DMP mutual support thread part 13 !!

cat_79

sourcrates wrote: »

No need to be scared, it’s simply business, your overdraft is a debt and should be included in your DMP, have you opened a new basic bank account with a new bank with whom you have no debt ?

That is your priority, and should be the first thing you do, no one will be going to court.

I have set up a new bank account and i am in the process of doing an income and expenditure. Should I advise that I am not going to pay for the next 6 months of should I just advise I am having difficulty paying. I have read on the forums that I want them to default my account.

sourcrates

cat_79 wrote: »

I have set up a new bank account and i am in the process of doing an income and expenditure. Should I advise that I am not going to pay for the next 6 months of should I just advise I am having difficulty paying. I have read on the forums that I want them to default my account.

Problem with bank accounts is they take an age to default you.
Writing and explaining your situation may help, but banks are notoriously slow in actioning these things.

You may have to wait until they get fed up and sell the debt on, someone will buy it, then you can start paying it off.

2017spark

Hi all - I just wanted to let someone know that i have finally taken action and set up my DMP with Stepchange today! Sadly i have been here before but thought i coud do better on my own (i cant!) I have a long road ahead, but i know it can be done.
Paperwork will be returned Monday, payslip at the end of next week.
I'm hoping to get my DD taken at the end of Feb so not long too wait to get started
I also joined WW (and put it in my budget!) - so time to get all things sorted that need to be....

Hope you are all having a good day xx

Pennypanj

Hi all, I am a newbie here, and have a couple of questions about DMP through SC. I have 8 creditors ( although some duplicates) Sainsburys Bank, Lloyds, Virgin, Admiral Loans, Next which amounts to 56k. I am so ashamed and all of my salary is going on essential bills and these replayments...I have nothing left. My OH doesn't know...he is self rightious and abusive so I just can't even go there.
I have completed the SC I/E form...well in truth I have completed it twice trying out different figures. The reason is my OH currently pays £300 into my account for food (by standing order) but its not likely to last due to his work and also we might be splitting up (thats another story!) ...so my first question is- should I include that in my income or just not mention it? Is there a point where SC ask for my bank statement?
Also...if while on the DMP, if I was to accrue some extra money...like a bonus from work...or selling stuff on ebay...would I be allowed to save that and then use it as a lump sum to clear the DMP sooner? Would anyone know if it went into a 'clean' account?.
Also, has anyone had any problems with these creditors. I'm most worried about Lloyds. I have 2 loans and an overdraft with them and the final loan was only taken out 3 months ago. Looking back I'm shocked that they gave it to me...because a basic afffordabilty check would have shown that I couldn't afford it..but it went through online, no problem and I used it to pay the builders invoice.(home improvements)
This is a bleak situation and is all consuming so I
thank you for any advice in advance!

MrLolly

I’ll try to answer some of your worries:

1- StepChange won’t ask for bank statements. They will ask for a payslip to prove salary that you’ve declared...

2- Extra money from work / bonuses ect should be treated as such: ‘extra’- no need to declare it. A DMP is an informal (non-legally binding) way of paying off your debts. They only know what you tell them, but debt charities try and promote transparency so that their relationships with creditors is maintained.

3- The Lloyd’s loan... maybe in a few months once the dust has settled, you could make an affordability complaint about them actually ever lending you this money in the first place. Could get some of the interest / charges removed although the original loan amount would still be owed.

4- overall, the creditors will accept what you pay them. Personally, I’d rather inflate my spending and make sure I can live a decent quality of life, and increase my payments later on. The important thing is having a DMP in place will keep them off your back

Pennypanj

Thank you MrLolly, that is most helpful.
One more question...my children do extra curricular activities which are paid for monthly. Which section would this go under...its quite alot- around £70 per month. I'm guessing SC would tell me this, but just worried that they might say I should stop their activities, which of.course I don't want to do. ..🤔🤞

Worriedmum43

I needs some advice I’m in process of setting up DMP owe 72000 to 9 creditors.
Contacted all my cc and loan so far all helpful on freezing account but 4 days later a received a default notice from Amex seemed bit quick as I’ve not even missed payment to them for another 2 weeks! So I’m now stressed I know it’s not easy I’m just so worried I’m going to have my house taken and with 2 kids and I’m not sleeping.

Tryingtogetstraight

Hi all.
New to this so here goes....
Have 39k debt gained over a number of years.
With Stepchange on DMP.
Have 5 creditors.
Have had a compensation claim of around 16k. Obviously I want to get out of debt.... however. I need a car (mine has just cost me £600 to fix (some) of the problems. Lots outstanding). I don’t know what is the best course of action?
Need a car. Older cars need work. Won’t be able to get credit for one. Don’t really want to get credit anyway (higher interest for bad credit).

[Deleted User]

Tryingtogetstraight wrote: »

Hi all.
New to this so here goes....
Have 39k debt gained over a number of years.
With Stepchange on DMP.
Have 5 creditors.
Have had a compensation claim of around 16k. Obviously I want to get out of debt.... however. I need a car (mine has just cost me £600 to fix (some) of the problems. Lots outstanding). I don’t know what is the best course of action?
Need a car. Older cars need work. Won’t be able to get credit for one. Don’t really want to get credit anyway (higher interest for bad credit).

Sorry, I'm not sure what you want to know.

If, as I assume, it's what to do about the compensation claim (congratulations, by the way:beer:) now you are on a DMP with SC. There is no reason you need to tell them about this extra money if you don't want to;). You could stash it away in a savings account for now until you see a car that you like and then buy it for cash. As you say, obtaining credit when on a DMP is often impossible or, at the very least, eye-wateringly expensive:eek:. You know a newer car would be money-saving in the long run so view having savings for one as an essential emergency fund.

You could also buy a cheaper car and notify SC of the amount you have left that you can use to increase to repay your debts. Don't tell them that you've just bought a car, just tell them you find you have £x in compensation and want to increase your monthly repayments. Better still, IMO, hang onto it all (in an interest-bearing account of some sort, pathetically little though interest rates are nowadays:mad:) and inform SC of the extra you have available when you do your next annual review with them after, presumably buying your car.



That's what I'd do anyway;) but others may be along and advise you differently. Whatever you decide, good luck on your debt-free journey:beer:

Tryingtogetstraight

Thanks. That was what I wanted to ask..
SC know that my car currently is worth about £600 so at my next financial assessment will know I have bought one for 6k ish...
Would a couple of my creditors accept a settlement? Should I go ahead with that?
I’m just worried I’ll get into trouble.
This has already affected my mental health so badly that having the money in my bank account is actually freaking me out!! :(:(