DMP Mutual Support Thread - Part 12

sourcrates

Bepop wrote: »

Hello everyone. Again can I pass on a great big thank you to each and everyone of you who have taken the time out your busy day to reply. A week ago I was lost in my own thoughts. If it wasn't for stumbling across this site I honestly don't know where I would have turned to for help. You are all fantastic. Each of you all have your wee individual stories to tell, I actually felt quite emotional reading through your threads, but your strength truly comes through, which I feel has got me to this point a week on. I think I would be better phoning SC and maybe go through my budget with them. I don't feel 100% at ease that I've filled it out correctly, i know i have held back on being realistic with everyday expenditure, so will give them a call. I will change my current account and will send out my letters to all creditors. To get it all correct in my head, once I call SC to do a budget, at that point, can I still say I'm not ready for my pack yet, but I know after a couple of months after building up an emergency fund, I then phone back in to SC and request my pack, sign it and return and take it from there as in the ball will be rolling? Sorry again, thank you all, you have been brilliant x

Hi,

That's a bit of a mess about really.

A simpler solution is to stop making all your unsecured credit payments, write to each lender explaining your in financial difficulty, and that you are taking advice from one of the debt charities.

You will be in touch in due course when a solution has been agreed upon.

Then give it a few months, keep your creditors updated, say your still reviewing your options, when you have a pot of money saved, then get in touch with stepchange, agree a way forward, start repaying, simple and straight forward.

Sazzie23

Bepop wrote: »

Hello everyone. Again can I pass on a great big thank you to each and everyone of you who have taken the time out your busy day to reply. A week ago I was lost in my own thoughts. If it wasn't for stumbling across this site I honestly don't know where I would have turned to for help. You are all fantastic. Each of you all have your wee individual stories to tell, I actually felt quite emotional reading through your threads, but your strength truly comes through, which I feel has got me to this point a week on. I think I would be better phoning SC and maybe go through my budget with them. I don't feel 100% at ease that I've filled it out correctly, i know i have held back on being realistic with everyday expenditure, so will give them a call. I will change my current account and will send out my letters to all creditors. To get it all correct in my head, once I call SC to do a budget, at that point, can I still say I'm not ready for my pack yet, but I know after a couple of months after building up an emergency fund, I then phone back in to SC and request my pack, sign it and return and take it from there as in the ball will be rolling? Sorry again, thank you all, you have been brilliant x

Hi bepop

Nice to see you are getting your head round things. Your plan sounds fine, though I agree with Sourcrates a more straightforward approach as he described will work just as well and give you time to get your head round things.

One adjustment I think you might find helpful is to shift from the mentality of 'must pay them every cent' to a version of 'pay what I can afford'. Now I know it's difficult, I came from the pay bills on time,never miss a payment route, but actually thousands of customers are in arrears all the time. Yes that does mess your credit, but a DMP will trash it so doesn't get worse. Keeping your budget sensible is the only way to get through 8 years of DMP.

Must dash, have a great day everyone

Saz

dacdesigns

sourcrates wrote: »

Your budget won't be questioned as long as the figures are not too high, make sure you budget for everything you are entitled to budget for, and remember, you must have less than £50 a month left after essential bills are paid (do not include debt repayments in this).

Hi again,

So we have had a good chat and think the DRO is the best option. I have spoken with SC and they have agreed that a DRO is right for me so they are sending the info pack out for me. We also did SC's online thing for my partner and it gave the same, she should go with the DRO so again we have requested the pack.

My only concern is my partner has mostly BNPL's with Argos and Very and the next ones are due to finish in around 1-2 months time so do I need to put the debt amount as what it is from today without any added interest? I'm worried that if I only put the amount now when the DRO is setup some of the BNPL's would have finished and added 12 months of interest. It clearly states if you miss any debt out she may have to pay that.

Any help would be great, many thanks

sourcrates

dacdesigns wrote: »

Hi again,

So we have had a good chat and think the DRO is the best option. I have spoken with SC and they have agreed that a DRO is right for me so they are sending the info pack out for me. We also did SC's online thing for my partner and it gave the same, she should go with the DRO so again we have requested the pack.

My only concern is my partner has mostly BNPL's with Argos and Very and the next ones are due to finish in around 1-2 months time so do I need to put the debt amount as what it is from today without any added interest? I'm worried that if I only put the amount now when the DRO is setup some of the BNPL's would have finished and added 12 months of interest. It clearly states if you miss any debt out she may have to pay that.

Any help would be great, many thanks

No, try and calculate the full debt.

It does not have to be 100% accurate, as long as the figure you put down covers the full debt plus any interest, and does not take you over the 20k threshold , that will be sufficient.

dacdesigns

sourcrates wrote: »

No, try and calculate the full debt.

