DMP mutual support thread part 13 !!

Suseka97

MK-4 wrote: »

Very worried about getting a new job, due to age. The other half has the same problems and has not even been able to land menial minimum wage job, so much uncertainty at the moment.
Considering selling the house and moving to a cheaper area to pay off the remaining mortgage (4 years left) then my salary requirement can be reduced substantially.
I am seeing this as a new adventure, so not all bad.

So sorry to hear of the impending redundancy - but sometimes changes like this can be positive, so glad you are looking at your options that way.

I agree with Sourcrates in that you should stop your DMP now - making your most recent payment the last until you can assess your position, post redundancy. Hopefully you'll be able to sell your house quickly, but that might not be the case - so you need to put that DMP payment to better use for now and save it towards your future plans.

You are going to have to stop it soon anyway - so the fact you will be paid for another 3 months is neither here nor there and that time will fly by. Your creditors will understand, as will SC - so go cancel that DMP But do take a note of all of your balances and payment instructions for future reference.

Also, by 'ringfencing' I think sourcrates meant to not put your redundancy money towards to the DMP, but using it (as you plan to) towards your house sale and move is a good idea and I hope it all works out well for you.

Good luck with it.

Jambobabi

Hi all, hope you are well

I've never shared anything regarding my debts or dmp, but after reading this forum I though it would be a great idea to start talking about it!

Currently halfway through my dmp (£10k down, £11k to go) with step change. It's been one hell of a journey, but I'm starting to see the light at the end of the tunnel. After finally getting a grip of my finances I have been upping my monthly payment on a regular basis, and my 'debt free' date has come down from 2024 to Feb 2022.

I do have a question about settlement offers... every year I get a settlement offer from one or two of the companies which bought the debt. I currently owe £2,100 to Cabot Financial, and they have recently written to me asking if I could settle for £1,300. I'm in a position where I could pay this and still live comfortably. But wasn't sure if a part payment would affect my credit rating for worse in the long run?

Is it better to pay the full amount as agreed, or take a settlement offer and have the part payment recorded on your credit file?

Any insight or help would be appreciated

Many Thanks

Dandytf

One more year complete SC dmp.
Short pleasant call today agreed to add 10 pounds to payments and offered to call again in a few months.
Though dropping end date by one year was not realistic, at least I will manage to make early 2022 rather than later that year.
Hopefully I'll possibly aim for 2021 though savings from home budget are minimal for some time.

Dandytf

Forgot to mention as I have less than one year to pay small loan from likely@55 pounds per month.
There could come an opportunity to clear the <400 pounds balance during summer.
I could clear then up Sc dmp payments by another 50 pounds per payment possible then with 2021 end date.

Moneyworries1

It’s so nice to hear how people that are well into their DMPs are happy and content in the way things are going &#55357;&#56842; makes me feel more positive about the path I’m on!!

lulabelle01

Can anyone offer any advice please. I have just had a phone call from wescot who are supposed to be managing 2 of my debts (As soon as I realised who it was I hung up). Basically without boring everyone RBS told me they had passed the debts to them and I would hear from them. I’ve not heard anything and at the time I was not paying anything back to anyone. Am I best to drop them a letter and send them copies of what Rbs have agreed to and ask for them to send me info of where I should be sending my payments to? I’m at a place where I have a good emergency fund so can start paying my debts back now.

sourcrates

lulabelle01 wrote: »

Can anyone offer any advice please. I have just had a phone call from wescot who are supposed to be managing 2 of my debts (As soon as I realised who it was I hung up). Basically without boring everyone RBS told me they had passed the debts to them and I would hear from them. I’ve not heard anything and at the time I was not paying anything back to anyone. Am I best to drop them a letter and send them copies of what Rbs have agreed to and ask for them to send me info of where I should be sending my payments to? I’m at a place where I have a good emergency fund so can start paying my debts back now.

As you say, they are just managing the day to day running of the accounts, Wescot will write to you, it’s there statutory duty to do so, once you have their reference numbers payments can be set up online very easily.

lulabelle01

sourcrates wrote: »

As you say, they are just managing the day to day running of the accounts, Wescot will write to you, it’s there statutory duty to do so, once you have their reference numbers payments can be set up online very easily.

I’ve been waiting since late feb/ early March for a letter from wescot. I’m ready to start paying backing these debts back now especially since they have defaulted. I think I just went into panic because it’s the first phone call I’ve had from anyone since I wrote letters in November saying I couldn’t pay the minimums any more.

Suseka97

Jambobabi wrote: »

...........
I do have a question about settlement offers... every year I get a settlement offer from one or two of the companies which bought the debt. I currently owe £2,100 to Cabot Financial, and they have recently written to me asking if I could settle for £1,300. I'm in a position where I could pay this and still live comfortably. But wasn't sure if a part payment would affect my credit rating for worse in the long run?
Is it better to pay the full amount as agreed, or take a settlement offer and have the part payment recorded on your credit file?
Any insight or help would be appreciated
Many Thanks

I assume/hope that these debts are showing as defaulted on your credit file - and in the case of that or any other type of marker e.g. AP or AR, it doesn't make a jot of difference whether you pay the full outstanding balance or a reduced amount. The fact you are in a DMP will have impacted your credit file and the only thing that will improve it over time, is when the D's, AP's or AR's disappear off your file.

If it were me - I'd take the settlement offers when you are happy with the rate of discount and the Cabot offer is close to a 40% discount, which is good in my book.

One thing to throw out there is whether you have sent CCA requests to any of your creditors. Depending on the age of the debt, you could be lucky in that some might come back as unenforceable and if they do, well that puts the whole settlement offer ball game well and truly in your court.

To explain - 3 of my debts are currently UE and I haven't paid them a penny for over a year. They keep offering my settlement amounts and those discounts are getting bigger as time goes by.

Suseka97

lulabelle01 wrote: »

I’ve been waiting since late feb/ early March for a letter from wescot. I’m ready to start paying backing these debts back now especially since they have defaulted. I think I just went into panic because it’s the first phone call I’ve had from anyone since I wrote letters in November saying I couldn’t pay the minimums any more.

One of my debts (Hfx) was passed over to Wescott (a good few years ago) and I found them very easy to deal with. They accepted the repayment amount that was being given to Hfx at the time and accepted whatever payment was offered when I had my annual review.