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DMP Mutual Support Thread - Part 12

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DMP Mutual Support Thread - Part 12

edited 26 March 2017 at 12:50PM in Debt-Free Wannabe
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sourcratessourcrates Forumite, Board Guide
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edited 26 March 2017 at 12:50PM in Debt-Free Wannabe
Welcome to the DMP mutual support thread Part 12 !!

Here you can find help in starting and running your DMP, self managed, Stepchange, Payplan and any other DMP all welcome here, but we do encourage you to use a free service, not one you pay for.

There is help on getting interest and charges stopped, how to start with an emergency fund, defaults, token payments and lots more.

If you are in a DMP or thinking of one, this is the place to be. We are non judgmental and all questions are welcome.

Again the old thread was getting a tad long, so time for a new one.

The old thread can be found here :

http://forums.moneysavingexpert.com/showthread.php?t=5285089

Once again, i think the original "newbie" post by sazzie23 still rings true.
I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
[email protected].
Any views expressed are mine and not the official line of MoneySavingExpert.com.
For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
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Replies

  • edited 26 March 2017 at 2:49PM
    sourcratessourcrates Forumite, Board Guide
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    edited 26 March 2017 at 2:49PM
    Originally posted by sazzie23 but still good advice today :


    My now infamous Newbie message, slightly more generic and adapted a little.

    We have made this the second post, so newbies will be able to read it before moving on to our latest posts.

    Comments and suggestions positive or otherwise all welcome.

    Well done for getting this far, there may be a lot of activity on the thread at the moment, many newbies who are posting, not so new newbies still DMP`ing and quite a few lurkers at a guess (that's OK, we don't mind, one day you'll feel up to posting and smile about how worried you were).


    So some general Newbie Advice, setting up and starting out is probably to most people the most difficult time you will face in your DMP, so don't panic if it all seems scary and too much . Facing up to the fact you can no longer pay your debts is a massive step and very confronting for many people, this is life changing stuff so worrying is absolutely normal.

    Now you've done the horrid thing of adding it all up (often a shock) you've worked out (with SC or whoever) how much you can pay back, that's the crucial bit done, just a matter of getting the paperwork sorted.

    Despite SC being the largest debt charity, some call centre people know nothing about them, that's ok, they are just ignorant, don't let it worry you.
    All debt collection sections know about SC, some are better equipped to deal with it than others. Often the people at the front end that you speak to know nothing about how the system works, remember, you do, you are better equipped than them, don't let them scare you.

    It doesn't matter if you choose to DIY DMP or SC, the plan is the same, you are paying them what you can afford and they can't have anything else. If they 'reject' the plan, tough luck, keep paying it just the same, they'll get with the program at some point.

    Some creditors will let you know they have accepted, some will just accept it and show something on the statement, some will not say anything but just stop or reduce your interest, HBOS and BC will probably still charge you interest in some form, don't panic over it, it extends your DFD but there are things you can do, start on page 1 of the thread when you have a spare few hours and then decide what to do.

    Overtime and non regular bonus payments, no you don't have to declare these, and you can choose to save them to your emergency fund, make some extra repayments to reduce your DFD, save up for F&F payments when you get enough, or even....shhhh ...spend them on a little treat but don't tell anyone. Most people go for a combination of the above, all depends on your priorities.

    When you start out and your DFD is generally 4-10 years away, you think, I want to pay as much as I can straight away so the creditors think I'm doing my best. Actually I don't think they care much, as long as you keep in touch and keep paying what you agree - so don't cut your budget so fine that you are having 4 years of hell instead of 6 years in moderate comfort. I'm not saying do your shopping at M&S, and have 4 holidays a year, but just leave yourself the option of buying a cake at birthday time, a new pair of shoes for DD and maybe a very cheap caravan break once a year.

    Try to get yourself an emergency fund before you start, savings, selling things or making token payments for a while.

    Default letters are good, they look scary but they mean the creditor is actually looking at what you pay and putting your account into limbo. If your account goes to a DCA this is usually good and they are mainly not the scary people you see on the TV, they have all been very reasonable, and just want you to keep in touch and keep paying.

    There will be wobble times, if you have to reduce a payment, when a creditor starts grumbling or just because your DFD seems a long way off, but we've all done it, you come here log on and we'll all get through it together.

    If you are having trouble with creditors, eg Someone not playing ball with sticking to what they promised, or getting information mixed up when they shift to a DCA. I'd continue to pay, the payments seem to get to where they should eventually, but if you are worried, send a recorded delivery letter to the collections team at the creditor, quoting your account number and SC ref and saying this is what is happening, these are the payments that have been made, please make your sure your accounts are up to date and then ask them to reply to you in writing so you have confirmation. It does take several months for an account to get over from creditor to DCA and often the information is limited but it's just like the original set up and the DCA will let you know to change the payments in SC, and you can just log in and do it.

    Get stuff in writing, from them to you or you to them, then there is no mistake.

    I hope this helps, there are lots of scenarios I haven't covered, but in the main it's grit your teeth, keep plodding through and it will all settle down.

