DMP Mutual Support Thread - Part 12

NewbieNat

Suseka97 wrote: »

Any account you open, credit, bank account or other will show up on your credit file, yes. Me, I've set up a savings account with my bank and have been putting money aside in it for quite a few months now. No savings account offer much interest these days. My bank account shows up on my credit reports but the savings accounts I have with the same bank does not.

Thanks Suseka. That's the easiest option & quick to set up as they already have all details required. I'll be so glad when my first DMP payment starts next month, I feel I'm in limbo at present:(

sourcrates

Rosie1001 wrote: »

Hi

I've been reading back thru this thread hoping to get some guidance

I've got myself into a bit of bother with loans and credit cards

I did initially contact them ....they all accepted £100 per month and stopped interest for 6 months

This has now come to a end and all charges are back Being applied

I owe

Tesco credit card £4000.
Tesco loan £4000
Lloyds loan. £1500
Lloyds credit card £8000
Next £800

I'm struggling to pay minimum payments every month ...I've not defaulted yet thou

I've just been refused a bank account with first direct ...I only applied as I did read I may need another bank account as I bank with Lloyds currently and I owe them

I am looking at maybe the management plan route to help me get back on track

I've been on step change website and have a reference number but on reading their plan it says sell my car and possibly my home to pay the debt off .... obviously I don't want to do this

Any advice please on where to turn x

Stepchange a good choice, a debt management plan may be the way ahead, you need to speak to an advisor for specific advice.

it’s a basic bank account you need, with a bank with whom you have no debt, they are not advertised so you need to search for one.

Suseka97

Rosie1001 wrote: »

Hi I've been reading back thru this thread hoping to get some guidance......... I've just been refused a bank account with first direct ...I only applied as I did read I may need another bank account as I bank with Lloyds currently and I owe them

I've been on step change website and have a reference number but on reading their plan it says sell my car and possibly my home to pay the debt off .... obviously I don't want to do this Any advice please on where to turn x

Try a Nationwide basic account - many of us here on DMPs have done that and its really easy to set up online. As for your comment re selling your car and possibly your home. Well, as Sourcrates has suggested its probably best to give SC a call but I imagine they suggest that simply as an option not a requirement (which it is not).. We have quite a bit of equity in ours and never entered into a discussion about selling (note, we were with SC for around 4+ years until recently). So call them and get the ball rolling and make it clear you wont be selling your car or your house - remember a DMP is an informal arrangement and SC are simply agents/third parties here.

Also, to add - don't rush into starting the DMP too quickly - give yourself time to build up an emergency fund. Look back on this thread and you'll see this advice being given to new DMPers and ways to handle that.

Rosie1001

I've spoke to my creditors today

Tesco have put my CC account on default and set up a plan for 12 months

Lloyds are also defaulting my CC ...they said it will take two months to close account and I will get letters demanding full payment , and then they will contact me to arrange a how to pay back the balance

I terrified the debt will go to a collection agency or something like that ......

I feel sick with worry

usedtobeblue

Rosie 1001, i am by no means an expert but i have done my research and even if your creditors do sell your debt to debt collection agencies they are nothing to be worried about, in fact if you read through the thread they are actually much easier to deal with than the banks etc.
Hope that has eased your worries slightly x

Suseka97

Rosie1001 wrote: »

I've spoke to my creditors today
Tesco have put my CC account on default and set up a plan for 12 months
Lloyds are also defaulting my CC ...they said it will take two months to close account and I will get letters demanding full payment , and then they will contact me to arrange a how to pay back the balance
I terrified the debt will go to a collection agency or something like that ......
I feel sick with worry

Okay good, that's a step in the right direction

Don't fret about debt collection agents/agencies - Tesco and Lloyds may well sell your debt on at some point (but probably wont if you stick to the payment plan you've agreed to) and if so then you simply continue paying the same amount to the DCA. Getting the accounts defaulted is what matters most, and it appears that's in hand -this usually results in all interest and charges being frozen, so you can focus on clearing the balance.

The default will show on your credit file for 6 years and then disappear, whether you've cleared the balance or not - another good reason to get a default quickly.

So sit back and enjoy your weekend and for now put your debt worries behind you.

NewbieNat

My low start DMP starts 1st May. The inevitable letters are arriving in force, I've never had so much mail. Tesco CC have issued a default already, which I know is a good thing, but it takes a while to sink in after having a squeaky clean credit file. Some of the creditors letters are quite ambiguous,but they have obviously heard from SC. So this is the start of admitting that I am in debt crisis, but doing something about it. It's a long road ahead but already feel a tiny bit of relief. If it wasn't for this forum I'd be hiding under my duvet listening to Adele (not related, but as talented as she is, her songs always make me sob!!) x

BeingDebtFreeStartsHere

Got a call from the Co-operative today regarding our complaint. They have apologised and said that they are in the process of transferring the debt to Link Financial (to be completed by the end of May) and apparently their protocol is to issue a final demand letter prior to this transfer of debt. However they apologised as their letter did not make this clear and they said that we should not have received the default letters either following on from the complaint last year when they wrote to say they would not record a default on the account in the future,
The lady said they have put a cheque for £60 in the post as compensation

A have a few questions followng this......
1. Are Link Financial a DCA or will they just be managing the debt on behalf of The Co-operative?

2. We wanted to move to self managed asap however now this debt is in the middle of being transferred I am wondering if it is best to hold off and pay Link a couple of SC payments before writing to all of our creditors maybe August time with the plan to move to self managed and the offers of repayments.

Any advice gratefully received

Thank you!

BDFSH x

Sunnysam72

Thank you January2015. I was thinking the same, or waiting to see if my contract would be renewed in October as I can plan repayments at the minute! The debts are largely personal, but some is business debt, but not much. I will see what SC say when I ring them, and try the BDL as well. Thanks again :beer:

:beer::beer:

January2015 wrote: »

Hi and welcome :wave:

It might be worth you giving ... a call and they can give you advice about your business income / account. There are not many (if any ??) of us on here with business accounts and second incomes such as yours and therefore it's difficult for us to give advice based on experience.

However, you are more than welcome to join us and we will help wherever we can. Me personally, I would probably just declare the income from my job and see any income from the self employed bit as 'extra' I can squirrel away for emergency funds or saving for full and final settlements - but as I said it may be worth talking to Business Debtline for advice about operating business accounts etc.

Looking forward to getting to know you and support your on your DFW journey :beer:

Sazzie23

Rosie1001 wrote: »

I've spoke to my creditors today

Tesco have put my CC account on default and set up a plan for 12 months

Lloyds are also defaulting my CC ...they said it will take two months to close account and I will get letters demanding full payment , and then they will contact me to arrange a how to pay back the balance

I terrified the debt will go to a collection agency or something like that ......

I feel sick with worry

Hi Rosie,

I don't get on here much but I saw your post and just wanted to re-iterate, debt collection agencies on DMP are nothing like you see on tv. Even if you debt get transferred to one of the many credit collections, no,one will come to your house and take away your tv etc. Just keep on communicating with them, formulate a plan to pay a very small affordable amount and stick to the plan and it will be ok.

SC do usually suggest that you might consider selling valuable assets to pay your debts, which can be sensible if it will clear your debt but is not a great idea if it would be more expensive to rent and you need the car for work etc. Lots on her have downsized houses or cars to clear a bit of debt but No one has ever questioned my need to pay the mortgage and run a car.

DMP since 2013 and still going strong....more than halfway towards paying off the debts and I started out like you scared and sleepless. It will be ok, keep reading here and you'll get your head round it all. Most of all don't panic and don't worry.

Saz:j