DMP Mutual Support Thread - Part 12

KID77

Thanks Jan, it does seem crazy making payments for £1 but I had wondered if it was better to show willing. I will write to all of them tonight and call Stepchange to cancel. It's been such a simple process with SC that this feels a bit nerve racking.

System

Thanks for the advice I only sent my last ones with proof of postage but thought I better send my CCA ones recorded, will see what happens over the next few days, I’m on 6 months of token payments so I’ve got time to re send if necessary there’s no rush

sokster

Hi folks, I could really do with some advice. After years of robbing Peter to pay Paul I'm now at the stage where I can't afford my minimum payments. After informing the card companies of my financial difficulties, they stopped interest for 28 days to give me some time to get organised. One of the creditors has now sent a letter asking that I supply a financial statement within the next seven days , at which point they will "recommence standard collections activity" if they haven't received it. If I send it and they see I have £x amount to pay towards my debts, will they expect payments to start immediately, or should I ignore it? To be honest, I need a few months paying nothing / £1 to get an emergency fund built up. Sorry for rambling and thanks to all those who contribute to this forum

Suseka97

KID77 wrote: »

Thanks Jan, it does seem crazy making payments for £1 but I had wondered if it was better to show willing. I will write to all of them tonight and call Stepchange to cancel. It's been such a simple process with SC that this feels a bit nerve racking.

Don't worry - lots of us here to help

I went self-managed towards the latter part of last year, sent off CCA requests at the same time I informed DCAs I was doing so and haven't paid a penny since (not even tokens). When you CCA the creditor they are not able to continue recovery processes so tend to put the account on hold while they go about the business of compiling the requisite documentation. So in this instance - token payments are not really necessary.

In terms of token payments in general, it seems some do for peace of mind (as you say to 'show willing') but as it appears from many DMPers experience reported on this thread -the creditors and DCAs don't appear to be that fussed about it.

January2015

sokster wrote: »

Hi folks, I could really do with some advice. After years of robbing Peter to pay Paul I'm now at the stage where I can't afford my minimum payments. After informing the card companies of my financial difficulties, they stopped interest for 28 days to give me some time to get organised. One of the creditors has now sent a letter asking that I supply a financial statement within the next seven days , at which point they will "recommence standard collections activity" if they haven't received it. If I send it and they see I have £x amount to pay towards my debts, will they expect payments to start immediately, or should I ignore it? To be honest, I need a few months paying nothing / £1 to get an emergency fund built up. Sorry for rambling and thanks to all those who contribute to this forum

Assuming you are self managing your DMP, visit the NEDCAB DMP website and create your financial statement (income and expenditure, aka I&E). The NEDCAB site will help you with what is allowable amounts in each category - make sure you put the maximum allowable in each category - including pets / smoking / travel.... whatever. It will soon evidence you cannot afford to pay them very much, if at all.

sokster

January2015 wrote: »

Assuming you are self managing your DMP, visit the NEDCAB DMP website and create your financial statement (income and expenditure, aka I&E). The NEDCAB site will help you with what is allowable amounts in each category - make sure you put the maximum allowable in each category - including pets / smoking / travel.... whatever. It will soon evidence you cannot afford to pay them very much, if at all.

Thanks January, I've the I&E now done. If I send that to them will I still be able to make token payments for a few months even if the I&E shows I could afford to pay more?

January2015

sokster wrote: »

Thanks January, I've the I&E now done. If I send that to them will I still be able to make token payments for a few months even if the I&E shows I could afford to pay more?

NEDCAB generates letters for you to send to your creditors. Just adapt it to state that you will be paying £1 per month from xx/xx/2018 to whatever date you feel comfortable with, and after that you will commence payments of £xx.xx (and put whatever the financial schedule shows for each creditor.

Don't ask if you can make token payments - tell them this is what you are doing. Don't feel you have to justify why you are making token payments. You are keeping them informed, you are committing to clear your debts, you are sharing your I&E with them. That's enough

Edit: I would go for token payments for a minimum of 6 months but not everyone is comfortable with that. If you don't feel comfortable please don't go for any less than 3 months as you do need to build an emergency fund and this is your best opportunity.

Afreshstart

Sokster.Always excellent advice from the regulars.I would add my experience so far as I basically followed January2015's advice & others.Reading their posts gave me the confidence to do this.I have a mixture of loans,overdraft & credit card debt.Tesco (loan) challenged my financial statement & offer of £5/month for 3 months before making the stated payment.I sent a letter explaining why I needed 3 months which they accepted.AQUA(Newday) have never frozen interest & seem to have just ignored my plight.Nationwide are threatening to send people to my house.Halifax,HSBC,Barclaycard,Virgin money are all being very reasonable.I first wrote to all in October & have made one token payment to all so far with April being when I start paying proper,You will get some calls & lots of letters.Hope this helps.The NEDCAB site is great to get you going.Please remember everybody has different circumstances & generally this process follows the same path but what happens to me or anyone else might not happen with you.Good luck & you'll sleep better once those letters have gone out.

[Deleted User]

sokster wrote: »

Thanks January, I've the I&E now done. If I send that to them will I still be able to make token payments for a few months even if the I&E shows I could afford to pay more?

As January advised (quoted below) did you put the maximum allowable in each category? They are not going to ask for receipts, bank statements etc so you can be as creative as you like in your I&E;). I know it isn't honest claiming, for example, £x for pets you don't have or cigarettes you don't smoke and it goes against the grain with many of us (myself included:o)to have to massage the figures. The only way they will accept a miniscule payment from you is by you showing them that that's all you have left after 'essentials' are paid for.

January2015 wrote: »

Assuming you are self managing your DMP, visit the NEDCAB DMP website and create your financial statement (income and expenditure, aka I&E). The NEDCAB site will help you with what is allowable amounts in each category - make sure you put the maximum allowable in each category - including pets / smoking / travel.... whatever. It will soon evidence you cannot afford to pay them very much, if at all.

Good Luck:beer:

System

Just doing my I&E on NEDCAB with view to going SM at last. Just a couple of questions to those of you that have already done it. Notice the bit marked Telephone is max £49. Our Virgin Media is £45 (Phone, TV and internet), then our mobiles are £20 (10 each). Would you just put the mobiles in the Phone section and them put internet etc as "Others"?
Also OH pays £21 a month for swimming, is it ok to put that as "Others", or will they see that as frivolous? Same as my hair, which costs approx. £40 a month. They are listed on SC I&E but wasn't sure how much of a necessity they are seen as.....or shall I just add more to the Housekeeping section and not mention them separately?
Think maybe I am over thinking all this now....LOL