DMP mutual support thread part 13 !!

Ehmdc

Maybe on the default accounts ask if they would take a lower amount to settle the debts

maggies1970

Hi ,
Just quick update. I've decided to self managing my debts. Four of my 6 creditors responded and agreed to my offer ( despite very low offers). Two: Halifax and Lookagain are ignoring my letters so far. Last 2 default, the other ones still marks my debts as a late payment. I'm waiting another 2 months and if it's still the case I will start to make only token payments.
They all stopped the interest.
So far everything seems to go very smoothly :-)
Thank all of you for this forum as it took me step by step through all setting my dmp and helping with huge stress.
Just want to encourage everyone to go self dmp- it's great feeling to be in control again :-).
I'm not sure how long should I wait before sending second letter woth my payment offer to ones who has not replied yet?
Cheers
Maggie

TuxedoCat

Moveslikeagger wrote: »

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!

Willing2Learn wrote: »

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!!!

Thanks both - I really appreciate the advice.


I haven't been able to get PayPlan to budge with my agreed payments of £295 as they say my I&E covered contingency £125 and MOT/Repairs £10 which I maybe under budgeted - as so far never had an issue with my car (registered 2015) but maybe didn't think about in months/years to come.


I told them that's great going forward but I don't have any savings right now - she said that's fine we'll delay until July and you'll have £484 by August according to your budget...not sure she has calculated correctly as my payday is 25th of the month and MOT day is by 15 Aug.


Everything you say is absolutely correct! I recently received a letter from Capital One saying they are temporarily adding payment arrangement markers to my account - I assume this is the dreaded AP people discuss on here.


I've been on no interest with Aqua for a while now, up to September and as far as I can see no such arrangement is on my credit file.


I think if I don't receive the defaults by September/October I will go self managed with token payments. Got a feeling I won't for many of them as the payments offered may be covering the minimum payment (if no interest is being added). Capital One is normally £10-12 minimum whilst they froze interest so I don't think I've done this very well at all!


Learning curve!

Suseka97

TuxedoCat wrote: »

......
I think if I don't receive the defaults by September/October I will go self managed with token payments. Got a feeling I won't for many of them as the payments offered may be covering the minimum payment (if no interest is being added). Capital One is normally £10-12 minimum whilst they froze interest so I don't think I've done this very well at all! Learning curve!

It's a shame that Payplan are not being overly helpful and if it were me I'd just tell them that you are going to defer starting your DMP until later in the year. Use the next few months to set up an EF and then go self-managed. You may well find that if your payments to any of the credit card debts meet their standard minimums, they'll start charging interest again. That's what happened to me during my DMP with Barclaycard. Admittedly after a lot of complaining they dropped the interest amount to a nominal figure - but still charged. That was the moment it dawned on me that I'd be better off handling things on my own, although admittedly it took 3 years for that lightbulb moment.

It is a learning curve for sure - but you seem to have a good sense of what to do, so good luck with it

Suseka97

maggies1970 wrote: »

........Just want to encourage everyone to go self dmp- it's great feeling to be in control again :-).
I'm not sure how long should I wait before sending second letter woth my payment offer to ones who has not replied yet? Cheers Maggie

Good to hear things are working themselves out and it sounds like you have everything in hand. As for the ones who haven't replied, I wouldn't bother writing again. Just set up the payments and carryon.

10kclark

Hi everyone, new to this forum

I was wondering if someone could clear up a few questions for me? First a bit of background info

I’m £19,000 in debt with 13 creditors of different nature and have just set up a dmp, in the very first few steps (signed contracts, cancelled direct debits etc.) I haven’t missed any payments up until now,

My questions are:

1) Are creditors likely to stop interest and fees once dmp is setup and they are received regular payments? I’ve seen a lot of people have had problems with this, do you just ride it out and eventually fees and interest will stop?

2) if a debt is sold to a debt collection agency are they likely to try and take further action or accept the dmp? (I really don’t want people knocking on the door)

3) people have mentioned receiving harassing calls and letters? What’s the best way to deal with this and does it normally stop after a while?

