DMP Mutual Support Thread - Part 12

January2015

Willing2Learn wrote: »

I don't agree that the question is irrelevant. You are signing a legal documents and all answers given as part of the application should be truthful. Stating an untruth has the potential to come back and bite you...hard...

I agree the question is not irrelevant. I would choose to interpret it as relating to secured debts unless it clearly specificed otherwise. That's my choice. In 99.99% of applications, it would ony come back to bite if repayments were not kept up.

Each person has to move forward with their financial life as they feel best - which is why all of us on here handle our approach to clearing debts differently. Some pay every penny, others don't and work every angle to get the lowest possible settlement, others do different things altogether.

I respect your view and understand it. I work in finance and I would still put 'no' to the question should I ever apply for another mortgage.

January2015

ploppy57 wrote: »

Thanks for that Jan, so at least no one will know we are still paying the DMP, as long as we go with a lender we have no history with. So that means we would have to change providers then as we have Lloyds mortgage and also have debts from cc'd with Lloyds. Obviously the mortgage doesn't form part of the DMP but we will still be paying the DMP in 3 years. . unless we get some good F&F's before then. So maybe if we want to get some F&F's sorted before then, the Lloyds ones would be the ones to get out of the way first.
I agree with your sentiments actually, I would also believe that it means I have never had a CCJ etc with regard to my mortgage provider....:) We have actually never ever missed a mortgage payment in the 21 years we have had the mortgage.

If you have a good mortgage history with Lloyds you could always consider approaching them for a new mortgage or perhaps to port you existing mortgage..... they may well be open to offering you a mortgage, especially as your downsizing and I guess potentially reducing your borrowing with them.

JohnnyRotten

sourcrates wrote: »

Breathing space just refers to no collection activity, nothing to do with interest or charges, they are still free to apply those.

You must write and ask for them to be stopped.

Thanks Sourcrates, I'll let my DMP get started and then tackle that. Seems like HSBC don't acknowledge the 30 days at all - they've now written to me with a 'firm reminder' and upped my minimum payment to £530 - some chance of that! One for the circular filing cabinet...

I've read all through this thread and am working my way through thread 11 - it's like learning a new language! Thanks for your help.

System

Well....just went to pick up the post and we have 2 letters from W**cot, who are handling one of our L**ds and H**fax debts. Total for the 2 of them is just over £12000.


They are asking for us to send an I&E as we have now been paying token payments for 6 months since going Self managed. They also say in the letters that they are in a position to offer us a discount, that can be paid by instalments if needed and if we do this account will be marked partially settled and we will not have to pay the rest...etc etc.
They are asking us to phone and discuss this with them. Now we originally stated in our letters to them that we would not enter into phone conversations with them and all contact must be in writing etc etc. What would you do? Shall I ring them and see what they want to offer or just send the I&E and make them a small offer of F&F and see what they come back with? I have read that they are not the best DCA's at giving good discounts and obviously if they only offer something silly like 10% off then we can't afford to settle that sort of amount quickly. Although we are building a nest egg for F&F, it isn't that big yet.

Also posting this on F&F thread in case different people read it there.

Willing2Learn

If it was me, I would only communicate in writing. The letter would reiterate that all communication must only be in writing, as you don't consent to any other form of communication. I would include in the letter a small F&F figure (say 10%). See how they respond to that!

2017spark

Hi all - hope you are all doing well.
I am currently in a period of building up an EF before starting my DMP with SC in November.
My DMP Is predicted to last 8 years, with a monthly payment of around £230.
I have been thinking about an IVA and whether this would be a better option - does anyone have any advice or experience of this? SC gave me a DMP and IVA as an option and I went with DMP.
I know the IVA would be 5 years, reducing my time paying - but does have consequences. At the moment I have no assets (company car and rented house) but one day would like to get a mortgage (still hoping!!). I currently do not work in a job that needs any kind of clearance or would be affected right now but redundancy is likely in the next few years if things carry on in the same way.
Any thoughts or advice is appreciated!!
thanks xx

Suseka97

Willing2Learn wrote: »

I don't agree that the question is irrelevant. You are signing a legal documents and all answers given as part of the application should be truthful. Stating an untruth has the potential to come back and bite you...hard...

January2015 wrote: »

I agree the question is not irrelevant. I would choose to interpret it as relating to secured debts unless it clearly specificed otherwise................I respect your view and understand it. I work in finance and I would still put 'no' to the question should I ever apply for another mortgage.

We'll have to differ - although I understand your stance on this W2L. In my view, and it is only that, in this situation the question is not 'relevant' in determining suitability for a secured loan/mortgage. Secured debts are always a priority and as such will be paid and should be based/judged on affordability at a given point in time. I agree with Jan15s perspective here and I referenced to DMPs (informal arrangements) not CCJs (a result of legal judgements).

