Token payments...is it really ok ?

rae2820

Hi everyone , i've read through a lot of the amazing help on this forum as I will be looking to start a DMP
I could afford to pay more than £1 per month for each although I do need to set up an emergency fund....How long can I safely make TP's for ...2 months...3 months ... longer ..? :eek:

worried_jim

rae2820 wrote: »

Hi everyone , i've read through a lot of the amazing help on this forum as I will be looking to start a DMP
I could afford to pay more than £1 per month for each although I do need to set up an emergency fund....How long can I safely make TP's for ...2 months...3 months ... longer ..? :eek:

What has the DMP charity advised that you do?

rae2820

worried_jim wrote: »

What has the DMP charity advised that you do?

I haven't spoken to them as just starting out , as I'm considering doing it myself - I have used their debt remedy tool ...I have to admit the thought of speaking to anyone directly about this is something I'm avoiding
But...I guess I need too !

thanks

sourcrates

Hi,

A token payment strategy is only really suitable in two situations :

(1) A temporary measure whilst you decide on a permanent solution.

(2) or if your situation will not change and you cannot go insolvent for some reason.

All token payments do is stop a debt becoming statute barred, creditors don’t like them because it costs more to process the payment than the payment is actually worth.

If you want to save an emergency fund, just do it, as long as it takes, then start your plan.

[Deleted User]

I recommend speaking directly to someone such as Step Change and don!!!8217;t be worries d about doing so.

rae2820

sourcrates wrote: »

Hi,

A token payment strategy is only really suitable in two situations :

(1) A temporary measure whilst you decide on a permanent solution.

(2) or if your situation will not change and you cannot go insolvent for some reason.

All token payments do is stop a debt becoming statute barred, creditors don’t like them because it costs more to process the payment than the payment is actually worth.

If you want to save an emergency fund, just do it, as long as it takes, then start your plan.

Thanks I think I will go for token payments for 2 months whilst I get myself together...I really don't want to go for insolvency as I need the car to go for work and I want to try and take responsibility for a situation that ultimately I believe I can sort out

rae2820

MarkN88 wrote: »

I recommend speaking directly to someone such as Step Change and don!!!8217;t be worries d about doing so.

thanks for your encouragement...:)
Its on my list this week ! :eek:

Jon81

I made token payments of £1 per debt, through stepchange for 12 months - with absolutely zero quibble from creditors.

I’d wished I’d called them sooner if truth be told as before that I got myself deeper into trouble thinking I could dig myself out of the mess I’d created.

rae2820

Jon81 wrote: »

I made token payments of £1 per debt, through stepchange for 12 months - with absolutely zero quibble from creditors.

I’d wished I’d called them sooner if truth be told as before that I got myself deeper into trouble thinking I could dig myself out of the mess I’d created.

thank you, I think if thats one thing I'm learning is to bite the bullet and take action rather than thinking or ignoring,,, I should have done this a long time ago ,
good luck to you in all you do

Suseka97

rae2820 wrote: »

thank you, I think if thats one thing I'm learning is to bite the bullet and take action rather than thinking or ignoring,,, I should have done this a long time ago

Good for you, now you've had your LBM -it's time to take action and get the ball rolling. The sooner you do, the better you'll feel. I made token payments like you, for just around 2 months - but only because that's how long it took to get the DMP up and running. If I had my time again (and hindsight is a wonderful thing) then I would have stretched that to closer to 6 months. You need a decent emergency fund set up at the beginning - that way you're less likely to need to adjust your payment as a result of an 'unforeseen emergency' at some point. From what I've read lately it seems StepChange is okay with delayed starts.

You can send tokens, if that makes you feel better about the situation - but as Sourcrates has said, creditors don't much care for them because they cost more to process than its worth. They'll put your account on hold for 30days as a matter of course and will allow you time to get yourself sorted. The main thing is to make them aware of the situation and that you are working with a debt charity to resolve the situation.

rae2820

Suseka97 wrote: »

Good for you, now you've had your LBM -it's time to take action and get the ball rolling. The sooner you do, the better you'll feel. I made token payments like you, for just around 2 months - but only because that's how long it took to get the DMP up and running. If I had my time again (and hindsight is a wonderful thing) then I would have stretched that to closer to 6 months. You need a decent emergency fund set up at the beginning - that way you're less likely to need to adjust your payment as a result of an 'unforeseen emergency' at some point. From what I've read lately it seems StepChange is okay with delayed starts.

You can send tokens, if that makes you feel better about the situation - but as Sourcrates has said, creditors don't much care for them because they cost more to process than its worth. They'll put your account on hold for 30days as a matter of course and will allow you time to get yourself sorted. The main thing is to make them aware of the situation and that you are working with a debt charity to resolve the situation.

Thank you That LBM is I'm hoping a good thing...shame it was a slight flicker for so long !!! ...will need that emergency fund even more so as had a speeding ticket and a sizeable vets bill today ! I just hope I can hold the nerve to make token payments for 3 months...at least !:o