DMP & Mutual Support Thread - Part 11

Sazzie23

Dizzig87 wrote: »

Ok. So I get paid on 24th. Will have my new account details by then so as soon as in paid on 24th I move my wage out. I make sure I have changed over all my essential direct debits in time and if not call them to pay over the phone, reassured that the next payment will go out of my new bank account. Phew I think ive got my head around that. Will have to do the same for my husbands too as the new account is joint (so I can keep an eye on his spending and human mine). Then I call them all up and offer a token payment of £1. I can't thank you enough for all your help!
Do you know what the odd thing is? I feel like a weight has been lifted already, just knowing we are going to sort this out! Thanks again! X

Ok so here's what I'd do if it's physically possible. Go to bank morning of 24th, take out enough to cover essential DD at new bank, enough to to pay token payments on all debts except old bank and enough for you to live on, I.e. Fuel, food, other spending you might have til end of Jan. physically put that money in your new safe account.

The reason I think it's safest to do this physically (assuming you don't get robbed!) is because over Xmas all the transaction dates can be subject to delays and advance requests so you could get caught out with a surprise payment. Don't worry about the bank wondering what you are up to, let them wonder away.

When the money safely tucked away, and you can have your letters ready or make your phone calls, to all including old bank saying you are in financial difficulty, have consulted SC and ask them to give you 30 days grace period.

I hope that helps, welcome to the thread and the world of aspirational DFDs.

Sazzie23

neiljmuk wrote: »

I've completed a review for SC and it would bring about payments of £300 instead of £400.. They have asked me to call them before completing it. Why in gods name do they want me to do this? All the amounts entered are within the suggested and as for the reduced amount, half the people on here have very long initial DFDs. I would not mind but they've not got the staff to answer the phone in under 30 minutes...:mad::mad::mad::mad:

They like to talk to you for your DFD is longer than about 8 years, in my case it's about 16 but they were happy because when the mortgage is paid in 6 years and the secured loan in 8 years I'll be able to up the payment.

Email them and ask them if they can call you around xxxx time rather than hanging on, but give a couple of days notice as they might not read it til then, it's a very busy time.

Sazzie23

canuckinuk wrote: »

Ok I having a total panic attack. We have not even made our first DMP payment to SC and I fear it's all gone to pot.

Background...13 plus grand debt to 7 crediitors. After income and outgoings 74 pounds available for payment to SC. Just got notice SC have made the offers to the creditors and 1st payment to them due Jan 1st. We've just enough for an ok xmas paid for with a refund I've received. So all good and time to relax a little.

Nope. Just came home to a letter to learn that we were overpaid child tax credits in the past couple years to the tune of nearly 8000 pounds!!!!!! Have gone through the figures with them and I'm pretty sure they are correct. So what do I do now? They were telling me I need to provide proof of my income and expenses and that I have to set up a payment plan with them directly. They said they are different than other creditors because they are the hmrc.

Now I am panicking that this is going to mean Stepchange no longer consider a DMP the right solution. Isn't it true that the hmrc can do a direct deduction from earnings? Even if this debt could be added to the DMP how are they gonna accept 1 7th of only 74 pounds on an 8 grand debt?

Is there anyone on this forum dealing with this kind of debt?

So stressed.

Hi Cannie

Oh that's a bit of a blow, but has to be dealt with. Take a deep breath and Call SC and tell them, call HMRC and tell them you are just about to start a DMP. Remember that a DMP has the benefit that either party can pull out if it's no longer the right solution. So even if you start the DMP it can be changed to another solution in the future, IVA or DRO etc.

I don't think child tax credits can be added to DMP, and even though that seems very unfair since from what you say it sound like not your fault, that's how it is. I would take independent CAB advice on the child tax credit calculations, you might have to go to them as I know like SC they get snowed under this time of year. they might find some benefit you are missing which might make up for some of it or something. They will also know what the expected payments are, SC should also know this.

Meantime contact creditors and tell them you are in financial difficlties and will continue to pay token payments only until the issue with HMRC is sorted, they might not like it, but that's tough. Keep the £74 - £1. Per creditor token and save it so that if needed you might make a little initial payment towards the child tax credits.

And come back an tell us how you are getting on, good or bad, we want to hold you hand throu this tough time.

[Deleted User]

January2015 wrote: »

I think they just want to talk it through with you - literally.

We had to do a review recently because we 'added' a debt (we didn't really but stupid EDF sold half of a dual fuel debt, ie sold the electric bit but not the gas, and so adding the DCA for the electric debt appeared to be a 'new' debt (even though the debt to EDF immediately reduced by over half):mad:

When we did our review it showed payments needed to reduce and they just talked it through with us. No hidden agenda - just made sure we had got figures correct. They are not trying to trip you up, or challenge you, but they do have to give debt advice/counselling - it's the basis on which they are set up. Not everything can be done without talking to them occasionally.

I know you are on hold for a fair while but it is a completely free service and they are helping so many people. They must have a limited staff budget - which is not supported by us lot in any way - so the more people who need financial support and guidance the longer it takes to get through. Just try and be patient - they are doing their best and are not keeping you on hold to annoy you;)

Well said, January:T.

I 've never felt remotely annoyed by being kept waiting for a call to be answered by SC in just over 2 1/2 years, the longest I've ever had to wait has been about 10 minutes and it's usually a lot less than that whatever day/time I've tried to get through:j.

