DMP Mutual Support Thread - Part 12

[Deleted User]

booksandbacon wrote: »

I've also so far received two default notices - these are on two of my smaller debts (£280 and £550 respectively). At first I thought 'hurrah' as that is two less letters I need to send out to formally request defaults.

B&B

Just a quick comment on default notices. It is quite common for creditors to send a 'we may default you' automatically generated letter every month for several months. This is merely scare tactics with the aim of getting people to pay. Sometimes they never get round to actually defaulting at all despite sending enough letters to wallpapaper a whole wall:eek:. When they are definitely planning to default they should give you the date when it will happen and other information about what it will mean to you. That's what all my creditors did anyway but I'll be happy to be corrected if other people have other experiences to relate.

kram

booksandbacon wrote: »

Happy Sunday DMP Squad!

I've also so far received two default notices - these are on two of my smaller debts (£280 and £550 respectively). At first I thought 'hurrah' as that is two less letters I need to send out to formally request defaults.

B&B

It's also worth checking mse credit club or noddle to see if the defaults have actually been applied as like Carbootcrazy says they send out loads of letters saying they have when they actually have'nt.

lulabelle01

I’ve got as far as setting up a clean bank account I must waiting for the info to come through.

My grandparents are giving me some money shortly (£1000) my question in do I use it to pay off 2 catalogues (I owe about £800) or do I put the £800 onto one of the cards so everything is on them or half cards, half use this money?

Also if I’m going the dmp route how will this affect my ability to rent a House or room should the worst happen with my marriage?

Suseka97

lulabelle01 wrote: »

I’ve got as far as setting up a clean bank account I must waiting for the info to come through.

My grandparents are giving me some money shortly (£1000) my question in do I use it to pay off 2 catalogues (I owe about £800) or do I put the £800 onto one of the cards so everything is on them or half cards, half use this money?

Also if I’m going the dmp route how will this affect my ability to rent a House or room should the worst happen with my marriage?

Are they gifting you the money to put towards your debts? If so then its really up to you how you want to allocate it, but if they are just giving you money to help you out a bit - why not put it away towards your emergency fund.

As to renting - I don't have personal experience, but I guess it may depend on whether landlords (or their agents) carry out credit checks. I imagine some landlords don't bother and / or would simply require some sort of guarantor. Hopefully someone else will be along to advise on that particular point.

Time_To_Change

Apologies if this is posted in the wrong place this is my first post. I am currently in a situation which has left me extremely ashamed of myself and embarrassed. I have managed to rack up around 50k of debt which was mainly due to persistent gambling. Something clicked around a month ago in my head that made me realise what I was doing needs to stop and I am 100% determined and focused to sort this mess out. I have managed to get some advice on both the gambling issue and also from stepchange. I was advised that an IVA may be the best option however I don't feel that this is the right thing for me to do. I feel like I need to pay all of this back and I actually think it will help me in the long term. I currently have the following debts
Tesco loan £328 per month (made 13 payments so far)
Tesco credit card £9700
Barclaycard credit card £14000
MBNA credit card £6000
I also have a Natwest credit card which currently has a balance of £2000. I really can't afford to lose this card and include it as it is the one I use to pay work expenses on. The balance is at a low fixed rate until it is paid off. My excess mileage I receive from my expenses will allow me to pay off slightly more than the interest. My bank account and mortgage are also with Natwest.
I have worked out that I could pay around £325 a month towards these debts. I receive regular overtime and profit related bonuses but i am very reluctant to include all of this in case the overtime is not available. Would i be able to save up some of this and pay off a lump sum as I have worked out a dmp would last for around 12.5 years on those payments. I would like to go self managed but I am not sure on the exact steps I need to take. I currently have 40k equity in my house and was thinking of asking creditors to default me early on and remortgage after 7 years to settle the remaining balance (if I am able to get a mortgage). I would really appreciate some friendly advice as I have no idea if what I am doing is correct. Many Thanks.

[Deleted User]

Time_To_Change wrote: »

