DMP Mutual Support Thread - Part 12

System

usedtobeblue wrote: »

Hi, Ive commented a couple of times previously but ive still go a few questions.
I have new account up and running, all unsecured direct debits cancelled, I've also written to all by creditors advising them that i am going into a dmp with Step Change, but i did all this before realising i needed an EF.
I rang SC asking for a delayed start and they advised i should start asap, but i really want my accounts to default as my dmp will last approx 8 years!
My main question is should i just not send the paperwork back to SC and start again in july time (ive quoted the SC ref on my letters to creditors) or should i return the paperwork to SC and ask them not to start until July? Or do i wait until i have been defaulted by all 8 creditors?
Im so confused, on 1 hand i want to start it and get it out of the way but i dont want to rush into starting and regret it later.
All advice welcomed??

Once we had started our DMP it was a lot easier to get defaults, although we did have to beg a bit to B/Card but we got there in the end.

NewbieNat

I've contacted SC, sending in my paperwork tomorrow. They will write to my creditors proposing 4 months of token payments. I was going to contact the creditors myself, but was getting myself in a right pickle with worry! At least when the contact starts I can refer then to SC. I was worried about Very but my BNPL was only £35.00, so that's paid off. I keep in my mind (I think it was Sourcrates) who said the creditors are just men/women in suits- I bear that in mind when I imagine them to be huge scary monsters! There will be hiccups along the way, but hiccups are uncomfortable, not life threatening and soon get better :-)

Sazzie23

daisy_jean wrote: »

Hi all, beginning my journey this week to hopefully debt freedom! I!!!8217;ve set up a diary in that area of the forums, I!!!8217;m a rather scared individual right now but hoping this will ease off over the next few weeks.

Not looking forward to when the letters start rolling in though!

EmergencyNurse wrote: »

Hi NewbieNat, I haven't contacted a single creditor. I asked SC if I should because I kept reading that others were. They said they'd do it all and they have. Can't SC sort this for you? Worth an ask.

NewbieNat wrote: »

I'm on my way to starting my SC DMP. I have a new basic account which is up and running. I have contacted my creditors and have 2 weeks left of the 30 day hold. I will send them my SC I & E forms. However I can't start it for 6 months for EF. I just am really worried the creditors will not accept this. I have car bills to budget for. What are they able to do if they refuse my offer of token payments for the 6 month period? One CC creditor, although being told I am speaking to SC to start my DMP, has sent me their own I & E form. I was feeling fairly calm about it all, but now am all of a panic! Barclaycard have already said they will default if I don't arrange a payment plan. A good thing, but seems to go against all I have read about them on here.

Hi I noticed a few newbies on the site and stopped by to say hello and don't worry, if you found your way here, things will soon get better. Nearly everyone says they wished they'd done a DMP sooner rather than later, though I don't mean to imply you have to rush into it. Rather stop paying your non priority debts now, take a few weeks or months to take advice and figure out what you are going to do and with who and then start your plan.

I never contacted a creditor at the beginning btw as I was terrified and could only manage to cry down the phone when I tried to talk to anyone, and the nicer they were the more I cried :o

Life changes, budgets get reworked payments go up and down :Tand life keeps going, and you will get through this learning along the way.

Keep asking questions, and good luck. :T

Saz

usedtobeblue

Thanks to everyone who replied, i think i'll send my paper work through to SC and ask them to start 01 May. I assume i can write to my creditors after a few months and ask them to default me if they havent already? I understand they maybe wont but fingers crossed. Just wondering if any of my creditors are notorious for not giving default, ive tried to research without much success:
First direct - loan and overdraft
Barclaycard - CC
Tesco - CC
Virgin - CC
MBNA - CC
Next - Store card

Once again, thanks in advance.

Just_Afloat

Hi usedtobeblue, I owed around 15k to MBNA credit card when starting my DMP in August/September 2016, they froze interest and quickly defaulted me, selling on to PRA despite receiving £260 a month through stepchange, which was more than I expected... I owed aprox £6K to Barclaycard, they received about £96 a month and added a low amount of interest, around 2% a month if I'm remembering correctly, and then after around a year they defaulted me so all interest stopped and it was passed to Link. Cant help with info on the other cards you had, sorry.
My DMP still going well, apart from my £180 a moth to a 5.5k Halifax CC is now being affected because they are charging interest of £100 a month again as I am paying more than the minimum due...

