DMP Mutual Support Thread - Part 12

Julie67

newstartDMP wrote: »

Thank you for the reassurance. I have received my paperwork back from StepChange, but also have the option to do a DMP with PayPlan (who think we can afford to pay £100 more per month towards the debt?) Which would be preferable? I understand that neither charge fees for a DMP, but is one generally better at freezing interest, etc than the other?

In my experience with SC they don't have anything to do with freezing interest. They suggest it I think in their initial letter to your creditors but it was really left to me to request the interest be frozen
most were fine and pretty easy to deal with. I had a couple who were really difficult and I had to make a complaint, but in the end they all did, and I even managed to get a refund on interest charges from ASDA CC.
I think in your position I would go for SC and save the other money towards an emergency fund. But just my opinion, others much more knowledgable than me may be able to advise differently. Good luck

purplepaws

newstartDMP wrote: »

Thank you for the reassurance. I have received my paperwork back from StepChange, but also have the option to do a DMP with PayPlan (who think we can afford to pay £100 more per month towards the debt?) Which would be preferable? I understand that neither charge fees for a DMP, but is one generally better at freezing interest, etc than the other?

Hello again,
I went with Payplan. Initially they did push me to pay more than £100 but (after reading though the posts on here) I said 'no' and set- up a smaller payment. If you can't (or don't want to) pay £100 then put your foot down and tell them what a 'realistic' amount is.
The only reason I went with Payplan over StepChange was that I had gone so far with Payplan I didn't have the time to go through it all over again - especially as I have decided that I will probably go self-managed in a few months anyway (also thanks to the advice on here!)
I understand that Payplan are 'paid' by the industry (not sure about StepChange), so I guess that they will always have the creditors needs in mind but if it wasn't for us giving them business in the first place, they would probably run out of clients if they did not also consider our needs over the creditors.
Believe me, once you say OK, sign the authorisation and let them do their thing, you'll feel so much better!

BeingDebtFreeStartsHere

HI all :wave:

Quick question re: self managed. I am going take the plunge in the next couple of weeks (once my replacement ink cartridges arrive!! ) Apologies in advance if this has been asked recently.

I was going to let my last SC payment go out at the beginning of August then move to self managed. Our emergency fund is pretty much zero so I was wondering if I can write to the creditors and explain I am moving to self managed, request payment details to set up standing orders to pay them directly and send I and E info, but state my payments will resume in a few months' time as I need to set up an emergency fund?

Any advice on what to write or any other suggestions from any of you self managing pros would be very much appreciated

Take care,

BDFSH x

sourcrates

Try something like this :


Dear creditors,

As you are aware I have been repaying my indebtedness to you via a stepchange debt management plan, this has worked well for me, but the time has now come for me to regain control over my finances, and as from (insert date) I will be self managing my own financial affairs.

To allow me to organise my plan, and to assertain my position, there will be a short break in payments, I will contact you again in (insert your own timeframe) to inform you when payments will resume.

In the meantime I will keep you updated with any developments, and during this time please refrain from contacting me except in writing.

Yours sincerely

BeingDebtFreeStartsHere

sourcrates wrote: »

Try something like this :


Dear creditors,

As you are aware I have been repaying my indebtedness to you via a stepchange debt management plan, this has worked well for me, but the time has now come for me to regain control over my finances, and as from (insert date) I will be self managing my own financial affairs.

To allow me to organise my plan, and to assertain my position, there will be a short break in payments, I will contact you again in (insert your own timeframe) to inform you when payments will resume.

In the meantime I will keep you updated with any developments, and during this time please refrain from contacting me except in writing.

Yours sincerely

sourcrates - you are a star!

