DMP mutual support thread part 13 !!

Outlander14

Hi,

I hadn’t even considered an EF until I spend this evening reading this thread. I am in a little bit of a similar position to TheWickerMan. I’ve applied for a new bank account but not had it confirmed yet. StepChange seems to suggest I should make some payments still. Am I right in thinking that I should stop all payments to creditors and write to them explaining that I am having financial difficulties.

Can I also contact them at this point to ask them only to contact me in writing? Should they adhere to this. I was just going to go ahead and start setting the DMP up tomorrow.

[Deleted User]

Outlander14 wrote: »

Hi,

I hadn’t even considered an EF until I spend this evening reading this thread.....

Great advice from Willing2Learn and many others before on this thread. An EF is absolutely essential so please take the advice of one who didn't have one before diving headfirst into a DMP and soon ran into all sorts of financial problems:o. In my defence, I hadn't discovered this excellent DMP Support thread and the wonderful people who contribute to it before I started my DMP, otherwise I would have gone about things very differently.


Having said that though a DMP was the best financial decision I ever made and 6 years on I'm now debt free:j:j:j


Wishing you and all others the best of luck as you start on your 'journey'. Trust me, there IS light at the end of that dark tunnel:beer:

BooBoo77

Hello, I've been very much a lurker on here and have read and found the information discussed very helpful. I wonder if anyone could give me their ideas on this please. My situation is age 54, on DMP since 2014 via SC, still got £20k to go to be debt free, paying off at less than £200 a month so due to be debt free approx 8 years hence, I've had a number of PPI repayments and after a weekend away, NHS dental treatment and a new laptop have about £8k left. I've been wondering whether to try and full and final settlement a few with £7k and leave myself with a £1k emergency fund. Or to make a lump sum payment to my pension to boost it in case I want to go early. I can draw part of my pension at age 60 as a Civil Servant including lump sum which could pay off remaining debts at age 60. The rest of my pension wouldn't be til 67. I've got two primary age children and am single, working part time. I'm guessing £7k won't allow me to do much for full and final settlement towards £20k debt. Or should I squirrel it away and have treats and here and there while I continue with my DMP. It's been lovely not constantly looking at my bank balance every time I buy food etc, but I feel guilty for squandering this great gift! Grateful for any thoughts.

Willing2Learn

Outlander14 wrote: »

I hadn’t even considered an EF until I spend this evening reading this thread. I am in a little bit of a similar position to TheWickerMan. I’ve applied for a new bank account but not had it confirmed yet. StepChange seems to suggest I should make some payments still. Am I right in thinking that I should stop all payments to creditors and write to them explaining that I am having financial difficulties.

The StepChange processes are slightly different to what we recommend on these boards. We always recommend taking the time to build an EF before DMP payments start. It gives you time to get your breath back. The EF really is essential and gives you the peace of mind that you have something in the kitty when an emergency cost rears it's ugly head. In a few months time you can re-contact StepChange to start your DMP, once you have an EF saved up.

Yes, you should stop payments to your creditors once you have written and sent out all your holding letters. Use the same tweaked letter that I linked to a few posts back.

Outlander14 wrote: »

Can I also contact them at this point to ask them only to contact me in writing? Should they adhere to this.

Add a sentence to your tweaked letter, clearly stating that you only consent to written correspondence via Royal Mail. They must have due regard to your request and any other type of future contact could be considered harassment.

sourcrates

BooBoo77 wrote: »

Hello, My situation is age 54, on DMP since 2014 via SC, still got £20k to go to be debt free, paying off at less than £200 a month so due to be debt free approx 8 years hence, I've had a number of PPI repayments and after a weekend away, NHS dental treatment and a new laptop have about £8k left. I've been wondering whether to try and full and final settlement a few with £7k and leave myself with a £1k emergency fund.

Hi,

It "MAY" be possible to settle these debts for around the 7k mark, but you will have to be a bit canny, sail as close to the wind as you possibly can, and of course, it does depend on various other factors, there are so many variables in this game, but the main things that influence these decisions are :


(1) Age of the debt
(2) has your account been sold on
(3) is the debt enforcable
(4) your circumstances (you may have to spin them a yarn, are you ok with that ?)
(5) time of year, (end of tax year best time)
(6) individual company policy on settlements


Think of settlement offers as been more of a marathon, than a sprint, it takes time, you can negoatiate over the phone, but any final settlement must be in writing.

There is a process to follow when you try for full and final settlements, and its something you must do yourself, if you wanted stepchange to do it, you would have to pay them the 7k upfront, with no guarentees that any offers they negotiate would be accepted, they may not have the time or resourses to obtain the best deal for you, and the 7k could just be swallowed up by your DMP, wearas doing it yourself gives you the freedom and choice to do as you wish.

BooBoo77

sourcrates wrote: »

Hi,

It "MAY" be possible to settle these debts for around the 7k mark, but you will have to be a bit canny, sail as close to the wind as you possibly can, and of course, it does depend on various other factors, there are so many variables in this game, but the main things that influence these decisions are :


(1) Age of the debt
(2) has your account been sold on
(3) is the debt enforcable
(4) your circumstances (you may have to spin them a yarn, are you ok with that ?)
(5) time of year, (end of tax year best time)
(6) individual company policy on settlements


Think of settlement offers as been more of a marathon, than a sprint, it takes time, you can negoatiate over the phone, but any final settlement must be in writing.

There is a process to follow when you try for full and final settlements, and its something you must do yourself, if you wanted stepchange to do it, you would have to pay them the 7k upfront, with no guarentees that any offers they negotiate would be accepted, they may not have the time or resourses to obtain the best deal for you, and the 7k could just be swallowed up by your DMP, wearas doing it yourself gives you the freedom and choice to do as you wish.

Thank you Sourcrates. That’s really helpful. I think a few of those should be in my favour as most of the debts have been sold on and the debts are pretty old and a while to go to settlement. In terms of starting out presumably I’m needing to say that I’ve got less than I have so I can gradually up the amount. I’ll write to them all first and ask for a copy of whatever that document is that shows whether the debts are enforceable. Thanks again.

fullofcold

sourcrates, can I just ask where you would pitch an opening offer under the following circumstances:

All of the following debts have been in a DMP for 16 years.

Tesco - 16k - if he carries on paying as he is will take 119 years to repay
Moorcroft - 12k - Originally Santander
Cabot - £5178 - Halifax

Will have a maximum of 20k to pay in full and final

sourcrates

fullofcold wrote: »

sourcrates, can I just ask where you would pitch an opening offer under the following circumstances:

All of the following debts have been in a DMP for 16 years.

Tesco - 16k - if he carries on paying as he is will take 119 years to repay
Moorcroft - 12k - Originally Santander
Cabot - £5178 - Halifax

Will have a maximum of 20k to pay in full and final

Hi,

As above, there is a process to follow in order to make this work out for you, see the list above, your first step is a CCA request to the original creditor, this will determine enforcability, or not.

After 16 years i find it hard to imagine anyone will have any relevent paperwork for these debts, so, its time to find out.


Once you know the answer to this, then start thinking about a starting bid.

CardiffFi

Hello everyone, I don’t know if I’m in the right place. I am very anxious and I just wanted to ask some questions about what you can and can’t do when you are on a debt management plan with SC x

Willing2Learn

Hi CardiffFi and welcome to the forum :hello:

You are in right place to ask questions about your DMP with SC...