DMP Mutual Support Thread - Part 12

January2015

hign10pines wrote: »

So NCO/Very got back to me to say that shop direct don't default unless the person hasn't paid off the areas in 12 months.



Ah well looks like it's £1 a month from now on then or should I just not pay them anything. Annoying that when I finally get a default it will be mush later than the rest

When they finally default the account you can write and challenge the date and ask for it to be backdated. You can clearly identify the relationship broke down far earlier than the default date.

I've used this argument and successfully had two defaults backdated by over 18 months to the start of my DMP journey. I know others who have also tried and not been successful - but it's worth a go :beer:

Foxforcefive

Thank you January. You've confirmed what I was thinking.

I'm definitely going to change to a basic bank account and start paying the DDs from there.
I will also start paying back my overdraft.
Some of the DMP figures from SC actually were paying more than we are already so as long as check that we have enough left over for life in general then we could possibly do it alone.
I'm going to have to confiscate DHs Credit cards and listen to his "we neeeeeed them for emergencies!!!" Drivel unfortunately....

At least we know that if things are beyond us then we can get back in touch with stepchange. We didn't even know they existed until last week!

Thank you for your kind help. x

Chedders

carbootcrazy wrote: »

Welcome to the thread and please keep posting with any other queries/worries you may have.

I fully understand your anxiety about going down the DMP route. I felt exactly the same largely because of the credit rating issue. It had got to the stage though where something had to give, my repayments were totally beyond me.

I can honestly say a DMP was the best thing I could have done but I realise it isn't the solution for everyone. Have a long think before you commit as once you start all your debts will be marked as DMP on your credit files and you will probably be defaulted at some stage. If you read the thread in detail you'll see that defaults are no bad thing, I wish I'd realised that at the outset, it would have prevented lots of sleepless nights and robbing Peter to pay Paul, existing rather than living.


From what you tell us it seems clear that your current situation is unsustainable and you are working every hour possible just to service your debts and essential outgoings. That's no life. I've been there and done that myself:o


As for what you say about £20,000 not being much it's all relative. How long would it take you to pay it off if you carry on as you are doing now? You would probably get further and further in debt as paying minimum payments doesn't make any inroads and the interest keeps mounting up. One of the pluses of being on a DMP and being defaulted is that lenders usually (but not always) freeze interest:j. I haven't paid a penny in extra interest for about 5 years now and the balance is decreasing quickly:beer:


You say that you'll still be paying creditors what you are paying now but this shouldn't be the case. When you fill out the SC I&E form you should claim in most/all catagories so that it looks as if you have the least possible disposable income with which to furnish your debts. SC will ask for proof of your earnings etc but I don't recall them asking for bank statements and they certainly won't ask for receipts etc. I know it's being rather creative with your figures but I'm afraid most of us have had to resort to it:o


There's also the subject of building an emergency fund before starting your DMP as once you start you will have no usable credit cards:eek:. This has been covered lots of times on here so if you haven't done so already I recommend you sit down and read as much of the earlier posts as you can.

You must also ensure that your debt doesn't impinge on your boyfriend's credit worthiness if you are hoping to obtain a mortgage together. As I understand it, getting a mortgage for the first time would be impossible with a very bad credit rating. Someone else will hopefully be along later to advise you on that.

In the meantime, have a good think about your options both now and in the future. Good luck:beer:

Thank you so much for your response. I will sit and have a long think about this and go back through the older posts for more information.


I do have one LAST card up my sleeve. I applied for a 12K Tesco loan to pay off my current £12K loan with a smaller interest rate over a longer period and it has been 'accepted in principle.' I will be paying less per month so I can concentrate on paying off the other debts. I also have a few changes in outgoings coming up (end of phone contract, end of TV/Broadband contract, and a tax change so extra £120 in salary). So with all that in mind and if I really work hard and stick at it, I could potentially have the credit cards/store cards paid off this year whilst putting away £50 a month for emergencies, just leaving the loan for the next 5 years. (I could even potentially quit the second job at the end of this year all the while protecting my credit rating...That's something to keep me motivated!)


So all my fingers and toes are crossed that this loan does come through .... If not, this DMP might be the only option I have left.


As for finances with my partner, I wouldn't let him be financially associated with me in any way possible until I am out of this mess, no worry there.

sourcrates

Chedders wrote: »

I do have one LAST card up my sleeve. I applied for a 12K Tesco loan to pay off my current £12K loan with a smaller interest rate over a longer period and it has been 'accepted in principle.' .

Uugh.......bad idea.......really !!

Most on this forum have been down the consolidation route once, some twice or more, it very rarely works out well.

Unless you close down the consolidated lines of credit, and don't take out any more, you will be back here in 12 months, with twice the debt and looking at possible Bankruptcy.

Unfortunately we see it on here all the time.

I would strongly advice you not to consolidate.

System

Chedders wrote: »

Thank you so much for your response. I will sit and have a long think about this and go back through the older posts for more information.


