DMP Mutual Support Thread - Part 12

weightlifted87

Hi everyone,

I stumbled across these forums a couple of nights ago as I was wide awake worrying about our debts. The next morning I called step change and gave us advice about a DMP which I didn't even think we'd be eligible for - I thought things were so bad we'd have to go for an IVA. I thought we were going to lose our car which is HP and finishing in 18 months. I just wish I had called step change earlier, instead of worrying for so long and pretending like we could get ourselves out of this mess without help.

This is where we're up to:

New (basic) bank account opened - just waiting for it to all go through now and for direct debits to be transferred over
All direct debits to creditors cancelled - in the process of ringing them one by one and asking them to put our accounts on hold for 60 days
Budget sorted with step change, leaving us disposable income for the DMP of £547 a month payable over 9 years 8 months (likely to be less as income increasing in Nov and hubby gets a bonus).

I felt ashamed to start with and like we were failures because of the amount of debt we're in - approx £64,000. But step change have been absolutely non-judgemental, and it now feels like a massive weight has been lifted.

We have only just cancelled all our direct debits so June & July will be months where we put a little aside for an emergency fund. I know i've seen on here people advise to put aside for longer, but we really just want to get the ball rolling and step change have advised we can't delay any further than august for our first repayment. I'm happy with this, especially as we're having a couple of months off.

We have a holiday booked in August (camping in france) and we don't have any money for spending. So we're about to start selling things - prams, clothes, an old tent. And honestly it feels so good that the money we have for spending won't be getting us into more debt. To be able to go on holiday and not be worrying about all of the direct debits going out and wondering if we'll have enough to cover them feels so good. 9 years feels like a lifetime away but I know with increases in pay, reductions in childcare (when we get the 30 hours free in Jan) and annual bonuses that we'll be able to knock a few years off.

I'm not sure why I've rambled so long but it feels good to get it all out. With regards to annual bonus and any money we can put aside - are we best off contacting creditors and asking them if we can pay them a reduced lump sum amount, to try and clear the debt faster?

Thank you all and well done if you managed to read through all of this! x

Rosettie

Hi, I hope you are all well. Apologies if I have not posted this question correctly but I am new to forums.
I am not sure what figure to put for what I owe a payday lender.
As it was over 6 months do I put the amount it would be to settle the loan now or total up the remaining payments?
Not sure as the latter would include interest.

Any help would be very much appreciated.

January2015

weightlifted87 wrote: »

Hi everyone,

I stumbled across these forums a couple of nights ago as I was wide awake worrying about our debts. The next morning I called step change and gave us advice about a DMP which I didn't even think we'd be eligible for - I thought things were so bad we'd have to go for an IVA. I thought we were going to lose our car which is HP and finishing in 18 months. I just wish I had called step change earlier, instead of worrying for so long and pretending like we could get ourselves out of this mess without help.

This is where we're up to:

New (basic) bank account opened - just waiting for it to all go through now and for direct debits to be transferred over
All direct debits to creditors cancelled - in the process of ringing them one by one and asking them to put our accounts on hold for 60 days
Budget sorted with step change, leaving us disposable income for the DMP of £547 a month payable over 9 years 8 months (likely to be less as income increasing in Nov and hubby gets a bonus).

I felt ashamed to start with and like we were failures because of the amount of debt we're in - approx £64,000. But step change have been absolutely non-judgemental, and it now feels like a massive weight has been lifted.

We have only just cancelled all our direct debits so June & July will be months where we put a little aside for an emergency fund. I know i've seen on here people advise to put aside for longer, but we really just want to get the ball rolling and step change have advised we can't delay any further than august for our first repayment. I'm happy with this, especially as we're having a couple of months off.

We have a holiday booked in August (camping in france) and we don't have any money for spending. So we're about to start selling things - prams, clothes, an old tent. And honestly it feels so good that the money we have for spending won't be getting us into more debt. To be able to go on holiday and not be worrying about all of the direct debits going out and wondering if we'll have enough to cover them feels so good. 9 years feels like a lifetime away but I know with increases in pay, reductions in childcare (when we get the 30 hours free in Jan) and annual bonuses that we'll be able to knock a few years off.

I'm not sure why I've rambled so long but it feels good to get it all out. With regards to annual bonus and any money we can put aside - are we best off contacting creditors and asking them if we can pay them a reduced lump sum amount, to try and clear the debt faster?

Thank you all and well done if you managed to read through all of this! x

Well done on taking those first steps and welcome.

Don't apologise for rambling on.... that's what this place is for. To get those thoughts and worries out of your head and into the real world to a place people can listen and advise without judging you.... and you don't have to face anyone or admit who you really are :rotfl: That's how I felt when I started my DMP journey anyway.