    One day soon, you will be able to say l will be debt free next year
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • beerowbeerow Forumite
    51 posts
    Hi,
    Have been reading the board with interest over the last few weeks and finally bit the bullet and contacted Step Change last week. Am in the process of setting up a simple bank account. Just a quick question...when I spoke to Step Change I estimated our debt and they sent through an agreement for us to sign but on adding up what we owe I was about 2k short. Will I have to start the process again?
  • sourcratessourcrates Forumite, Board Guide
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    beerow wrote: »
    Hi,
    Have been reading the board with interest over the last few weeks and finally bit the bullet and contacted Step Change last week. Am in the process of setting up a simple bank account. Just a quick question...when I spoke to Step Change I estimated our debt and they sent through an agreement for us to sign but on adding up what we owe I was about 2k short. Will I have to start the process again?

    Hi,

    No you should be ok.

    The balances will change anyway, as not all of your creditors may stop interest straight away.

    Each creditor will reduce your balance accordingly as payments are received, and you can ask for a statement of your remaining balance at any time.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • beerowbeerow Forumite
    51 posts
    Thank you so much for replying. Have got to ring my creditors tomorrow to advise we are working with Step Change and I was worried that my agreement would be void because I had given the wrong amount. Shall I call Step Change in the morning to advise them the revised amounts?
  • sourcratessourcrates Forumite, Board Guide
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    beerow wrote: »
    Thank you so much for replying. Have got to ring my creditors tomorrow to advise we are working with Step Change and I was worried that my agreement would be void because I had given the wrong amount. Shall I call Step Change in the morning to advise them the revised amounts?

    Yes call Stepchange and they will update there systems.

    A DMP is not a regulated agreement like a DRO or an IVA, so you dont have to be 100% accurate on your figures at the start.

    Its a very informal process.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • beerowbeerow Forumite
    51 posts
    Thank you so much, I have been making myself ill with worry....but then when you owe 43k I suppose another 2k is neither her or there! Will I still keep my original repayment plan or will I have to go through my expenditure again?
  • sourcratessourcrates Forumite, Board Guide
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    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
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    beerow wrote: »
    Thank you so much, I have been making myself ill with worry....but then when you owe 43k I suppose another 2k is neither her or there! Will I still keep my original repayment plan or will I have to go through my expenditure again?

    Just stick to whats already been agreed for now, or go with what stepchange advise when you ring them.

    All will be fine, its just a tiny stumbling block, nothing major.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • edited 26 March 2017 at 3:03PM
    [Deleted User][Deleted User]
    0 posts
    edited 26 March 2017 at 3:03PM
    beerow wrote: »
    Hi,
    Have been reading the board with interest over the last few weeks and finally bit the bullet and contacted Step Change last week. Am in the process of setting up a simple bank account. Just a quick question...when I spoke to Step Change I estimated our debt and they sent through an agreement for us to sign but on adding up what we owe I was about 2k short. Will I have to start the process again?


    Welcome to DMPland:beer:

    Don't worry about your debt totals when first contacting SC. I expect they're used to people making mistakes at the outset, it's a very worrying and confusing time for most of us and it's very easy to get a bit flummoxed by the whole thing. As you've been advised by sourcrates, just phone SC and get it sorted out. They'll help you and advise the best way forward. They don't bite;)


    Just one point, SC can only work from the figures we give them, they don't have access to our credit reports/files (or so the advisor I spoke to told me). The running balance that will appear on your monthly SC statements will reflect the initial balance to each creditor that you told SC that it was at the outset minus whatever has been repaid that month. For accuracy (for your benefit as much as anything) it's best to start with the true figures.


    Please don't beat yourself up about starting with a £43K debt. I started at just under £57K:o and I'm already more than half way through paying it off. The time seems to have gone fairly quickly and starting a DMP was the very best financial decision I ever made (although most of my others were pretty dire:eek:)


    Good Luck with everything:beer:
  • beerowbeerow Forumite
    51 posts
    Thank you, I think I'll feel better after I've spoken to the creditors tomorrow. Feel so ashamed of myself for letting it spiral out of control without admitting it was a problem!
  • motivatedmotivated Forumite
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    beerow wrote: »
    Thank you, I think I'll feel better after I've spoken to the creditors tomorrow. Feel so ashamed of myself for letting it spiral out of control without admitting it was a problem!

    Don't beat yourself up about it. I am in the same boat as you, but a lot deeper. I was ashamed, buried my head, thought I could cope, balance transferred CCs, consolidated debt. Basically robbed Peter to pay Paul. (Or robbed Barclaycard to pay MBNA or vice versa) Until I accepted I was in waaayyy over my head.

    You have made the first step and admitting you need help is the biggest step I feel. Once I contacted SC the stress seemed to lift they have been amazing and I could see clearly for the first time in years.

    I am just starting out on my DMP journey and am actually looking forward to it.

    Good luck
    M
    Emptying my lake with a teaspoon :)
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