DMP Mutual Support Thread - Part 12

tonyace123

Hi all, I am on a dmp with sc,I've just got a £100 bonus (very rear last one 2 years ago) can I keep it and put towards my emergency found which I don't have one because I went in to panic mode or do I declare to sc thank you

oldboybailey

Hello everyone,


I've been reading the forum loads over the last few days and its got me thinking so hopefully one of you amazing people will be able to offer some advice please.


(Before reading the forums) I contacted Step Change and arranged a DMP a couple of weeks ago. After working out my budget, I had £277 I could pay to creditors broken down as follows:


Creditor/Payment/Balance


Barclaycard £81 £7892


Halifax CC £52.66 £5107


Hitachi Capital Loan £10.60 £816


MBNA CC £15.05 £1458


Natwest CC £23.60 £2274


Tesco CC £94.04 £9156


Total £277 £26703


My concern is that as the payments are just above 1% of the total debt, are they likely to be difficult in freezing interest and charges etc? And subsequently will it be difficult getting the accounts defaulted asap?


After reading the forums over the last couple of days, I am tempted to go self managed. My DMP is set up with Step Change and they have written to my creditors already however the first payment doesn't go out until 1st December. I feel confident in writing letters and contacting creditors etc.


I've only left myself 1 months salary to build an emergency fund as I didn't read the forum properly before signing up either.


If I was to cancel my Step Change DMP before any payments are made, then write to my creditors myself offering token payments for a few months in order to build up an emergency fund, and then set up my own DMP with them are they likely to accept this considering they've JUST had a letter saying I can afford to pay £277? Is it likely they would speed up court action or anything under these circumstances?


The other thing on the horizon is that my wife has been informed part of her job will likely be made redundant and she is likely to reduce to 50% hours in April. She currently contributes £310 to the household bills/rent etc (all of the bills and rent etc for our house come out of my bank account), most of which is what I put towards the DMP each month. If her job changes she won't be able to afford to give me more than about £50.


Once it is confirmed with her work, she is going to start looking for another full time post but if we do end up in a situation where she is part time for a while, is my best option to contact creditors again and offer token payments until she finds another full time post?


Thanks in advance for any help or suggestions




edit: Also, if I did go self managed and for whatever reason it went wrong, do you think Step Change would have me back?


edit again: Sorry one last question, if my wife's income did fall, how would I evidence that to the creditors? Would a payslip with her new salary on be ok? Or should I still just supply my own I+E that highlights a reduction in my contribution from her towards bills etc?

Max_and_sasha

Hi Tonyace

If I were you i would put it straight into an emergency fund and I would also STOP payments to sc until you have built up an emergency fund maybe 3 to 6 months depending on how much you give them each month,

It is very important to have an emergency fund just in case the car or the washing machine etc breaks done, have you thought about going self managed you will get great advice and support for us on here!

Good luck

Max

Desperately_seeking_susan

Hi, I’ve also been reading this thread as I’m sick of robbing Peter to pay Paul and living on ever increasing debt!
I’ve bitten the bullet and cancelled some- scared to do Halifax ones!! - direct debits. I’ve opened a basic Santander account too. My wages were paid into my Halifax account today and most of my DD’s come out tomorrow with it being 1st of month. I’ve just spoken to SC who have advised me to move my wages over to new account and they estimate my DMP with them to start approx 10 December. I’m going to write to my creditors tonight and post recorded delivery tomorrow. I’ve got no emergency fund and won’t be able to save much this month as most of my debt will have this month paid - know I should have started this earlier this month but I’ve been plucking up courage! I was hoping to be able to hold off on DMP until after Christmas, make my last 2 car payments and save emergency money. Would this be possible? I’d really welcome advice please as am very nervous about the whole thing. Any CCJ would result in a loss of employment. Thanks

Suseka97

Sadsecret wrote: »

....So I have decided to take action and have worked out a budget with StepChange, Ive got a new bank account and changed my priority payment direct debits over. Now I have written to each of my creditors asking to freeze interest and letters are ready to go tomorrow. So far so good. Terrified of what I may unleash. But what now? All their direct debits were supposed to be coming out on 5th of month, my plan is to save all this as my emergency fund (about £950) and then start my DMP from next month. Do you agree or should I make token payments? If so how much? Any advice and support massively appreciated.

