DMP Mutual Support Thread - Part 12

Danny008

Hi everyone. I'm looking at setting up my DMP with stepchange next week but I have a few questions first. I'm sure I read that Barclaycard don't freeze interest. Is it worth transferring this balance to my MBNA credit card then starting the DMP? How would MBNA react to this? Also I've not missed any payments to any creditors and I've always paid a little more than minimum on my credit cards, not much only £5 max to round it up. Will they look at this and think if I was that hard up I'd only be paying minimum?

I've been thinking about starting this up for a month now, although I've been putting it off as I've got a really good credit rating but I know if I don't do it now my debt will only increase.

zenshi

About 6 months ago, one of my debts was sold to Cabot. They wrote ant told me. A few days ago I recieved a text from them asking for an up to date I and E. Last week, I had many calls from an unknown number, Google didn't reveal the owner....could it have been Cabot

Anyway, my question is the original debt was to contact in writing only. As they sold it, should I write and ask for writing only contact or should that have been in the file?

kram

Danny008 wrote: »

Hi everyone. I'm looking at setting up my DMP with stepchange next week but I have a few questions first. I'm sure I read that Barclaycard don't freeze interest. Is it worth transferring this balance to my MBNA credit card then starting the DMP? How would MBNA react to this? Also I've not missed any payments to any creditors and I've always paid a little more than minimum on my credit cards, not much only £5 max to round it up. Will they look at this and think if I was that hard up I'd only be paying minimum?

I've been thinking about starting this up for a month now, although I've been putting it off as I've got a really good credit rating but I know if I don't do it now my debt will only increase.

Hi Danny008,

Welcome to the forum, I am still new to all this myself so others will answer your questions soon, but personally I had no problems with barclaycard freezing interest & defaulting me so I wouldn't want to go doing balance transfers just for the sake of it.

I would look at the debt remedy tool on the sc website, its completely anonymous with no commitment here's the link:

https://www.stepchange.org/Debtremedy.aspx

It does get easier once you get things moving in the right direction.

Good luck

K

sourcrates

zenshi wrote: »

About 6 months ago, one of my debts was sold to Cabot. They wrote ant told me. A few days ago I recieved a text from them asking for an up to date I and E. Last week, I had many calls from an unknown number, Google didn't reveal the owner....could it have been Cabot

Anyway, my question is the original debt was to contact in writing only. As they sold it, should I write and ask for writing only contact or should that have been in the file?

Hi,

Debts are sold in bulk, as you know.

Very little in the way of information will be made available to Cabot, usually a name, number, address, and amount outstanding, are the only details that are passed on.

If your request for contact in writing only, was passed on to them, its unlikely they will honor it, unless you remind them.

Dandytf

As I approach clearing my 1st debt via SC since 2012.

Think I’ll pay this one off soon, NW -£66

Notice SC have a update/transfer balance on their website.

Is it simple to make a one off debit card payment,

Will SC then ammend my balance automaticaly, without needing me to call SC.

sourcrates

Danny008 wrote: »

Hi everyone. I'm looking at setting up my DMP with stepchange next week but I have a few questions first. I'm sure I read that Barclaycard don't freeze interest. Is it worth transferring this balance to my MBNA credit card then starting the DMP? How would MBNA react to this? Also I've not missed any payments to any creditors and I've always paid a little more than minimum on my credit cards, not much only £5 max to round it up. Will they look at this and think if I was that hard up I'd only be paying minimum?

Hi,

Do what you have to do to make things easy for yourself.

The creditor wont think anything, they have millions of customers, do you honestly think they are bothered about the actions of one of them ?

Situations and circumstances change, fact, you have to adapt to that, and so do they.
Makes no difference what has gone before.

Dont worry about it, just do what you have to do, before i entered my IVA, i withdrew £5000 from an unused OD with my then bank, who was about to be a creditor in the IVA, just to keep as an emergency fund, as we had just had a new baby at the time, no one batted an eyelid.

Danny008

Thanks kram and sourcrates for your replies. I was looking at doing the transfer as it's no transfer fee and it's one less creditor to worry about. My direct debits come out at the start of October next. Is it too late to send the letters out and cancel my direct debits?

January2015

Danny008 wrote: »

Hi everyone. I'm looking at setting up my DMP with stepchange next week but I have a few questions first. I'm sure I read that Barclaycard don't freeze interest. Is it worth transferring this balance to my MBNA credit card then starting the DMP? How would MBNA react to this? Also I've not missed any payments to any creditors and I've always paid a little more than minimum on my credit cards, not much only £5 max to round it up. Will they look at this and think if I was that hard up I'd only be paying minimum?

I've been thinking about starting this up for a month now, although I've been putting it off as I've got a really good credit rating but I know if I don't do it now my debt will only increase.

From personal experience, MBNA are one of the best creditors to deal with. They immediately freeze interest and are very supportive. The defaulted our accounts very quickly, once we made it clear that was what we wanted. Barclaycard on the other hand were a nightmare. They continued to charge interest because we were paying just over 1% of the outstanding balance.... and I mean just over.... we were paying pence over the figure that was 1% but that was because that was the figure worked out by Stepchange and they wouldn't let us change it. We had to fight BC to backdate our default date - which we did and we won that argument.... but it was battles all the way with BC and smooth sailing with MBNA.

I would do the balance transfer whilst you can

Also, just immediately prior to starting our DMP I withdrew the maximum cash I could on any credit card we had. I wasn't worrying about interest on cash withdrawals because I was going to fight for interest to be zeroed anyway. I just needed cash in the bank before I started what felt like a worrying journey. If felt worrying at the time, but in all honesty it was so easy and the best thing (financially) we have done.

Good luck with the DMP

fatbelly

It may be relevant for the future that MBNA are one of the best companies to do full & final settlements with; Barclaycard one of the most difficult.

kram

Looks like i'm in for a bumpy ride in the future as I have 2 card debts with Barclaycard.

Do Barclaycard sell them on or do they manage debts in house?