DMP mutual support thread part 13 !!

Suseka97

Broke_Bear wrote: »

.........I have also done the very scary think of cancelling all of my direct debits to the CC companies and will be writing my letters tomorrow, I think I will be looking to start making payments in October so will not send the forms back to SC just yet.
I have requested a CQ book from my bank so I can send token payments to creditors so I hope this comes during the week.

All good steps so far - but one thing I would suggest is to not bother with those minimal tokens. The letters should suffice - a small token really isn't worth the administration to process it. If you plan to start in October that's just 4 months on and creditors know it takes a while to set DMPs up, so it won't be an issue.

vicki84

Today I have found out that first Direct are moving my overdraft to my new account. I am not sure what do now at all I wanted to talk to StepChange but with it being a Sunday no where is open

sourcrates

Cheesephetamine wrote: »

I have never missed a payment in anything i just can’t breath at all. It feel wrong to miss a payment. I wish I could clear everything tomorrow

It was exactly the same for me, I had a superb credit record, from the previous 20 years, never missed a payment, no defaults, nothing, sqeeky clean file, then fate intervened, a number of things went pear shaped all at once, we had no safety net, ie, savings, well, not much, I could clearly see the timer counting down to the day when our outgoings were going to exceed our income.


It is a very scary world at first, but that is only because its new to you, given time, and a little bit of new found knowledge, you will come to realise that you do not have to meet creditor demands, and the world will not implode if you dont, debt collection is based mainly on fear, "we will take you to court if you dont pay" well thats no great threat to be honest, at least they wont send dave round with a baseball bat !!


Less than 10% of defaulted debt ever gets to court, creditors are now well versed in dealing will non payment, its a lot less hassle today than it ever has been before, I had to deal with some pretty nasty DCA`s in my time, but dealt with them I did, the really bad ones had there consumer credit licences taken off them, they are much easier to deal with these days, so my message to you is, dont panic, all will be well, your DMP should run pretty smoothly, if you have any concerns, there are people who can help on this thread, so dont hesitate to ask.

sourcrates

vicki84 wrote: »

Today I have found out that first Direct are moving my overdraft to my new account. I am not sure what do now at all I wanted to talk to StepChange but with it being a Sunday no where is open

Argh, you used the switching service didnt you, not a good idea unfortunatly.
Nothing stepchange can do about it, its betwen you and your bank, if it were me, i`d ring them and cancel the switch, then find another, basic bank account (with a bank with whom you have no debt) and open it as a stand alone account.

vicki84

Moveslikeagger wrote: »

Hi all. Just a bit of insight into my personal experience for all the new people started a DMP. I stopped paying my creditors in November and didn’t pay a penny. Told them I was in financial difficulty and that I’d be in touch when I’m ready. Ignored all letters and calls. Now all debts have been passed on to collection agency’s. All debts defaulted, interest stopped and have been paying wescott and moorcroft for the last 2 months without any hassle after send my I&E. Anyone new I’d stop all payments and wait for defaults. This also gives you time to save an emergency fund!

The switch is to far ahead now I’m am not sure what will happen because the new account with NatWest I opened does not have overdraft facilities

Broke_Bear

Hi All

Very quick question, when sending letters to creditors do you send them registered post, recorded post or standard 1st class stamp?

Thanks in advance as I am posting my initial holding letters in the morning.

Willing2Learn

Second class...and preferably over the Post Office counter so that you get a free 'proof of posting' receipt.

breathingspace

Thank goodness I found this thread and all your helpful advice. Just knowing I'm not alone has lifted a huge weight.

I've tried to read as much as I can today but just wanted to check a couple of things before I go any further. I have credit card debts of around £40k due to poor decisions, separation, losing a job... I haven't defaulted on any payments and I'm up to date with all priority debts too, but only because I'm working non stop to make ends meet. I've gotten a second income, ebayed everything, am an expert on making meals for pennies, haven't had a haircut, run my car, gone to the opticians, dentist, etc, etc. for the best part of a year. I'm paying the minimum on 3 cards and putting a little extra when I can into the one with the highest interest. It's completely my fault and I'm doing everything I can to pay them off but an unexpected bill this week has made me realise that this is no way for me and my children to live. It's not living at all. I have no savings to fall back on and I think about money 24/7. I live by my debt excel spreadsheet but it's barely moving and I'll be paying it off for decades at this rate.

Anyway, I've input all my details on Step Change and they've recommended DMP. I'd like to manage it myself though, but before I go ahead and cancel DDs and write to everyone I wanted to check a couple of things. Is this my only option? I'd keep making the payments (even though they're eating up all my income and it's a miserable existence) if they could just reduce the interest and I could make a dent on the capital - I've applied for 0% but denied. Is it worth calling them first?

Also, I have a joint mortgage but my ex is still paying it. If I DMP I guess I will have a poor credit rating - will this affect this existing mortgage? Will he find out?

Thank you

sourcrates

Hi breathing space,

Credit card companies will only agree temporary, short term payment arrangements, of approx six months, after that they refer you to their collections debt, and your account (normally) gets closed down anyway.

Self management is the way to go, you have done your best, but you must start thinking of yourself and your family, going into debt management is not a failure, it’s a way forward.

You can expect to be defaulted, your credit rating should be the last thing on your mind, getting rid of the debt is the goal, your file will heal with time.

breathingspace

Thank you so much for your kind words Sourcrates. It made me a little teary. I feel so ashamed but you’re right, I’ve been doing my best. Up until a couple of years ago I was burying my head in the sand convincing myself it was manageable but in reality I was moving money around the cards every now and then and setting myself back months. Then had a “you’re on your own, there’s no magic windfall” lightbulb moment a couple of years ago. I cut up all the cards that day and haven’t touched them since, and they’re better but I’ve put my absolute everything into it. It’s so bloody slow and I know it’s done terrible things to my mental health.

But onwards. I’ve cancelled the DDs and printed out the letters to post tomorrow. Thanks again for your reply.