DMP Mutual Support Thread - Part 12

Max_and_sasha

Hi purple paws

I don't think you can do that with your loan and treat your cc,s differently, your credit rating will be shot to pieces anyway once you start your dmp , there would be no benefit in doing this, best to treat all creditors the same, and before you start your dmp please build up an emergency fund.

Max

Worriedman

Hi guys,

Big step today - the first token payment of £10 to my 10 creditors has gone out of my account today via StepChange. I can really recommend SC as they are so easy and non-judgemental to deal with.

I've only heard from 4 of my creditors, who have all accepted the token payment for 6 months. Does anyone know what happens after this 6 months are up? Do I have to pay more after that, as I'm not sure I will be able to afford it straightaway. What % do creditors usually accept on a DMP after you come off a token payment plan?

Thanks as always for your help. I wouldn't have had the confidence to try and address my debt problem if it hadn't been for the posts I read on here.

[Deleted User]

Max_and_sasha wrote: »

Hi everyone

Just a wee update regarding one off my creditors who I cca,d,

I cca,d all my creditors on the 14/5/2017 , most on hold until they gather the relevant paper work, got a reply from one yesterday ( robinson way ) that they are still waiting on the original debtor getting in contact with them,

1, is this a good sign , I am thinking they don't have it or will ever find it or am I counting my chickens before they hatch,
2, do I have to write a follow up letter or just wait it out until they get back in touch with me, if I am honest not knowing if they will find it is killing me lol its my biggest debt
3, I am currently not paying them any money as the account is on hold , I have seen previously people asking if they should be paying the DCA, s when they have requested cca,s so I hope that helps them


Thanks

Max

I sympathise with your long wait for replies from your CCA requests, Max. I was the same. I didn't know whether to be glad or not every day that the postman didn't bring anything;)

Robinson Way is the only one of my creditors who hasn't come up with anything yet or notified me that they definitely can't supply the necessary paperwork. RW wrote to tell me that they were still awaiting information from the original creditor (Tesco credit card). That was several weeks ago and there's been no contact at all since then. It's been about 9 weeks now since my original CCA request to them and as each day passes now I feel more and more hopeful that they'll never find anything:j. It's not my biggest debt, only about £2600ish but, as Mr Tesco used to say, 'every little helps':rotfl:


I haven't bothered to get in touch with them, I'd have thought that the onus is on them to let me know what's going on. I certainly haven't been paying them anything as I assume the account is on hold until they either come up with the required paperwork or tell me it's unenforceable.


Good Luck with that one and all your others too:beer:

[Deleted User]

Worriedman wrote: »

Hi guys,

Big step today - the first token payment of £10 to my 10 creditors has gone out of my account today via StepChange. I can really recommend SC as they are so easy and non-judgemental to deal with.

I've only heard from 4 of my creditors, who have all accepted the token payment for 6 months. Does anyone know what happens after this 6 months are up? Do I have to pay more after that, as I'm not sure I will be able to afford it straightaway. What % do creditors usually accept on a DMP after you come off a token payment plan?

Thanks as always for your help. I wouldn't have had the confidence to try and address my debt problem if it hadn't been for the posts I read on here.

Well done, Worriedman, in taking the plunge and getting token payments organised:T:beer:

I used SC for the first 4 years of my DMP, only daring to go self-managed at the start of this year. They were an absolute godsend to me from the start, I really don't know where I'd have been without their help.

I can't answer your questions I'm afraid but I'm sure someone will be along soon to put you right:). I just dropped to tokens with SC for 3 months when I was about 3 years in to my DMP, that was what I needed and we'd agreed on. There was no need to extend it, the reduction was to cover massive, genuine emergencies that more than wiped out my emergency savings:(. After the 3 months I went back to my regular monthly payments.

Good Luck:beer:

January2015

purplepaws wrote: »

I
I was hoping that I could keep repaying the loan and apply the DMP to the credit cards only, but I don't know if that's possible? (I could just about afford that if CC repayments were no more than £5 per month.) Is that something I would be able to suggest or is it 'all or nothing'?
Thank you all for your advice. It's making me feel sick to my stomach with worry.

Why bother - DMP all or nothing. You are trashing you credit file the minute you enter into a DMP. Get all the accounts defaulted and interest free asap. Use any money you would have put towards paying the loan towards saving for emergency fund or full and final settlement offers. You are wasting your money if you continue to pay the loan.

I started 2 and 1/2 years ago with 95k of debt. I've now got that down to £49k and for one year of that I've only paid a £1 per month to each creditor. Save your money and go for either unenforceable credit agreements (accounts opened 2007 or earlier), or save the money for F&Fs.

