DMP Mutual Support Thread - Part 12

SuzyN

I am currently considering a DMP (possibly self managed) and have read all of thread 11 and most of 12 over the last few days. Because of your posts I am feeling positive but have some questions if someone would be kind enough to help?

Q - I!!!8217;ve gathered it!!!8217;s a good to build up an emergency fund. How much would someone recommend?

Q - I have some small debts on only a few hundred etc... if I stop paying everyone temporarily then I could pay these in full to reduce creditors. Is this ok or do I just add everyone in? Some of my debts are interest free loans - can I keep paying them properly? One is the gas that was put in and I don!!!8217;t want them coming and taking it back out.

Q - I have the following products with Santander which is my biggest worry....

Mortgage
Secured loan
Credit card £900
Bank account £3600 o/d (maxed each month)
Bank account £100 o/d
Car loan PCP (ends April 19 with balloon)
Car loan normal ends another 3.5 yrs

I want to keep paying my mortgage, secured loan and two cars. The credit card is £900 and the overdrafts £3700.

I don!!!8217;t want to upset Santander as we are in negative equity and if interest rates shoot up I may need them to be helpful to us with our mortgage in the years to come. I always have made all my Santander payments.

Can I enter into a DMP and continue these at full payment. I know it!!!8217;s my DMP and technically I can do anything but I!!!8217;m worried about them and what to do? .

Q - I!!!8217;ve just read a thread where the poster stopped paying full payments and ended up with a CCJ. Is this common? I can have defaults and pay them off but a CCJ or IVA would effect my job so I can!!!8217;t have them. #Panic

Sorry for the questions just my mind is going mad. Im swinging between excitement and finally taking control and panic that it!!!8217;s all going to fall down round me.

I have all my payments due to come out on Wednesday coming and part of me wants to cancel them all and get the ball rolling. Another part says hold on for another month and make sure Im doing the right thing.

Edited to add that I have applied online for an was accepted for a normal Nationwide joint bank account WITH NO OVERDRAFT so thats the first step to getting things sorted - incase I need to part ways with Santander. Just need to show ID.

Thanks for your thoughts,

Suzy x

lostinlondon76

Hello Everyone,

First of all - my apologies. I have been a bit of a 'lurker' on over the last five and a bit years of my DMP but have never actually posted before.

I have just finished a Stepchange DMP and thought I would share my thoughts.

At the start of my DMP in May 2013 I was just short £50,000 in debt. I don't have the excuse of job loss etc - all down to my own overspending and naivety.

My main thoughts:

1) After things have settled down a bit following the first few months of your DMP, don't be afraid to talk to your creditors about stopping interest. Stepchange have nothing but my utmost respect but it also helps if you are forward thinking and speak to your creditors yourself. The only way I made progress with my main creditor, Lloyds, was by making an official complaint. Top tip - use the complaints form on their website - you will actually get rung back by a human being! I was able to end my DMP a couple of months early due to a rebate from Lloyds - they admitted their collection process early on in my DMP was not satisfactory.

2) Stick to your budget. I even found it useful to breakdown my income right down to how much I could spend per day at expensive times such as Christmas.

3) You will discover you can comfortably walk further than you ever thought!

4) If something untoward happens, don't panic. Around halfway through my DMP, I was informed by my landlord that I would have to move out due to the property being sold. As I needed a deposit to move to a new flat, I had to reduce my DMP payments to a minimum for two months (I went with Stepchange's suggestion of £5 per creditor). As I had not missed any payments before, Stepchange were fine with this. I did have a small backlash from one creditor, Barclaycard, but again I go back to my earlier point - talk to them.

5) My DMP has improved my life in a certain way. Before, everything was about spending but now I have more fulfillment from throwing myself into volunteering at a local project for the homeless and asylum seekers.

6) Don't give up. Yes, there will be times when you get a bit low and frustrated. But keep going. If you have any questions or issues going round in your head, it is always worth a search on here or similar boards - it is very likely someone else has been in a similar position before.

Well done if you have ploughed your way through this lot and best of luck to everyone trying to get out of debt - YOU CAN DO IT!

rae2820

lostinlondon76 wrote: »

Hello Everyone,

First of all - my apologies. I have been a bit of a 'lurker' on over the last five and a bit years of my DMP but have never actually posted before.

I have just finished a Stepchange DMP and thought I would share my thoughts.

At the start of my DMP in May 2013 I was just short £50,000 in debt. I don't have the excuse of job loss etc - all down to my own overspending and naivety.

My main thoughts:

1) After things have settled down a bit following the first few months of your DMP, don't be afraid to talk to your creditors about stopping interest. Stepchange have nothing but my utmost respect but it also helps if you are forward thinking and speak to your creditors yourself. The only way I made progress with my main creditor, Lloyds, was by making an official complaint. Top tip - use the complaints form on their website - you will actually get rung back by a human being! I was able to end my DMP a couple of months early due to a rebate from Lloyds - they admitted their collection process early on in my DMP was not satisfactory.

