DMP Mutual Support Thread - Part 12

January2015

spiffyiffy wrote: »

Quick query from that NedCab site; I'm guessing we can tailor the letters afterwards to suit what we want to write? As I want to add in there when I want to finish with Step Change etc.

Yes - you are right. Just download the letters generated by NEDCAB and adapt them to suit your personal circumstances. We added a bit about not giving them permission to contact us by phone and all communication must be in writing.

January2015

BeingDebtFreeStartsHere wrote: »

Letter from MBNA yesterday - they have upheld our complaint!!!! :j

Total amount of PPI refund plus interest = £1559.48 :beer:

So chuffed I found that old loan letter in the bottom of a drawer - gutted that the car needs even more repairs but at least we can pay for these outright

Happy days!!

BDFSH x

:j:j:j:j:j:j:j:j:j:j:j:j

What more can I say

Bepop

Hi everybody, hope you're all doing OK. Since I came across this brilliant forum at the beginning of April, I took the first step to ask for help with the overwhelming situation I found myself in. To make contact and get the fantastic advice from you all gave me the confidence to take another step forward. I did an online budget through stepchange remedy tool. I then applied for a new current account online and this was all completed and switched over on 27th of this month. I also plucked up the courage and sent off my letters to my creditors using the template letters. That was at the Easter weekend. Since then I can honestly say I felt a sigh of relief for the first time in many many years. Over the last few weeks my mind set has been focusing on the up and coming due date payments for all creditors, these all being in May. My wages got paid in on Friday and for the first time in God knows how long, I withdrew cash for what i expect my car will require for petrol over this month and paid cash, instead of paying by credit card. It was the weirdest feeling to pay with 'real' money instead of feeling guilty standing paying on credit. I have not withdrew another penny. All my essential bills come off on or around 1 May. Once they are all paid, whatever is left I will save for my emergency fund and same again next month. I will then contact stepchange and take first steps to starting the process of the DMP. This is where I can feel myself go back to that world of 'fear'. Yesterday I came home to a letter, which took me the whole day to open, from a creditor. It's from what was my bank for which I had a credit card and also an overdraft with. I can only assume the letter they have sent back is in connection with the credit card, as it doesn't refer to which one. This letter is from the Collections Centre. It starts by saying thank you for your recent contact. It then says we are not able to consider your request until we have received full income and expenditure details from you. In order to come to a mutual arrangement for your account, please can you send the following. It then outlines 3 points. List of creditors and balances owed to each, a breakdown of monthly income and expenditure and monthly offer of repayment. It then says until they receive details please continue to make payments to my account. The bit I don't understand is the next paragraph says you can seek free independent advice from PayPlan, stepchange etc. I informed them in my letter that I was seeking advice through stepchange? Now I can feel myself creep back into the mindset of total fear and panick. I feel as though I'm in that strange scary territory that I don't have the knowledge and know how to deal with all of this already. First hurdle and I'm waiting for the chap on the door. I'm petrified this letter now just one of many. Now I'm thinking what if the others didn't get their letters and they don't get their payment in May? I got an email from barclaycard the other day to say that my online statement was now ready, which I would normally get. Do they still continue to send these emails even although they would have received my letter to them? I was hoping I'd be one of those people who didn't hear back from creditors and accepted my plea for now to just give me breathing space, stop the interest and charges that's all that is asked. I am so so scared, I just want piece of mind, set up my direct debit with stepchange and each creditor gets a monthly payment. I was sooooo hoping I wouldn't be contacted by creditor or creditors. Sorry it's so late, I can't settle myself x

Sazzie23

Bepop wrote: »

Hi everybody, hope you're all doing OK. Since I came across this brilliant forum at the beginning of April, I took the first step to ask for help with the overwhelming situation I found myself in. ...........