Edit: I should have said creditors won't look any more 'favourably' on you if you pay your loan but not your other accounts. I think Sourcrates is right when he said he thinks you are still in the "I can't not pay" thought process. You just need to accept you have reached crisis point and whilst you have, this is not a bad thing. Nothing bad is going to happen if/when you stop paying. Like I said, I've been paying £1 per month to each creditor for a year now. No nasty letters, no phone calls. In fact I have it in writing that I can pay £1 per month and they are leaving me to get on with it for yet another six months.

purplepaws

I've bottled it and reverted back to Payplan to set up the DMP. They're pushing for a larger amount each month (presumably because they have the creditors needs ahead of mine) but if it means it gets things up and running ASAP I'm ok with that. Once it settles down and I have a better understanding of how it will work, I'll possibly think about going self-managed.
I assume that this will crucify my credit rating (which I think is a bit of a con anyway) but if, as a joint applicant, me and hubby attempt to remortgage I'm guessing that my DMP will be a BIG problem? (Mortgage is in joint names but always been paid solely by my husband.)
Due to our current circumstances, remortgage may be something we have to look at in the near future.
I'm trapped really, aren't I?

January2015

purplepaws wrote: »

I've bottled it and reverted back to Payplan to set up the DMP. They're pushing for a larger amount each month (presumably because they have the creditors needs ahead of mine) but if it means it gets things up and running ASAP I'm ok with that. Once it settles down and I have a better understanding of how it will work, I'll possibly think about going self-managed.
I assume that this will crucify my credit rating (which I think is a bit of a con anyway) but if, as a joint applicant, me and hubby attempt to remortgage I'm guessing that my DMP will be a BIG problem? (Mortgage is in joint names but always been paid solely by my husband.)
Due to our current circumstances, remortgage may be something we have to look at in the near future.
I'm trapped really, aren't I?

Do not let payplan dictate the amount you pay for your DMP. Stuff creditors needs. You will fail your DMP if your expenditure figures are not realistic and leave room for saving for regular expenditure and emergencies. Creditors do not have 'needs'. I keep saying it, but they will accept £1 per month if your I&E evidences that's all you can afford.

I totally understand the bottling going self managed. I started with Stepchange and were with them for a year before I had the confidence to go self managed.

Please believe me, once you've accepted you need a DMP (or other debt solution) the amount you will pay the creditors is more important to you than it is to the creditors. Do not be pushed into setting up a DMP with a monthly payment higher than you feel comfortable with.

Go to Stepchange if Payplan aren't being helpful.

Puzzcat

purplepaws wrote: »

I've bottled it and reverted back to Payplan to set up the DMP. They're pushing for a larger amount each month (presumably because they have the creditors needs ahead of mine) but if it means it gets things up and running ASAP I'm ok with that. Once it settles down and I have a better understanding of how it will work, I'll possibly think about going self-managed.
I assume that this will crucify my credit rating (which I think is a bit of a con anyway) but if, as a joint applicant, me and hubby attempt to remortgage I'm guessing that my DMP will be a BIG problem? (Mortgage is in joint names but always been paid solely by my husband.)
Due to our current circumstances, remortgage may be something we have to look at in the near future.
I'm trapped really, aren't I?

You can remortgage with your current provider as they don't credit check. Well nationwide didn't and I think that's the norm.
Puzz

Starshot

Hello!

So I originally posted on here back in March. At the time we had set the wheels in motion but didnt get any further.

We've made no payments to any of our debts, but also not managed to save an emergency fund. Two of the debts have defaulted, these are credit card debts. The others are two overdrafts and a personal loan. I finally sent off all the paperwork last Thursday and have arranged the first payment date of our DMP to be August 1st!

When I phoned up Santander to pass on the SC reference number, the lady on the phone knocked off the last two months interest which was a very happy result. However I would be very happy if they defaulted it, is there a way to push overdraft defaults? I think it was January who used the unfavourable treatment line, could this work?

The only debt that is in my husbands sole name is a personal loan. It's not for much as in it's not the most of our debts but I believe that is steps away from defaulting as well, we haven't made any payments for almost a year.

I was a bit worried about our lack of emergency fund but I got notice today that we're going to get around £60 in tax credits each month as our daughter has started nursery which I'm going to set aside completely and hopefully be able to get that saved up.

The only thing that has me worried is that I get paid every 4 weeks rather than monthly, and so SC has calculated my income over the 12 months as opposed to the 13 pay days that I actually get. Has this happened to anyone else? It just means that though it averages out, our income is not necessarily worked out so neatly and might leave us a it odd each month.

Happy to be restarted, third time lucky yeah? ��

January2015

purplepaws wrote: »

I'm trapped really, aren't I?

Hi - me again :wave:

I can say, without hesitation, that every single person on this thread who is on a DMP felt 'trapped' at the time they reached crisis point and headed down the DMP route. No-one finds it easy to start with, but very quickly you will realise you have made a sound financial decision.

There is a user named 'motivated' who is often around. She started her DMP at the beginning of the year and back then her posts were panicky and worrying - very similar to yours. Within weeks, literally a few weeks, she had taken control of her situation and in a far better place in her mind. She loves her DMP now - as do most of us.

It's not an easy thing to admit (even to yourself) that you need support with your financial situation, but you've taken the first and hardest step. Things will get easier from this point on.:beer: