DMP & Mutual Support Thread - Part 11

stormpassing

Hi all,

Sorry to hear your bad news January. I'm sorry I have no advice and in fact myself and DH have found ourselves in the same position but right now and without warning.

I spoke to SC yesterday and reviewed our budget. I've taken everything to bare minimum and still only have £54 to send to creditors. Even with me working overtime in my job that's pushing it at the moment. As DH has no income at all (was self-employed and can't claim due to my income), SC stated that we can continue with the DMP for now if we feel circumstances likely to improve in the next 12 months or I can consider bankruptcy and DH debt relief order. This has really rattled us as it is the last thing we want, but obviously we don't know at the moment when or if DH can find work and childcare is an issue. Feel so upset and stressed.

Any advice/support welcome.

Thanks SP x

[Deleted User]

stormpassing and January, my heart goes out to both of you and your families on your awful news:kisses3:. Bad enough at any time of the year but must be so hard for you when everyone else is revving up for a jolly time over the next couple of weeks.

Sending sincere wishes that things will work out for you. Big hugs to all concerned:grouphug:

January2015

stormpassing wrote: »

Hi all,

Sorry to hear your bad news January. I'm sorry I have no advice and in fact myself and DH have found ourselves in the same position but right now and without warning.

I spoke to SC yesterday and reviewed our budget. I've taken everything to bare minimum and still only have £54 to send to creditors. Even with me working overtime in my job that's pushing it at the moment. As DH has no income at all (was self-employed and can't claim due to my income), SC stated that we can continue with the DMP for now if we feel circumstances likely to improve in the next 12 months or I can consider bankruptcy and DH debt relief order. This has really rattled us as it is the last thing we want, but obviously we don't know at the moment when or if DH can find work and childcare is an issue. Feel so upset and stressed.

Any advice/support welcome.

Thanks SP x

Oh my - that puts my problems right into perspective. At least I have 3 months notice, and it is still only 'maybe'.

Fingers crossed for you (and me;)) that something positive comes over the horizon soon.

January2015

Brogden wrote: »

Hi Jan

I am sorry to hear you are ‘at risk.’ I went through the HR ‘at risk’ nonsense in the summer and have just received my last wage……:eek:

I can understand how you might be feeling but please do not despair. I just wanted to say the following:-

Bankruptcy

In some areas of this forum bankruptcy is spoken about far too lightly :mad:. Seriously……forget it now. Do not do what I did three or four years ago and stay up all night reading about it. It is simply not for people like you and me with our types of debt…..period!


DFD

DFD’s are a bit of Step Change ‘spin.’ Yes I had my DFD worked out for my by Step Change (then the CCCS.) I was too frightened to look at it because I would probably be in a coffin when I arrived at it. As it happens I have settled more than half of the debt three years down the line.

Worries about Affording the Monthly Payment

You are not fixed to the monthly DMP payment. I read on hear about all of the worries people have when the boiler blows up and they need to reduce their monthly payments. You can do it and you might want to consider that now? Take each and every creditor down to £1.00 per month. Send them all an I&E statement showing that is all you can pay and they will agree for a period before review…..6 months…..12 months – and that payment plan can then be renewed. Save the amount you are not paying to them……increase your emergency fund………make a F&F…….P&F……..? I am not suggesting anything here I have not done myself!

More on F&F’s……P&F’s


Only you will know if this is viable. You mention a lump sum around £15k being available. Imagine if that £15k reduced your debt burden by (what?) £30k….maybe more….? Again I have done it (wot a big ‘ead )……I have had a P&F of less than 25% in one case. That £15k could really change the picture couldn’t it? You may need it elsewhere, I don’t know.

I know some of these workable ideas will not fit with the modus-operandi of Step Change. They are however choices available to you and I believe they are major stress reducers and increase our life expectancy no end.

All the best whatever you decide to do


Brogden..

Brogden - thank you so much for taking the time to post such an indepth response. Very much appreciated.