Hello and welcome and it sounds as if you have everything in hand. Do try not to fret about what comes next, you will get letters and they will use words like 'default' (all of us in DMP land like that word very much ) Its sensible to save up some money as an emergency fund and if it were me I'd do that for more than one month. Get 2 or 3 months at least under your belt. Its up to you whether to make token payments or not. Some do and some don't. If it'll help ease you mind a little, then yes - send tokens as a gesture. A lot of folk just send £1 -others up to £10. Its your call. Good luck.

tonyace123 wrote: »

Hi all, I am on a dmp with sc,I've just got a £100 bonus (very rear last one 2 years ago) can I keep it and put towards my emergency found which I don't have one because I went in to panic mode or do I declare to sc thank you

Keep your bonus - you've worked for it and there's no need to hand it over to SC or your creditors

Suseka97

Hi oldboybailey :hello:

I just jumped on the forum for a quick catch up during my lunch break which is almost at an end, so don't have time for a more indepth reply, but didn't want to just cut and run. Will pop back on later and comment/add to any other responses you may have had in the meantime.

fatbelly

Desperately_seeking_susan wrote: »

Hi, I’ve also been reading this thread as I’m sick of robbing Peter to pay Paul and living on ever increasing debt!
I’ve bitten the bullet and cancelled some- scared to do Halifax ones!! - direct debits. I’ve opened a basic Santander account too. My wages were paid into my Halifax account today and most of my DD’s come out tomorrow with it being 1st of month. I’ve just spoken to SC who have advised me to move my wages over to new account and they estimate my DMP with them to start approx 10 December. I’m going to write to my creditors tonight and post recorded delivery tomorrow. I’ve got no emergency fund and won’t be able to save much this month as most of my debt will have this month paid - know I should have started this earlier this month but I’ve been plucking up courage! I was hoping to be able to hold off on DMP until after Christmas, make my last 2 car payments and save emergency money. Would this be possible? I’d really welcome advice please as am very nervous about the whole thing. Any CCJ would result in a loss of employment. Thanks

Well that sounds good - except that you have no 'buffer' against unforseen expenses - in the month before Christmas!

This is your debt management and your plan - not anyone else's. If you are 2 months away from completing on an HP agreement for your car, it would be stupid to defalt at this stage. Finish that, pay the non-priority creditors nothing for now, and start your dmp in the new year.

Halifax have the right of set-off on their debts so if you have credit cards or loans those will get paid, from an overdrawn account if need be. That's why you have to get away from Halifax and get everything essential (income and priority spends) to Santander as soon as possible.

SpagBol

Hi everyone,

We sent our NEDCAB letters on 15/10 and most of DH's creditors have written back to acccept the offer but none of mine! I've just spoken to Sainsburys and Santander who have both got me on breathing space of 30 days but haven't received the letter.

The only problem is most of the acceptance letters have no clue as to how to pay, they all refer to our existing direct debits or collections companies contacting us in future but am I right in thinking we need to ask for details for a standing order so we can do it from our new account?

Happy Hallowe'en everyone!

Desperately_seeking_susan

Thank you Fatbelly. I’m planning on paying my car off without defaulting. I’ve also got an overdraft with Halifax so once I transfer money to Santander there’ll be nothing left for them to take. SC have said the creditors will only give me 30 days grace to sort out my arrangement with them and this is why I’m worried about any court actions. I really, as you’ve suggested, want to start my DMP in the new year. That gives me a little bit of wiggle room this month and all of December to get some emergency money together.
SC have given me a reference number to quote to my creditors so I was planning on sending letters in tomorrow’s post. Would creditors be so quick as to institute court recovery within 3 months, especially when I’ve indicated that I’m looking to a DMP? Do you think that Halifax would return this month’s payments to me or am I better off just emptying my bank account tonight and paying household bills by telephone this month?
I’ve never defaulted on anything before so haven’t got the first idea of how to handle this for the best!

Thanks

fatbelly

Desperately_seeking_susan wrote: »

Would creditors be so quick as to institute court recovery within 3 months, especially when I’ve indicated that I’m looking to a DMP? Do you think that Halifax would return this month’s payments to me or am I better off just emptying my bank account tonight and paying household bills by telephone this month?Thanks

No. They don't even issue a default notice until 3-6 months after the payments stop.

Most debts never see court action. Of those that do, a good proportion happen just before the 6-year period expires, with court action taken by one of the debt buying firms who have bought the debt for a discount and are trying to protect their investment.

As for the Halifax account, empty it of as much as you can, as soon as you can. I'm not sure you understood what I meant by the right of set-off. Read this if not sure.

https://www.moneysavingexpert.com/banking/setting-off