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DMP Mutual Support Thread - Part 12
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Dave -you are thinking right about this. Save up a buffer fund while they get around to freezing interest and passing you account to a collector. With 18k debt, how much are you going to be paying per month?0
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Hi,
My self-managed DMP is getting on track now apart from a few niggles by Santander. I have an account with them for a loan and credit card- originally when I was going to do a DMP through Stepchange they agreed to that payment. Since then I decided to go self-managed and wrote to them in April using the NEDCAB template- I received generic letters about my account being in arrears. I wrote to them again a week ago enclosing a copy of my April letter and yesterday received a letter saying to phone them- I stated that I want all my communication in writing. If I ign0 -
Hi,
My self-managed DMP is getting on track now apart from a few niggles by Santander. I have an account with them for a loan and credit card- originally when I was going to do a DMP through Stepchange they agreed to that payment. Since then I decided to go self-managed and wrote to them in April using the NEDCAB template- I received generic letters about my account being in arrears. I wrote to them again a week ago enclosing a copy of my April letter and yesterday received a letter saying to phone them- I stated that I want all my communication in writing. If I ignore these letters asking me to phone them do you think my accounts will get defaulted and passed on to a DRA?
Also I had 2 accounts with Three- they are showing as closed and settled on my credit file yet I received letters from a DRA asking me to arrange payment- do I need to do this due to the status of these accounts?
Thanks0 -
Debtfreehopeful wrote: »Hi,
My self-managed DMP is getting on track now apart from a few niggles by Santander. I have an account with them for a loan and credit card- originally when I was going to do a DMP through Stepchange they agreed to that payment. Since then I decided to go self-managed and wrote to them in April using the NEDCAB template- I received generic letters about my account being in arrears. I wrote to them again a week ago enclosing a copy of my April letter and yesterday received a letter saying to phone them- I stated that I want all my communication in writing. If I ignore these letters asking me to phone them do you think my accounts will get defaulted and passed on to a DRA?
Also I had 2 accounts with Three- they are showing as closed and settled on my credit file yet I received letters from a DRA asking me to arrange payment- do I need to do this due to the status of these accounts?
Thanks
Hi DFH
On the first question, yes.
On the second, it may by that those letters are from a debt buyer (like Lowell or Cabot), and that is why your file shows settled to the original creditor. If so, they need to be included in your dmp.0 -
Billy12345 wrote: »Quick question all
When starting DMP with SC they say, where loans are concerned, to multiply your monthly payment by the number of months left on your loan and you will have the magic figure for the DMP amount (I think :undecided).
So doing that gives xxxxx figure. My loan has defaulted at yyyyyyy figure which is invariably less than xxxxxx figure :j:j. I'm sure the default is the exact amount owed as they cant add any more interest or charges (....again I think) if so do I need to update SC for payments.
If this is the case is reduces my balance by about £3,000 which is not to be sniffed at. :T
Billy12345
Morning all
I know there are lots of posts and sometimes some get missed
Can someone clarify for me that once an account is defaulted no other charges such as interest etc can be added to the account, if thats the case it drops my total by about £3,000 from what I originally thought.
Ta muchly0 -
Billy12345 wrote: »Morning all
I know there are lots of posts and sometimes some get missed
Can someone clarify for me that once an account is defaulted no other charges such as interest etc can be added to the account, if thats the case it drops my total by about £3,000 from what I originally thought.
Ta muchly
Hi Billy,
I believe that creditors do stop interest and charges once an account has been defaulted and certainly if they have been passed to a DCA.
I am sure someone with a bit more knowledge will pop along soon and confirm this for you.
Take care,
BDFSH x0 -
DaveTheTwat wrote: »When I did the StepChange calculator, it came out at around £300 p/m, but that was before reading this thread and I think I would be pushed to afford that. My car is 20 years old and I didn't factor in much to maintain that, so when I do the budget again, a lot more would be put in that category. Also, I need to put more in other categories as they were lowball figures to try and pay it off quicker. I would rather be in debt slightly longer though and not struggle so much.
That's the beauty of a self-DMP. You are in control.
If you go below £300, that takes you over 5 years. But you may be able to save on the side and do full & finals somewhere down the line.0 -
DaveTheTwat wrote: »When I did the StepChange calculator, it came out at around £300 p/m, but that was before reading this thread and I think I would be pushed to afford that. My car is 20 years old and I didn't factor in much to maintain that, so when I do the budget again, a lot more would be put in that category. Also, I need to put more in other categories as they were lowball figures to try and pay it off quicker. I would rather be in debt slightly longer though and not struggle so much.
Good thinking, Dave:T. Welcome to the thread. Keep posting and asking any questions you need an answer to, it can all be pretty confusing at the start.
I went about starting my DMP in a stupid way, wanting to get the debts paid off in the shortest possible time. I hadn't discovered this wonderful support thread then otherwise my approach would have been more 'slow and steady';). The first year was a nightmare, I was struggling to find every last penny just to survive from payday to payday. At least pre-DMP I had access to credit, however little I had left to go at.
In your calculations factor in every eventuality so you have all bases covered. I know from bitter experience what an old car/cooker/washing machine can end up costing in repair/replacement:eek:. And don't even start me off on Vet bills!
Good Luck:beer:0 -
Hi everyone,
So I am seriously considering a DMP plan after going back and forth with the idea, my only concern is that I have a loan with progressive money and as part of the initial application I provided them with 2 references who they said they would only contact as a last resort if they couldn't get in touch with me, if I pay them token payments for a period of time until my DMP is set up and write to them informing them of this, will they contact my references, obviously I'm mortified of the situation I've got myself in and ideally don't want anybody to know!! TIA0 -
Leanneglos1 wrote: »Hi everyone,
So I am seriously considering a DMP plan after going back and forth with the idea, my only concern is that I have a loan with progressive money and as part of the initial application I provided them with 2 references who they said they would only contact as a last resort if they couldn't get in touch with me, if I pay them token payments for a period of time until my DMP is set up and write to them informing them of this, will they contact my references, obviously I'm mortified of the situation I've got myself in and ideally don't want anybody to know!! TIA
Going on a DMP does not mean you ignore your creditors, infact you should keep in touch with them, as long as you stay in contact with the lender, i can see no problem.
They are only for reference purposes yes, these people, not guarantors ?I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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