DMP mutual support thread part 13 !!

ScottishGuy1122

Thanks for tour reply. I am calling them tomorrow on my day off to explain everything. What do you think my chances are that they will cancel my DMP, I have taken about 12 extra payday loans totally about 1800 or so, my previous debts were about £20k and I was paying £408 a month, I have change office at work so now save another £100 a month I could easily add, this would mean my payments to my existing contractors would not be affected. I'm just worried that they won't allow me to do it as I took extra debt and that would put me at about 20 different lines of credit

Suseka97

Adamthom85 wrote: »

Thanks for tour reply. I am calling them tomorrow on my day off to explain everything. What do you think my chances are that they will cancel my DMP, I have taken about 12 extra payday loans totally about 1800 or so, my previous debts were about £20k and I was paying £408 a month, I have change office at work so now save another £100 a month I could easily add, this would mean my payments to my existing contractors would not be affected. I'm just worried that they won't allow me to do it as I took extra debt and that would put me at about 20 different lines of credit

SC are there to help people and whilst you may have gone off track, and they may not be overly happy with that, you should hopefully be able to start again. You do, however, need to address the route cause and be determined not to wander down the need for credit route again - only you can make that happen (with the right support of course).

If SC were to cancel your DMP (and I hope that won't happen) then you could approach Payplan (similar to SC) or use NEDCAB resources to self-manage a DMP. So there are solutions out there to help you regain control.

Good luck.

TuxedoCat

I hit rock bottom recently - I have contacted Step Change many times in the past 2.5 years but because I was able to make my CC payments (albeit the minimum with high interest) and had never missed a loan repayment I didn’t want to throw away this illusion of creditworthiness.

I’ve now found I can’t do it anymore and maybe hastily went to PayPlan. Whilst waiting for it to set up I came across the forum and have dedicated my time to reading the thread from page 1. The stuff I’ve learnt is unreal and I wish I read it beforehand.

I read about the emergency fund and I was due to start my payments on 26th June - I’ve managed to push back to July but they wouldn’t let me push to August.

My cars MOT is due in August along with my insurance renewal so I explained this to PayPlan and that’s why they’ve agreed July. Hopefully nothing is wrong then.

I feel guilty to cancel PayPlan as they’ve already contacted my creditors and the wheels are in motion. Thinking I maybe could’ve done my own but I’ll see how it goes.

Drafty - an 89.9% credit line - are refusing to freeze my daily interest until they hear from PayPlan but they sent them the document on 31st May. They transferred my balance to Credit Resource Solutions but my balance is still showing on the Drafty app and increasing daily. I emailed saying this was wrong as I could end up confused and paying them twice - they refused and denied this would happen and said they can’t stop interest until they hear from my DMC but they won’t ask for a payment. I was so stupid to take this credit line and stupid to take out the 118 loan I paid it off with!

Looking forward to being debt free.

Willing2Learn

Hi TuxedoCat and welcome to the forum


If PayPlan are not able to allow a 3-6 month delay to your DMP start date, then maybe they might consider it acceptable if you were only to make token payments for the first few months. That way, you will be sure of having enough funds for the MOT and applicable car maintenance, while still being able to put something aside as an EF.

Going to token payments may also encourage your creditors to default your accounts, which would mean no more interest!!!

Moveslikeagger

Hi Tuxedocat.

I wouldn’t pay a penny until they default you and pass your debts to collection agents. That took around 4/5 months with mine so gives you time to save some money. Also interest will stop and the Dcas are easier to deal with. I stopped paying my creditors 6 months ago. I have started making payments to wescott and moorcroft who are collecting my debts. I do not receive letters or calls anymore I just make sure I pay on the 1st of the month like I have agreed. I set up my DMP on my own and find it straightforward especially as I can pay who I want when I want!

notpropaganda73

Hi all, new to the forum.

I set up a DMP with StepChange back in January, it's been ok so far in that I feel a lot less stress and can manage the monthly payment to them, but I really wish I had found this forum and the advice given first. I have been lucky enough to receive some inheritance money now and I'm considering wiping clear a few of my debts and was wondering what folks here thought. My total outstanding debts are:

Everyday Loans - £10k
AQUA CC - £2k
First Direct OD - £445
Lloyds CC - £670
Tesco CC - £670
Capital One CC - £280
Barclaycard - £1450

I've received £4,500 so was considering clearing most of the credit cards and focussing my repayments on the Everyday Loans. When I check my credit file I only see 3 defaults on there at the moment - Barclaycard, Tesco and Capital One. Should I use this money to clear as much of the non-defaulted debts as I can?

However having read about Emergency Funds I'm wondering if I shouldn't be so hasty to use this money in this way. StepChange have been helpful but have very much been saying it's up to me. Any advice appreciated.

Willing2Learn

Hi notpropaganda73 and welcome to the forum

If it were me, I would focus the settlements on the accounts that have been defaulted and also passed to a DCA.

The remaining funds would go into a savings account as my Emergency Fund.

notpropaganda73

Hi - thanks a mill for the response.

StepChange have said that if I clear only some debts, it would be seen as preferential treatment and the remaining creditors may take further action to recover the debt. They've also suggested attempting a full and final settlement with my current lump sum however I really don't think the creditors would agree to this.

It's a bit difficult to get my head round at the moment. None of the debts have been passed to DCA's as yet, it's still very early doors for my DMP and while a few accounts are showing as defaulted now I am thinking that I could get back into some sort of manageable situation.

It's a nice situation to be in I suppose, worrying how best to clear down debts rather than where I found myself a few short months ago!

Willing2Learn

Since you have three accounts that have defaulted, that represents three accounts where you have broken your original credit agreement. A defaulted account remains on your credit files for six years from the date of default and is considered pretty toxic data. Even if you fully cleared all the accounts today, the toxic data would still be marked on your credit files for the full six years.

A creditor who has not defaulted the account will not accept any reduced settlement offer. Why would they? After all, the credit agreement still stands and they are earning interest and fees!

How have the other accounts been marked on your credit files?
Are you still paying interest on your Everyday Loans account? (What is your interest rate APR).

ScottishGuy1122

Just a little update. I have spoken to SC today and explained everything and they couldn't have been more helpful. They are going to add all my new debts onto the plan for me. They did say if it happens again they will cancel the plan so I need to make sure I make this work.

Thanks to those who answered my questions, this has been a huge relief