DMP mutual support thread part 13 !!

tonyace123

Thanks for the info I think stepchange has already written to them the only reason I know they got the dept is because of a generated email cheers

Dalasc

Suseka97 wrote: »

I'm sure others will be along soon to add to this and by posting - it bumps your post to the next page, so it doesn't get overlooked (which does happen from time to time). I think it would probably help to have a little bit more information about your mums debts - you mention they are from many years ago - yet it sounds as if she is only now in conversation regarding a possbile DMP, Is that correct? You also mention a DMP Company and so I hope she is not engaging the services of a fee-charging one. She should be going through one of the Debt Charities who don't charge. I have to admit that £306 per month sounds a bit high for someone on a reduced pension - and in relation to her husband's pension, that should only be included in respect of his contribution to the household bills. So not in its entirety.

So I think it would help others to help you if you could provide a little more info. How old are these debts? How much is outstanding? Are they consumer debts or business related debts? There are different avenues to explore regarding business debts. Who have you, or she, been speaking to, a free or fee-charging company?

Hi thanks for your reply and info. The DMP is with payplan and has been for many years. I’m reviewing the paperwork as my mum was getting confused. Yesterday my mum was given the diagnosis of Alzheimers. I will inform payplan of this diagnosis. I think the debts were mainly personal as she didn’t have an income with the business struggling. The debts owing are just short of 15k and are around 10-15 years old. Payplan are taking my dads pension income into account though the debts are solely my mums. After their outgoings payplan expect £306.21 a month. This seems excessive as my mum only receives a reduced pension. I need to go through the review of outgoings as these seem very low.

Boblet825

So after speaking to SC and reading everything I can on the forum I'm finally taking action. I've set up a new basic bank account and when my wages are paid this week will be clearing everything out if my old account into it.

I've cancelled the direct debits for the credit card payments. My plan is to write to all companies this week explaining I'm in financial difficulties and wont be able to make payments whilst I set up a DMP with SC.

I've read the advice on defaulting and I'm going to try and hold out for at least 3 months to build my emergency fund and hopefully defult. This is the part that's making my bum twitch, I've never ever missed a payment despite my terrible financial management!! I should hopefully be able to build up around £1500 emergency though just from not paying the minimums if I can hold out. Christmas is cancelled and everyone who would be getting a gift knows they arnt this year!

Then finally, back in touch with SC to start the DMP process.

So here I go I feel kind of relived there is a possible answer to this nightmare, but still stressed and nervous too. Fingers crossed!!

Outlander14

So I am seriously considering setting up a DMP. Up until now, I have met all my minimum payments but literally leaves me with just enough for petrol to get to work. I think this month, I’m going to struggle to meet one of them. I’ve been through the StepChange plan and now been thinking about it for a week. I guess the thing I’m most scared of are Debt Collectors at my door and CCJ’s. I’m the type of person who avoids trouble of any kind but have just stupidly got myself into a bit of a mess. Not really sure if I have a question as such. Just felt I wanted to share, this thread has given me the confidence to seriously consider the DMP now I just need to go for it I think.

sourcrates

Outlander14 wrote: »

I guess the thing I’m most scared of are Debt Collectors at my door and CCJ’s. .

Hi,

Ok, lets address these two issues shall we, debt collectors at my door firstly, only two, maybe three major collection companies still employ doorstep collectors, resolvecall springs to mind.
There are hundreds of smaller debt collection agencies across the UK, some of those also still offer this service, but on a much smaller scale, all mostly only operate in large built up area`s, its simply not cost effective to go out of town.

County court judgements are usually only applied for if you have ignored the requests for payment, or you owe a lot of money and the creditor wants some kind of security.

The good news is non of the above is likley to happen if you are in debt management, why would it ?

You are repaying your debts at a rate you can afford, which is best for all concerned, debt collectors and court judgements only usually come around if you ignore the matter completly.

Outlander14

Thank you. I typed my message this morning a little quickly and when I wanted to edit it to be a little more succinct, I couldn’t see how to do it.

I find the thread so reassuring. I’m still even now debating whether I can meet the minimum payments (which I might but would probably mean borrowing off family which is a slippery slope too) but it feels to me that the DMP as proposed by StepChange would allow me to live some kind of life whilst paying back which at the moment it’s becoming more and more difficult to do.

I will give StepChange a ring in the morning as I got two of my amounts slightly wrong and then will take it from there. I’ve applied for a basic bank account already - so think I’ve already decided what I’m going to do. Thank you everyone and seeing everyone else’s experiences are really positive - makes me realise whilst my debt feels huge to me, it’s certainly not the biggest and becoming debt free is achievable.

