DMP mutual support thread part 13 !!

Willing2Learn

Headabovethewater wrote: »

...We've sent our 1st hold letter asking for 60 days. I've been signed off ongoing illness for 2 months. Barclaycard said they would hold for 30 days. Not heard off others yet. Should I resend the letter at the end of 30 days of rejig the letter?
I'm employed but hubby has a tax bill we will have to prioritise for 4 months as well as saving for emergency fund.
Would you mention this in the letter to creditors? Most credit cards, 1 overdraft and hubby zopa loan. Obviously we have to sort out tax first. How long do you think we can hold others offer? Or start tiny payments til were straight to start sm dmp?

If it were me, and I was going to be starting a SM DMP, then I would be sending holding letters advising your creditors that your DMP will start xx/06/2020. Six months should be long enough for all your creditors to default the accounts. No need to mention tax bill...

Headabovethewater

Thank you for the advice, finding it all a bit nerve wracking. So no need to mention tax or that we are saving for emergency fund? Just send start date for 6 months time? We would hear sooner if anyone of them were going to try ccj or escalate anything? particularly anxious of overdraft and hubby's zopla for some reason:( Thank you again

Time_To_Change

Hi all just a quick question regarding a CCA request to PRA. I usually contact them via email and was wondering if I could send a CCA request by email or if it needs to be in writing? Also theres lots of template letters around so just wondering if there is a preference to which one people use? Many thanks.

sourcrates

Time_To_Change wrote: »

Hi all just a quick question regarding a CCA request to PRA. I usually contact them via email and was wondering if I could send a CCA request by email or if it needs to be in writing? Also theres lots of template letters around so just wondering if there is a preference to which one people use? Many thanks.

Send in a letter, enclose the statutory £1 payment.

Use the template on the National Debtline website.

re123

Hi all - Just starting my journey on the DMP train and had a few questions!


I've done the step change tool and requested the application pack so I'm well on my way to starting to get rid of my crazy debts (52k) however there were a couple of things I wasn't sure on so thought I would ask here (though ill phone up step change as soon as poss too)


1) Under priority debts there was nowhere for me to list a repayment plan I have with HMRC, as due to tax issues I'm currently paying them £340 a month until September - this isn't something I can add to the overall list of debts - so how do I manage it?


2) Mobile contracts, I have a few mobile contracts (6 - don't ask!) which I want included on the DMP, I have put in the rough value of what's left but its a bit of a stab in the dark - all my bills are up to date so I haven't had any demands yet so am unsure what the total will be - Is this ok to add to the list of debts even though I'm not 100% sure on the total debt amount?


3) Everyone on here quite rightly suggests having an emergency fund before starting, what are peoples thoughts on how much this should be? For example my total debt payments each month currently come to an eye watering total of £2291 - With the step change plan this will revert to around £1350 PM. My plan is once the DMP is agreed ill cancel all DD's and allow myself a month (£2291) before I start the payment plans - Is that enough of an emergency fund, I don't want to get greedy.


Also using the step change debt tool after all my bills and the above monthly payment ill be left with approx. £500 a month spare, does that seem normal? I would have thought they'd try to get every penny into paying off debt - I do want some spare money each month, but also don't want to take advantage


Any help you can give would be great. Unlike a lot of people ive read about on here I don't have any dread at the moment, just excitement that the for the first time in years I soon wont be paying just minimum monthly payments and getting nowhere!


Thanks


Ross

purplepaws

Hi All,


Just thinking out loud - usually I'm all filled with confidence and know what to do, but sometimes you just get hit unexpectedly and are lost for direction! Any constructive suggestions welcomed:


I am facing becoming unemployed - my choice (reasons that I won't bore you with) but nonetheless, I will not be receiving a wage, not entitled to any benefits, but will be fed, watered and housed. (Unlikely to very quickly get another job.)

I currently have a DMP with Payplan, costing £45pm - obviously I wont be able to pay when I stop work. Have sone savings but need to hang on to them for that inevitable Rainy Day.