Thank you so much

alianza

Haven't posted for ages as nothing has happened much.
16 k debt with Cabot. Did a CCA request in January, received a letter stating they will send it when they receive it from the original lender (Lloyds) and have heard nothing for over 6 months now so I am hoping it stays that way.
A couple of 1k debts with PRA that were old MBNA cards also CCA requested in January, one they admitted was unenforceable the other they said was enforceable, sent a crappy photocopy that I then said wasn't good enough and all that has happened since then is they send me an offer to settle at 90% every month or so whilst threatening loads of stuff that just doesn't happen so i am happily ignoring those as well.
I have saved myself a lot of money that I was paying my fairly useless DMP provider and have put that towards paying off the couple of recent debts that did need to be paid, Thanks for all the advice on here and going self managed was the best thing I have done recently.

[Deleted User]

purplepaws wrote: »

Hello newstartDMP!
I promise that you will begin to feel better. Really, really soon.
You are not alone, there are hundreds of us in the same boat - we are here to share the tears and the joys.
Congratulations on beginning your journey.
Hang-on in there and keep us updated!
x x x

:hello:newstartDMP.

Couldn't agree more with everything purplepaws said:T

Great username! You'll soon discover that it really is a new start for you:j. Good Luck:beer:

Suseka97

newstartDMP wrote: »

Thank you for the reassurance. I have received my paperwork back from StepChange, but also have the option to do a DMP with PayPlan (who think we can afford to pay £100 more per month towards the debt?) Which would be preferable? I understand that neither charge fees for a DMP, but is one generally better at freezing interest, etc than the other?

Welcolme newstartDMP. SC and PayPlan are pretty much the same when it comes to how they'll handle your DMP and I believe both are paid by the industries, which is why they'll encourage you to pay the maximum you can afford and pay off your debts as quickly as possible. Neither will push creditors to stop interest or charges, but will request it when they contact creditors with a copy of your I&E and details of how much they will receive on a monthly basis. I'm not bashing them - they are much better than any company who charge for their services, but they handle hundreds of accounts, so you won't be getting a one-to-one service. In fact over the 4+ years I was with SC (just left to go self-managed) I don't think I ever spoke to the same person twice. Whatever you do, don't overstretch yourself - the plan is yours and it needs to be affordable, or you won't be able to stick with it. Also, don't rush in to start too soon -give yourself a few months to build up an emergency fund. If you look back on this thread you'll read that piece of advice being given to new DMPers many times.

sourcrates wrote: »

Try something like this : Dear creditors,
As you are aware I have been repaying my indebtedness to you via a stepchange debt management plan, this has worked well for me, but the time has now come for me to regain control over my finances, and as from (insert date) I will be self managing my own financial affairs. To allow me to organise my plan, and to assertain my position, there will be a short break in payments, I will contact you again in (insert your own timeframe) to inform you when payments will resume. In the meantime I will keep you updated with any developments, and during this time please refrain from contacting me except in writing....

Thanks sourcrates - think I might pinch this for when I write to mine

Dandytf

having just agreed to lower my sc dmp payments I have to say SC have never asked me to raise payments in fact they once advised against my offer to raise payments.

SC have been excellent since 2012

SpamTomorrow

Hello All,

Quite some time since I last posted but have been working hard at the self managed DMP and making good progress.

It has made a huge difference to my life and feels great to be in control and dealing with the problem.

To anybody who has just started, it will get easier so don't worry! The help and advice available on this forum is invaluable.

I have a couple of questions I hope somebody can help me with. Over the last couple of months I have been looking at the Noddle report with a view on improving Credit rating in the future. Of the various debts, with the exception of 2, they have the status you would expect.

The first of the 2 is 'Hoist'. This is an old Marbles credit card that was handed over to Hoist and subsequently Robinson Way for collection. The account shows going from in arrears to 'arrangement' to pay and for the last six marked as paid s normal. The account also shows that the credit limit is still as per the original. I plan to write to them and ask why it has not been defaulted but thought it might be an idea to see if anybody else has similar experience? Am I correct in assuming they have to default the account if it has been passed to debt collection?

The second account is similar, American Express which has been passed to 'Regain'. I am correct in assuming that Regain is an in house facility and not really a 'true' debt recovery agency. This account is also now marked each month as in order.

Any insight gratefully recieved.

SpamT