DMP mutual support thread part 13 !!

sourcrates

clarehell wrote: »

Step Change have asked us to make a payment of £14k for them to work with , they have suggested they offer 40 % payments across all our debts.
does this sound achievable?

Once you hand that 14k over, you wont see it again.

There is no guarentee stepchange will be able to achive 40%, and if they cant, they may pay whats been asked for, you may end up with all the money gone, and you still oweing certain creditors, its not a situation i would be comfortable with, you have no control over proceedings at all.

Much better to engineer the situation yourself, ditch stepchange, go on reduced payments for a while, write and tell the creditors that work is slowing down, you may have to reduce your payments further, leave it a few more months, then tell them things are worsening, you are in danger of losing your job, at this point send CCA requests, find out which debts are enforcable, and which arnt.

You can take the senario as far as you like, but the point is you must make the creditors beleive that the offer you are about to make them represents the best return possible, in the circumstances.

They are under no obligation to take your offers, so you must engineer your situation to you own benefit, you must be astute and work the system to your advantage, the more points you have in your favour the better, the most important thing to remember, when you have successfully negoatiated the offers you are happy with, make sure you get everything in writing, that the money you are paying is accepted in full and final settlement of the account, and that the remaining balance will not be chased by them, or their agents.

Its such a drawn out, quite significant process, it makes much more sense to do it yourself.

survivor84

Hello,

I have made my first phone call to step change today and have decided to embark on a debt management plan. I owe 30k on credit/store cards and have been making minimum payments for years. no court action or bailiffs or anything. I have very recently left my abusive marriage so I'm desperately trying to piece our lives back together. and the first step is sorting out the financial abuse that has occured. Just looking for advice and support really as I start this journey. Looking to open a different bank account to start transfering my wages and direct debits. Any advice on good ones? Thanks

sourcrates

survivor84 wrote: »

Hello,

I have made my first phone call to step change today and have decided to embark on a debt management plan. I owe 30k on credit/store cards and have been making minimum payments for years. no court action or bailiffs or anything. I have very recently left my abusive marriage so I'm desperately trying to piece our lives back together. and the first step is sorting out the financial abuse that has occured. Just looking for advice and support really as I start this journey. Looking to open a different bank account to start transfering my wages and direct debits. Any advice on good ones? Thanks

You have had good responces already on your other thread.


Nationwide, COOP cashminder, and Lloyds basic accounts are all good choices.

Jwatson

Hello all
Just wondering if anyone can give a bit of advice regarding our current situation. We’ve been in a DMP for 9 months and our combined debt across 8 lenders now stands at about 49k. 6 of the debts are now with various collection agencies, 2 remain with the original credit card companies. We have managed to get our mortgage lender to agree to port our current mortgage to a new property, and we are going to downsize to pay off our debts.

We have now sold our house, but are currently struggling to find a house to move into. We live in a city where houses are in high demand, and although we have put offers in on a couple of properties, we keep getting pipped to the post by first-time buyers and property developers. Moving further out or to a different town isn’t possible due to work and travel complications.

We have found what we think is potentially our dream house, and in an effort to successfully purchase we are seriously considering upping our offer on it. The issue is that doing so will leave us without enough profit on the house sale to pay all of our creditors in full (as in 100% full and final payments), however I have seen lots of posts on here about negotiating reduced payments.

The house we are trying to buy needs a bit of work doing to it; it’s totally liveable, but needs a few little bits like the electrics being checked out, and we’d like to put a new bathroom in if possible, as we’ve got two young children and the current bathroom only has a shower. Also the double glazing may need replacing.

So the advice we’d like if possible is how would any of you handle the negotiations with the creditors? On paper it would look like we had just enough to pay everyone but in reality not due to house we would potentially be buying would need work. Do we go ahead with the increased offer, or should we try and find a cheaper house?

I’m really sorry for the long post but it’s a lot to explain! Any advice would be super appreciated.

