DMP Mutual Support Thread - Part 12

BeingDebtFreeStartsHere

January2015 wrote: »

How much will you be paying in rent if you sell?

Thing is, you may have 18 years to go on your mortgage, but it will be paid off as you are on a repayment mortgage - and providing you do not access any of the money available through the ONE account. In 18 years you will make a last, wonderful, mortgage payment. If you move to renting, you will still be renting in 18 years, and beyond.

Regarding negative equity - in 18 years, I suspect you will not be in negative equity, but even you are, as long as you can afford your mortgage payments and you are not intending to move, negative equity is just a phrase. It only becomes an issue when folks struggle to make mortgage repayments and are forced to sell.

If it were me, I would sit tight and stay on the mortgage merry-go-round rather than helter skelter that is renting

Thanks everyone for the replies

It just feels as though we are paying such a huge amount every month. The interest is approx £550 per month and we need to pay an additional £350 - £400 to decrease the balance to clear the mortgage by the end of the term :eek:

Not sure we can sustain £950 per month for the next 18 years!! We could rent a property and save about £300 per month.

I totally get where you are coming from with regards to hopefully paying off the mortgage in 18 years and owning our property.

Thinking of going self managed and reducing creditor payments to try and pay a bit more off the mortgage each month as another option??

BDFSH x

January2015

BeingDebtFreeStartsHere wrote: »

Thanks everyone for the replies

It just feels as though we are paying such a huge amount every month. The interest is approx £550 per month and we need to pay an additional £350 - £400 to decrease the balance to clear the mortgage by the end of the term :eek:

Not sure we can sustain £950 per month for the next 18 years!! We could rent a property and save about £300 per month.

I totally get where you are coming from with regards to hopefully paying off the mortgage in 18 years and owning our property.

Thinking of going self managed and reducing creditor payments to try and pay a bit more off the mortgage each month as another option??

BDFSH x

So for your DMP have you listed your monthly priority mortgage payment as £950 ? (e.g. interest + the repayment part) ? If you have, I don't understand your concern whilst on your DMP - although I may be completely misunderstanding you (sorry if I am )

BeingDebtFreeStartsHere

January2015 wrote: »

So for your DMP have you listed your monthly priority mortgage payment as £950 ? (e.g. interest + the repayment part) ? If you have, I don't understand your concern whilst on your DMP - although I may be completely misunderstanding you (sorry if I am )

We put £900 on the last review I think so I will up it when our review is due in August. Have been thinking about self managed for a while though and really tempted to get this rolling. We also had a letter from Nationwide last year saying that our loan debt was unenforceable but are still paying it as part of the DMP. If we went self managed I would be tempted to knock this payment right down to save additional money.

Every now and again I get a little anxious about the future and just feel we will never have any money!!

BDFSH x

sourcrates

You can start saving money by not paying an unenforceable debt, been debt free starts here.

January2015

BeingDebtFreeStartsHere wrote: »

We put £900 on the last review I think so I will up it when our review is due in August. Have been thinking about self managed for a while though and really tempted to get this rolling. We also had a letter from Nationwide last year saying that our loan debt was unenforceable but are still paying it as part of the DMP. If we went self managed I would be tempted to knock this payment right down to save additional money.

Every now and again I get a little anxious about the future and just feel we will never have any money!!

BDFSH x

Stop paying Nationwide now - if that means going self managed then do that. If they can't enforce it, don't pay it and throw more money at your mortgage or your enforceable debts.

I can understand you are sometimes anxious about the future, but you have to take control of your debt management and put your money where it matters.... priority debts and enforceable debts only. You will get so much support from this thread. :beer:

sourcrates

Just off topic, but worth a mention, Sarah cox has a def leopard spesh tonight on the red button @1030 pm.

Bit of 80s rock for ya, if anything can detract from money worries, its a good rock,out to def lep !!

Akelly

I'm on a DMP. Just started and will make a payment this month my first payment. My question is...


Has anyone dealt with drafty?! Obviously haven't paid this month. I've emailed wrote and rang to explain my situation. I have currently 26 emails 15 text messages and 7 missed called in 48 hours.


I want them to leave me alone!! Seriously considering changing my number.

leanne12345

Just a quick note from me regarding Very/Shop Direct. They haven't defaulted me despite paying £1 token payments for over a year now so I sent a written complaint to them. Just heard back and they say they haven't done anything wrong by not defaulting me because I hadn't broken the terms and conditions of the account as they agreed to the token payments.
So my advice to anyone wanting a Very account to default is to stop payments completely.
They do say they will arrange for a default to be applied to my account following my complaint but I won't be holding my breath and certainly won't be making any more payments to the account until it is defaulted.

BeingDebtFreeStartsHere

sourcrates wrote: »

You can start saving money by not paying an unenforceable debt, been debt free starts here.

January2015 wrote: »

Stop paying Nationwide now - if that means going self managed then do that. If they can't enforce it, don't pay it and throw more money at your mortgage or your enforceable debts.

I can understand you are sometimes anxious about the future, but you have to take control of your debt management and put your money where it matters.... priority debts and enforceable debts only. You will get so much support from this thread. :beer:

Thank you so much Am definitely going to stop paying Nationwide. Do I write to them to inform them I will be stopping payments? Any template letters available that would help?

Really appreciate all the honest and helpful advice on this forum

BDFSH x

sourcrates

BeingDebtFreeStartsHere wrote: »

Thank you so much Am definitely going to stop paying Nationwide. Do I write to them to inform them I will be stopping payments? Any template letters available that would help?

Really appreciate all the honest and helpful advice on this forum

BDFSH x

This is what the law says on it :

Sec 77/79 CCA 1974

Duty to give information to debtor under fixed-sum credit agreement.

(1)The creditor under a regulated agreement for fixed-sum credit, within the prescribed period after receiving a request in writing to that effect from the debtor and payment of a fee of £1, shall give the debtor a copy of the executed agreement (if any) and of any other document referred to in it, together with a statement signed by or on behalf of the creditor showing, according to the information to which it is practicable for him to refer.

(a) the total sum paid under the agreement by the debtor;

(b) the total sum which has become payable under the agreement by the debtor but remains unpaid, and the various amounts comprised in that total sum, with the date when each became due; and

(c) the total sum which is to become payable under the agreement by the debtor, and the various amounts comprised in that total sum, with the date, or mode of determining the date, when each becomes due.

Section 4 is the important part :

(4)If the creditor under an agreement fails to comply with subsection (1)

(a) he is not entitled, while the default continues, to enforce the agreement.

A simple letter stating that the creditor has failed to comply with the relevant section of the CCA 1974, and as such they are not entitled to enforce there agreement, therefore you will not be making any further payments to this account.

Keep it short, and sweet.