DMP Mutual Support Thread - Part 12

nbdrums1

Suseka97 wrote: »

Groan... been there and done that

I kick myself some days when I think back to the moment we signed on the dotted line for a secured loan to consolidate (which is, effectively, the same as re-mortgaging :mad:) Had we not done that, some 10 years ago - not only would we have been debt free many moons ago, but would probably be close to being mortgage free

So - lesson to anyone even considering that option - DONT

I imagine back then DMPs were not really known about, or even existed - and I certainly never even thought about googling anything to do with debt-management. Fast forward - it's great these options now exist and the information is more widely available.

Suseka97 wrote: »

Now you've had your LBM (Lightbulb Moment) as we like to call it - congratulations

I'm not versed in how DMPs work for those who are self-employed - but I don't think its that much different from those (like me) who are not. I imagine the only 'complicated bit', if there is one -will be working out your income if it has a tendency to fluctuate depending on your workstreams.

With that said, no-one will be coming after you 'big time' because you're self-employed -but to put your mind at rest, why not call one of the 'free' debt charities. StepChange or Payplan are the two most used by folks on here.

That aside - stop paying your non-priority debts now. Your priority has to be keeping a roof over your head and food on the table. I could say a lot more about the process -but I really think it'll help you to call and speak with someone who can reassure you verbally and then you can come back on here for more advice.

So, go grab a coffee and make that call

Many thanks for the support, I am going to get on the phone to step change or payplan first thing in the morning, I have had to stop my direct debits for the cards as there won’t be enough money in my bank account (even with overdraft) to cover them.

My MBNA is due on Tuesday, if it doesn’t get taken will this affect my chances of them accepting the DMP?

Many thanks

Willing2Learn

nbdrums1 wrote: »

...My MBNA is due on Tuesday, if it doesn't get taken will this affect my chances of them accepting the DMP?...

Cancel the DD via internet banking as MBNA is not a priority. (There is a chance the DD will still go out due to short notice, but it is worth the try). Contact StepChange or PayPlan on Monday morning so that MBNA is incorporated in your resolution. Good luck!!

JohnnyRotten

Phew... after a week of reading this forum I’ve just reached the end of all 229 pages!

Thanks so much to everyone that’s contributed. It’s an invaluable resource and I feel I’ve learnt so much from it.

I owe around £52k in unsecured debt and have decided to manage it with a DMP. It’s been a struggle to get to this decision as I own a house with equity and could have remortgaged but have spent 20 years juggling credit, switching cards and remortgaging - for me it’s just not a solution so I think it’s time to take a different approach.

Like many on here I have the feelings of failure, embarrassment and the like but I’ve tried to reframe this as ‘the only mistake would be to keep doing the same thing that’s failed time after time’. I also must have paid 10s of thousands in interest over the years so it’s time to redress the balance.

Again, like many others, I’ve never missed a payment and have a good credit history, other than over-commitment, and this worries me but I keep reminding myself that it doesn’t matter if the whole point is to live debt free! I’m actually excited to get started.

So to the plan:

- I’ve opened a ‘clean’ bank account
- Cancelled DDs for creditors and written to them for a 30 day pause
- Agreed a realistic budget with SC which I’ve revised a number of times (they’ve been great)
- Stocked up on essentials to ease the first month or so!
- Will write to creditors again after 30 days advising of DMP to start in November, this gives me a couple of months to save an emergency fund. I plan to explain that this is a long-term plan (6-7 years) and request a default as soon as possible.

I’ve looked at the NEDCAB site and it seems really straightforward to set up a self managed DMP but I think I’d prefer the support of SC for the first six month before switching to SM. I’ll need to do this as I suspect that some of the SC payments will cover the minimum on some of my 0% CCs so they won’t default until I drop the payment amount. I’ll also issue CCAs then, I doubt I’ll have much luck there but one CC is from 2007.

I’ve tried to absorb all of the great advice here but have I missed anything?! Thanks again if you’ve reached the end of this long post...

Summer12

JohnnyRotten wrote: »

Phew... after a week of reading this forum I’ve just reached the end of all 229 pages!

Thanks so much to everyone that’s contributed. It’s an invaluable resource and I feel I’ve learnt so much from it.

I owe around £52k in unsecured debt and have decided to manage it with a DMP. It’s been a struggle to get to this decision as I own a house with equity and could have remortgaged but have spent 20 years juggling credit, switching cards and remortgaging - for me it’s just not a solution so I think it’s time to take a different approach.

Like many on here I have the feelings of failure, embarrassment and the like but I’ve tried to reframe this as ‘the only mistake would be to keep doing the same thing that’s failed time after time’. I also must have paid 10s of thousands in interest over the years so it’s time to redress the balance.

