DMP/token payments

kittie2475

Hi
I've done the debt remedy on step change and they suggest a DMP. But I did it based on what I'm hoping my income will be in March when my ex has to start paying child support.
Should I do the token payment thing until I've got the child support money coming through? He stopped paying a couple of months ago and it's crippled me. A couple of months of token payments would give me a chance to put some aside for a rainy day and get back on top.
Thanks for any advice.

sourcrates

kittie2475 wrote: »

Hi
I've done the debt remedy on step change and they suggest a DMP. But I did it based on what I'm hoping my income will be in March when my ex has to start paying child support.
Should I do the token payment thing until I've got the child support money coming through? He stopped paying a couple of months ago and it's crippled me. A couple of months of token payments would give me a chance to put some aside for a rainy day and get back on top.
Thanks for any advice.

Yes by all means do so.

£1 per creditor, per month, make sure you save up a good emergency fund, and budget correctly !!!

kittie2475

Thank you. Is there a letter/email template anywhere that I can use to tell people? And should I tell them I'm inteninddg to set up a DMP?
Sorry if I'm asking obvious questions, I'm somewhat confused! And worried

sourcrates

kittie2475 wrote: »

Thank you. Is there a letter/email template anywhere that I can use to tell people? And should I tell them I'm inteninddg to set up a DMP?
Sorry if I'm asking obvious questions, I'm somewhat confused! And worried

This is the National Debtline version, adapt it to your circumstances, and what you want to tell them, just say you are taking advice from stepchange and leave it at that !!

https://www.nationaldebtline.org/EW/sampleletters/Pages/Token-payments-or-no-offer-of-payment-(sole-name).aspx

kittie2475

Thank you so much ☺️

KID77

Have a good read of the DMP mutual support thread especially page 50 onwards as lota of new people recently asking similar questions and good advice given so you should find that useful.

In my opinion, I would base your income on what it is now as it doesnt sound 100% for March. If it does go up you can increase your payments or save that money for future settlements.

As for token payments, most people do a couple of months, some do upto 6 to establish an emergency fund. As long as you write or email your creditors explaining this and that you are working with Stepchange, they should be fine.

Goos luck x

kittie2475

Thank you. I'm working my way through the thread, but there's so much of it. I'll start at page 50 later.

Yes March isn't definite which is why I don't want to jump into a DMP until I know. A couple of months breathing space would help.

Thank you again ☺️

tobciocc

I'm at this stage now, just creating a Token payment letter. Can I ask, do I need to add an incoming and outgoing expenses sheet to this letter? Also how do I stop the usual repayments going out to the Credit Card companies? Do I have to contact my current account provider? Or can I do this online via the Credit Card accounts. Sorry for the basic questions, I'm very new to this and I'm feeling hugely worried and stressed.
Many thanks

sourcrates

tobciocc wrote: »

I'm at this stage now, just creating a Token payment letter. Can I ask, do I need to add an incoming and outgoing expenses sheet to this letter? Also how do I stop the usual repayments going out to the Credit Card companies? Do I have to contact my current account provider? Or can I do this online via the Credit Card accounts. Sorry for the basic questions, I'm very new to this and I'm feeling hugely worried and stressed.
Many thanks

Hi,

You can include your SOA yes.

How do you normally pay your credit bills ?

I will assume as you are asking about your bank, that you pay by DD.

If you bank online you can cancel them yourself via online banking, otherwise ring your bank and cancel them.

tobciocc

Thanks for the reply.

I usually pay via DD, and I online bank with the credit cards but not with my current account. Regarding the SOA, do I have to send it as well? Is it a bad idea not to do that? My plan was to make token payments for a few months so I can create a small emergency fund.

sourcrates

tobciocc wrote: »

Thanks for the reply.

I usually pay via DD, and I online bank with the credit cards but not with my current account. Regarding the SOA, do I have to send it as well? Is it a bad idea not to do that? My plan was to make token payments for a few months so I can create a small emergency fund.

Don't have to include it no.

Ring your bank to cancel DD's, or register for online banking.