DMP mutual support thread part 13 !!

Stressedoutsally

Thanks for the advice I’m slightly confused then as when I spoke to StepChange they said my first payment to DMP would be due in October? Is this not the case if my accounts are on hold? How long realistically will creditors hold accounts?

Sorry if these are silly questions but I’m still slightly overwhelmed and confused 😐

Willing2Learn

Hi Stressedoutsally,

StepChange (SC) don't like accounts to be held too long. SC will want the DMP to start asap. But we recommend all accounts to be on hold for 3-6 months. This is because an Emergency Fund (EF) is a vital component of all successful monthly budgets. Everyone should have an EF.

A creditor won't 'like it' that you have their account on hold for so long, but they will appreciate the fact that you have let them know, in writing, when payments will commence. They will be satisfied with 3-6 months, as long as you keep them 'in the loop'. Believe me, once you have started payments, you will be happy that you have put aside a little EF to cover your backside against the unknowns.

Stressedoutsally

So should I delay sending my forms back to StepChange and just send out the letters to my creditors asking for a 3 month hold? Obviously I will cancel all direct debits too.

Willing2Learn

Stressedoutsally wrote: »

So should I delay sending my forms back to StepChange and just send out the letters to my creditors asking for a 3 month hold? Obviously I will cancel all direct debits too.

Yes, delay sending your forms back. When you send out the holding letters, don't forget to specify how long you want the accounts to be held. And don't forget to specify a date for when DMP payments will begin. A six month delay will allow you to build a larger EF, but do whatever length of time makes you feel comfortable.

And yes...cancel your DDs for all your debts.

Stressedoutsally

Ok thank you so much for this advice it all seems so daunting. I’m so scared to start missing payments but I understand this is part of the process

Willing2Learn

Stressedoutsally wrote: »

Ok thank you so much for this advice it all seems so daunting. I’m so scared to start missing payments but I understand this is part of the process

Don't worry about missing payments. As soon as the DMP started, you were going to break the terms of your original credit agreements at that point. This way you are doing it properly, in writing, keeping your creditors informed at all times. You are taking control.

As you said earlier, your "credit file is about to be well and truly trashed." Well the sooner you put the accounts on hold, the sooner the terms of your credit agreements will be broken, the sooner your creditors can default the accounts, and the sooner these defaults will be automatically removed from your credit files.

Changingtimes

Not happy today. I thought i had done well!!
After speaking to SC about have to take a payment break of 2 months, they were fine. I emailed all my creditors also to let them know about this, the reason why and letting them know payments will recommence in October. CRS are being like a team of interogators, one loan provider contacted me but accepted the position after asking me to try and make a payment in Sept., One CC company told me i will have to pay double in October...............it will probably go on and on..............
I accept its my own fault i am in debt, but they make me feel I have stolen money and dont want to pay it back which isnt the case.
in 7 months I have paid £10K between all my creditors, and still its not good enough !
Sick of their stinking attitude with me when I dont have one with any of them......
Its my birthday and they have made me feel so sad.......
By next birthday i should have them all gone so they cant spoil it

Willing2Learn

Awww...Changingtimes...just ignore your creditors...don't enter into correspondence with them...just let SC do all the dirty work...then you can put your feet up, relax, and enjoy your birthday...

If it were me...I would consider adding on one extra month to your payment break, and reward yourself with a birthday treat (a reward because you have done so well in reducing your level of debt so quickly).

Changingtimes

Thanks Willing. SC have contacted none of them. They told me they would note their system but I would have to update them and let them know so i did. I did think SC would have informed them but no.....in fairness I said 2 months thinking I could get straight back on it and get the lot paid off quicker that's why I said 2 months as this was me being reasonable long term in getting rid of the debt now I am sorry I didn't say 3!!
But 2 it is I dont want to backtrack on that my emergency can be sorted by 2 only.
Some of them are just rude and awful some have been understanding.
I can't be more explanatory to them than I have been and feel a little unsupported by SC but I guess it is for me to explain to them no?
I will wait til it's all paid then look forward to a big treat to myself with the £1000 a month I will have to myself haha
Thanks for your feedback as always.

SkintDad87

Evening all

DMP is going well, starting payments on October, some have already started as they have defaulted me. Only issue I have, I have 2 debts with shopdirect (very and littlewoods), neither have defaulted and just keep freezing the account. It'll be 6 months since I last paid them, in October. If they fail to default me, do I continue to not pay them?

Thanks in advance!

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