DMP mutual support thread part 13 !!

DFW1979

I’ve been slowly gathering debt over the last decade plus. Spending on credit cards, transferring to 0% (thinking i’m oh so clever) and starting again.

Finally reached breaking point in April last year. 0% deals all coming to an end and nowhere else to turn. It’s the first time I’ve put down everything I owe on one page and, boy, is it scary. I looked at going down the IVA route, but delayed pulling the trigger on it as I was promised a promotion at work. Since then my income has improved, but not to the degree that I was hoping (although i have paid off around £3k of debt since then).

I had a 6 month DMP with one ccard company (Tesco) since then, but realise that was only a brief respite.

Spoken to StepChange who have recommended a DMP this time around so am moving in this direction.

Early days yet - i’ve started the process of moving my salary & priority direct debits to a new bank account and I realise that there’s a long way to go, but i’m Confident that i’ll Get through it and, in a few years, come out in a better place.

I’ve got a manageable budget sorted and will work to pay off as much of my debt as possible in as short a timeframe as I can.

Having made the decision to go for it I do feel like a weight has been lifted from my shoulders and, although I know it's going to be a long slog, I can see a light at the end of the tunnel (a tunnel that, according to Stepchange, is 20 years & 5 months long). Looking forward o getting to know some of you lovely people who have been in this position & reading through old posts on here to use as my inspiration moving forwards.

Willing2Learn

carly13 wrote: »

Evening guys, I’m currently on a DMP and have recently come into some money. How do I go about offering a partial payment to come of my creditors. Do you email/phone them with an offer or do you just ask them for a figure?
Appreciate any advice
Carly x

Hi Carly,

Have a look at the thread below:
https://forums.moneysavingexpert.com/discussion/115430/full-and-final-settlement-help-thread

Also, see the National Debtline article below:
Full and final settlement offers

It is generally recommended that you submit a CCA request to all your creditors prior to making any offers. A CCA request will confirm if your creditors have compliant paperwork.

Willing2Learn

DFW1979 wrote: »

I’ve been slowly gathering debt over the last decade plus. Spending on credit cards, transferring to 0% (thinking i’m oh so clever) and starting again.

Finally reached breaking point in April last year. 0% deals all coming to an end and nowhere else to turn. It’s the first time I’ve put down everything I owe on one page and, boy, is it scary. I looked at going down the IVA route, but delayed pulling the trigger on it as I was promised a promotion at work. Since then my income has improved, but not to the degree that I was hoping (although i have paid off around £3k of debt since then).

I had a 6 month DMP with one ccard company (Tesco) since then, but realise that was only a brief respite.

Spoken to StepChange who have recommended a DMP this time around so am moving in this direction.

Early days yet - i’ve started the process of moving my salary & priority direct debits to a new bank account and I realise that there’s a long way to go, but i’m Confident that i’ll Get through it and, in a few years, come out in a better place.

I’ve got a manageable budget sorted and will work to pay off as much of my debt as possible in as short a timeframe as I can.

Having made the decision to go for it I do feel like a weight has been lifted from my shoulders and, although I know it's going to be a long slog, I can see a light at the end of the tunnel (a tunnel that, according to Stepchange, is 20 years & 5 months long). Looking forward o getting to know some of you lovely people who have been in this position & reading through old posts on here to use as my inspiration moving forwards.

Hi,

Just wanted to say that before you start your DMP with StepChange, it is good idea to delay the start date for 3-6 months to allow you to save a reasonable Emergency Fund (for rainy days). Having an EF means that you can pay for unexpected expenses without having to dip into your lines of credit.

rebeccaday

Thank you for this thread.. Any advice please re paying off a couple of select (highest interest) debts 1st whilst still in a StepChange (SC) DMP? We are extremely blessed & have the offer of an additional /approx £1'200 /mth from family so want to accumulate this money every two months or so to pay off each debt in order of interest charges. All SC keep saying is we can't show preferential treatment to individual debts. This is alien to Martin Lewis advice that all high interest debts must be paid off 1st. ( or am I wrong?) The others debts are not charging interest i.e stopped it.( or v low interest). Would you say it's time to ditch Step change?. But then when the other debts find out I've done this will they then all start adding on interest, leaving us in a terrible mess.? If we stay with SC then it will be for another 2.5 yrs in debt . if we take it back off SC and pay off debts every 2 months or so as and when we receive extra money from family ..hopefully only a year...IF they don't all add interest back on !...Main aim debt free in 1 yr to apply for a new mortgage when we wish to move house. ( or do we have to wait years even after debt free to even be considered for a new mortgage? questions questions!!