It does not have to be 100% accurate, as long as the figure you put down covers the full debt plus any interest, and does not take you over the 20k threshold , that will be sufficient.

It says to get a copy of her credit file to find out what she owes, it says thats what they do as well.

So would you just contact the companies and ask them what the balance would be if all bnpl's was to be missed? or should we just try work it?

many thanks again

sourcrates

dacdesigns wrote: »

It says to get a copy of her credit file to find out what she owes, it says thats what they do as well.

So would you just contact the companies and ask them what the balance would be if all bnpl's was to be missed? or should we just try work it?

many thanks again

Add up all of your individual debt, the BNPL offers you have, should tell you the full price inc interest in "your account", if not ring and find out, you can use your credit file too.

It's handy to have a copy from each CRA so all your debts are covered.

What I'm trying to tell you is that as long as the figure you put down covers the entire debt inc all interest, then that's all you need to do, it does not have to be down to the exact penny, for example, you owe very £500, but you've chosen BNPL, the interest for the full period would total £400, so your debt to them would be £900, that's the figure you put down.

dacdesigns

sourcrates wrote: »

Add up all of your individual debt, the BNPL offers you have, should tell you the full price inc interest in "your account", if not ring and find out, you can use your credit file too.

It's handy to have a copy from each CRA so all your debts are covered.

What I'm trying to tell you is that as long as the figure you put down covers the entire debt inc all interest, then that's all you need to do, it does not have to be down to the exact penny, for example, you owe very £500, but you've chosen BNPL, the interest for the full period would total £400, so your debt to them would be £900, that's the figure you put down.

Thank you for that, its a good job I asked because I just listed the debt as it stands today with no interest added.

henrryyyy

January2015 wrote: »

henryyyy - I love reading posts like yours above :j It is so lovely to see the change and positivity in your posts from when you first joined us.

One of the best pieces of advice I can give anyone starting on their DMP journey is to keep visiting this forum and stay in touch. Talking about debts in the real world is difficult and it is such a wonderful thing to be abe share progress and occasional problems on here with other folk who are (or have been) in the same deep debt hole as you. It helps keep you focussed on your target of clearing your debt, it helps when you have bumps along the way and you need to drop payments for a short time - you will have the belief these things are bumps in the road and not flipping great mountains you cannot climb over.

I love my DMP, and I love this thread (and forum). Without it I would not be where I am in the road to clearing my debt......which I very soon hope will hit another major milestone in the debt clearing journey:j

its amazing how less worried you get once you actually start the process, im lucky in that I have a friend who I could trust with my debt problems(or who kinda forced it out of me), although it took a while to tell him the full amount, I just kept telling him an increased amount each month to see if he had horror in his face:eek:

Although my DMP hasnt actually started yet(1st may) its kinda exciting, im a little disappointed each day when the postman doesnt bring me anything regarding my accounts and dmp.

Im already thinking to go self managed in the very near future so I can build up my emergency fund for a few months which I didnt get the chance to do, and to be able to better control my accounts.

I check back here most days, just not very vocal at the moment

sourcrates

Link182 wrote: »

Does anyone have any experience with the Accountant In Bankruptcy's "Fair and Reasonable Test"?

My DPP's 21 day creditor response time period has elapsed. I've been left with 1 rejection out of all my creditors meaning the DPP has to go to the F&R Test.

My bank rejected the plan claiming that payment offered didn't cover 90% of the debt owed. This is because they added a £95.95 charge to my current account which put me into a negative balance.

The negative balance is no longer there and is back to £0.

Does anyone know how long it takes the AiB to go through their "Fair and Reasonable" procedure?

I'll put your post on the bankruptcy board, you may get more specific responses there.

Suseka97

Bepop wrote: »

.......To get it all correct in my head, once I call SC to do a budget, at that point, can I still say I'm not ready for my pack yet, but I know after a couple of months after building up an emergency fund, I then phone back in to SC and request my pack, sign it and return and take it from there as in the ball will be rolling? Sorry again, thank you all, you have been brilliant x

Firstly well done for taking that first step - trust me, everything will start coming together and you'll soon be feeling a lot more in control. Do go with Sourcrate's suggestion and just contact creditors to let them know you are now seeking advice from a debt management company. Most, if not all, will likely say they will put your account on hold for 30 days, freezing interest and charges to give you time to get things sorted. It doesn't matter that you'll take more than 30 days, just stick with your plan and give yourself a good 2 months (obviously stop making your usual payments now). I took 2 months and just made token £1 payments to each, but on reflection I needn't have made those token payments - it was just a gesture.

Definitely get a new bank account set up and move your salary and any other income across before you set up your DMP and if you have an overdraft with your current bank, just add that to your list of creditors