DMP Mutual Support Thread - Part 12

Barbie61

Hi motivated
I have just had my DMP activated and wondering how long it takes before you hear from the creditors. I am so hoping they will all agree to the plan and to suspend any further interest but I don't think life is that easy somehow.
I want to feel the relief that everyone else speaks about.

Best regards
Barbara

sourcrates

Billy12345 wrote: »

Morning all

Stupid question but hey ho I'm full of them today.

When an account is defaulted (BC actually defaulted I'm excited :-)) does interest automatically stop. I owe a little under £10k to BC and they stopped and backdated interest in November but the amount I'm paying to SC isnt reflected by their balances on Noddle.

Yes it does.

Balance is frozen from the point of default, no further interest or charges can be levied unless your original agreement allows them to do so, which most consumer credit account agreements do not.

Billy12345

sourcrates wrote: »

Yes it does.

Balance is frozen from the point of default, no further interest or charges can be levied unless your original agreement allows them to do so, which most consumer credit account agreements do not.

Fantasticarooney Sourcrates, :T

I'll be writing to BC telling them to get it sorted. We are talking about £100 ish so worthy of a stamp. :beer:

Billy12345

sourcrates wrote: »

Yes it does.

Balance is frozen from the point of default, no further interest or charges can be levied unless your original agreement allows them to do so, which most consumer credit account agreements do not.

Great news thanks Sourcrates

Second daft question of the day…….:j

My DMP will take about 10 years or so to clear, I have defaults from most of my creditors which will drop off my credit file in 6 years. Between then and now my credit file is obviously trashed (and quite rightly so).

So my question is will I be able to get a mortgage through a normal mainstream lender once these defaults drop off my credit file, even though I will still be in a DMP and continuing to pay my creditors ? or will I have to wait until the end of the DMP (and a few months after that) to apply for a mortgage to give my credit file time to recover.

The reason is that we simply don’t like where we live and want to sell and move ASAP. :mad: I don’t want to sell and have the uncertainty of renting a property as we have kids and pets which really limits our options, plus the cost of renting is more than what I am paying for the mortgage so it’s really a no go.

I’m hoping the answer is that once these defaults drop off the credit file it will start to get repaired and after a few months, be repaired enough to apply for a mortgage.

I have spoken with my existing lender about either porting my mortgage product onto another property or selling and staying with them but they have said that I would almost certainly fail the mortgage application because of my credit file and whilst they are happy for me to continue paying (which I have no problems doing) they would not give me another mortgage on another property even if I were to sell mine.

Mortgage advisors too, once they heard about the DMP, weren’t interested, even SC own advisors who they refer you to said I would not be able to get a new mortgage now. :eek:

So we resigned ourselves to having to wait until the DMP was finished but, if I could apply once the defaults fell off that would save at least 4 years of living somewhere we don’t want to live.

As always advice appreciated

heavenlyharry01

Hello
Has anyone had dealings with Creation?

They keep sending the same template letters, "sorry you are in financial difficulty- please send three payslips or bank statements before we can consider your offer of payment".
I've written to them twice now stating that I'm not prepared to do that and yet they still send the same reply!
I'm thinking I'm just going to set up the £1 payment to them and wait and see if the pass it over to a DCA.

henrryyyy

I have loans with 118118 and Bamboo(mega high interest rates)
They applied the full interest to the loans at the start of the agreement.
On my statements it shows as one lump sum interest. Also on my credit files its the loan amount + total interest applied.

When I set up my DMP I had to get account details etc from creditors, bamboo and 118 both told me to quote the account number they gave and the outstanding amount, which is the original loan + the full interest(minus payments i've already made)

clearly im not getting any interest reduction/freezing from them, if my account defaults would I get an interest rebate? or as the interest was charged at the start of the loan is that pretty much what im stuck with?

sourcrates

Billy,

After the defaults have dropped off, it will be like they were never there.

A DMP is not a formal debt solution, so you don't have to declare it in a mortgage application, unless specifically asked.

motivated

Barbie61 wrote: »

Hi motivated
I have just had my DMP activated and wondering how long it takes before you hear from the creditors. I am so hoping they will all agree to the plan and to suspend any further interest but I don't think life is that easy somehow.
I want to feel the relief that everyone else speaks about.

Best regards
Barbara

Hi Barbie

I was exactly the same, I was panicking and thought the bailiffs were going to barge through my front door. You name it I thought it.

But now I have my first payment going to SC on the 1st April and I still haven't heard from Halifax regarding 2 loans. I have written to them twice now but will still carry on with my DMP regardless. They did however send me 2 texts to remind me about our payments due by the 6th. I know this is the SC payments as both texts quoted the same amounts that our DMP will be paying them.

Once I contacted our CCs through the online messaging service we had a reply back within the week acknowledging our circumstances. They did add on a late payment charge and some interest. I got straight back onto them via the messaging service and complained quoting a lot of things I learnt on here they replied within a few days saying that are happy to work with us via SC and stopped all interest and charges from now on. They even removed the interest and late payment charge. MBNA were great from the start and stopped everything straight away.

Honestly all my creditors (we have 3, but with double accounts with each) have been ok we have not had 1 phone call, honestly. If you keep them updated on your situation they should be fine. I did log into my CC accounts and change my contact preferences and removed work phone numbers though.

As the wonderful people on here told me Don't Panic !!!! It will be fine and it has been. The stress lifted straight away and the relief you speak of was there almost instantly. As soon as we accepted we needed help and contacted SC things were so much clearer. I don't worry about money anymore and we are only just starting out and feel :j. You will too.

Try not to worry about hearing from creditors. You have taken the first step and they will see you are dealing with your debt, not avoiding it.

Welcome to DMPland by the way it's a lot brighter here than in Debtland
Good luck
M

Twins

Hi everyone,

I've been quietly paying my DMP since 2011 and I've still got £17k left to pay which should be cleared in around 6 years time. I've never reduced my payments and have paid on time to the creditors. Some of my debits have moved onto DCA's.

What I want to know should I start offering F&F payments to the creditors if I have some savings built up? I don't know if this would be best or whether I should continue paying as per my DMP. I understand that if I offer F&F the accounts won't be marked as settled so may cause issues later if trying to get a mortgage etc...

Please can someone weight up the pro's and cons for me for offering F&F payments? I'm eager to try and clear this remaining debt earlier than 6 years if possible but I want to start to rebuild my credit rating again.

Thank you for the help!

Billy12345

sourcrates wrote: »

Billy,

After the defaults have dropped off, it will be like they were never there.

A DMP is not a formal debt solution, so you don't have to declare it in a mortgage application, unless specifically asked.

Thanks Sourcrates you are a legend.

Just so I'm clear, and again apologies if I'm being a bit daft.

Example, say a loan is taken out with Santander for £12k, payments made for a year and then a DMP starts, the loan is defaulted at £10k. The default falls off after six years,but there is still a balance on the loan of say £5k. what will it show on the credit file if there is still a balance ?

That might sound right after I read it about 5 times lol

:beer::beer: