DMP mutual support thread part 13 !!

smiff_50

biker_rob wrote: »

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.

Looking forward to it! Thanks! Feel in control already.

Marble030509

Willing2Learn wrote: »

Was it from Westcott? What did it say exactly?

Hi Willing2Learn

Thank you ever so much for all your help.

It was from PayPal Credit, Sourcrates has cleared it up with the above post. It was more or less just threatening me with court action if i didn't pay before the 28th of this month. I have filed it away safely as you suggested

Thanks again!

Marble030509

sourcrates wrote: »

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.

Thanks so much Sourcrates, this has eased my mind completely. I have filed the away the letter. Thanks again for the valuable information!

Suseka97

Southampton12 wrote: »

...........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.
1. I anticipate being able to service the payments until December, should I start the DMC now or hold on until November/December?

I'm assuming you mean a DMP, yes. I'm not sure what BT deals are but as you know that by December you will no longer be able to service the debts, you should start the ball rolling now. But I would look into the answer to Q2 first.

Southampton12 wrote: »

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?

If you have annual credit checks, then somewhere in your organisations policies there should be an explanation of what that means, should your finances deteriorate. Or, can you speak confidentially with someone in your HR department? Whatever the outcome might be - it's not going to change the fact you won't be able to manage past December and will have no option other than to enter into some sort of arrangement to pay.

Southampton12 wrote: »

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?

You'll be fine. As long as you continue making your mortgage payments, which of course you will, then you would simply move onto their SVR rate. You can also easily move onto another fixed term deal with your current provider as long as you don't intend to alter the term. I've done that twice whilst in my DMP.

Southampton12 wrote: »

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)?

Most do, yes - but not all and some might need a nudge. Depending on how you intend to go forward with this, we encourage new DMPers to give themselves around 6 months of making no payments to their creditors - in that time you could find that they'll default you (which is what you want and is the point interest and charges will be frozen) and probably sell your debt onto a debt collection agency (and note the word 'collection' which means just that, it does not mean 'bailiff' who could come knocking at your door if the matter had gone to court). I'm just adding that bit for clarification for other readers. The 6 months 'grace' period allows people to save the money they would have been making to their creditors to build up an emergency fund for the future 'unknowns'.

sourcrates

Marble030509 wrote: »

Thanks so much Sourcrates, this has eased my mind completely. I have filed the away the letter. Thanks again for the valuable information!

For future reference.

In order for a company to take legal action against you, they must follow whats called the "civil procedure rules" CPR for short.

Before legal action can commence, the creditor must send you a "letter before action" LBA, this is a questionaire type document, that is designed so that you and your creditor can reach an amicable solution without the need to proceed to court, you have 30 days in which to return it to the creditor.

So if you recieve a "LBA" you know its a genuine threat of court action, if you don`t, its likley just a threat.

Following on from that, if agreement is reached, all well and good, if it isnt, then the next step is a claim form which you must fill in and return ASAP, and the case will proceed to the county court.

ditty1234

So happy one creditor has stopped adding interest, will be defaulting card and has accepted SC payments. 1 sort of done 4 to go.

live_love_laugh

Hi. Ive always read diaries and listened to peoples debt free ideas. This forum is amazing. Anyway i started a DMP with stepchange in 2017 , things going great. However we had to pay for a medical brace for my little boy (2 of them) totalling at £4000. We stupidly put this on credit cards (high interest ones) i messaged step change to add this on, but they said i have to ring to go over other options. We cant go bankrupt or have an IVA due to my husbands job.
I know how stupid it is to add more debt on so please dont tell me off lol! Anyway what im asking is should i go self managed? if i do where do i start? do i decide what i pay monthly or do the creditors? I have a small amount to pay VERY on my plan but SC wont allow me to pay it off as its unfair on other creditors , does SM give me the option of paying more to the smaller debts?

thank you and sorry its long

sourcrates

live_love_laugh wrote: »

Anyway what im asking is should i go self managed? if i do where do i start? do i decide what i pay monthly or do the creditors? I have a small amount to pay VERY on my plan but SC wont allow me to pay it off as its unfair on other creditors , does SM give me the option of paying more to the smaller debts?

thank you and sorry its long

Hi,

The clue is in the name SELF MANAGED, you decide what you pay them, you decide if you want to settle some debts, yet keep paying others, its your plan, you are in charge, no one else.

You write to all relevant creditors telling them you are going self managed, i believe a lot of folk on here use NEDCAB to generate letters etc, obtain all there reference numbers and payment details, set it up on online banking, so every month its just a few clicks to make payment.

SIMPLES.

Hope that clarifies things.

Dreamer29

Hi,

I started the process of starting a DMP with SC in February and had our first payment go out last month and all creditors have received their second payment. Santander cc and Vanquis are still charging interest and late payment charges which has added nearly £400 onto the DMP, any advice on how to get them to stop even though we sent letters to them again last month?

Second question is do SC ask to see any paperwork when you do your review? I’m going to be increasing my hours at work which will mean my tax credits will drop down but I’ll still be £100 a month better off. I would like to put the £100 towards saving for a car which we desperately need. Will I be able to use the same information that I have now or show the increased wages but increase the cost of childcare etc on my form? I know it’s dishonest but I have no other way to buy a car, the cost of bus passes and train tickets is really adding up each month.

Thank you for any advice.

Suseka97

Dreamer29 wrote: »

.......Santander cc and Vanquis are still charging interest and late payment charges which has added nearly £400 onto the DMP, any advice on how to get them to stop even though we sent letters to them again last month?

If I recall correctly, a good number of ours continued to charge interest for the first 3 months or so. Then one by one they stopped - some because they had defaulted the accounts, others because I complained. So there's no harm in you writing to Santander and Vanquis with a formal complaint about them continuing to charge interest and the fact in doing so they are not helping you to resolve your financial predicament.

Dreamer29 wrote: »

Second question is do SC ask to see any paperwork when you do your review? I’m going to be increasing my hours at work which will mean my tax credits will drop down but I’ll still be £100 a month better off. I would like to put the £100 towards saving for a car which we desperately need. Will I be able to use the same information that I have now or show the increased wages but increase the cost of childcare etc on my form? I know it’s dishonest but I have no other way to buy a car, the cost of bus passes and train tickets is really adding up each month.

I'm no longer with SC - but my reviews were done online and in the 4 years they managed, I never sent them any further paperwork to evidence my income or outgoings. I think your plan to set aside any additional funds towards a car is a sensible one and so if you have to 'flex' your I & E, so be it. I call that sensible 'budget management' and its not 'dishonest'