2) Stick to your budget. I even found it useful to breakdown my income right down to how much I could spend per day at expensive times such as Christmas.

3) You will discover you can comfortably walk further than you ever thought!

4) If something untoward happens, don't panic. Around halfway through my DMP, I was informed by my landlord that I would have to move out due to the property being sold. As I needed a deposit to move to a new flat, I had to reduce my DMP payments to a minimum for two months (I went with Stepchange's suggestion of £5 per creditor). As I had not missed any payments before, Stepchange were fine with this. I did have a small backlash from one creditor, Barclaycard, but again I go back to my earlier point - talk to them.

5) My DMP has improved my life in a certain way. Before, everything was about spending but now I have more fulfillment from throwing myself into volunteering at a local project for the homeless and asylum seekers.

6) Don't give up. Yes, there will be times when you get a bit low and frustrated. But keep going. If you have any questions or issues going round in your head, it is always worth a search on here or similar boards - it is very likely someone else has been in a similar position before.

Well done if you have ploughed your way through this lot and best of luck to everyone trying to get out of debt - YOU CAN DO IT!

What a great post
encouragement for those like me who got up the courage to call Stepchange yesterday for the first time to discuss my £40000 debts
I think the most scary prospect for me is calling the creditors, so I appreciate you sharing your positive experience in that respect.... as its my next job this week ! :eek:
There will be bumps in the road , like you yourself identified but they can be managed...
So even though we feel vulnerable ...we must be brave as avoidance perpetuates that anxiety cycle !
Well done in your volunteering ...theres more to life than money and "stuff"
athaakyou for sharing :beer:

rae2820

Just a few words of encouragement to all those slightly behind me in the sorting out your debts line up !
Called Stepchange after reading through all this thread for the first time yesterday after my LBM last Saturday ( £40000 debts)
The debt remedy tool on Stepchange website suggested IVA as my most sensible option...something I really don't want to do . DMP seemed the way to go in terms of comfort !
So...great experience with Stepchange...lovely lady spent about 45 mins on the phone ( NB calls are free ) said a DMP no problem...Pointed out a few errors in my calculations and things I omitted to budget for as I felt I should be paying as much to creditors as possible .... So...wont be paying anything until set up Sept?Oct and then once DMP running I have agreed to pay a sum of £27 per month for 4 months , due to a few priority unexpected debts such a s a speeding fine and vets bill and will be then paying £274 per month... In this time I will be saving up for an emergency fund too....There will be a delay as I I'm waiting for new back account etc...
The only one thing I chickened out of -she encouraged me to call Natwest , who I bank with and have a loan and OD with them , she said call them and ask not to pay the next loan payment on Monday as they PROBABLY wouldn't use the right to offset and take all the funds in my account ! ....Braver... but not that brave !:D
So paying that £365 for the last time on Monday - I want to make sure my other bank account is up and running first ! I have cancelled all other creditors DD's and need to call them and send holding letters this week.
Good luck everyone !
Thank you to all of you for your advice :beer:

sourcrates

SuzyN wrote: »

I am currently considering a DMP (possibly self managed) and have read all of thread 11 and most of 12 over the last few days. Because of your posts I am feeling positive but have some questions if someone would be kind enough to help?

Q - Ive gathered its a good to build up an emergency fund. How much would someone recommend?

Q - I have some small debts on only a few hundred etc... if I stop paying everyone temporarily then I could pay these in full to reduce creditors. Is this ok or do I just add everyone in? Some of my debts are interest free loans - can I keep paying them properly? One is the gas that was put in and I dont want them coming and taking it back out.

Q - I have the following products with Santander which is my biggest worry....

Mortgage
Secured loan
Credit card £900
Bank account £3600 o/d (maxed each month)
Bank account £100 o/d
Car loan PCP (ends April 19 with balloon)
Car loan normal ends another 3.5 yrs

I want to keep paying my mortgage, secured loan and two cars. The credit card is £900 and the overdrafts £3700.

I dont want to upset Santander as we are in negative equity and if interest rates shoot up I may need them to be helpful to us with our mortgage in the years to come. I always have made all my Santander payments.

Can I enter into a DMP and continue these at full payment. I know its my DMP and technically I can do anything but Im worried about them and what to do?

Q - if I use my next account to buy the kids clothes for Xmas and stop payment within the months following will I get into trouble. I cant max my cards to get cash as some have done to get an E/F as they are all maxed. This all feels so criminal but I need to get new uniforms and birthday presents that I would have put on my cards after I made my monthly payments. Totally think this will be frowned upon but thought Id ask as at this point my dignity has faded away.

Q - I have read I dont have to send anyone (creditors / DCA) my payslips. Can I knock off say £200 a month from my wages to cover the above Santander debts to pay off the CC and O/D faster?

Q - how do they know if you are telling the truth regarding your outgoings and income on an I/E and if you fudged your figures slightly would you get into trouble in court?

Reason I ask is.....