I am still feeling very nervous - and the thought of taking creditors down to £1 a month now is overwhelming. May think on that for a few days. I can see the benefit. Between now and April we could stash £3k to add the redundancy/pension pot and that could reduce debts by up to another £6k.

Lots of ideas to think about - but be assured bankruptcy will .be the very last resort.

I've been out spending today - don't worry it's only basic food shopping. I haven't even splashed on Xmas goodies. We are not home for Christmas and Boxing day so the goodies (if any) can be purchased in the after Xmas day sales

[Deleted User]

I wonder if anyone can offer any advice on my credit score query based on their own experience please?

I'm not a big fan of Noddle (too many errors and omissions for my liking;)) but it's the only tool I use at the moment to see my credit score and state of play with debts.

I'll have been on a DMP for 3 years in April, out of an estimated total of 6 1/2 years and am paying the absolute maximum I can afford with no reduced payments having had to be made so far:j. I've paid back £24888:j but still owe £31916:o

My credit score is 495 (rated 1 out of the 5 possible:o) and is still classed as very poor although it is halfway to being just poor

I can't recall whether this has ever changed during the time I've been on the DMP and wonder whether it is likely to improve as the debts decrease. Or is it a case of always being classed as very poor until the DMP is over and defaults start disappearing from the history?

I don't want to try to obtain credit or anything:eek:, it's purely an academic question! Any help much appreciated:T

sourcrates

carbootcrazy wrote: »

I wonder if anyone can offer any advice on my credit score query based on their own experience please?

I'm not a big fan of Noddle (too many errors and omissions for my liking;)) but it's the only tool I use at the moment to see my credit score and state of play with debts.

I'll have been on a DMP for 3 years in April, out of an estimated total of 6 1/2 years and am paying the absolute maximum I can afford with no reduced payments having had to be made so far:j. I've paid back £24888:j but still owe £31916:o

My credit score is 495 (rated 1 out of the 5 possible:o) and is still classed as very poor although it is halfway to being just poor

I can't recall whether this has ever changed during the time I've been on the DMP and wonder whether it is likely to improve as the debts decrease. Or is it a case of always being classed as very poor until the DMP is over and defaults start disappearing from the history?

I don't want to try to obtain credit or anything:eek:, it's purely an academic question! Any help much appreciated:T

Hi carboot,

That question is asked a lot on here, my score on Noddle has been 1/5 for the last 6-7 years, right through my IVA, and after, even though all negative info is long gone it's never changed.

It really means sod all, the CRA's make up this number, no one else sees it but you, creditors certainly don't.

It's a reflection of how they view you, not how creditors will view you, it's all designed so that people ask themselves this question a lot, and to persuade them to sign up to services they offer like credit improvement products, it's just a money making scam really, all totally pointless bunkum !!

Ellieseleven

carbootcrazy wrote: »

I wonder if anyone can offer any advice on my credit score query based on their own experience please?

I'm not a big fan of Noddle (too many errors and omissions for my liking;)) but it's the only tool I use at the moment to see my credit score and state of play with debts.

I'll have been on a DMP for 3 years in April, out of an estimated total of 6 1/2 years and am paying the absolute maximum I can afford with no reduced payments having had to be made so far:j. I've paid back £24888:j but still owe £31916:o

My credit score is 495 (rated 1 out of the 5 possible:o) and is still classed as very poor although it is halfway to being just poor

I can't recall whether this has ever changed during the time I've been on the DMP and wonder whether it is likely to improve as the debts decrease. Or is it a case of always being classed as very poor until the DMP is over and defaults start disappearing from the history?

I don't want to try to obtain credit or anything:eek:, it's purely an academic question! Any help much appreciated:T

Hi CBC,

I don't think there is any rhyme or reason to the credit score as Sourcrates says: My credit score on Noddle was 1/5 549 for several years, in the last month it's gone to 2/5 557

OH's credit score goes up and down like a yo-yo - it was 2/5 560, then went to 3/5 567 for a while and is now 2/5 559. Nothing has changed apart from the debts going down:huh:

Ellie x

Sazzie23

stormpassing wrote: »

Hi all,

Sorry to hear your bad news January. I'm sorry I have no advice and in fact myself and DH have found ourselves in the same position but right now and without warning.

