DMP Mutual Support Thread - Part 12

100kdeep

Hi I haven't posted since I started so just thought I'd give you all an update or 2.

So I decided to use step change from the start and not do the token payment thing as I was worried that if I didn't get interest frozen on 100000 worth of debt (that was all low rate or 0 percent) it would cost me up to 1800 a month in interest until they agreed to freeze

Also I have some shares maturing so will have an emergency fund by September anyway

First letters I've had back were from mbna 31k worth of the debt and they said ' we except your payment of x a month and we will charge you zero percent interest ' . Which is obviously what I was hoping for and they are only getting 0.5 percent of the balance each month

Also had a letter from bc saying they have frozen the interest for 30 days until they here from me again or step change. But they have been easy so far so hopefully they will soon send a letter like mbna

I have had to ring step change a few times tho as I'd noticed they had messed up the offers to my creditors ie my smallest debt £750 was offered £80 a month and one of my 9k debts was offered £4.88. Don't know what happened there but they are going to resend the offers out so don't think it will make any difference long term. Mistakes happen.

Feeling good about the future at the moment. Think I can handle this ��

Max_and_sasha

Hi 100kdeep

Glad to here you have got it sorted out and that you are feeling confident:T

Good luck in your debt free journey

Max

neiljmuk

Interesting, all the people having debt sold to Link which has not been defaulted first. Mine is actually being marked as settled still and I've not paid them since it was sold, a year ago! Starting to send letters and calls as of about 3 months ago

purplepaws

Morning.
Quick update.
Since beginning my DMP with Payplan in July, I have just had notification from CapOne that they have already defaulted my CC debt. I assume this is good, (as it will be cleared in 6 yrs time) as long as I continue to repay what is owed? This is quick - I think I'm pleasantly suprised.
Two debts with Halifax and one with Barclaycard waiting to default now.
Good luck to everyone else - I can't believe how quick this thread keeps growing!

JVRMac

Hello, I have had a DMP in place with SC for 2 years now and self managed for about a year beforehand. Although my debt is reducing nicely my debt free date is not and is still around 5 years time. I am currently paying £300 a month and instead of getting easier I am finding it harder to manage especially with no clear end date in sight. I dont want to reduce my payments so instead i have been considering the possibility of remortgaging as my current rate is around 2.79%. If I added my debt onto my mortgage my LTV rate would still be below 60% and my repayments would go up by just over £100 a month which would leave me £200 a month better off and with no more debt. I would appreciate any advice regarding remortgaging, to be honest I am not even sure it will be possible to remortgage with my current credit score. Not sure if it makes a difference or not but I have never missed a payment on my mortgage or any critical expenses.
I just want this whole debt mess to end��

Suseka97

Hi JVRMac,

To me this doesn't sound like a good alternative - though others may well have a different viewpoint. If I understand what you are saying correctly, you are thinking of borrowing against your mortgage to pay off your DMP - but that wouldn't mean you have no more debt, just debt of a different kind.

You've done really well so far and whilst I truly appreciate the thought of another 5 years is causing you some anxiety - you do have an end date in sight. If the real issue is that you are struggling to manage paying £300 into the DMP, then maybe you need to revisit your I&E with your DMP provider -but I can see that would heighten your concern about the length of time needed to clear the DMP. It's a mindset thing -7 years is not the longest DMP journey I've seen on here as long as its manageable of course.

Keezing

JVRMac wrote: »

Hello, I have had a DMP in place with SC for 2 years now and self managed for about a year beforehand. Although my debt is reducing nicely my debt free date is not and is still around 5 years time. I am currently paying £300 a month and instead of getting easier I am finding it harder to manage especially with no clear end date in sight. I dont want to reduce my payments so instead i have been considering the possibility of remortgaging as my current rate is around 2.79%. If I added my debt onto my mortgage my LTV rate would still be below 60% and my repayments would go up by just over £100 a month which would leave me £200 a month better off and with no more debt. I would appreciate any advice regarding remortgaging, to be honest I am not even sure it will be possible to remortgage with my current credit score. Not sure if it makes a difference or not but I have never missed a payment on my mortgage or any critical expenses.
I just want this whole debt mess to end��

Additional borrowing from your existing lender will trigger credit checks. It is very unlikely that you will be approved as your credit file will still show defaults and missed payments.

Leanneglos1

I used to be a mortgage advisor...still qualified and you would struggle to find a high street lender willing to let you borrow against the house if on a DMP (bank I worked for would decline straight away if you've been on a DMP in last 6 years and that also applied to existing customers wanting to borrow more on current mortgage as well as new customers)

the only lenders who would be willing to lend to you will charge high interest rates to counter balance the risk, if in a DMP your deemed high risk, mortgage interest rates will reflect this.

Unfortunately my knowledge on everything else is poor (inc finances) but not too bad when it comes to mortgages:)

Hopefully this helps x

JVRMac

Thanks for your response. Its always difficult to talk about debt and the effects this has on your own and your family's lives. I know I have done well in reducing my debt and am a lot better off than where I was when I started. I think I just feel like my kids are missing out as everything has been on pause for the last 3 years and in another 5 years time they will be adults.

Suseka97

JVRMac wrote: »

Thanks for your response.... I think I just feel like my kids are missing out as everything has been on pause for the last 3 years and in another 5 years time they will be adults.

It's perfectly understandable that you would want to explore alternatives -but it seems that a remortgage will not be an option. So what you need to do is rethink the whole DMP thing - what I mean by that is you've said you want pay it off as soon as possible, but that mindset has to change. Above all a DMP arrangement needs to work for you and your family. If by reducing your monthly payment you can 'live a little' (and I guess you're not thinking of luxury holidays, lots of 'nice to have' things as opposed to 'need to buy' purchases as well as the odd treat) then don't beat yourself up about it. If it means the DMP years increase and you can cope with that mentally, then go for it.

My DMP payments were really high and have been for the last 4+ years and we were set to pay it off by March / April next year. Then things started to break and I had my second 'lightbulb' moment realising that I was just existing, not living. I really wish I'd had that LBM a little sooner. So, I'm now self-managing and perfectly happy for our DMP to continue until the end of 2018 (longer if needs be). Effectively all our debts are defaulted (well except two odd ones who have taken the defaults off and put it back to 'ok') and will fall off our credit file in 2019, whether paid or not. So paying quicker actually serves no purpose.

Above all what you need to remember is you are doing everything right - you faced up to your debt problems and are dealing with it properly. As I said - a DMP is great, but it needs to be manageable/affordable and if it's not - do something to change it, It's your DMP after all