Time_To_Change

Hi everyone. Just wondering if somebody could do firm 1 or 2 things for me please. Sourcrates (along with many others) has already been extremely helpful in explaining most of this but I just want to confirm I am understanding things correctly.
Firstly I am still struggling a little with working out my monthly income. Due to overtime and bonuses this can fluctuate a lot. While I have made some allowance for this in my budget I could in theory pay more around 6 months of the year (When we have large ongoing contractual work) but could then potentially see myself struggle in other months. My concern is when my creditors ask to see wage slips ( I am assuming I have to send these with my budget and payment offers) this may look like I am trying to hide income as my last 3 have been a lot higher than my September and October ones will be. It does make me feel a bit guilty but when applying for credit and mortgages etc they only take a percentage of this for affordability so surely this should be the same when negotiating a payment back to them? I feel like I may be over thinking this too much and that in fact the flexibility I have with overtime actually puts me in a better position to save some money. Hopefully somebody can confirm I am doing this correctly?

With regards to CCA's should i do these now or wait until they are passed on? I checked today the dates my older accounts were opened and I am guessing it is going to be a waste of time
Tesco Credit card was 2004 but I also have a loan with them from June last year so not sure if these CCA's will somehow become linked?

Barclaycard was opened in 2011 and I think it may have previously been an egg credit card that was moved over to barclaycard but not 100% sure on this.

Mbna credit card is only 3 years old so wasn't going to bother with this one either. Any thoughts on this would be great.

January2015

Time_To_Change wrote: »

Hi everyone. Just wondering if somebody could do firm 1 or 2 things for me please. Sourcrates (along with many others) has already been extremely helpful in explaining most of this but I just want to confirm I am understanding things correctly.
Firstly I am still struggling a little with working out my monthly income. Due to overtime and bonuses this can fluctuate a lot. While I have made some allowance for this in my budget I could in theory pay more around 6 months of the year (When we have large ongoing contractual work) but could then potentially see myself struggle in other months. My concern is when my creditors ask to see wage slips ( I am assuming I have to send these with my budget and payment offers) this may look like I am trying to hide income as my last 3 have been a lot higher than my September and October ones will be. It does make me feel a bit guilty but when applying for credit and mortgages etc they only take a percentage of this for affordability so surely this should be the same when negotiating a payment back to them? I feel like I may be over thinking this too much and that in fact the flexibility I have with overtime actually puts me in a better position to save some money. Hopefully somebody can confirm I am doing this correctly?

With regards to CCA's should i do these now or wait until they are passed on? I checked today the dates my older accounts were opened and I am guessing it is going to be a waste of time
Tesco Credit card was 2004 but I also have a loan with them from June last year so not sure if these CCA's will somehow become linked?

Barclaycard was opened in 2011 and I think it may have previously been an egg credit card that was moved over to barclaycard but not 100% sure on this.

Mbna credit card is only 3 years old so wasn't going to bother with this one either. Any thoughts on this would be great.

I have never sent my creditors my wage slips. Not their business. The can believe me or not... their choice. I don't send bank statements either.

Send off CCA requests asap. Don't wait because the sooner you do, the sooner you will know if any debt are unenforceable. You are entitled to this information at any time whilst there is a balance on a debt, regardless of whether you are in financial difficulties. So go on... just send off for those CCAs now

CCAs for different debts, even if with the same lender, cannot be linked. The CCA is specific to the debt you took out against that agreement.

In general accounts pre April 2007 are more likely to be unenforceable, but there have been occasions when newer accounts have been identified as unenforcable so it's worth sending CCA requests for every debt you have.

Definitely only declare your regular income and save any overtime, bonuses etc. You can use this money for emergencies, full and fina settlement offers etc.

Hope this helps.

Time_To_Change

January2015 wrote: »

I have never sent my creditors my wage slips. Not their business. The can believe me or not... their choice. I don't send bank statements either.

Send off CCA requests asap. Don't wait because the sooner you do, the sooner you will know if any debt are unenforceable. You are entitled to this information at any time whilst there is a balance on a debt, regardless of whether you are in financial difficulties. So go on... just send off for those CCAs now

CCAs for different debts, even if with the same lender, cannot be linked. The CCA is specific to the debt you took out against that agreement.

In general accounts pre April 2007 are more likely to be unenforceable, but there have been occasions when newer accounts have been identified as unenforcable so it's worth sending CCA requests for every debt you have.

Definitely only declare your regular income and save any overtime, bonuses etc. You can use this money for emergencies, full and fina settlement offers etc.

Hope this helps.

Thanks for confirming this it really helps. I think I am just about ready to take the plunge and send my letters. I am going for it on my own so just wanted to make sure I am certain of everything. I havnt mentioned in my letters that I am possibly planning to release some equity to settle my balances after 6-7 years if my credit file allows as it sounds like most will just get sold off anyway. Is leaving this out of my offer letters best? Thanks again.