This is where I can feel myself go back to that world of 'fear'. Yesterday I came home to a letter, which took me the whole day to open, from a creditor. It's from what was my bank for which I had a credit card and also an overdraft with. I can only assume the letter they have sent back is in connection with the credit card, as it doesn't refer to which one. This letter is from the Collections Centre. It starts by saying thank you for your recent contact. It then says we are not able to consider your request until we have received full income and expenditure details from you. In order to come to a mutual arrangement for your account, please can you send the following. It then outlines 3 points. List of creditors and balances owed to each, a breakdown of monthly income and expenditure and monthly offer of repayment. It then says until they receive details please continue to make payments to my account. The bit I don't understand is the next paragraph says you can seek free independent advice from PayPlan, stepchange etc. I informed them in my letter that I was seeking advice through stepchange? Now I can feel myself creep back into the mindset of total fear and panick. I feel as though I'm in that strange scary territory that I don't have the knowledge and know how to deal with all of this already. First hurdle and I'm waiting for the chap on the door. I'm petrified this letter now just one of many. Now I'm thinking what if the others didn't get their letters and they don't get their payment in May? I got an email from barclaycard the other day to say that my online statement was now ready, which I would normally get. Do they still continue to send these emails even although they would have received my letter to them? I was hoping I'd be one of those people who didn't hear back from creditors and accepted my plea for now to just give me breathing space, stop the interest and charges that's all that is asked. I am so so scared, I just want piece of mind, set up my direct debit with stepchange and each creditor gets a monthly payment. I was sooooo hoping I wouldn't be contacted by creditor or creditors. Sorry it's so late, I can't settle myself x

Hi Bebop

Deep breaths, well done for opening that letter, I used to hide them for ages

There will be letters like that all along the process, and yes I still have little panics when I read them, but actually I've learnt that I ignore them, unless I receive the same information 3 times, I don't do anything about them. Creditors will be contacted by SC however they are required to contact you the creditee as well as SC, so these communications are possible.

In this case I suspect they had the SC letter and they've put the payment in hold process in place which generates the type of letter you got automatically.

For now, keep it and ignore it, if you get it again next month, contact SC and discuss it with them.

You've come so far, and are doing brilliantly, don't let one letter throw. your anxiety into panic.

Saz

Ps awake because I had a bath after gardening and fell asleep on the bed, woke up freezing

Bepop

Hello Sazzie23...thank you so much for your reply, I honestly don't know how I'd get through this without the support from yourself and others. So no need to contact them, just hold on tight and go with what's thrown my way for now. Imy mind has been racing since Saturday. Doubting whether the creditors have got my letters and what will happen when they don't receive their monthly payment this month. Now after reading this letter from my what was bank, if not stopping interest charges etc, then my debt with them will increase. After joining this wee forum, the people on here are so courageous, in that to take a huge step to actually admit to themselves that the debt is overtaking their whole wellbeing, but also to make that dreaded initial step of making contact with the creditors involved, shouldn't be taken lightly by them. We are not bad people. We've all found ourselves in a situation we never thought we'd be in. We didn't want our lives to end up like this for years to come. We work hard everyday and unfortunately life takes a turn for the worst. Bury your head for years and finally when you take the plunge your made feel like a criminal. That's how the letter made me feel unfortunately. It's not as though we're not paying back our debt, we are, but asking for all charges to stop to allow us to .aye a dent in the balances. Sorry for my rant, had to get that out!! X
PS: that's like something I would do, fall asleep and wake up numb!!

BeingDebtFreeStartsHere

Bepop wrote: »

Hello Sazzie23...thank you so much for your reply, I honestly don't know how I'd get through this without the support from yourself and others. So no need to contact them, just hold on tight and go with what's thrown my way for now. Imy mind has been racing since Saturday. Doubting whether the creditors have got my letters and what will happen when they don't receive their monthly payment this month. Now after reading this letter from my what was bank, if not stopping interest charges etc, then my debt with them will increase. After joining this wee forum, the people on here are so courageous, in that to take a huge step to actually admit to themselves that the debt is overtaking their whole wellbeing, but also to make that dreaded initial step of making contact with the creditors involved, shouldn't be taken lightly by them. We are not bad people. We've all found ourselves in a situation we never thought we'd be in. We didn't want our lives to end up like this for years to come. We work hard everyday and unfortunately life takes a turn for the worst. Bury your head for years and finally when you take the plunge your made feel like a criminal. That's how the letter made me feel unfortunately. It's not as though we're not paying back our debt, we are, but asking for all charges to stop to allow us to .aye a dent in the balances. Sorry for my rant, had to get that out!! X
PS: that's like something I would do, fall asleep and wake up numb!!

