DMP mutual support thread part 13 !!

Skittlesjo

Hi everyone,

I’m considering going with Step Change they anticipate that my debts would be paid off within 1 year and 8 months. I feel physically ill that I’ve racked up nearly £14k in 3 years. I have a lot of questions and I’m sorry because no doubt they’ve been asked before plenty of times.

sourcrates

Just a heads up to people whom it may benefit.

Government are soon to introduce a "statutory debt repayment plan".

We think it will take the form of a current debt mangement plan, but with the added benefit of having all interest and charges stopped, as well as legal protection from prosecution.

Similar to what is currently available in Scotland.


It will not be classed as insolvency either, so you will not appear on the insolvency register, something which tends to put people off other insolvency solutions.

No formal date for introduction as yet, or if there will be a fee, but as always, when it is available, we will let you know.

Jo842002

We are in the process of setting up our dmp - holding letters have been sent and acknowledged and we have now been defaulted by one creditor, Newday (Debenhams). We received a letter today from them informing us that our debt is passed to a debt collection agency, I presume this is a standard course of action? We do not intend to start our dmp until September as are establishing an emergency fund for a few months as advised here. Will the dca contact us and do we let them know of our intended arrangement with SC? Thanks

Wardworried52

Hi all,

I was wondering if you wonderful people could help and advise me.

My husband and I have alot of debt, around 73k we have been managing to pay all our bills and debts by borrowing money from family and ultimately getting into more debt. It's got to a point that where we only had £40 a month to live on after paying all the bills, credit cards and loans. Something had to change. So a few weeks ago I contacted step change to try and sort this mess out. Due to my husbands job he can't really look at any debt solution so it's just in my name. I completed the debt tool online on step change and it advised a IVA or DMP. After speaking to step change (who have been amazing) I decided to go to with a DMP, the IVA scared the life out of me. My husband will continue to pay his debt off and he will hopefully be debt clear in 2 years. So I'm left with my debt of around 44k. I have a loan with Yorkshire bank, credit cards with virgin, mbna, sainsbury's, Halifax and barclaycard and also have an overdraft on my personal account with barclays. After all my bills etc I have £412 left to pay my creditors, I'm really worried that they won't accept my offers of payments, as are going to be so much lower that my previous monthly payment. I've signed my agreement with step change and they have sent this to my creditors with my offers of payment, so I'm waiting to see. I'm scared and not sure what to do next?

I'm currently contracting all my creditors to give them my reference number for step change and to advise that I'm cancelling my debit debts, I'm not sure if I need to to do this but I dont want them to think I'm just cancelling things, everyone up to now have been OK and fingers crossed it stays that way. I'm on 30 days breathing space with most them.

Step change advised that I should speak to barclays directly regarding moving accounts etc. I have a 10k barclaycard, joint account (me and husband) this account is where all our bills go out from and is in credit. I also my personal account which has a £2,650 overdraft ( I dont use this account, only for my mobile phone bill) it is part of my dmp. I went to see them today in branch and they were really unhelpful. They essential said that I'll never get credit again and I'm ruining me and my husband credit rating for 10 years plus, all my account will be closed and frozen. This has really scared me, I've heard about getting another account but I was hoping for some assistance from them in separating my overdraft and account. I certainly didn't know about effecting my husband as we were trying everything to avoid this. My questions are, if you could help:

1.will this effect my husbands credit rating?
2. I've manged to open a flex current account with nationwide should I use this instead of barclays? I was going to pay step change from this account.
3.can I remove myself from the joint account and just leave my husband on there so I don't have to move all our bills? Would that work?
4. Can my wages still be paid into the joint if it was just in my husband name account? Would it be safe there?

I've just the post advising that there maybe a statutory debt repayment plan going into place with interest charges been frozen and protection from prosecution, that would great. I'm terrified that I'll get my house taken off me and have people knocking on my door.

It's shameful enough to be in this position let alone been constantly worried.