Please don't worry about it, neiljmuk. I think we all feel a bit anxious when asked to phone someone to speak about a problem, any problem not just debt-related, especially as so much can be done online/post with SC. The one-to-one discussions with creditors, DCAs etc that we so dreaded are a thing of the past and it's easy to think we don't ever need to talk to anyone again about sorting out our debt. SC are there to help you, they're on your side.

Amerylis

Just done my second review with StepChamge, yet again they are so helpful and supportive, and i know we wouldn't have got this far without their help.
Anyway the good news is, i started out with a 20 year DMP!! 2 years on, we will be debt free in 14 years (and i hope to shave a few more years off that)

KID77

Hi Dizzi, yeah it does feel good and like a weight lifted when you start as rather than just hoping something gets better each month, you are now doing something about it.
I love having a positive bank balance every month and hope that we can save enough to be debt free in 6 years.
Just be prepared for not all of your creditors to freeze interest as you are still paying a high amount each month and in which case your debt free debt will be alot longer. They will atill negatively mark your credit file ao you are being punished whether you pay £1000 per month or £200. Its unfair but how it seems to work unfortunately, with any luck that wont be the case for you but just be aware its a possibility.
Keep posting to update everyone as its so useful for people who may be lurking and too afraid to ask :-)

Xx

Puzzcat

Puzzcat wrote: »

Hello...
Strange.....Creation finance who I took to the fos with regards to interest charged over a year ago and agreed to reduce it have not charged any interest this month...! Maybe a Christmas gift..if so it now means all my debt is now 0%………
Puzz.x

Puzzcat wrote: »

So not a Christmas gift then , as have just received a you are no longer poor and can pay normal blah blah letter with an I&E form..:mad: These companies should really know better, I have been with stepchange for 2 years they must have this information available so now I have to contact sc and get them to send stuff to Creation....wonder if I am going to have to fight again to get the interest to a reasonable level.....
Ho hum...
Puzz.x

This morning I rang Creation and they had received up to date information from sc 2 days ago..So all good and he also confirmed the interest is now frozen..:T I lost him when I started talking about defaulting the debt so will save that for my 2016 letter writing to do list!
So all 45k is now 0% 2 years into my dmp. I was only paying 2 creditors nominal interest, don't forget dmp'ers to always check your balances and update them online on your sc account.
Puzz.x

racht

canuckinuk wrote: »

Ok I having a total panic attack. We have not even made our first DMP payment to SC and I fear it's all gone to pot.

Background...13 plus grand debt to 7 crediitors. After income and outgoings 74 pounds available for payment to SC. Just got notice SC have made the offers to the creditors and 1st payment to them due Jan 1st. We've just enough for an ok xmas paid for with a refund I've received. So all good and time to relax a little.

Nope. Just came home to a letter to learn that we were overpaid child tax credits in the past couple years to the tune of nearly 8000 pounds!!!!!! Have gone through the figures with them and I'm pretty sure they are correct. So what do I do now? They were telling me I need to provide proof of my income and expenses and that I have to set up a payment plan with them directly. They said they are different than other creditors because they are the hmrc.

Now I am panicking that this is going to mean Stepchange no longer consider a DMP the right solution. Isn't it true that the hmrc can do a direct deduction from earnings? Even if this debt could be added to the DMP how are they gonna accept 1 7th of only 74 pounds on an 8 grand debt?

Is there anyone on this forum dealing with this kind of debt?

So stressed.

I had a letter saying we had been overpaid, ours was quite a low amount though but I arranged a repayment plan with them of £15 a month, I had to go through all income/outcome etc (didnt have to show any proof though) and they asked if I was sure I could afford that much!
However I never mentioned this to Stepchange as I had given myself a little extra allowance so could cover this without reducing my Stepchange payment.

One thing- If you do arrange a repayment plan with HMRC, I would keep a record of every payment you make to them as I never received anything to say debt was cleared, when I phoned them to see how much I still had outstanding they were about 3 payments behind so I had to go through all my bank statements to check each payment I made and add it up- just for my peace of mind that I had repaid it in full!

stormpassing

Evening all well what a horrible week I've had. After putting our Christmas Tree up I took my 5 yr old DS out to see the Rotary Santa and after crossing the road heard my 9 month old cat meow behind us, he must have followed us out. As I turned to take him back home I noticed car headlights. Sadly there was nothing I could do and he bolted under the wheels of a truck. I saw him run away but he was dragging his back end. Due to the Christmas music playing from the Rotary Santa it took us 30 minutes just to find him deep in bushes in the front garden. A trip to the emergency vets and £222 later we're home with an empty cat basket

A couple of days later my DH learns that the leafleting company he has subcontracted from for 5 years has no more work for the foreseeable future so he's now out of work.

We've just paid our 3rd payment to creditors through SC but there is no way I can continue with further payments until DH is back in work. I don't know what to do now for the best. Should I try to work overtime to make up some of the difference and struggle to pay for a couple of months in the hope DH finds work quickly or do a review with SC? Just when we were relaxing feeling like we were getting somewhere.

bmma

Hello Stormpassing-sorry about your cat and your husband's job-contact SC talk it through with them-don't struggle financially to keep up debt payments-this is the reason I ended up on a DMP -best wishes and good luck x