DMP mutual support thread part 13 !!

Marble030509

sourcrates wrote: »

Doesn’t hurt you writing as well, token payments are a waste of time, they cost more to process than the payment is worth.

Ok that is great, thank you for clearing those questions up for me

Many thanks

lulabelle01

sourcrates wrote: »

Standard default notice, all par for the course, and of course what you are waiting for, just ignore it, no need to do anything.

Ignore it even though I’m supposed to start repaying this month?

Also my parents have mentioned putting there house into mine and my siblings names is my dmp going to cause any problems with this? I’ve not told anyone other than the people of this forum my situation and this has now got me a little worried.

John_G_Jones

lulabelle01 wrote: »

Ignore it even though I’m supposed to start repaying this month?

Also my parents have mentioned putting there house into mine and my siblings names is my dmp going to cause any problems with this? I’ve not told anyone other than the people of this forum my situation and this has now got me a little worried.

It really never makes sense to ignore it, but there are people here who take amusement from saying things like that designed to cause trouble.

I’d suggest engaging with them, politely, explaining the hardship that has stopped you paying somfar and to start paying something towards it. Tell them you intend to stick to the plan in future.

Willing2Learn

lulabelle01 wrote: »

Today I received a notice to default one of my accounts. It looks a lot more serious than any other the other letters I’ve received. The creditor agreed to my reduced payments in December but I’ve yet to start paying. Should I write back and acknowledge there letter and give them the date i’ll Start making my payments? Or do I leave it? In my original letters I said I’d start paying in 3-4 months time.

sourcrates wrote: »

Standard default notice, all par for the course, and of course what you are waiting for, just ignore it, no need to do anything.

lulabelle01 wrote: »

Ignore it even though I’m supposed to start repaying this month?

Also my parents have mentioned putting there house into mine and my siblings names is my dmp going to cause any problems with this? I’ve not told anyone other than the people of this forum my situation and this has now got me a little worried.

Yeah. As sourcrates says, you can just ignore it as a default is simply a standard part of the process. No need to be alarmed. A default is good as it means no more charges or interest.

Having the house in your name does not impact upon the DMP, as the DMP is just an informal arrangement to pay. Don't worry.


Ignore John G Jones. He/she is just trying to cause mischief. Don't phone them or contact your creditor. Just keep doing what you are doing and everything will be fine

sourcrates

lulabelle01 wrote: »

Ignore it even though I’m supposed to start repaying this month?

Also my parents have mentioned putting there house into mine and my siblings names is my dmp going to cause any problems with this? I’ve not told anyone other than the people of this forum my situation and this has now got me a little worried.

Let me explain it like this, when someone goes into debt management, it means they cannot afford there normal contractural repayments, so in essence they are defaulting on their original agreement.

The DMP allows you to repay what you owe, but at a reduced monthly cost, now as the terms of the original agreement have been broken, the creditor can either record your account as an arrangement to pay, or they can default you, a default on your credit file is preferable to an AP marker, as that stays on your file for 6 years after you finish repayments, weras a default will be gone after 6 years, regardless of what happens.

So it’s just another move in the dance, a standard legal process the creditor must go through under the terms of the consumer credit act, it does not take your DMP into account, you do not have to do anything, you can’t repay what you owe in full, so just start your DMP as planned, ideally you want all your accounts defaulted, the sooner the default date, the sooner they will be gone from your file.

lulabelle01

Thanks for the advice guys it’s really helpful.

Is it worth me starting to make my repayments now or waiting till after the default has been registered? I’ve got a good emergency fund saved.

Thanks for all of your help so far and sorry if I’m asking questions that have already been asked.

sourcrates

lulabelle01 wrote: »

Thanks for the advice guys it’s really helpful.

Is it worth me starting to make my repayments now or waiting till after the default has been registered? I’ve got a good emergency fund saved.

Thanks for all of your help so far and sorry if I’m asking questions that have already been asked.

You want to avoid the dreaded AP markers at all costs, I would let it all default first before i started payments, that way you know for sure that 6 years from that default date, your credit files will clear again, no matter what happens.


In a few months time you`ll look back and wonder what all the fuss was about defaults, once your commited to debt management, the usual rules dont apply anymore, and you have to get used to working within different peramiters, where bad is good, and vice versa, it can take some getting used to, but there are a lot of people who are going through, or have been through, the same thing as you, lots of them come back to this thread to offer help and guidence, thats what this particular thread is all about.

Marble030509

Evening guys

Just a couple of other questions i have thought of since my original post on Friday.

We popped the holding letters into the post box today to get the ball moving. We have 21 creditors and the only one we had problems getting address details for were PayPal Credit. Does anybody happen to know the address, i'm not sure we even have an account number as the PayPal Credit section of PayPal is very vague.

We have the DMP forms from StepChange but need to save an emergency fund. We plan on doing this for 6 months in order to get a decent sized fund behind us as we currently have no savings whatsoever. Now we have sent the holding letters would we need to make sure we send letters again before 30 days have passed? Also i am a bit confused on the wording we should be using. Do i simply tell them that we will be starting a DMP in August and they will receive no payment until then?

This is another thing i am really struggling with. The first credit card bill is due tomorrow and it will be the first payment we have missed the whole time we have been in debt. I know it has to be done to get out of this mess but it somehow doesn't feel right. Guilt that we got in this situation i guess.

Thanks for listening guys.

Have a top week.

Boris81

Well my brain is doing overtime on all these questions I’ve got so where better to ask.

I entered into a DMP in January and have AP markers on my account.

I’m finally getting out of the mental black hole I’ve been with this debt and checked my credit file and noticed ive two accounts which have been open a very long time. One is circa 2007 the other is 2011. The rest are fairly recent but I’m thinking of applying for my CCA on all.

I’m also in the process of reclaiming two payday loans though one is with wonga (be lucky to see much of that)

I’m also fortunate enough that overtime should pick up again later in the year so I can start with F&F to my creditors on the more recent lower value debts.

My question is if two of the creditors can not provide my CCA I presume Stepchange will want me to keep paying them. However if I went self managed would I just use the Pro Rata method and transfer the amount paid. I’m also wary as I’m hoping to get an increase so will need to declare this later.

Or would it be better to look at partial settlement rather then AP/ default on my credit file in several years.

Debts are around 24k across 8 creditors.

Thank you in advance

Whatamidoinghere

Hi all, well I have just paid my second payment to SC and am feeling less nervous and scared than I was when I started my DMP in January. I have spoken to a couple of my creditors to advise them of my payment date as a few had the start of the month when I pay SC and I didn't want more charges. The people on the phone were really nice and supportive which made me feel better. Anyway I have received 3 from my 6 creditors a notice to default, a couple of months ago I would have been petrified but with the support from you guys I'm feeling ok and know it's par for the course so I would like to say Thank you to you all. I'll keep reading and posting with updates. Thanks