[Deleted User]

usedtobeblue wrote: »

Thanks to everyone who replied, i think i'll send my paper work through to SC and ask them to start 01 May. I assume i can write to my creditors after a few months and ask them to default me if they havent already? I understand they maybe wont but fingers crossed. Just wondering if any of my creditors are notorious for not giving default, ive tried to research without much success:
First direct - loan and overdraft
Barclaycard - CC
Tesco - CC
Virgin - CC
MBNA - CC
Next - Store card

Once again, thanks in advance.

MBNA and Tesco both defaulted me within 6 months of starting my DMP with Stepchange:j. Prior to the DMP I'd never missed a payment, although I was only managing the minimum. They were getting more money per month via SC than they had done from me directly but it must have been the mention of a DMP that made them default.


Every creditor froze interest from the start date of the DMP though, even though the defaults hadn't happened yet:j

I've no experience of the others you mentioned. My bugbear was/is Lloyds and I'm glad to see you haven't them on your list:j

jubilee14

Hi there welcome to newbies. I too was panicky about not paying/calls etc. HBOS took a year to default on loan and a further year to default on cc. OD was paid off in 2016 and just then the passed to DCA who defaulted as it had one month to go but shows as settled on my historical info.
BC initially charged lower interest and about 2 years ago brought full interest back in which i queried. they said they couldnt do anything because i was paying over the minimum. but then didnt charge interest so am hopeful of no change until this account is paid off in November. HBOS applying full interest on loan and CC for first 12/24 months took a long time for the bottom line to drop but eventually when that happened the figures get smaller quickly every month. Its by far the best think i did as not only will i not be heading to retirement ( still a couple of decades away) with a noose of debt but i've learned some important life skills on what i need/want to pay for. Good luck all. x

EmergencyNurse

Things are running smoothly so far with Barclays, basically they're unable to accept proposed level of payment from SC so will shortly issue a default notice and the account will be taken over by the recoveries team. All they want me to do now is to make the proposed payments to the recoveries team instead.

They have also stopping all charges on my overdraft next month. Hopefully Santander will play ball too.

Together72

Hi,

This is my first time on here. I hope I’m in the correct place?

I’m so scared. I’ve got all my figures together and making the first steps with dealing with my debts.

I’ve spoken to most of the cc and store card companies who have given me a 30 day hold period as advised by the CAB.

None of my accounts are in arrears and up to date
But there’s just not enough money and the end of the month after paying them all.

Any further advice would be greatly appreciated at this time.

Many thanks.

motivated

Together72 wrote: »

Hi,

This is my first time on here. I hope I!!!8217;m in the correct place?

I!!!8217;m so scared. I!!!8217;ve got all my figures together and making the first steps with dealing with my debts.

I!!!8217;ve spoken to most of the cc and store card companies who have given me a 30 day hold period as advised by the CAB.

None of my accounts are in arrears and up to date
But there!!!8217;s just not enough money and the end of the month after paying them all.

Any further advice would be greatly appreciated at this time.

Many thanks.

Hi together

First of all welcome and don't panic

You have already done the hard part by letting your creditors know your situation.

Many on here including me were also up to date with payments etc. Finally took the plunge and have never looked back.

I would advise getting yourself an emergency Fund together as credit will be unavailable to you once accounts default etc. Which I might add is a good thing and not as scary as it sounds.

The 30 day hold period will give you time to decide on your next step. Be it DMP self managed. Using the NEDCAB site will guide you through easy steps. Or through a free company such as Stepchange.

Nothing scary at all has happened to me. To be honest it's all been positive. I know it's scary but within a short space of time you will be thinking phew what a relief.
Good luck and post any questions. The members on here are all fantastic and very supportive. Take it from someone who knows and has been exactly where you are now.
M