I spoke to SC yesterday and reviewed our budget. I've taken everything to bare minimum and still only have £54 to send to creditors. Even with me working overtime in my job that's pushing it at the moment. As DH has no income at all (was self-employed and can't claim due to my income), SC stated that we can continue with the DMP for now if we feel circumstances likely to improve in the next 12 months or I can consider bankruptcy and DH debt relief order. This has really rattled us as it is the last thing we want, but obviously we don't know at the moment when or if DH can find work and childcare is an issue. Feel so upset and stressed.

Any advice/support welcome.

Thanks SP x

SP, sorry that's really carp for you (and Jan15). Don't think stressed can even come close to how you must all be feeling. You've done the right things though by giving yourselves time to think, there are so many variations of circumstances, who knows what is right for you.

For now stick to the basics, minimise outgoings, maximise in comings, look at all those refunds on ppi, bank charges and anything else you get your hands on. Change to cheaper utilities, cash in any loyalty points, sell what you can on FB or eBay. Spend 'free' quality time with your families and friends and get through the 'festive' season.
Then decide what to do.

Thinking of all those with troubles at this time of year.

Brogden

Ellieseleven wrote: »

Hi CBC,

I don't think there is any rhyme or reason to the credit score as Sourcrates says: My credit score on Noddle was 1/5 549 for several years, in the last month it's gone to 2/5 557

OH's credit score goes up and down like a yo-yo - it was 2/5 560, then went to 3/5 567 for a while and is now 2/5 559. Nothing has changed apart from the debts going down:huh:

Ellie x

I agree with Ellie - the credit scores given by the CRA's are totally meaningless.

I have had my head in the sand on this for a few years as I didn't want what I saw on a CRA to change my mood negatively so I didn't look. Comes the time I have to because of my changing work scenario :eek: !!

Noddle (CallCredit) have me as a smidge above 'Very Poor.' I am in the lower reaches of 'Poor.' A bit like Chelsea I think :rotfl:!!!!

Anyway......when I first looked at the report I was 'better' than this. A couple of weeks later I plumetted and I have a message from Noddle to say they had decided to calculate everybody's credit score differently and deduct more points for older delinquent items or words to this effect. Apparently these things will put off potential lenders say they. I could have told them that years ago !!

Since that time they have increased my score by around 15 points or so from this low level. Why would that be? I think I know.....its a pat on the head and a word of encouragement. I guess I might even get a dog biscuit in the post. They want me to be happy that I am improving, stay with them, buy their credit / identity b+llocks and apply for cards which are suitable for 'poor' people and get some sort of commy or whatever the FCA will permit!

CBC......I know we have talked about this beforeand I still feel Noddle are not worse than the other cowboys. Have you tried the other free service - Clearscore, brought to us by Equifax? It is I think worth comparing what the various CRAs say about us. The inconsistencies also gave me grounds for complaints and I'm £100 up on this activity to date !!

The other thing I did was to pay £2.00 to buy a statutory misery sheet from Experian. I don't think they do a free service. I explained to the automaton on the phone why I would not be paying them monthly!

Brogden

stormpassing

Thanks to all who replied to my post. I was in complete shock when I wrote it, just wasn't expecting the options suggested to be so drastic straight away. We have done all the things suggested. Luckily I had worked extra shifts in the run up to Christmas so if we are careful should buy us a little time.
We've decided to stick with the DMP for now and hopefully DH won't be out of work long. I know lots of you have experience of reducing payments drastically for various reasons I was just wondering what people's experience with creditors was when this happened; and for how long are they likely to wait before increasing the pressure. Could they force us to look at other options ie bankruptcy and how likely are they to so it??

Again thank you for all your support. Even if there are no easy solutions really helps to know others are routing for you :A

SP x