4) last but by no means least, I’m aware that this is an informal agreement and that worries me, I don’t want to get hounded by creditors if I’m trying my best and keeping up with my dmp payments, is IVA a better option for me? I have no sellable assets, and am not a home or car owner


Sorry for the massive haul of questions, thankyou I’m advance for any help

Cem13009879

After much through, I’ve decided I’m going to go self managed. I’ve only been with SC since September, and have made all my payment so far but I have no EF and would like some time to build one up. I’m thinking of going self managed, making token payments and then starting from September. I also have a few small depths between £100-200 which are included in my SC plan that I would like to clear quickly, leaving larger ones. I’m nervous as my anticipated end date for SC was Oct 2020 but not that date will get further and further when I decide to pay less, but I’m sure it will be fine! Fingers crossed

Lou2010

Hi All,

I took the plunge and called Stepchange yesterday and it is looking like a DMP is the route to go down.
I have gone through my income and expenditure, using a lot of the recommended amounts from Stepchange because let's face it I dont currently spend anything on stuff like haircuts, magazines etc. as I haven't had a spare penny lately.
I have £51k of debt over 14 creditors and my monthly repayment worked out at £487 and an estimated 8 years 11 months to pay off my debts.
I have worked out what I will have spare a month after all my priority Bill's, food shop, DMP payment etc. And it seems a lot. Now i know i haven't been used to any quality of life lately with no spare money which is why i need a DMP and some of this spare needs to be saved for MOT, emergencies etc.
Can anyone share what they are left with monthly and how much they are able to save etc.?

Suseka97

Firstly hello and welcome to the forum

10kclark wrote: »

,,,,,My questions are:
1) Are creditors likely to stop interest and fees once dmp is setup and they are received regular payments? I’ve seen a lot of people have had problems with this, do you just ride it out and eventually fees and interest will stop?

Some will do so pretty quickly, others take a little more time and you find some wont stop charging - period. Folks on here with debts with Very have found them to be particularly stubborn. So its hard to say really. Hopefully most, if not all, of yours will do so.

10kclark wrote: »

2) if a debt is sold to a debt collection agency are they likely to try and take further action or accept the dmp? (I really don’t want people knocking on the door)

No, that's highly unlikely. Many find that when debts are sold on to DCAs they are much easier to deal with. There's no reason why they wouldn't just continue to accept your payment plan - they can't get more out of you if you can't afford it. It's all about 'affordability' these days.

10kclark wrote: »

3) people have mentioned receiving harassing calls and letters? What’s the best way to deal with this and does it normally stop after a while?

Again this depends on individual circumstances. You shouldn't get harrassed, or certainly shouldn't accept it if you do. You will get a flurry of letters, and perhaps calls, at the outset. That's just par for the course. If any do call you tell them that all matters relating to the DMP are to be dealt with in writing from now on and that they are to remove your phone contact details from their records. If they don't do that - block them and complain.

10kclark wrote: »

4) last but by no means least, I’m aware that this is an informal agreement and that worries me, I don’t want to get hounded by creditors if I’m trying my best and keeping up with my dmp payments, is IVA a better option for me? I have no sellable assets, and am not a home or car owner

You won't get hounded by creditors if you stick to the terms of your DMP. Once things are in motion it'll just trundle along. As for an IVA - I've no experience or advice on that, but if a DMP is doable for you I presonally wouldn't pursue a more formalised route.

Good luck.

sourcrates

10kclark wrote: »

is IVA a better option for me? I have no sellable assets, and am not a home or car owner

Defenetly not an IVA, you don`t have enough debt, but have you concidered a debt relief order (DRO) ?

Look on the stepchange website, the main requirement is that you have less than £50 left at month end (not including debt repayments) this is what most people fall down on.

You say you havent even missed any payments yet, that is unusual, you are a long way off recovery action, it can take years.