Suseka97

Jwatson wrote: »

.......Just wondering if anyone can give a bit of advice regarding our current situation. We’ve been in a DMP for 9 months and our combined debt across 8 lenders now stands at about 49k. 6 of the debts are now with various collection agencies, 2 remain with the original credit card companies. We have managed to get our mortgage lender to agree to port our current mortgage to a new property, and we are going to downsize to pay off our debts.

We have found what we think is potentially our dream house, and in an effort to successfully purchase we are seriously considering upping our offer on it. The issue is that doing so will leave us without enough profit on the house sale to pay all of our creditors in full (as in 100% full and final payments), however I have seen lots of posts on here about negotiating reduced payments.

The house we are trying to buy needs a bit of work doing to it; it’s totally liveable........

So the advice we’d like if possible is how would any of you handle the negotiations with the creditors? On paper it would look like we had just enough to pay everyone but in reality not due to house we would potentially be buying would need work. Do we go ahead with the increased offer, or should we try and find a cheaper house?

I’m really sorry for the long post but it’s a lot to explain! Any advice would be super appreciated.

This type of situation really comes down to personal choice. Me - I wouldn't downsize my property just to pay off debts. However if your plan is to downsize and you have found your 'dream home' but need to up your offer - then you should do just that. Also, if the property needs work- which means you'll have less left to pay to your creditors, well so be it. Perhaps get the house move sorted first and see where you stand money-wise.

Your priority has to be the house and your family, first and foremost - then comes your creditors. If you don't have a much money left to clear all your debts, you could clear some and continue on your DMP with the others. Of course to do that you'll need to be self-managed.

As for reduced offers - I somehow doubt that'll be an option for you at this stage. In order to achieve substantial discounts people have generally sent in CCA requests (as a first step to check whether their debts are enforceable), if they are then great - that gives you leverage. Others have reduced their DMP payments down to a minimum (or tokens) for at least 6 months (often more).

Go have a read of sourcrates response to clarehell's post on this topic. F&Fs take time and patience, but worth pursuing when the time is right.

Jwatson

We are downsizing not really linked to debt we are fortunate to live in a desirable area and where we would like to move to is not as expensive so therefore we have some money left. Thanks for the advice I will find the post. I def agree family and a home should come first as that will last longer than the debt

clarehell

Thank you very much for your response and great advice, I have booked in a call with StepChange to review my budget before we agree to go ahead , I have also looked on our credit files and a few of the credit cards are actually dated before 2007 , some as far back as 2004, should I request CCA’s for these? We have also decided before we start negotiating that we will not be making the next DMP payment ( first time in over 4 years ) partly because my husband has not worked for 2 weeks as he’s been in a state and either left early due to counselling sessions or been too medicated to concentrate. With his part wage and my wages I need to ensure essentials like our mortgage and council tax and prescriptions are paid.
Hopefully this will also make our creditors realise the terrible situation we are in and they may accept our full and final offers !
Thanks again x

SkintDad87

Afternoon all

Hope your plans are all going swimmingly and the stress has been lifted, in this glorious Tuesday!

Further to previous advice, I requested to start my self managed DMP, on 1st October 2019, last payments to creditors was made April 2019. They requested to see another income and expenditure form, with my wages while training, so I obliged and sent this to them. They are still responding, saying "we are unable to hold your account until 1st October" and prompting me to seek further advice from a debt company, or to call them...by not holding my account, I assume they are going to sell it to a DRA?

On the plus side, Halifax wrote to me today, with my default notice - so that's 3 of the debts(largest ones) now defaulted!

Thanks for all help and advice

😁

SkintDad87

I know I've already mentioned about this...but just a clarification. Them saying they can't hold the account any longer, is that just a scare tactic, or will it be sold on as they don't want to deal with me? I know it takes a while before courts are involved etc, but numerous letter through the door...notice of arrears, notice of default, notice that contract is terminated...all scary words :eek:

Willing2Learn

All they are is 'scary words' that are coming from their auto-generated list of letters. It is all just a part of the process and nothing to worry about. They will just pass the accounts on to DCAs to manage or own. The only scary one you have to watch for is a Letter Before Action (LBA), but that will be ages away along the process...