DMP Mutual Support Thread - Part 12

sourcrates

Silver1982 wrote: »

Hi this is my first ever post. Thinking of doing a dmp with sc or pp but big issue I have is my wage is masiffley variable because commission based and small basic. Ie one year could earn 20k more then the last or vise versa. One month come out with 2k one with 4k then one with 1.5. Any one else similar situation. Or any advice for who to use ?total debt is a lot 90 plus. I'm worried that disposable income would would worked out on average over 12 months then I have a couple of bad months and it all goes wrong. ??

Hi,

Presuming you have discounted bankruptcy as an option, then my way to tackle this would be with a self managed plan.

As your income is variable you can agree regular payments with your creditors, which would be affordable taking your basic wage into account, then as and when i had some commission based earnings, i would attempt to settle accounts with full and final offers.

Thats the beauty of self managed, you can run it more or less as you please, it keeps you in control, and is a very rewarding, and interesting way to deal with your debts.

As your wage is partly commission based, i assume you are a good negotiator ?

That may be helpful to you if you choose this route.

Silver1982

Is there merit in using step change first and then going self managed ?

sourcrates

Silver1982 wrote: »

Is there merit in using step change first and then going self managed ?

Yes there is, although as you say, it may be difficult for them to determine payments due to your fluctuating income.

No harm in trying though.

Silver1982

One of my worries with a dmp is when my rate diminishes on my mortgage and goes to the standard rate. Will my bank not offer me the deal rates if I have defaults ? Or since I'm already with them will it make no difference ?

Lots of advice saying change bank account but my account is a joint one and I don't want it to default it as it will damage the wife's credit. We have a 4 k over draft but most months clear it then go back in it. Also bank account is mortgage provider so want to keep them on side. I have a cc with them tho 6k.

All debts are with major cards (mbna bc hsbc RBS )

Really scared that interest charges won't get frozen as at the moment all balances are a fixed apr for life of balance (4.9 or 6.9) but if I miss a payment all will revert to 18 -20 apr which would create a lot extra debt. Total is 90 plus so would be over £1000 a month in interest and my hope is the payment for all of it to be around £750 -£800.

Ps I can't risk iva as I work in finance and if I moved job iva would but a killer.

I struggle to think about anything else these days and it ruining my life.
To top it all my wife doesn't know 😥

sourcrates

Hi Silver,

I can see your dilemma here, and its one many of us have had to face in the past, first of all, you must get your wife on board with this, there are no two ways about it, the very fact you are posting on here tells me you realize things must change, so you must tell your other half.

Now any kind of debt management is going to affect you, your credit file will suffer, and you have to learn to live without credit, i`ve done it, many people on here are doing it right now, but you have to look at your finances in a different way, you leave the standard financial world behind, and enter into unfamiliar territory, defaulting on your accounts has got to be accepted as something that "will happen", so you need to prepare for this change.

If you want to keep your existing bank account, you need to pay off the OD first, do this at the expense of other credit payments, you mention a credit card with the same bank, that can be included in the DMP, but be aware, any money in the current account can be taken by right of set off, by the bank, to repay what you owe on the credit card, hence why its wise to open a new account, with a bank with whom you have no debt.

You have quite a complex situation, i have already suggested self management, which i think would be the way to go for you, i would run your situation by one of the debt charities, see what they say.

Keezing

Silver1982 wrote: »

One of my worries with a dmp is when my rate diminishes on my mortgage and goes to the standard rate. Will my bank not offer me the deal rates if I have defaults ? Or since I'm already with them will it make no difference ?

Most banks offer existing customers retention rates, allowing you to re-fix your mortgage with them on a new deal. No credit checks are involved.

The rates you are offered may not be as good as the rates you could obtain by remortgaging to a new lender, but at least you won't be locked into the SVR.

Keezing

Creation are proving to be a big problem for me with regards to my DMP.

The refused to accept my offer of repayment without seeing payslips and bank statements, so I sent them.

They then reinstated interest and charges because they claim I didn't send my payslips, even though I have evidence of delivery.

So I sent them again. Again they signed for the letter, but claim they did not receive the payslips.

So they asked me to send everything by email. I did, but they claim to have never received the email despite sending me an email acknowledgment.

They sent me a default notice but never defaulted me, so charges continue to pile on.

They text me twice a day and call me once a day, and every time they ask me to send evidence of my income. I have done 4 times.

I have sent 2 formal complaints. One was ignored despite them signing for it, and the other one they responded by sending me copies of their income and expenditure forms. Sigh.

I'm desperate for them to pass the debt to a debt collector so I can communicate with someone competent but they don't seem to be in any hurry and that have been litigious recently according to posts on other forums.

Part of me wants them to take me to court so the court can set the repayments at what I have offered, but I don't fancy a charging order.

sourcrates

Keezing, they won't take you to court, they will faff about saying this and that, they may pass it to a debt collector, but eventually, they will sell it on.

heavenlyharry01

Keezing - I have two debts with Creation. Theyvre terrible! Although we haven't had quite the experience you have had, they are pretty useless.
We ignored them in the end, refused to send payslips and bank statements. Finally they have passed one to a debt collector, they other...who knows!
Currently we are paying nothing towards them!


I have a question regarding NRAM. We have a old NR together mortgage, which was part mortgage and part unsecured loan.
We currently are on an arrangement to pay with NRAM for the loan side, and I recently offered a low full and final settlement.
They have refused it, with no counter offer.
They have also refused to default, as its "not their policy". I've put in a complaint. As the lady told me over the phone that they want to work with us, but refusing to default and refusing the settlement is clearly not working with us.
Should we stop paying for a while to force a default?
Anyone have any NRAM experience and getting a default?

unicorndeva

heavenlyharry01 wrote: »

I have a question regarding NRAM. We have a old NR together mortgage, which was part mortgage and part unsecured loan.
We currently are on an arrangement to pay with NRAM for the loan side, and I recently offered a low full and final settlement.
They have refused it, with no counter offer.
They have also refused to default, as its "not their policy". I've put in a complaint. As the lady told me over the phone that they want to work with us, but refusing to default and refusing the settlement is clearly not working with us.
Should we stop paying for a while to force a default?
Anyone have any NRAM experience and getting a default?

Have you requested a CCA from them? We requested one for our old NR personal loan and were told they are unable to supply one! We won't be paying them another penny!