Many thanks Guys & gals.:j

sourcrates

rebeccaday wrote: »

Thank you for this thread.. Any advice please re paying off a couple of select (highest interest) debts 1st whilst still in a StepChange (SC) DMP? We are extremely blessed & have the offer of an additional /approx £1'200 /mth from family so want to accumulate this money every two months or so to pay off each debt in order of interest charges. All SC keep saying is we can't show preferential treatment to individual debts. This is alien to Martin Lewis advice that all high interest debts must be paid off 1st. ( or am I wrong?) The others debts are not charging interest i.e stopped it.( or v low interest). Would you say it's time to ditch Step change?. But then when the other debts find out I've done this will they then all start adding on interest, leaving us in a terrible mess.? If we stay with SC then it will be for another 2.5 yrs in debt . if we take it back off SC and pay off debts every 2 months or so as and when we receive extra money from family ..hopefully only a year...IF they don't all add interest back on !...Main aim debt free in 1 yr to apply for a new mortgage when we wish to move house. ( or do we have to wait years even after debt free to even be considered for a new mortgage? questions questions!!

Many thanks Guys & gals.:j

You can either stay as you are, settle debts individually yourself, and then just tell stepchange to remove them from the arrangement, or you can go self managed, and organise it all yourself.


Try the former first, if you have problems, then resort to the latter.

Palpitations

Thank you for this it’s such a relief to have advice and reassurance from this forum! 🙏

Suseka97

rebeccaday wrote: »

........All SC keep saying is we can't show preferential treatment to individual debts. The others debts are not charging interest i.e stopped it.( or v low interest). But then when the other debts find out I've done this will they then all start adding on interest, leaving us in a terrible mess.? Main aim debt free in 1 yr to apply for a new mortgage when we wish to move house. ( or do we have to wait years even after debt free to even be considered for a new mortgage? questions questions!! Many thanks Guys & gals.:j

To follow on from Sourcrates - irrespective of whether you stay with SC or go self-managed, I very much doubt your creditors or DCAs have the time or even interest to check your credit file. That would be the only place they would see changes in your debt balances. Of course if you stay with SC what they will see is that their monthly payment increases as your payment would be spread across fewer debts -so that's a good thing.

As to the mortgage question - if you have defaults on your credit file, which I suspect you have, then you will be best advised to speak to a mortgage broker, when the time comes, who will have access to and knowledge of providers who are prepared to lend to people with a poor credit history. Or you would need to wait until those defaults fall off your file, which is 6 years from the date they were registered.

[Deleted User]

Just yet another query which isn't totally a DMP issue:o. The debt in dispute was part of my DMP and I hope anyone who has had similar problems, albeit with different creditors, may be able to offer some help. I am going round in circles and can see no way out:eek:


I settled one of my DMP debts in full as it was a small debt and it was enforceable. I didn't think a F&F would be accepted so didn't bother with that one.


This debt was never defaulted at all and will be showing on my credit file for the next 4 years. If the default had happened in line with all my other DMP debts it would fall off this year. I had received several 'notice of default' threat letters for a few months when Santander held the debt. They then sold it on to New Day without the default ever taking place. It was New Day I settled it with.


I'm trying to get a default registered and defaulted to 2013 but neither Santander nor New Day will take responsibility. They each just keep referring me back to each other:mad:.


Do any of you knowledgeable and lovely people have any advice on what I can do next please?

Willing2Learn

Hi carbootcrazy,

You can ask Santander to default you, backdated to when you were 3-6 months in arrears. There is ICO guidance. Because it is only guidance, Santander are not compelled to do this. But they do have to have due regard to the guidelines.

See the thread linked below:
https://forums.moneysavingexpert.com/discussion/5598629/punished-for-dmp

Puzzcat

carbootcrazy wrote: »

Just yet another query which isn't totally a DMP issue:o. The debt in dispute was part of my DMP and I hope anyone who has had similar problems, albeit with different creditors, may be able to offer some help. I am going round in circles and can see no way out:eek:


I settled one of my DMP debts in full as it was a small debt and it was enforceable. I didn't think a F&F would be accepted so didn't bother with that one.


This debt was never defaulted at all and will be showing on my credit file for the next 4 years. If the default had happened in line with all my other DMP debts it would fall off this year. I had received several 'notice of default' threat letters for a few months when Santander held the debt. They then sold it on to New Day without the default ever taking place. It was New Day I settled it with.


I'm trying to get a default registered and defaulted to 2013 but neither Santander nor New Day will take responsibility. They each just keep referring me back to each other:mad:.


Do any of you knowledgeable and lovely people have any advice on what I can do next please?

Hi cbc,
You know my fight with creation/lowells..they still won't default me ....pesky creditors/dca...
If you haven't you could try a complaint to the fos...
Puzz