Apologies if this is posted in the wrong place this is my first post. I am currently in a situation which has left me extremely ashamed of myself and embarrassed. I have managed to rack up around 50k of debt which was mainly due to persistent gambling. Something clicked around a month ago in my head that made me realise what I was doing needs to stop and I am 100% determined and focused to sort this mess out. I have managed to get some advice on both the gambling issue and also from stepchange. I was advised that an IVA may be the best option however I don't feel that this is the right thing for me to do. I feel like I need to pay all of this back and I actually think it will help me in the long term. I currently have the following debts
Tesco loan £328 per month (made 13 payments so far)
Tesco credit card £9700
Barclaycard credit card £14000
MBNA credit card £6000
I also have a Natwest credit card which currently has a balance of £2000. I really can't afford to lose this card and include it as it is the one I use to pay work expenses on. The balance is at a low fixed rate until it is paid off. My excess mileage I receive from my expenses will allow me to pay off slightly more than the interest. My bank account and mortgage are also with Natwest.
I have worked out that I could pay around £325 a month towards these debts. I receive regular overtime and profit related bonuses but i am very reluctant to include all of this in case the overtime is not available. Would i be able to save up some of this and pay off a lump sum as I have worked out a dmp would last for around 12.5 years on those payments. I would like to go self managed but I am not sure on the exact steps I need to take. I currently have 40k equity in my house and was thinking of asking creditors to default me early on and remortgage after 7 years to settle the remaining balance (if I am able to get a mortgage). I would really appreciate some friendly advice as I have no idea if what I am doing is correct. Many Thanks.

Welcome to the thread, Time_To_Change:beer:. You've come to the right place for help, advice and non-judgemental support. We're all in the same boat, or have been, in one way or another. Well done on facing up to your debts. I know how hard that can be.


I'd just like to say at this early stage that if an IVA is not the way forward for you then don't do it. Maybe a DMP would be the best solution for you. I started with debts of just under £57,000:eek: in early 2013 and opted for a DMP as the best way to deal with them. I started off with Stepchange and after about 4 years decided to self-manage. I am paying these debts off on my own and I have to admit it's been a slog as I left myself very little slack in my budget but that was just my choice, wanting to be debt-free in the shortest possible time due to my advanced age:o. Lots of people on here are taking a more leisurely route through their DMP. If you read back through the thread (lots of pages and time needed to really get a feel of what people are experiencing) you'll get lots of ideas.


Someone else will be along soon with advice. Keep posting. Good Luck:beer:

Willing2Learn

Time_To_Change wrote: »

Apologies if this is posted in the wrong place this is my first post. I am currently in a situation which has left me extremely ashamed of myself and embarrassed. I have managed to rack up around 50k of debt which was mainly due to persistent gambling. Something clicked around a month ago in my head that made me realise what I was doing needs to stop and I am 100% determined and focused to sort this mess out. I have managed to get some advice on both the gambling issue and also from stepchange. I was advised that an IVA may be the best option however I don't feel that this is the right thing for me to do. I feel like I need to pay all of this back and I actually think it will help me in the long term. I currently have the following debts
Tesco loan £328 per month (made 13 payments so far)
Tesco credit card £9700
Barclaycard credit card £14000
MBNA credit card £6000
I also have a Natwest credit card which currently has a balance of £2000. I really can't afford to lose this card and include it as it is the one I use to pay work expenses on. The balance is at a low fixed rate until it is paid off. My excess mileage I receive from my expenses will allow me to pay off slightly more than the interest. My bank account and mortgage are also with Natwest.
I have worked out that I could pay around £325 a month towards these debts. I receive regular overtime and profit related bonuses but i am very reluctant to include all of this in case the overtime is not available. Would i be able to save up some of this and pay off a lump sum as I have worked out a dmp would last for around 12.5 years on those payments. I would like to go self managed but I am not sure on the exact steps I need to take.

Hi and welcome to the forum

I won't give any financial advice as there are others who are far more knowledgeable about these things than I.

I just wanted to talk about the gambling for a moment, if that's alright. It is just that some people gamble as a method to manage their emotions and I was wondering if you had explored this idea with your GP? Talking therapies can be a very use tool to address gambling problems. If you are interested, ask your GP about IAPT (Improving Access to Psychological Therapies).

As far as self-managing a DMP is concerned. I thought I would post a link that may be appropriate for your needs:
https://nedcab.cabmoney.org.uk/dmp.asp

Good luck!!

sourcrates

Time_To_Change wrote: »

I would like to go self managed but I am not sure on the exact steps I need to take.

Hi,


Welcome to the forum.


A self manged DMP is virtually the same as what you are doing now, paying your own bills on a monthly basis, the only difference is that you will be paying a lessor amount than the contracted payment would of been.

Hopefully you can get creditors to agree to stop charging interest and fees, but this is not always guaranteed, the best thing about self management is that you run the show, you can pick and choose which debts to include, and which accounts to keep open, like if you need a certain card for work purposes.


Its very simple and straight forward to set up.

Time_To_Change

Thanks so much for your reply it's so good to hear stories like this from other people. It really gives me the motivation I need. Thanks again

Time_To_Change

Sorry I am not sure how I reply to individual posts do you just copy and paste he original one? Thank you for the advice willing to learn. It all started when I had a £5000 win from my first ever deposit of £20. I can honestly say that win was the worst thing that ever happened to me as it got me hooked thinking I would win every time. I can now see how stupid I was....