DMP Mutual Support Thread - Part 12

Time_To_Change

Sorry for all the questions everyone. Is it really as simple as writing to each creditor and explaining my situation? I would quite like to build up an emergency fund and was thinking about offering token payments for the first 2 months. I have read about this on here in another post. Is this likely to be somehing they would agree to? I feel devastated that I have to do this as I have never missed a payment on anything but I am never going to reduce the debts if I carry on as I am. I am also concerned about having debt collectors knocking at my door. Is this likely to happen if I stick to agreed monthly payments? Thanks again everybody the advice really means a lot.

Willing2Learn

Sample letter - Token payments or no offer of payment

It is unlikely that debt collectors will come to your door. Write to all your creditors, to advise that written communication is the only way you want to be communicated with. Make it clear in the letter that phone calls, texts and doorstep visits are not acceptable as you withdraw your consent to be communicated in that way.

sourcrates

Time_To_Change wrote: »

Sorry for all the questions everyone. Is it really as simple as writing to each creditor and explaining my situation? I would quite like to build up an emergency fund and was thinking about offering token payments for the first 2 months. I have read about this on here in another post. Is this likely to be somehing they would agree to? I feel devastated that I have to do this as I have never missed a payment on anything but I am never going to reduce the debts if I carry on as I am. I am also concerned about having debt collectors knocking at my door. Is this likely to happen if I stick to agreed monthly payments? Thanks again everybody the advice really means a lot.

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Two things, token payments are a waste of time, they cost more to process than the payment is worth, second, you will not be getting debt collectors knocking on your door, so forget that idea.

Yes its that simple, why wouldn't it be ?

Creditors are well used to this, you are not the first to be in this situation, it really is just a simple matter of writing to each creditor, explaining your circumstances, asking for interest to stop etc.

You will automatically get 30 days grace with no collection activity, you can extend this as long as you keep them informed of your intentions, save up an emergency fund, then, when your ready, write again with your payment offers, get there payment details, that's it, one payment to each creditor on a monthly basis.

Letters will come, you will be called on the phone, mostly all computer generated and triggered by your contractual non payment, you can just ignore them all, once DMP is set up, its normally plain sailing.

LexieLou

Time_To_Change wrote: »

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.

Welcome....

:wave:

SC seriously talked to me about an IVA or Bankruptcy, for me these routes aren't feasible as I cannot have either of these against my name and continue to work in my profession.

I chose a DMP (9 plus years to go!) as it was best for me. Your journey, your path. Do what is right for you. Everyone is here to support you.

Lots of Love and Hugs

LL xx

Time_To_Change

Thank you LexieLou it means a lot to know I can talk to people on here that understand and are in the same boat. I am going to get my letters sent out tomorrow and hopefully it will not be too bad self managing with just the 3 creditors.

Does anyone have any
experience in dealing with Tesco MBNA or Barclaycard? Just wondering how likely they are to agree to freeze interest. The last thing I want is for the interest each Month to be higher than my payments.

DMP_Tiger

Hi, I have found Barclaycard to be excellent. They haven't phoned me at all, everything has been in writing as requested. They accepted £1 per month for the first 5 months and haven't added any interest or charges.

Ditto with MBNA.

Can't help with Tesco though.......

[Deleted User]

Time_To_Change wrote: »

Does anyone have any
experience in dealing with Tesco MBNA or Barclaycard? Just wondering how likely they are to agree to freeze interest. The last thing I want is for the interest each Month to be higher than my payments.

I have no experience of Barclaycard although I gather from several posters on here that they are not the most amenable people to deal with:(

Some of my debts are with Tesco (one) and MBNA (two). As I was starting out on my DMP with Stepchange I didn't have to write to them myself asking for interest to be frozen, they did it automatically right from the start once SC had been in touch with them with my budget and proposals for payment:j.


Both these creditors sold the debts on eventually, MBNA to LINK and Tesco to Hoist/Robinson Way. No hassle from anyone ever even though I'm now self-managing. Interest has never been added again either:j

Time_To_Change

DMP_Tiger wrote: »

Hi, I have found Barclaycard to be excellent. They haven't phoned me at all, everything has been in writing as requested. They accepted £1 per month for the first 5 months and haven't added any interest or charges.

Ditto with MBNA.

Thats reassuring to know thank you. I heard barclaycard can be hard to deal with.

Can't help with Tesco though.......

carbootcrazy wrote: »

I have no experience of Barclaycard although I gather from several posters on here that they are not the most amenable people to deal with:(

Some of my debts are with Tesco (one) and MBNA (two). As I was starting out on my DMP with Stepchange I didn't have to write to them myself asking for interest to be frozen, they did it automatically right from the start once SC had been in touch with them with my budget and proposals for payment:j.


Both these creditors sold the debts on eventually, MBNA to LINK and Tesco to Hoist/Robinson Way. No hassle from anyone ever even though I'm now self-managing. Interest has never been added again either:j

Thank you for taking the time to reply. I too had heard barclaycard can be hard to deal with but the above post has at least given me a little reassurace. Do you happen to know what they do in terms of marking your credit file? I am just a bit worried that if i wanted to take some equity out of my house for final offers in 6 or 7 years that these will prevent me doing so if they are still on my credit file.

Time_To_Change

Is there anybody that would be willing to read over my letter I was going to send my creditors? I am not sure if I should mention how I got into the debt although they will be able to see from my statements. Thanks.

January2015

Time_To_Change wrote: »

Is there anybody that would be willing to read over my letter I was going to send my creditors? I am not sure if I should mention how I got into the debt although they will be able to see from my statements. Thanks.

It really doesn't matter to creditors how you got into debt. There are standard letters to send to creditors (such as National Debtline). I would recommend you stick with one of those. I wouldn't go into how I got into debt - least said the better in my view.

However, if you are in debt due to mental or other health problems then there are letter templates for those scenarios as well.

I am sure someone would be willing to view your letter if you still want someone to