I have two other loans that are only viewable on my payslip and do not appear on any credit ref checks as they are work credit union debts. If I dont pay them them my employer would be informed and that would be disastrous. I dont want them in my I/E and this is why I dont think I can do StepChange although I would prefer initially to do so. These are taken from my wages before I am paid so they dont come out of my bank.

Q - Ive just read a thread where the poster stopped paying full payments and ended up with a CCJ. Is this common? I can have defaults and pay them off but a CCJ or IVA would effect my job so I cant have them. #Panic

Sorry for the questions just my mind is going mad. Im swinging between excitement and finally taking control and panic that its all going to fall down round me.

I have all my payments due to come out on Wednesday coming and part of me wants to cancel them all and get the ball rolling. Another part says hold on for another month and make sure Im doing the right thing.

Edited to add that I have applied online for an was accepted for a normal Nationwide joint bank account WITH NO OVERDRAFT so thats the first step to getting things sorted - in case I need to part ways with Santander. Just need to show ID.

Thanks for your thoughts,

Suzy x

Hi Suzy,


So many questions to answer.

Let me start by saying that a self managed DMP may be best for you, as it allows you the freedom to keep control of everything, so you can prioritize payments to creditors, as and when you like.

Its up to you how you run it.

If you went with one of the debt charities, you lose that freedom.

Emergency fund depends on what you can save into it, £1000/£2000 its up to you.

This is how a DMP works, you work out your budget you need to live on, you deduct your essential payments from your income, whats left is then distributed between your unsecured credit debts, usually on a pro-rate basis.

You do not have to provide evidence of anything, its an informal arrangement, no courts, most people use NEDCAB to generate spreadsheets and headed paper etc, to provide to creditors.

As long as you are paying what you can towards the debt, you may get defaults, that is only to be expected, but action through the courts is very unlikely, that only usually happens if you are ignoring the debt completely, and not paying anything.

Although i must add a note of caution, a creditor could, and i emphercise could, as it is very rare, take you to court, if they so wished, if you are not making the contracted payments, normally most people jog along quite happily with no problems whatsoever.

SuzyN

SourCrates,

Do you have any advice re Santander?

If I include my credit card and overdrafts in my DMP will that impact my mortgage?

Has anyone ever had a mortgage with their creditors? What impact has it had?

Suzy x

gbrm

Guys,

Some advise please... My StepChange is dues to start the 1st August - which I have been strangely very excited about the last week or so.

BUT... I haven't done as advised (lots) on the forum... I haven't given myself a months grace to save an "emergency pot"

I'm worried about this as my car MOT and insurance are both due in October...

I've just emailed them asking to delay the DD by a month... I'm concerned they'll think I'm taking the p*ss...

Have I just messed up weeks of hard work of paperwork and letters etc...?

Cheers,
John

sourcrates

gbrm wrote: »

Guys,

Some advise please... My StepChange is dues to start the 1st August - which I have been strangely very excited about the last week or so.

BUT... I haven't done as advised (lots) on the forum... I haven't given myself a months grace to save an "emergency pot"

I'm worried about this as my car MOT and insurance are both due in October...

I've just emailed them asking to delay the DD by a month... I'm concerned they'll think I'm taking the p*ss...

Have I just messed up weeks of hard work of paperwork and letters etc...?

Cheers,
John

No, of course not, it’s a perfectly reasonable request, which they will agree to.

Take longer if you like, it’s entirely up to you my friend.

Ethel_and_Ernest

Good morning all. I hope this is in the right place ...

Ok, deep breaths!

So after twenty plus years of fluctuating debt, Ernie and have had our definitive lightbulb moment. We have completed the stepchange debt remedy and spoke to them online. They have suggested that we have more than one option available to us (some joint, some individual) and that I should call them to discuss. I'm currently just plucking up the courage to pick up the phone ...

We have a young child, 47k of unsecured debt across 8 creditors and we live in a property worth about 130,000 with approx 69,000 left to pay on the mortgage. Our combined current income is approx 35k but we expect this to increase by 10k early next year, when I return to work full time.

We have two personal loans and an array of credit cards, all on 0% interest. However D-day is looming for these over the next few months.

We are keen to protect our home and are determined to pay back every penny we have spent. We are under no illusion that we are in this for the long haul and that sacrifices will have to be made.

How likely is it that a DMP is an option for us? Does anybody have any idea of what other options might be available please? I am feeling sick at the thought of calling them.

Thanks,
Ethel xx

Suseka97

SuzyN wrote: »

SourCrates,
Do you have any advice re Santander?
If I include my credit card and overdrafts in my DMP will that impact my mortgage?
Has anyone ever had a mortgage with their creditors? What impact has it had?
Suzy x

My mortgage was with a separate provider - but I'm pretty sure I've read others have had debts (Loans/CCs) with their provider and had no problems with their mortgage when setting up the DMP. They are too quite different products, one secured (on your house) and the others are non-priority. Seeing as your mortgage is a priority debt it gets paid regardless of what else you do about non-priority debts - so there really shouldn't be an issue.