TheWickerMan

Hello all

Like many, i've been considering a DMP for a while but keep putting it off due to nerves - I have logged on to both this site and Step Change countless times over the past few days. Some fantastic advice on here, but taking the plunge is still daunting.

I have debts of about £40k. The Step Change calculator does recommend a DMP as opposed to any alternative course of action. I owe money to about 9 companies

I understand that overdraft (mine is £4k) must be included in list of debts and that you can't deal with that separately. This is fine, but means that I have a couple of questions about timing of starting a DMP:

-My next pay hits my account this coming Friday. Due to payroll cut offs, it is too late to ask to be paid into new account. Therefore, if I start a DMP in December, surely I run the risk of not being able to access all my funds for the month if the bank where I hold my current account has been contacted by Step Change? Plus I haven't yet set up new bank account - haven't changed account for about 15 years so not sure how long that takes

-I've got several debits/standing orders due to go out on 1st December (loans, credit cards etc). It's becoming almost unmanageable (hence why I'm on here!) but if I started a DMP with Step Change in December I would run the risk of having to pay all those debits AND a bulk payment to Step Change, which obviously I can't afford. Would you advise cancelling all those 1st December debits, sending holding letters stating that I'm in negotiations with Step Change (which I will be) and then starting the DMP from 1st January? I really would prefer any DMP I take to start on the 1st of each month to get it out of the way each month.

Apologies if this didn't make much sense, or if these questions have been asked before. Getting a bit shaky typing this, let alone contacting creditors!

Much appreciated

Willing2Learn

TheWickerMan wrote: »

I understand that overdraft (mine is £4k) must be included in list of debts and that you can't deal with that separately. This is fine, but means that I have a couple of questions about timing of starting a DMP:

-My next pay hits my account this coming Friday. Due to payroll cut offs, it is too late to ask to be paid into new account. Therefore, if I start a DMP in December, surely I run the risk of not being able to access all my funds for the month if the bank where I hold my current account has been contacted by Step Change? Plus I haven't yet set up new bank account - haven't changed account for about 15 years so not sure how long that takes

-I've got several debits/standing orders due to go out on 1st December (loans, credit cards etc). It's becoming almost unmanageable (hence why I'm on here!) but if I started a DMP with Step Change in December I would run the risk of having to pay all those debits AND a bulk payment to Step Change, which obviously I can't afford. Would you advise cancelling all those 1st December debits, sending holding letters stating that I'm in negotiations with Step Change (which I will be) and then starting the DMP from 1st January? I really would prefer any DMP I take to start on the 1st of each month to get it out of the way each month.

Hi TheWickerMan and welcome to the forum

I recommend you open a Nationwide FlexBasic account. This account has all the normal facilities, but won't allow you to go overdrawn (either arranged or unarranged). You could provide your employer with the FlexBasic account details for your salary. (The reason I suggest Nationwide is because they are a fully independent provider, which means your money will be safe with them).

As far as your current creditors are concerned. I recommend writing to them, asking them to freeze your accounts for either 3 or 6 months while you seek advice. You can then cancel the Direct Debits and Standing Orders. There is letter template for this that you could tweak.
https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

Only write to the account where you currently have the overdraft, after you have opened the FlexBasic account and after your employer has the details processed for your wages.

The reason I suggest the 3 to 6 month delay, is to allow you time to save an Emergency Fund (EF). This is because an EF is vital component of all successful monthly budgets.

Having an EF has two main benefits:

1. When an unplanned event such as a new gearbox or replacement boiler is required, you will have the money put away to pay for these things without having to resort to more credit.
2. The 3 to 6 month delay will likely result in your accounts defaulting. This is good news as it means the 'toxic' accounts will be removed from your credit files quicker.

TheWickerMan

Huge thanks for the helpful reply Willing2Learn

Just one further question. The 'hold' template suggests that we ask the creditors to hold for 30 days, but you suggest building an emergency fund for 3-6 months. Would you then just send a new 'hold' letter every 30 days, or just leave it?

Thanks

Willing2Learn

TheWickerMan wrote: »

Just one further question. The 'hold' template suggests that we ask the creditors to hold for 30 days, but you suggest building an emergency fund for 3-6 months. Would you then just send a new 'hold' letter every 30 days, or just leave it?

That was why I suggested you 'tweak' the holding letter. Where the template letter says 30 days, change that for the length of time you feel comfortable with. You could, if you wanted, add a sentence to say that your DMP scheduled payment plan will begin DD/MM/2020 (I recommend May 2020, but it can be a date of your choice).