DMP starting go live date question

S1Ebbz

Quick question

Can you start your DMP say two months after you submit paperwork and in interim send a postal order token payment to each creditor

Just thinking how having an emergency saving fund is fundamental when the credit card option is gone?

Keezing

Hi S1Ebbz,

You can essentially do what you want. A DMP as an informal arrangement.

If you insist on using an intermediary such as Stepchange they may try to convince you to start earlier - remember they are funded by the banks.

I'm sure that if you insisted, they would accept a delayed start to your DMP.

National_Debtline

Hi

In theory yes, as a DMP is an informal negotiation process. I know you’re applying through Stepchange from your other posts so I think the best thing to do is discuss it with them. I'm not sure if they have a particular policy on it.

EDIT - cross posted with Keezing

James
@natdebtline

S1Ebbz

Thanks all. I think the best solution is to just get it going. Emergency funding can be saved. Forecasting and looking forward.

I have bills that I am missing so far this month (non priority) with this in mind I am going to send postal orders of £1 with a letter to each

Keezing

The general consensus is to not pay anything for a few months and allow the accounts to default. This then gives you 6 years before you have a nice clean credit file.

Ultimately this is your choice and if you would feel more comfortable paying something I say go for it.

sourcrates

S1Ebbz wrote: »

Thanks all. I think the best solution is to just get it going. Emergency funding can be saved. Forecasting and looking forward.

I have bills that I am missing so far this month (non priority) with this in mind I am going to send postal orders of £1 with a letter to each

To be honest, token payments are a waste of time, just write a letter to each creditor informing them of the DMP start date, and leave it at that.

Keezing (above) hits the nail on the head.

S1Ebbz

I'm confused sorry. So shall I not bother with token payments via postal order and just send the letters and send my DMP pack

I don't have money to pay my credit cards this month ... What a mess

sourcrates

S1Ebbz wrote: »

I'm confused sorry. So shall I not bother with token payments via postal order and just send the letters and send my DMP pack

I don't have money to pay my credit cards this month ... What a mess

Ok, this question gets asked a lot, so to avoid repeating myself, have a look on this thread, it asks a similar question :

https://forums.moneysavingexpert.com/discussion/5599715

Really you should with hold payment until all your accounts have defaulted, and you have had time to save a reasonable emergency fund, stepchange wont tell you this as they are bank funded and there single job is to get the debt repaid, doing so too quickly is not always in your best interests.

If your still unsure about anything, search the forums again, or feel free to ask.

January2015

Postal orders cost you more than the £1 you are sending and cost the creditor more than that to process. Therefore it is a bit pointless sending these token payments. Read the link posted by Sourcrates and wait a few months. Those defaults will start rolling in nicely.