Again, like many others, I’ve never missed a payment and have a good credit history, other than over-commitment, and this worries me but I keep reminding myself that it doesn’t matter if the whole point is to live debt free! I’m actually excited to get started.

So to the plan:

- I’ve opened a ‘clean’ bank account
- Cancelled DDs for creditors and written to them for a 30 day pause
- Agreed a realistic budget with SC which I’ve revised a number of times (they’ve been great)
- Stocked up on essentials to ease the first month or so!
- Will write to creditors again after 30 days advising of DMP to start in November, this gives me a couple of months to save an emergency fund. I plan to explain that this is a long-term plan (6-7 years) and request a default as soon as possible.

I’ve looked at the NEDCAB site and it seems really straightforward to set up a self managed DMP but I think I’d prefer the support of SC for the first six month before switching to SM. I’ll need to do this as I suspect that some of the SC payments will cover the minimum on some of my 0% CCs so they won’t default until I drop the payment amount. I’ll also issue CCAs then, I doubt I’ll have much luck there but one CC is from 2007.

I’ve tried to absorb all of the great advice here but have I missed anything?! Thanks again if you’ve reached the end of this long post...

Well done that’s a great start! I would just say do not rush to start the dmp (although if going with Stepchange they may have rules about this). If you need longer to save an emergency fund then do so. Good luck:)

Summer12

Suseka97 wrote: »

I was being pestered (bombarded) with calls from a DCA - I ignored them for a while then in the end I picked up the call, refused to answer their security questions and told them if they didn't remove my number from their records I would report them to the Information Commissioners Office and from that point onwards all calls stopped. Worth a shot, maybe!

Might try that one day if Im feeling brave enough! Thanks x

Poor_Single_lady

Hello All. I've just written out and phoned credit card companies last month. So this month everyone received a lower amount than that billed. I owe 5 separate companies.

1 has written to give notice that they will be defaulting me. It feels quite early - but the debt is £5000 and I offered £30 a month so not sure if this low offer caused things to move more quickly. It has only been about 10 days since I called them so moving very quickly compared to the others.

2 of the other companies said it would be at least 6 months before defaulting.
Does this sound normal.

1 company didn't pick up the phone and hasn't sent me any letters - but interest is not being added.

Suseka97

Poor_Single_lady wrote: »

Hello All. I've just written out and phoned credit card companies last month. So this month everyone received a lower amount than that billed. I owe 5 separate companies.
.........2 of the other companies said it would be at least 6 months before defaulting. Does this sound normal. 1 company didn't pick up the phone and hasn't sent me any letters - but interest is not being added.

There is no 'normal' when it comes to defaults. Creditors are not obligated to default or stop interest and/or charges. Many will do and some won't. Some sneaky creditors will sell a debt onto a DCA and the T&Cs allow them to continue charging interest. So, its good that one of your five creditors has defaulted quickly and you just need to keep an eye on the others. Six months is around the maximum I would give a creditor time to default -then if they've not done so you'll need to hassle them.

UncannyScot

Hi
A post was made in diaries and I thought it may be better if you folks here knew about it...
https://forums.moneysavingexpert.com/showthread.php?t=5881310

Hope someone can help the OP

sammyjo1979

So I have spoken to SC today who have given me the option of a DMP or an IVA. The DMP would take me 12 years to pay off but i'm okay with this as it is my debt.

Could someone advise me though, does this mean that my credit file will be terrible that whole time? I've seen conflicting info about it. Some people are saying it will drop off my file after 6 years even though the debt is still outstanding/being paid and then i've also seen that it will stay on for the 12 years i'm paying it off for plus an additional 6!

Would anyone be able to advise?

Thank you

Willing2Learn

sammyjo1979 wrote: »

So I have spoken to SC today who have given me the option of a DMP or an IVA. The DMP would take me 12 years to pay off but i'm okay with this as it is my debt.

Could someone advise me though, does this mean that my credit file will be terrible that whole time? I've seen conflicting info about it. Some people are saying it will drop off my file after 6 years even though the debt is still outstanding/being paid and then i've also seen that it will stay on for the 12 years i'm paying it off for plus an additional 6!

Would anyone be able to advise?

Thank you

Hi,

You want your creditors to mark the accounts as defaulted, so that the debts drop off after six years, even though you are still paying the debts down. You can ask them to do this. See the thread linked below for guidance:
Punished for DMP

If they mark the debts as AP (Arrangement to Pay), then the debt will stay on there for 12 years, until the account is settled.