I do have one LAST card up my sleeve. I applied for a 12K Tesco loan to pay off my current £12K loan with a smaller interest rate over a longer period and it has been 'accepted in principle.' I will be paying less per month so I can concentrate on paying off the other debts. I also have a few changes in outgoings coming up (end of phone contract, end of TV/Broadband contract, and a tax change so extra £120 in salary). So with all that in mind and if I really work hard and stick at it, I could potentially have the credit cards/store cards paid off this year whilst putting away £50 a month for emergencies, just leaving the loan for the next 5 years. (I could even potentially quit the second job at the end of this year all the while protecting my credit rating...That's something to keep me motivated!)


So all my fingers and toes are crossed that this loan does come through .... If not, this DMP might be the only option I have left.


As for finances with my partner, I wouldn't let him be financially associated with me in any way possible until I am out of this mess, no worry there.

Have to agree with Sourcrates re the consolidation loan idea.....we tried it several times and as you can see by our debt amount....it doesn't work. We tried loans to pay off CCd's and then loans to pay off OD's and it went on and on. Best thing I ever did was discovering this forum and learning all about a DMP. Was gutted we had to do it to start with as I felt like a failure but actually we are so much happier. No more nasty letters, no sleepless nights and the satisfaction of knowing the debts will be cleared eventually. Actually celebrated getting defaults as I know that is now a good thing. I really would think twice before taking out another loan.

January2015

Chedders wrote: »

I do have one LAST card up my sleeve. I applied for a 12K Tesco loan to pay off my current £12K loan with a smaller interest rate over a longer period and it has been 'accepted in principle.' I will be paying less per month so I can concentrate on paying off the other debts.

That's not a card up your sleeve that desperation

Seriously, read back your own post and see how desperate you sound

Chedders wrote: »

So all my fingers and toes are crossed that this loan does come through .... If not, this DMP might be the only option I have left.

Many of us have been there - desperately wanting that loan to be approve so we can move debts from other loans and cards to a new one. It makes us feel we are in control of our money. That feeling doesn't last long. You are shuffling the debts. You admit it will take longer to clear.

Consolidation - which is what you are doing - rarely works. The multiple people on this forum on DMPs will testify they've done this once, twice and sometimes more and ended up worse than if they had just dealt with the debt problem at the point they realised they couldn't keep going with existing commitments. Taking on a new commitment, albeit slightly less for longer, is not going to be the answer.

I can see Sourcrates and Ploppy have already pointed out it's not a good idea. Seriously - this is not a card up your sleeve - it's a dead weight around your neck :eek:

humblebee86

Hi all,

I've been lurking for a few weeks reading all of your posts. You all seem so supportive and knowledgeable, I instantly felt better anf informed after finding this thread anf spending a few hours reading through it!

Here's my story. I've always been terrible with money, my entire adult life infact! (32 next week 😣) I had our 4th child in September last year and put loads of "stuff" on credit cards and very.co.uk... long story short I'm in 10 years worth of debt- 2 overdrafts, 3 credit cards, 3 catalogues amounting to around 10k. Before findimg this thread i contacted stepchange after stumbling onto them when googling "mum in 10k debt" and finding a blog with an inspirational story, just like most of you on here!

I was advised to go into a DMP and discussed this with my husband. We currently rent so as with most people going eyes open into default city was a scary thought but so was drowning in more and more debt so I took the plunge. This was 3 weeks ago and today I've started to receive default notices from my creditors.

I have a few questions. Vanquis and Next have both agreed to my repayments, does this mean they are unlikely to default and/or pass on to a DC?

I am yet to hear back frkm.my 2 largest debts JD williams and Very. Am I right in thinking that getting a default from very might be a challenge?

Do I need to contact stepchange and tell them that I hsve received defaults or just file them and get on with my day??

Thanks guys 😊😊

System

Hello, so last Wednesday I sent my CCA requests off to Barclaycard, NEXT and MBNA. I heard back from NEXT today saying they no longer accept postal orders so returned it and said sorry but no mention of my CCA? What’s the next step? Do I re ask again?

sourcrates

Anniee88 wrote: »

Hello, so last Wednesday I sent my CCA requests off to Barclaycard, NEXT and MBNA. I heard back from NEXT today saying they no longer accept postal orders so returned it and said sorry but no mention of my CCA? What’s the next step? Do I re ask again?

Never heard of that before, its a legal form of payment with the Queens head on it, i suspect they are just been awkward.

Write back asking for evidence of the debt in the form of a credit agreement, keep the £1, more than one way to skin a cat.

sourcrates

humblebee86 wrote: »

I have a few questions. Vanquis and Next have both agreed to my repayments, does this mean they are unlikely to default and/or pass on to a DC?

I am yet to hear back from.my 2 largest debts JD Williams and Very. Am I right in thinking that getting a default from very might be a challenge?

Do I need to contact step-change and tell them that I have received defaults or just file them and get on with my day??

Thanks guys 😊😊

(1) Good question, cant answer it though, they may do either, one or the other, or both, its anyone's guess.

(2) Usually only after 12 months of non payment.

(3) No, its normal practice, and just another part of the jigsaw.