DMP mutual support thread part 13 !!

sourcrates

CanWeClearIt wrote: »

Hello. This is my first post. I’ll build out my profile later and have a good look around but wanted to get this up for comment.

This seems a good place for me to start - you all appear helpful and non judgemental.

We’re (wife and I) are facing up to the situation we are in in terms of debt. We’ve ran up around £70k in credit cards and loans. I’m a mix of embarrassment and annoyance at this - annoyed at how we’ve got here but to be honest also annoyed at these institutes who kept throwing it to us.

We both work full time and have a daughter who’s 10. She doesn’t work yet but I’m thinking chimney sweep soon.

We earn what I consider to be a decent combined salary - we just can’t get the elbow room we need to make a dent in the debt. Seems not uncommon situation.

We tried to consolidate everything into a re-mortgage but got declined.

We spoke with the CAB today and went through things. They discounted IVA and bankruptcy and passed us over to an organisation called debt compare - can’t post the link as a newbie.

Stepchange said they couldn’t help as we can make the payments to manage the debt.

Debt compare seemed slick on the phone. Nice lady - but I’m sceptical of most of these organisations and how they could be using our situation to make money.

They took details of our expenditure and income and suggested we could have this cleared by them in around 5 years at a payment of £1500 a month.

Process was that we sign up and they deal with the credit card companies. Talk to them on our behalf and agree on the terms. All for £40 a month management fee.

This was pitched as a DMP.

Does anyone have any experience of this company or suggest one similar?

I’m not sure how they come up with that 4.5 year figure - that must be based on all the lenders saying “ok fine - no more interest for you” ..

I just don’t know what the right approach is. I know carrying on how we are isn’t it.. but I want to put myself in the hands of a shark.

Hi,

Are you positive you spoke to stepchange ?

It would be highly unusual if they put you in touch with a fee charging debt management company.

Do not be tempted to sign up with these people, debt management plans are free, or you can do one yourself, it actually sounds like better budgeting may be the answer to your problems.

Why not look in the sticky's, post up a statement of affairs, and we can help you out.

Don’t sign up with this company, all they will do is extend the time your in debt, you don’t need to pay for debt management.

CanWeClearIt

This was where we ended up after CAB.

I can’t find the sticky’s. I probably need to be on the laptop not my phone.

sourcrates

CanWeClearIt wrote: »

This was where we ended up after CAB.

I can’t find the sticky’s. I probably need to be on the laptop not my phone.

Link here :

https://www.lemonfool.co.uk/financecalculators/soa.php

Norfolk_Jim

I must say, I am surprised after reading all the posts, just how fast my creditors have issued defaults. All have accepted the DMP and stopped interest and Im only waiting for MBNA to send me a default notice and that will be all of them defaulted. Might it be because they can see there is no way other way they will ever see anything back considerin my income vs total indebtedness?

Betty_Grable

Hello! This forum has been very helpful, if a little overwhelming!


I have just started a DMP with PayPlan, which so far has been easy to set up and I've made my first payment. My question is what happens if a creditor doesn't want to accept your DMP offer? Halifax have declined it and have said I'll incur interest as normal and charges for not meeting the payments. All this is going to do is double my debt. I know they have no legal obligation to accept the DMP, but is there anything that can be done?


Many thanks xx

Suseka97

Betty_Grable wrote: »

..........I have just started a DMP with PayPlan, which so far has been easy to set up and I've made my first payment. My question is what happens if a creditor doesn't want to accept your DMP offer? Halifax have declined it and have said I'll incur interest as normal and charges for not meeting the payments. All this is going to do is double my debt. I know they have no legal obligation to accept the DMP, but is there anything that can be done?

This is why we tend to advise folks to stop making any payments for 3 - 6 months; that generally gets the desired result of an early default (which then means all interest and charges stop). But you are where you are - Payplan will just make the payment regardless of whether they accept or not, and then you'll probably find that in a few months Hfx will send your account to their internal collections dept, or sell it on to a debt collection agency. When that happens you'll be able to push for that default.

At the start of my DMP a few creditors played hard ball, but eventually all fell into line and the DMP just trundled along.

Splatfoot

Hello, we've been on a DMP for coming up 3 years now. However, I am now not working and we will not be able to afford the £200 a month that we previously paid to Stepchange. I am so worried about upsetting the apple cart as everything has been so smooth. I think 2 of our debts were sold on (Barclaycard and tesco), and the other 5 are managed by Wescot. Totalling £34,811 now. Started off at £41,000+. I'm not sure we will be able to afford anything but a few pounds. Will Step change allow this and do I just ring up and ask?

sourcrates

Splatfoot wrote: »

Hello, we've been on a DMP for coming up 3 years now. However, I am now not working and we will not be able to afford the £200 a month that we previously paid to Stepchange.

I am so worried about upsetting the apple cart as everything has been so smooth. I think 2 of our debts were sold on (Barclaycard and tesco), and the other 5 are managed by Wescot. Totalling £34,811 now. Started off at £41,000+.

I'm not sure we will be able to afford anything but a few pounds. Will Step change allow this and do I just ring up and ask?

Hi,


Its not about anyone allowing you to do anything, your circumstances have changed, you have lost your job, so its imposible to pay anything in that position, you can just ring them, or better still write and tell them.

Is this likley to be for the short or long term, if its going to be a long term thing, then PP copies of that letter to your creditors as well, thay cannot take what you do not have can they.

Can i ask are you a homeowner or do you rent ?

Splatfoot

We are home owners. We've tried to sell a couple of times over the last 3 years. It's tricky because we obviously wouldnt be able to get a mortgage and renting would be an almost impossibility (pets and south East). So, we would need a certain amount to get somewhere else to live. We do have a decent amount of equity but not enough to pay for debts and a house. I'd like to move away somewhere cheaper but have to also think about my kids (13 & 14). What we pay in mortgage is less than we would pay renting down here. We are better off come spring and summer when we host language students. I'm wondering whether to just try and sell lots of stuff to try and keep it as it is for the next 2/3 months before things get a bit easier in spring.

sourcrates

Splatfoot wrote: »

We are home owners. We've tried to sell a couple of times over the last 3 years. It's tricky because we obviously wouldnt be able to get a mortgage and renting would be an almost impossibility (pets and south East). So, we would need a certain amount to get somewhere else to live. We do have a decent amount of equity but not enough to pay for debts and a house. I'd like to move away somewhere cheaper but have to also think about my kids (13 & 14). What we pay in mortgage is less than we would pay renting down here. We are better off come spring and summer when we host language students. I'm wondering whether to just try and sell lots of stuff to try and keep it as it is for the next 2/3 months before things get a bit easier in spring.

Hmmm difficult situation for you, if you can keep the payments going, all well and good, but you can reduce them, you would need to speak to stepchange, but they realise, as do your creditors, that things do change in life sometimes.


Remember, creditors are obliged to treat you fairly, no matter what your circumstances may be.