Hi Bepop,

You are doing great - as Sazzie says please don't let one letter undo all the good work you have done so far.

Most letters are computer generated as soon as a payment is missed. The most important thing, which you have done, is to maintain contact with your creditors. You have informed them that you are seeking advice from StepChange. I personally wouldn't send any separate income and expenditure details to the creditors - I would let SC do this from the info you provide to them once you have worked out your budget and agreed a repayment amount.

I can remember the fear when a letter pops onto the doormat from a creditor - you will get more confident with dealing with them as you progress down the DMP path - I actually feel up to phoning my creditors now to discuss any letters I receive (although 2 years down the line these are few and far between). I never thought I would ever be able to speak to them when I first started out!

Stay strong - you have made the right decision and are doing everything right. This forum is a godsend - there is always someone who can help, support and advise if ever you have a query or a wobble

Take care,

BDFSH x

sourcrates

Bepop wrote: »

Now I can feel myself creep back into the mindset of total fear and panic. I feel as though I'm in that strange scary territory that I don't have the knowledge and know how to deal with all of this already. First hurdle and I'm waiting for the chap on the door. I'm petrified this letter now just one of many.

Bepop,

Letters get automatically triggered by non payment, they are computer generated, and dont take your DMP into consideration.

Its important NOT to take them personally.

Its nothing to worry about, and no one will be knocking on your door, back in the day, i could of wallpapered my living room with the amount of junk letters i got demanding payment, they mean absolutely nothing, its fodder for the recycle bin, nothing more.

Ignore them, its a letter, what harm can a letter do ?

Try and familiarize yourself with debt collection practices, and what a creditor can and cant do.

Debt camel is a good site to read through, in debt collection, as in life, there is a process to go through for everything, debt collection mainly consists of phoning people, and sending letters, thats it, occasionally a "doorstep collector", that you referred too earlier, may be employed by the creditor to "knock on doors", its important to remember, they have no more rights than next doors cat, they are a cheap way of getting results in inner city areas, where they can visit multiple clients, elsewhere there use is not cost effective.

But you dont have to let them in, and you dont have to speak to them, simply tell them your taking advice from a debt charity, goodbye, thats all you have to do.

Been in debt has a lot of mystery surrounding it, you still have rights like anyone else, there is no need to be scared of a creditor, they make business decisions, thats it, there is a tried and trusted process for dealing with people in debt, you should not be scared of it, you should embrace it, the help is there for you to take, you will find that creditors are actually quite engaging really.

Colette2013

Hi everyone

I am just starting on a self managed dmp thing for our family. I have done all the income an expenditure sheet and I have budgeted in an appropriate recommended amount for everything which is good as we never were able to buy clothes or shoes for ourselves hence why we are in debt as it is with the credit card maxed out for a 2nd time.

Worked out amounts to pay our 4 creditors appropriate amounts and hope they accept it, but how does it all work if they dont get the interest frozen ? Does that just mean we will pay longer than the already around 6 years we will be paying it as the balances stand now ?

January2015

Colette2013 wrote: »

Hi everyone

I am just starting on a self managed dmp thing for our family. I have done all the income an expenditure sheet and I have budgeted in an appropriate recommended amount for everything which is good as we never were able to buy clothes or shoes for ourselves hence why we are in debt as it is with the credit card maxed out for a 2nd time.

Worked out amounts to pay our 4 creditors appropriate amounts and hope they accept it, but how does it all work if they dont get the interest frozen ? Does that just mean we will pay longer than the already around 6 years we will be paying it as the balances stand now ?

If you try and get the amount you pay your creditors each month to 1% or less of the outstanding balances then you are more likely to get interest frozen. Initially it may seem that paying 1% will take forever (well 100 months anyway), but once the debts are passed to debt collection agencies (DCAs) you can either continue paying at the low rate and use extra money you have to save for full and final settlement offers (which is what most of us seem to do), or you can up your payments to the DCAs and clear the debt of quicker.

Colette2013

Thank you. By calculating payment for 1% or just under that it's not that much less than we were going to pay anyway