I really hope this is the turning point, at this rate my husbands debt will be paid off in two years, then the extra money would pay the rest of my debt in another 2 and half years, to be debt free in 4 and a half years would be great. I'm currently having my job reviewed so at the worst it will stay the same but it may mean that I go up a band which would be a 8k per year pay raise which would be great. I'm really hoping this the start of the future.

Sorry for the long post but any help would be gratefully received.

Thanks :eek:

Wardworried52

Sorry just to add something, I'm really worried that I've messed it all up as I've signed the dmp agreement and it's been sent off to my creditors and I've not sorted the barclays bank stuff. Have I messed this up?

Thanks

Skittlesjo

Hi all I’ve been contemplating and trying to search this all weekend are there any creditors which are renowned for rejecting DMP offers? Or has anyone had any problems with any specific creditors?

Willing2Learn

Wardworried52 wrote: »

1.will this effect my husbands credit rating?

I believe that because you have a joint account, there will be a financial association between the two of you. I am not an expert, but I believe this financial association could negatively impact your husband's credit file. If it were me, just to be safe, I would remove your name from the joint account so that it becomes a sole account in your husbands name only. You could then file a Notice of Disassociation with the three CRAs.

Wardworried52 wrote: »

2. I've manged to open a flex current account with nationwide should I use this instead of barclays? I was going to pay step change from this account.

This is sensible. I suggest you neither switch nor request an overdraft on this account.

Wardworried52 wrote: »

3.can I remove myself from the joint account and just leave my husband on there so I don't have to move all our bills? Would that work?

Yes (See the answer for your first question)

Wardworried52 wrote: »

4. Can my wages still be paid into the joint if it was just in my husband name account? Would it be safe there?

I am afraid I don't know.

Wardworried52 wrote: »

Sorry just to add something, I'm really worried that I've messed it all up as I've signed the dmp agreement and it's been sent off to my creditors and I've not sorted the barclays bank stuff. Have I messed this up?

No, I believe everything should be fine as long as you action the Barclays bank 'stuff' with urgency.

Line_In_The_Sand

Thank you Suseka97 :-) Cancelled all the direct debits to creditors yesterday ... which made me feel physically sick in the moment, closely followed by immense relief as I watched the numbers on my spreadsheet change from red to green. It's reinforced what I already know - that without the debts, we're currently earning enough to get by okay, it's just that stacked effect of years worth of interest, and bank charges etc.

So, new budget is in place as of tomorrow, and we'll both be tracking our spend properly (which I do already, but dh has historically been reluctant to do). We're lucky in that we've just had the expensive bit of our year, with car insurance, MOT, several big payments all at once. That's what pushed us over the edge when we'd been clinging by our fingernails. That means that, with the new budget allowing allocation for that, we should be able to pay those bills easily when they roll around next year.

The new budget actually gives us enough to live on, whereas I've been having to go to crazy lengths to make our food budget smaller and smaller.

I'm reading my way through this whole thread gradually, and I'm so grateful to everyone who's posted here.

Willing2Learn

Jo842002 wrote: »

We are in the process of setting up our dmp - holding letters have been sent and acknowledged and we have now been defaulted by one creditor, Newday (Debenhams). We received a letter today from them informing us that our debt is passed to a debt collection agency, I presume this is a standard course of action? We do not intend to start our dmp until September as are establishing an emergency fund for a few months as advised here. Will the dca contact us and do we let them know of our intended arrangement with SC? Thanks

It is good that the account has been defaulted as interest will no longer be accruing and the toxic account will be removed from your credit files sooner. The DCA will write to you soon and may not be aware of the holding letters you have sent. So when you get correspondence from them, I recommend you replying with notification of the fact you will be using SC for your DMP and that the payment plan will begin in xx September.

Willing2Learn

Skittlesjo wrote: »

Hi all I’ve been contemplating and trying to search this all weekend are there any creditors which are renowned for rejecting DMP offers? Or has anyone had any problems with any specific creditors?

For the most part, all your creditors will be up to speed with the relevant guidance and legislation. They will all accept your DMP payment plans as they will have no choice. The only creditors that might cause a problem are accounts with catalogues/mail order. But if that is a problem, then post here and we shall advise further.