haven’t had a DRO in the last six years and aren’t going through another formal insolvency procedure, such as bankruptcy or an individual voluntary arrangement (IVA)
You've lived, had a property, or worked in England or Wales in the last three years.

I would suggest he gets some professional advice from CAB or another similar organisation, to find out his best option. Nobody needs to know, it will be confidential. Either of these options though will affect his credit rating in the future.

Ellieseleven

January2015 wrote: »

Just checked my DMP online with SC and I have a new forecast debt free date:j:j:j:j

It's only one month sooner than before, but (and this is the important part) it moves debt free date from being in the year 2024 to the year 2023.....so it may only be one month earlier in reality, but in my mind it feels like one year earlier:rotfl:

Gotta take all the motivation one can find, even in little things like this;)

I can identify with you there January, I'm looking at completing my DMP at the end of 2016 instead of February 2017 and it makes a huge difference to my motivation.

January2015

Ellieseleven wrote: »

I can identify with you there January, I'm looking at completing my DMP at the end of 2016 instead of February 2017 and it makes a huge difference to my motivation.

Wow Ellie

That's NEXT YEAR

Awesome, so pleased for you -x-

Sazzie23

luhrmann wrote: »

hi all, newbie here!

my oh (who i don't live with) has finally confessed to me after months of trying to get it out of him that he has serious debt. so i'm hoping you'll have some advice for me, as i'm really lost as to how to help. i don't have the money myself to magic his problems away, and don't think this would be a good idea anyway, even if i did.

as it stands, he is almost £11,000 into debt... £1500 of this is payday loans, which the silly boy thought would be a good short term option, using one to pay off another etc etc. he also has just over £4000 in a loan from lloyds, as well as maxing out his overdraft of £2000. another £300 on a next account plus a credit card, and now he's in a pickle. he doesn't have enough money to pay all his debts now the paydays loans are sucking most of his money.

i'm more than a little frustrated, as he still lives with his parents rent free and doesn't have large outgoings in the first place, but he was stupid and lived far beyond his means while he was a student and says he saw the loans as "free money." and now he's stuck in a spiral of debt.

i'm very concerned about these payday loans as i've heard the horror stories and the interest just builds up and takes whatever you pay toward it. i know he has totally screwed his credit, so i was looking into a DMP or a DRO as an option for him. i think his parents would help out despite him saying they have already bailed him out once before and doesn't think they would help again, but he forbid me from discussing this with anyone else which is fair enough.

i'm looking for some advice because this is all really new to me and i don't have anyone really to talk to about it, and he is unwilling to seek help from friends or family. i think he still expects me to help him out, but i know that given his history with money, even if i do help him with his bills, he is likely to just spend the extra money i give him on something else and not put it towards his debt. i still don't think he is fully facing the issue.

would a DMP or DRO be a viable option, do you think? i looked at the SC debt remedy calculator and they suggested a DMP. i'm most concerned right now with trying to reduce the interest on the payday loans to give him a real chance of paying these off ASAP.

Hi I'd start with contacting each creditor to say he's in financial difficulty which should give him 30 days to sort out what to do.

Something like, " re account no xxxxx., I am in financial difficulty and taking specialist financial advice from SC. here is a token payment of £1, we will contact you shortly when arrangements have been made to deal with the debts." There is a post above from Janury2015 quoting some text from the lending code which would also b ehelpful to quote.

That then gives you time to decide if DRO - DMP or something else is suitable. The level of debt isn't massive compared to some on here, buts it's more about abilitity or repay. A smaller debt with a lower income is just a such a problem as a large debt with a higher income.

Think about what sort of debt repayments will be possible, and how long SC suggested the debt free date (DFD) is. If you go down the DMP route and then can suddenly come up with a decent income, you can come off the DMP, but of course the credit rating is screwed. However what people don't realise is that even taking a PDL crashes your credit rating. I wondered why SC didn't recommend a DRO, is there some criteria that OH doesn't meet?

The biggest issue I'd suggest you might be facing is getting OH to accept there is a problem, it is a very confronting time and lots of people bury their heads for a longtime before having their LBM.

Perhaps try reading through earlier posts in this thread together see if there is anything that would help OH understand their is a way out, but there are no easy options, however most people on DMP wish they'd done it sooner rather than later. You are both kind and sensible to try to help OH fix this but OH needs to be on board too.

Sazzie23

Ellieseleven wrote: »

I can identify with you there January, I'm looking at completing my DMP at the end of 2016 instead of February 2017 and it makes a huge difference to my motivation.

:beer::j:j:D