DMP mutual support thread part 13 !!

Moveslikeagger

Morning all,
Struggled to get to sleep last night due to worry about this DMP. I delayed sending my letters as was waiting for my new account which the card arrived for yesterday and I changed my bank details at work. My question is, shall I send “holding letters” without any token payments. I believe I will get a freee for 30 days regardless? Then towards the end of the 30 day period I was thinking I’d call them and explain my situation and see if they can come up with a reasonable payment plan. Any suggestions on this or pointers would be welcome. Thanks for all your help

Slytherin

Not sure about Paypal (although I don’t see why they’d be viewed any different to other creditors) but overdrafts are fairly common within a DMP. Have a think about it. £90 toward paying your debt or even, if you wanted, £90 into your emergency fund if you wanted to pay off the same amount to creditors as you will under the GP agreement.

If someone is going to be better off for that £90, it should be your or your creditors! Good luck with whatever you choose.

[Deleted User]

ploppy57 wrote: »

We are also waiting for replies for F&F's. Wrote to W**cot a while a go, with 2 offers on 2 of our debts. One is owned by L*oyds and the other by H**ifax. Apparently the H/F*x one is now being bought out by C*bot. So we have to wait and see what they say. The L*oyds one, W**cot want to know a few more details before they can decide if to accept the offer......don't think so....we told them the money was coming from a 3rd party relative, that is all they need to know. But they are asking for details of how much mortgage we have left to pay and the equity in our house, any offers we have made to other creditors, and pensions we have etc etc. Not telling them all that, so they have a choice, they can either accept our offer or we carry on with token payments.....simples....lol:rotfl:

Good luck with Wescot/Lloyds, I'll be following your progress with them with great interest:beer:.

I want to make a F&F soon on my Lloyds debt,managed by Wescot like yours is. It's my biggest enforceable debt, still around £6500 but I certainly don't intend to provide them with any more information about my affairs than they already have or can easily obtain elsewhere:eek:.

I too have a smaller debt which was bought by Cabot last year. I'm hoping they'll be amenable to a low settlement offer so will be really interested if they play ball with you before I make my initial offer. You and I seem to have a lot in common debt-wise:T.

make_the_change

Carbootcrazy I had a reply from Robsinson Way (Hoist) regarding my F&F and they rejected it. I did only offer to pay 10% of the balance though. I have asked them for a counter offer so awaiting that!

[Deleted User]

make_the_change wrote: »

Carbootcrazy I had a reply from Robsinson Way (Hoist) regarding my F&F and they rejected it. I did only offer to pay 10% of the balance though. I have asked them for a counter offer so awaiting that!

Thanks very much for the information:T. Sorry they weren't willing to take your offer though:(. Let's hope they counter with an acceptable offer very soon:beer:

January2015

Moveslikeagger wrote: »

Morning all,
Struggled to get to sleep last night due to worry about this DMP. I delayed sending my letters as was waiting for my new account which the card arrived for yesterday and I changed my bank details at work. My question is, shall I send “holding letters” without any token payments. I believe I will get a freee for 30 days regardless? Then towards the end of the 30 day period I was thinking I’d call them and explain my situation and see if they can come up with a reasonable payment plan. Any suggestions on this or pointers would be welcome. Thanks for all your help

Don't worry about sending token payments with holding letters.

You need to work out a payment plan you can afford - not let the creditors dictate to you what you will be paying.

If you are self managing visit the NEDCAB DMP site and put your information in and it will work out what you can afford to pay and how that is split between each creditor. It will generate offer letters for you as well.

Seriously, you need to take control and TELL creditors what they will be receiving - don't let them come up with repayment plans for you. That's not how DMPs work.

Moveslikeagger

Thanks for your reply January.. Have done all the forms in the Nedcab and I’ve been realistic with my budget and I can afford £410 per month in total towards creditors.. after I send the holding letters shall I send the budget forms or is it better to call them with my offers or speak to them? I have an emergency fund in place as I have some savings in a separate account so am ready to offer payments straight away.. thanks

[Deleted User]

January2015 wrote: »

Don't worry about sending token payments with holding letters.

You need to work out a payment plan you can afford - not let the creditors dictate to you what you will be paying.

If you are self managing visit the NEDCAB DMP site and put your information in and it will work out what you can afford to pay and how that is split between each creditor. It will generate offer letters for you as well.

Seriously, you need to take control and TELL creditors what they will be receiving - don't let them come up with repayment plans for you. That's not how DMPs work.

I totally agree:T

Also, it's often better to do it all in writing rather than phone creditors to discuss things. It's easy to feel intimidated and embarrassed and agree to something in a phone conversation that you don't feel brave enough to dispute. Maybe it's just me:o but I feel far more confident and in control when I resort to the written word. It's also very useful to have a written record of what exactly was said/agreed and when.

Let us know how things go. Good luck:beer:

Suseka97

Moveslikeagger wrote: »

Thanks for your reply January.. Have done all the forms in the Nedcab and I’ve been realistic with my budget and I can afford £410 per month in total towards creditors.. after I send the holding letters shall I send the budget forms or is it better to call them with my offers or speak to them? I have an emergency fund in place as I have some savings in a separate account so am ready to offer payments straight away.. thanks

Sounds like you have everything in hand and I would agree with CBC's advice to keep everything in writing. It's better to have that as an 'audit trail' for the future if needs be. I wouldn't bother with tokens, just get your letters off and tell them when you plan to start. I know you said you're happy to start straight away, but if it were me I'd stretch it a couple more months.

Good luck.

January2015

Moveslikeagger wrote: »

Thanks for your reply January.. Have done all the forms in the Nedcab and I’ve been realistic with my budget and I can afford £410 per month in total towards creditors.. after I send the holding letters shall I send the budget forms or is it better to call them with my offers or speak to them? I have an emergency fund in place as I have some savings in a separate account so am ready to offer payments straight away.. thanks

Another vote for keep everything in writing. Don't phone creditors unless you really have to. Everything in writing means you can go back and have written evidence of everything agreed at all times.

Also - I know you have sorted out your budget in NEDCAB, but I cannot stress enough how important it is to go back over it. You think it's realistic, but I would recommend bumping every possibly category up and if that means your available budget for DMP drops from £410 to £300 (or less) per month - then so be it. If after a few months you find you can really afford more, you have to option to either write and offer more to each creditor or save the difference towards a F&F fund (my preferred option)

Seriously get that available budget as low as you realistically can. Don't look at how much longer it will take to clear the debts - look at it as saving for settlements offer at reduced amounts which will shave years off your DMP if you can manage this.