DMP mutual support thread part 13 !!

Splatfoot

EmergencyNurse wrote: »

General question to all. Whilst being on a DMP and coming to the end of a fixed rate mortgage term, how did the DMP affect your ability to get a decent new fixed rate deal with the same provider? Did your mortgage payments increase significantly?

We are on a DMP and I was worried about this too. Two of our debts are also with the bank that provides our mortgage. However, after stalling, worrying that I would open a can of worms, I just did it online. I didn't have to speak to anyone, got a fixed deal £40 cheaper than we were paying. No problems.

Marble030509

Evening guys

Preparing to send the letters off to our creditors to tell them our intention to start a DMP with StepChange in September.

Just wondering if somebody could read through the sample letter below just to check it's is ok to send?

Account No:

Dear Sir/Madam

As you are aware i am in severe financial difficulty, and will soon be entering into a debt management plan, after taking advice from StepChange Debt Charity. My payments to my creditors will be starting in September of this year. Until this time i will not be making any payments.

I would appreciate it if you could hold action on the above account until September until my payments start. Also, if you are adding interest or other charges to the account, I would be grateful if you would freeze these during this period so that my debt does not get any bigger.

StepChange Debt Charity and myself will be in contact with you again with the monthly payment amount i intend to pay you closer to the time of my debt management plan commencing.

I have included my StepChange Debt Charity reference number above for your records.

I look forward to hearing from you.

Yours faithfully

Also we received a letter from Capital One asking for a letter of authority from us so that they can deal with StepChange. Do we send this back or just send it back near to September?

Cheers guys, have a great evening.

Suseka97

Marble030509 wrote: »

Evening guys
Preparing to send the letters off to our creditors to tell them our intention to start a DMP with StepChange in September.
Just wondering if somebody could read through the sample letter below just to check it's is ok to send?
Account No:
........... I would appreciate it if you could hold action on the above account until September until my payments start. Also, if you are adding interest or other charges to the account, I would be grateful if you would freeze these during this period so that my debt does not get any bigger.

Also we received a letter from Capital One asking for a letter of authority from us so that they can deal with StepChange. Do we send this back or just send it back near to September?

Out of interest.. what action are you wanting them to hold on? You want them to move your account into their collections activity so that you can start get the default clock ticking. What you don't want them to do is just put a 'hold' on your account -but want them to stop adding interest and charges.

As to the latter - I don't think it matters really. They need your letter of authority so that they are allowed to engage with StepChange and disclose information about your account. That's all that is about.

Sounds like you're really on top of all this - so good luck

Fiona_CW

I started my DMP in August and only received my first default last week

TPCSJH

So after many months of deliberating, stretching myself to keep up with payments and stressing about debt; I have decided to finally bite the bullet and get a DMP sorted with StepChange. Looking at just over £29k in debt (which is less than I thought), have filled in my paperwork, written letters to all my creditors and have a clean bank account opened. Once my new account is ready on Friday, everything is getting posted out!

I had already made most of my debt payments this month but I am bricking it at missing payments for the first time with things, I have never missed a payment before so it is a bit daunting.

The advisor at StepChange advised that once they have been in touch, a lot of my creditors may elect to stop charging fees and interest, which would be nice, but letting all of them know now that a DMP is coming (probably starting from May) is going to make me feel better. I have also withdrawn consent to be contacted via telephone as I have serious anxiety about discussing financial matters on the phone with people, plus I can hopefully then get letters that I can file.

Despite my worries, feeling like I am getting things finally under control is great, and I have actually been having a good night's sleep again!

MK-4

TPCSJH wrote: »

So after many months of deliberating, stretching myself to keep up with payments and stressing about debt; I have decided to finally bite the bullet and get a DMP sorted with StepChange. Looking at just over £29k in debt (which is less than I thought), have filled in my paperwork, written letters to all my creditors and have a clean bank account opened. Once my new account is ready on Friday, everything is getting posted out!

I had already made most of my debt payments this month but I am bricking it at missing payments for the first time with things, I have never missed a payment before so it is a bit daunting.

The advisor at StepChange advised that once they have been in touch, a lot of my creditors may elect to stop charging fees and interest, which would be nice, but letting all of them know now that a DMP is coming (probably starting from May) is going to make me feel better. I have also withdrawn consent to be contacted via telephone as I have serious anxiety about discussing financial matters on the phone with people, plus I can hopefully then get letters that I can file.

Despite my worries, feeling like I am getting things finally under control is great, and I have actually been having a good night's sleep again!

Congratulations. I have been on for a year now and the help from this forum is outstanding. Seems we all started with the same worries, and never missed payments but always a struggle.

Now a year later I often wonder why I did not do this before - but it was only a chance stumble over this forum and all the information so kindly given by others.

CCTT83

I understand how you feel - I am starting my DMP plan soon and next month will be the first month ever that I won't be making a payment. My payment to Stepchange is due to start on 1st May.

Marble030509

Suseka97 wrote: »

Out of interest.. what action are you wanting them to hold on? You want them to move your account into their collections activity so that you can start get the default clock ticking. What you don't want them to do is just put a 'hold' on your account -but want them to stop adding interest and charges.

As to the latter - I don't think it matters really. They need your letter of authority so that they are allowed to engage with StepChange and disclose information about your account. That's all that is about.

Sounds like you're really on top of all this - so good luck

Hi Suseka

Thank you for taking the time to look over my letter and pointing the 'hold action' part for me. I copied that paragraph from another sample letter so i will just take that part out and leave the interest and charges segment in. Aside from that do you think the letter is ok to send? Any advice is greatly appreciated.

Trying to stay on top of it the best we can, it causes us a stress most evenings after work opening letters and not paying bills but we are slowly getting using to it. Our main panic is not paying anything until September, makes me feel sick that we have all this debt hanging over us and we won't be doing anything to reduce it for another 6 months. But like you have said before it is all about mindset, i just have to start thinking in that way. I'm sure it will come.

Thank you once again. You've have been a real help over the past few weeks.

Willing2Learn

Marble030509 wrote: »

… Our main panic is not paying anything until September, makes me feel sick that we have all this debt hanging over us and we won't be doing anything to reduce it for another 6 months...

Once you have the Emergency Fund in place, then you will start to see the benefit of doing things this way. It'll be such a relief having something in the pot to cover you, just in case you need it

CCTT83 wrote: »

I understand how you feel - I am starting my DMP plan soon and next month will be the first month ever that I won't be making a payment. My payment to Stepchange is due to start on 1st May.

We try to advise people to delay starting their DMP by 3-6 months, to allow you to build up an Emergency Fund. The consensus is that an EF is a vital component of any successful monthly budget.

TPCSJH

MK-4 wrote: »

Congratulations. I have been on for a year now and the help from this forum is outstanding. Seems we all started with the same worries, and never missed payments but always a struggle.

Now a year later I often wonder why I did not do this before - but it was only a chance stumble over this forum and all the information so kindly given by others.

Thank you! I'd been mulling this over since Christmas and had just become utterly fed up and miserable with robbing Peter to pay Paul, or making cutback after cutback to make minimums. Once I'd put my pride aside and asked myself just why I'd spent the last few years desperately trying to defend my already not great credit rating, I realised that giving myself the opportunity to get debt free and also end my relationship with credit was the best move.

I'm still nervous at times, but reading here and speaking to SC gives me a lot of hope for the future

I do have a question though, the SC advisor told me on the phone that my DMP would likely start in May if I post paperwork this week. Does anyone know roughly how long after sending paperwork my DMP would come into effect? I want to ensure I send my paperwork at the right time to get my April salary in, and then make my first DMP payment when I'm paid again in mid-May.