DMP mutual support thread part 13 !!

Sylvester6

Hi Emmajayne, read your post before bed and just wanted to reply as I can remember the sleepless nights all too well and the encouragement and support of the people on this post really helped. We have been on a DMP for 3 years now starting with a massive £57000 worth of debt and it was the best thing we have ever done. Hang in there and things will settle down. I remember too feeling so ashamed about the amount of debt we had and overwhelmed by how the creditors were going to deal with it but I can honestly say it has all been fine. Yes you will get defaults and your credit score will be bad but like you said it would be anyway. My credit rating hasn't really been an issue for us as although I'm in my early 40s too, our mortgage is nearly paid off and I never want to see a credit card or loan again!! I am sure someone more knowledgeable on defaults and credit scores will be along to give advice but really things will settle down. Hope this helps a bit x

sourcrates

emmajaynewithay wrote: »

Hi All.

I started the process of getting a DMP in November after numerous sleepless nights as I realised I could no longer make payments on my £35K of loans/credit cards, and the debt was never reducing. I hadn’t missed any payments but was really depressed about never paying it off and seeing payments go up with the be FCA rules.

I felt so embarrassed as a 40 year old woman to be in that situation.

I was so scared but finally called. I have a DMP with PayPlanPlus which should see all my debt paid off in 2 years and 8 months as the majority of lenders seem to have frozen interest.

All the creditors bar one (for £1500) have accepted the arrangement and was feeling pretty good about it until I realised this is month when the default notices will this month and my credit score will be even worse than before.

This made me feel sad and ashamed all over again. Has anyone got any words of of encouragement for me? I was so sure I did the right thing getting a DMP but maybe I didn’t... although they all would have ended up in default anyway? I’m feeling very overwhelmed again.

Hi,

Yes, stop looking at your credit file, credit scores are made up numbers only you ever see, of course you did the right thing, what other options did you have ?

Forget about credit and living in the credit bubble, concentrate on getting the debt paid off, two years is nothing, lucky you, look at the total misery that debt brings and think how great it will be living debt free !!!!

Suseka97

heavenlyharry01 wrote: »

........
I’ve been scared to stop paying it due to the large balance (over £25,000) and it’s links to the mortgage.
Should I stop paying, write again or start the contractual payments in an attempt to improve our credit.
Many thanks in this somewhat unusual question.

I'm not sure why you say this unsecured loan is linked to the mortgage. Surely they are two quite separate products, just with the same lender. You could go back to them quoting the ICO guidance (although it is only that, guidance) and complain. If they are separate products, then drop them to tokens and that should hopefully get you the default.

heavenlyharry01

Thank you Suseka

They do have different account numbers (albeit only one didgit) but I guess yes they are not linked even though they were taken out together as the same product.

I’ve written quoting the guidelines before, yet I think I will do so again and pleed they default!

carly13

Hi
I’ve got an outstanding debt with Argos which Moorcroft seem to have bought, but I still get letters from argos. I want to approach with a F&G, do I approach Moorcroft?
Thank you x

Suseka97

heavenlyharry01 wrote: »

Thank you Suseka
They do have different account numbers (albeit only one didgit) but I guess yes they are not linked even though they were taken out together as the same product.
I’ve written quoting the guidelines before, yet I think I will do so again and pleed they default!

So... you took out a mortgage with them and an unsecured loan. So they are really not the same at all. Seeing as they are not playing ball with you with regards to a default and ultimately you are not getting the sort of mortgage deal you'd like - why 'dance to their tune'. Drop them to token payments for a few (several) months and see what happens. Tell them you have some unexpected expenses (boiler broke, car maintenance...whatever) and put them in the corner. They are not playing fair.... so why should you!

PennyLane2

Hi EmmaJayne

My situation is similar to yours in some ways - I too hadn’t missed any payments (so my credit score was actually pretty good) but just couldn’t keep up with payments without borrowing more. My level of debt is also similar to yours.

In the end I started a DMP which has completely ruined my credit score due to defaults and reduced payments. I have moments where I feel very low about the whole thing. Overall though we just have to be pleased we’re addressing and ultimately fixing the situation. A bad credit score won’t last forever.

I just think about the day I can finally say I am debt free and what a truly amazing day that will be!! Xx

jools1985

PennyLane2 wrote: »

Hi EmmaJayne

My situation is similar to yours in some ways - I too hadn’t missed any payments (so my credit score was actually pretty good) but just couldn’t keep up with payments without borrowing more. My level of debt is also similar to yours.

In the end I started a DMP which has completely ruined my credit score due to defaults and reduced payments. I have moments where I feel very low about the whole thing. Overall though we just have to be pleased we’re addressing and ultimately fixing the situation. A bad credit score won’t last forever.

I just think about the day I can finally say I am debt free and what a truly amazing day that will be!! Xx

I'm another one who hadn't missed any payments at all and my credit score was also OK - well it had gone from good to fair due to the high amount of unsecured debt I had. Now my score on Experian is 98 and in the lowest category. I have 3 defaults ad there will be more. I also worried about going on a DMP. Now though I don't give a hoot about my credit record. I'm only 3 months into an almost 6 year plan, but I have paid off more in the 3 months than I did in the previous year before that. This is because I no longer pay interest and I'm not in the vicious circle of running out of money so sticking food shopping and other essentials on a credit card. Everything is budgeted for and I feel in control for the first time in years.



Onwards and upwards for us all - well maybe that should be onwards and downwards but you know what I mean.

NowInspired

I'm the same and yesterday I worked out how much we had actually paid off since starting the dmp and it was £300 in the last couple of months. Prior to that we were trying to find about £1,500 a month in minimum payments and in the end having to balance transfer each month to pay them. Then we were having to put the shopping and petrol on the credit card. Now we're back in control and have all the finances on a spreadsheet. Feeling in control is great. I've decided to keep an ongoing balance of all the debts added up, so we can see it going down each month. I think that will be quite satisfying, especially as interest is no longer being added and we are in control of how much we are paying to each of them.

Whatamidoinghere

Hi I'm also new to this. My dmp is underway via SC and 2nd payment is about due. I couldn't believe I had got in this mess £40000 I felt sick couldn't sleep, exactly like everyone else on here I couldn't see any way out. I thought of just running away but I didn't have the guts or the money. After reading this forum pages I went for it and contacted SC they were brilliant and I now feel all is not lost. I've got 8/9years to go but at least I'm going in the right direction. Thank you to all who blog I couldn't have done it without you.