Definitely save any bonuses / extra money and when you feel ready make full and final settlement offers (F&Fs) to creditors directly. Don't go through StepChange (SC) as they will want to divide the amount between all your creditors and it simply won't work. You pick them off yourself one-by-one.

Send off CCA requests to all your creditors asap. If you are lucky some may be unenforceable. I got rid of almost £12k on one debt by it being unenforceable. It's an amazing feeling. I could have not paid a penny to clear it but I chose to settle it for £1.2k because I wanted it marked as satisfied on our credit files and no future debt collection agencies (DCAs) could ever chase us for it. Still an amazing feeling to save over ten grand of that one debt :T

I'm looking forward to getting to know you and join you through your journey to becoming debt free :beer:

weightlifted87

What's a CCA? Sorry if that's a silly question! x

Suseka97

weightlifted87 wrote: »

Hi everyone,

I stumbled across these forums a couple of nights ago as I was wide awake worrying about our debts. The next morning I called step change and gave us advice about a DMP which I didn't even think we'd be eligible for - I thought things were so bad we'd have to go for an IVA. I thought we were going to lose our car which is HP and finishing in 18 months. I just wish I had called step change earlier, instead of worrying for so long and pretending like we could get ourselves out of this mess without help..............Budget sorted with step change, leaving us disposable income for the DMP of £547 a month payable over 9 years 8 months (likely to be less as income increasing in Nov and hubby gets a bonus)..... 9 years feels like a lifetime away but I know with increases in pay, reductions in childcare (when we get the 30 hours free in Jan) and annual bonuses that we'll be able to knock a few years off.

I'm not sure why I've rambled so long but it feels good to get it all out. With regards to annual bonus and any money we can put aside - are we best off contacting creditors and asking them if we can pay them a reduced lump sum amount, to try and clear the debt faster?

Good for you and welcome on board the DMP train. As Jan15 says, looking forward to getting to know you as you move through the process. Rambling is good for the soul

I can understand you wanting to get things going and so if you're happy with the amount you'll be able to save with 2 months grace, so be it. It's your DMP. I would definitely put any additional income (bonus etc.) aside for F&Fs down the line - but you're a long way of that right now. Certainly do as Jan15 suggests and send of those CCA requests, you never know your luck. If any come back UE then you have the upper hand.

Anyway, good luck with it.

Suseka97

weightlifted87 wrote: »

What's a CCA? Sorry if that's a silly question! x

Just spotted this and must now dash... someone will come along and hopefully link to where you'll find that information. But in a nutshell it relates to the Consumer Credit Act and creditors are legally obliged to provide, on request, a series of documents. A true or reconstituted copy of the agreement, T&Cs and other documents depending on the age of the account.

Maverick87

Oooh. I thought CCAs were only worthwhile once the debt had been sold on and it was that selling on process when stuff went missing.

Better get mine done too or is it better to wait for a DCA to pick them up first?

kram

*Sable* wrote: »

Also, I see the posts about SC agreeing to delay the DMP to allow you to build up some funds. How does this work? The forms I have from SC say the first direct debit will be collected by a certain date. Presumably I can't enter into the DMP but then ask for the first payment to be delayed? And how would I deal with creditors in the meantime?

You need to build up an emergency fund before starting a dmp as you wont have access to credit anymore.

If you haven't got anything put aside, it would be worth calling SC to say you want to delay starting your dmp for a few months so you can build up an emergency fund.

It's always good to read back through the thread as this has been mentioned many times before.

I hope you get things sorted. :j

sourcrates

Rosettie wrote: »

Hi, I hope you are all well. Apologies if I have not posted this question correctly but I am new to forums.
I am not sure what figure to put for what I owe a payday lender.
As it was over 6 months do I put the amount it would be to settle the loan now or total up the remaining payments?
Not sure as the latter would include interest.

Any help would be very much appreciated.

Whatever the current outstanding balance is, why do you need to know this again ?

Summer12

Maverick87 wrote: »

Oooh. I thought CCAs were only worthwhile once the debt had been sold on and it was that selling on process when stuff went missing.

Better get mine done too or is it better to wait for a DCA to pick them up first?

I sent my CCAs off before I had missed a single payment knowing that in a few months I would be starting a dmp. Amazingly 4 of them came back UE so it has certainly helped me prioritise those I need to pay and those I can be more relaxed with. The only thing I would say is that i have found original creditors far less willing to openly admit the accounts are UE. Other peoples experiences on here with DCA seem to suggest they are more forthcoming with offering an opinion. However it was extremely simple to get the agreements checked out on the All About Debt website (another fantasy source of information) Good Luck