DMP mutual support thread part 13 !!

Suseka97

bunnymtg wrote: »

So I am considering entering into a DMP with 6 of my creditors..............
I am due a divorce settlement hopefully by September time all being well. This will clear all my debt. But in the meantime I am living beyond my means (and not becuase I am lavish!)and this month have had to pay my rent with my credit card.
I have around £40 to last me the whole month. I cant do this another month.
But my worries are, will I get defaults/late payments added to my accounts if I do a DMP?
I want to buy a house next year with my partner so its also really important that my credit file remains squeaky clean. Please no judgment, just advice on the above?
Thank you so much

People don't tend to 'judge' on this thread... so don't worry and if anyone is less than helpful we have great admins who deal with that sort of behaviour

Now to the question.
The fact of the matter is you can no longer service your debts and having to use a credit card to pay your rent is rather alarming, to say the least. Are you at all eligible for any housing support? It's a long time to wait from now until September and you also say 'all being well', so I assume that means it could be longer. So, the reality is you are going to have to come up with some sort of interim solution and as soon as you stop making your contractual payments to your creditors, it will negatively impact your credit file/s. There's really no way around that I'm afraid, unless you have someone who can help you out financially in the meantime.

Now, it isn't all that bad - if you start working on setting up a DMP you could effectively stop making any payments for the time being, or at least for a few months. We ordinarily advice newbies to look to save up for an emergency fund by making no payments for around 3 - 6 months (which also helps to push creditors towards a default). Assuming your divorce settlment comes through, it doesn't sound as if you'll need an EF because you plan to clear your debts - not that you have to do that, if you are already in a DMP.

I realise your concern is getting a mortgage with your partner - but all you'd need to do is find a mortgage broker who could help you find the best deal to suit your situation, such things do exist.

We all approach these things differently - but if it were me I'd just go with the DMP, give myself at least 6 months breathing space and then consider my options as and when the divorce settlement came through.

Willing2Learn

Marble030509 wrote: »

All of our NewDay debts have now been passed to Moorcroft, I assume we send them future correspondence from now on?

Correct

Marble030509 wrote: »

In terms of correspondence, we last sent letters out at the beginning of April stating our intention to start the DMP in September. Do you think we should write again before this time, maybe next month just to reconfirm our intentions? Or is it best just to leave it now? My only reason for asking is that some of the letters seem to be getting quite intense.

You can write, if you want to reiterate that your payments will commence on xx September. But there is no need. The letters you are getting are likely to be ones that are automatically generated. They can be safely filed away. There shouldn't be anything there to worry about.

Cem13009879

Does anyone have experience of moving/renting when in a DMP? I am currently renting and have been in the same place since before my DMP started, but I am looking to move and i am nervous about failing the credit check now I am in the DMP. I can ask my dad to be a guarantor (I'm 24) and hopefully he won't ask too many questions but I'm sooo nervous about being judged by the letting agent

Southampton12

Hi all,

I have read several pages of this thread and realise I need to take control of my debt.

I have spoke with SC and confirmed all my unsecured debt (57k: 10k loan, 2k o/d and 45k on cards) We have agreed I have £650 a month to service these debts. SC have recommend I enter into a DMC projected to last 7y!

As is stands all my cards are in BT deals and therefore I am able to make the payments, as soon as these run out (starting Dec 19) I will find things becoming increasingly difficult.

Obviously I have stopped using all the cards!

My questions:
1. I anticipate being able to service the payments until December, should I start the DMC now or hold on until November/December?
2. I work in finance and my credit is checked annually, is it inevitable that the cards will default? Has anyone in financial services had a similar situation?
3. My introductory offer on my mortgage expires in Feb 2020, can the Building Society remove my mortgage or refuse to move me into the SVR?
4. Do the card companies agree the SC plan as a matter of course? If I stick to the DMP will they stop the interest (Virgin, MBNA, Barclaycard, Tesco, HSBC and Nwide)?

I have no experience of this so apologies for the lengthy post, would like to corroborate what I am hearing from SC, as this is a massive step.

Any advice would be gratefully received.

Marble030509

Thank you so much.

I was just slightly worried with the wording in a PayPal credit letter about court proceedings but it's only been 3 months of missed payments. I guess it's automated like you say.

Thanks again

Willing2Learn

Marble030509 wrote: »

Thank you so much.

I was just slightly worried with the wording in a PayPal credit letter about court proceedings but it's only been 3 months of missed payments.

Was it from Westcott? What did it say exactly?

sourcrates

Marble030509 wrote: »

Thank you so much.

I was just slightly worried with the wording in a PayPal credit letter about court proceedings but it's only been 3 months of missed payments. I guess it's automated like you say.

Thanks again

PayPal, american company, never litigate in the UK.


I have written about this many times, but dosent hurt to repeat myself occasionally, Collections departments/Debt collectors, have a range of template letters which they work through, depending how you communicate with them.

They are specifically worded to be unclear, mis-leading, provocotive, and to some people scary, but all basically asking you to call them or some great unknown catastrophic event MAY materilalise.

They are the debt collectors first weapon of choice, they are sent for one purpose, and one purpose only, so you get in contact with them and pay whats owed, simple as that.

They mean absolutly nothing, as do their fake timescales for responding, they are all cleverly designed to undermine your train of thought, read and bin is my advice.

smiff_50

So after 4 years with SC I have closed the plan and gone self managed! Next step is sending a letter to creditors letting them know I'll be commencing a self managed DMP starting payments in September.

Thanks to all for advice and help. I'll be back for more no doubt.

sweetnothing

Hi everyone, I'm in approx 13k worth of debt and I'm starting a DMP in june. Im just excited to start paying it off and not being skint and worrying about every letter that comes through my door.

biker_rob

smiff_50 wrote: »

So after 4 years with SC I have closed the plan and gone self managed! Next step is sending a letter to creditors letting them know I'll be commencing a self managed DMP starting payments in September.

Thanks to all for advice and help. I'll be back for more no doubt.

Best thing I ever did! Went to SC initially but then used the NEDCAB website to get my DMP up and running. All self-managed.

4 months on, after all 5 creditors accepted my proposals, the plan is ticking along nicely.

I'll review it in July, send them all my updated SOA and adjust accordingly.

This forum was my saviour. I feel so empowered controlling and managing my DMP and it's largely in thanks to the amazing people on this forum.