So, should I take control of the DMP myself, before finishing work or just notify PP of my change of circumstances and face faffing about with the I&E that they will, no doubt, want me to complete?


Not sure fully of the implications of just stopping payments to an established DMP?


Thanks for listening!

Debtfreeat50

I received my first acceptance letter today from Halif*x. They are also going to default me straight away so no fees or charges. This is a relief as my second biggest debt. MBNA who are my biggest appear to be being decent too. They even refunded my interest from last month after receiving my holding letter.
I have read that Very are likely to be a pain and I still have a couple of BNPL items to be added later in the year. Should I save up to pay those off out of my EF so I dont accrue the interest?
Thank you for all those who spend their time helping us newbies. I have read back and there are some truly inspiring stories

sourcrates

purplepaws wrote: »

Hi All,


Just thinking out loud - usually I'm all filled with confidence and know what to do, but sometimes you just get hit unexpectedly and are lost for direction! Any constructive suggestions welcomed:


I am facing becoming unemployed - my choice (reasons that I won't bore you with) but nonetheless, I will not be receiving a wage, not entitled to any benefits, but will be fed, watered and housed. (Unlikely to very quickly get another job.)

I currently have a DMP with Payplan, costing £45pm - obviously I wont be able to pay when I stop work. Have sone savings but need to hang on to them for that inevitable Rainy Day.

So, should I take control of the DMP myself, before finishing work or just notify PP of my change of circumstances and face faffing about with the I&E that they will, no doubt, want me to complete?


Not sure fully of the implications of just stopping payments to an established DMP?


Thanks for listening!

If you have no income, you cannot repay debts, period.
Are you a homeowner, do you have any assets ?

sourcrates

re123 wrote: »

Hi all - Just starting my journey on the DMP train and had a few questions!


I've done the step change tool and requested the application pack so I'm well on my way to starting to get rid of my crazy debts (52k) however there were a couple of things I wasn't sure on so thought I would ask here (though ill phone up step change as soon as poss too)


1) Under priority debts there was nowhere for me to list a repayment plan I have with HMRC, as due to tax issues I'm currently paying them £340 a month until September - this isn't something I can add to the overall list of debts - so how do I manage it?


2) Mobile contracts, I have a few mobile contracts (6 - don't ask!) which I want included on the DMP, I have put in the rough value of what's left but its a bit of a stab in the dark - all my bills are up to date so I haven't had any demands yet so am unsure what the total will be - Is this ok to add to the list of debts even though I'm not 100% sure on the total debt amount?


3) Everyone on here quite rightly suggests having an emergency fund before starting, what are peoples thoughts on how much this should be? For example my total debt payments each month currently come to an eye watering total of £2291 - With the step change plan this will revert to around £1350 PM. My plan is once the DMP is agreed ill cancel all DD's and allow myself a month (£2291) before I start the payment plans - Is that enough of an emergency fund, I don't want to get greedy.


Also using the step change debt tool after all my bills and the above monthly payment ill be left with approx. £500 a month spare, does that seem normal? I would have thought they'd try to get every penny into paying off debt - I do want some spare money each month, but also don't want to take advantage


Any help you can give would be great. Unlike a lot of people ive read about on here I don't have any dread at the moment, just excitement that the for the first time in years I soon wont be paying just minimum monthly payments and getting nowhere!


Thanks


Ross

HMRC is a priority debt, and must be paid, just list it.

Default on all your other payments now, save an emergency fund, as much as you can.
You must stop paying the debts, especially the phone contracts, in order for the company to close and wind up your accounts, only then will the final bill be generated, and the total amount owed be known.

Its funny, people always post "i`ve never missed a payment" well you should, your total debt won`t be known until all accounts are defaulted, nor will creditors take you seriously that you mean what you say, people usually enter debt management after a good 6-9 months of non payment.

re123

Thanks for the reply. So what do I do with the debts once I cancel all the direct debits etc? Do I tell them I'm setting up a step change plan? Ignore them? Make a token payment etc?

I'm a bit confused about that part, step change have advised they are happy to setup the DMP , though I know the phone contracts will be an issue until a final bill is produced

Ross