DMP Mutual Support Thread - Part 12

Eddieslave

I've read so much already. I feel ready to take the plunge. Just need to restrain from spending any emergency fund I can put together. I'm guessing enough to cover 3 months of bills would be ok?

sourcrates

Eddieslave wrote: »

I've read so much already. I feel ready to take the plunge. Just need to restrain from spending any emergency fund I can put together. I'm guessing enough to cover 3 months of bills would be ok?

Its best not to rush into things, take your time, save some money up, your creditors are not going to do anything.

The debt charities do a brilliant job, but there sole aim is to get you repaying as soon as possible (they are independent, but funded by the credit industry) this isn't always in your best interests.

There motis operandi is to deal with emergencies as they happen, we on here believe its better to have that emergency fund already saved, so you can deal with whatever crops up yourself, with the least amount of hassle.

meepatme

wow interesting to hear about mbna account my cc was open in 2006 of course iv only just started stopping paying it very recent and this could be unenforacable now? Or do they mean you stopped paying on it in 2007

sourcrates

There`s a lot of talk about unenforceable credit agreements at the moment, some agreements from certain providers, prior to April 2007, were deemed unenforceable because they lacked certain "prescribed terms", i just dont want, newbies in particular, to think this will happen with all there debts, it wont.

A reconstituted copy can be provided for an agreement from any time period, agreements signed before the above date must include those terms to be valid, after that date, the law changed, and it is no longer a requirement.

For later agreements, it is most certainly possible that your creditor may not be able to provide what you've asked for, record keeping among creditors is a shambles, but most likely they will be able to, so please be aware of that.

Cornwallis4

Firstly - apologies if this is being posted in the wrong area, I am sure someone will advise on where best to place it if this is the case.

My partner and I have been on a DMP with StepChange since 2014, and we still have quite a way to go. SC have been amazing, and really supported us in managing our debt repayments despite many up and downs over the last couple of years. Now our car, purchased used in 2013 has given up the ghost, in is waiting approximately £1000 worth of repairs after we scrapped together £500 last month to get it back on the road. ( some timely Topcashback payments successful eBay sales, and birthday money) after a couple of days out of the garage it has completely died. A friend lent us a car for a few days, thankfully, but we had to hire one this morning to get my partner to work. The only thing I can think of is to apply for an overdraft on my partners account, to purchase an old banger we have seen for 300.00, and sit tight and cut spending to almost 0 to get the car repaired. Is this advisable? I know the rules about further borrowing, but my partner works in a rural location and is the principal wage earner, so needs a car for work, the kids and I aren't bothered, we can get around fine, but baby # 3 makes its surprise arrival next month, and I am really at my wits end as to what to do........ we cannot borrow from family as they have thier own commitments. Current car value is £1500 - but only once it's repaired and on the road

Any advice gratefully received. Thank you.

Keezing

It would be better to stop your debt repayments for a month or 2 than take out additional borrowing, in my opinion.

Suseka97

Hi Cornwallis4 - I agree with Keezing. I would advise against additional 'borrowing' by way of an overdraft. Not that I've a problem with folks having overdraft facilities whilst in a DMP (although DMP providers don't want you to) but because this is one of those emergency situations that come along from time to time and you should reduce or stop payments to the DMP until its sorted. Give SC a call and explain what's happened and they should be sympathetic and agree to you suspending payments until the car issues are resolved. If you 'borrow' by way of an overdraft - you are just making the situation harder for yourself.

leanne12345

Hi everyone, I have just received 3 letters saying 3 of our debts have been sold/passed on. This is the first time it has happened so a couple of questions if I may.
One of them says the account has been 'legally assigned' to them- does this mean it has been sold or are they just managing it?
Also, none of these debts have currently defaulted, I presume I now chase the DCAs for a default, not the original creditor, is that right?
Thank you ☺

Just_Afloat

Morning, first time post so I hope I'm doing it right...
I'm on a dmp with stepchange, 2 years in and 3 to go but have one debt with a Halifax credit card that will soon start charging interest again, as I will meet the minimum payments. My question is, would stepchange allow me to remove this from the DMP (around7K for this credit card) so I can throw extra money at it when available, to reduce the interest I will have to pay over the next couple of years, would it make any difference if its my wife who makes the extra payments as she is not part of my DMP. I also have other debts in the DMP owned or once owned by Halifax which have defaulted, an overdraft and a loan, but I also have a credit card, Sainsburys (4.5K) which is basically a Halifax card, this card hasn't defaulted either, but is some way off meeting minimum payments.
My choices might end up having to go self managed, gulp, or stick with stepchange and accept that Halifax will charge me around 3k in interest before the DMP completes, any advice welcome, thanks.

sourcrates

leanne12345 wrote: »

Hi everyone, I have just received 3 letters saying 3 of our debts have been sold/passed on. This is the first time it has happened so a couple of questions if I may.
One of them says the account has been 'legally assigned' to them- does this mean it has been sold or are they just managing it?
Also, none of these debts have currently defaulted, I presume I now chase the DCAs for a default, not the original creditor, is that right?
Thank you ☺

Hi,

"Legally assigned" means they have been sold yes.

You must of been defaulted, a default notice should be issued first, followed by a default on your credit file if you dont comply, a debt cannot be sold unless its defaulted.

Its likely the debt purchasers who have bought your accounts will add the entry in there name pretty quickly.

Original creditor has now washed there hands of the debts, so wait until the new owners introduce themselves.