DMP mutual support thread part 13 !!

sourcrates

Changingtimes said:

I am so angry. I switched to a SM DMP as from 18th Feb. All creditors so far been a good and accepted offers generated by NEDCAB site. Apart from 1 and I am at my whits end what to do with them. Offer made they wanted bank statements.  Told them I lawfully dont have to send . They basically told me I have to match the payment of SC. Advised Them impossible and to recheck the I&E I sent them. We are pretty much at a stand off.....they said they will accept £70 extra on top of my offer with no further action. If not they they will place me in arrears and further action might be taken. Told them I dont take the threats lightly! I tested them ....I said ok I will ask family to help me with the extra £70 on top of my offer or loan it. They said that would be ok and to let them know......surely that's against OFT guidelines? They didn't say dont go loaning the money from elsewhere shouldn't be done etc.....Turned to this company when I was in desperate time....and now I am seeing the light I would never deal with a company like this again. Sorry for long post

All that will happen is they will sell the debt on, or assign it to a collector, never pay more than you can afford.
Only pay what your budget allows, don`t engage with them so much, let them do what they have got to do.

lhull_2

Hello,
I'm really hoping for someone to give me some advice. I have unfortunately got myself in a mess with money over the years. Credit cards when i was younger then a loan to pay the credit cards, then spent more on credit cards to get another loan. Now i am really struggling to get by each month with the payments. I currently live at home with my parents and like to pay my way as my dad is on a minimum wage job and my mum is unable to work. I have contacted Step Change who have suggested a Debt Management Plan. I owe over 30K and I can roughly afford to pay back £400 a month (According to Step Change) I have debts with; Halifax, Very, HSBC, Tesco Bank and Capital one. If i did go ahead with the debt management plan how likely is it I will be harrassed by my creditors? I am so scared that I will end up in Court but i see no other way forward. 
Please help me 

Willing2Learn

lhull_2 said:

Hello,
I'm really hoping for someone to give me some advice. I have unfortunately got myself in a mess with money over the years. Credit cards when i was younger then a loan to pay the credit cards, then spent more on credit cards to get another loan. Now i am really struggling to get by each month with the payments. I currently live at home with my parents and like to pay my way as my dad is on a minimum wage job and my mum is unable to work. I have contacted Step Change who have suggested a Debt Management Plan. I owe over 30K and I can roughly afford to pay back £400 a month (According to Step Change) I have debts with; Halifax, Very, HSBC, Tesco Bank and Capital one. If i did go ahead with the debt management plan how likely is it I will be harrassed by my creditors? I am so scared that I will end up in Court but i see no other way forward. 
Please help me 

You are guaranteed to be bombarded with correspondence.  But if you enter into a DMP then the letters will mostly stop.  Please can you post up your SOA (Statement of Affairs) into a new thread on the main DFW board.  If we can see your SOA, then we will be able to offer advice, support and guidance. 

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

Don't forget to click on the 'format for MSE' button near the bottom of the online form, before posting up into your new thread. 

newdfw2020

Hi quick question regards going into a DMP
I have around 50k of debt and after doing the online check with stepchange they recommend I go into a DMP and can pay around £1250 per month towards the debts. 

I've read on here people say it's a good idea to over emphasize some things on the forms to ensure you have money to live on each month, I did that and after bills and the DMP payment I'm left with around £350 per month. I'm just slightly worried at some point stepchange or a creditor may want proof that I spend £30 a month on dentist or £80 a month on clothes or clubs, do you ever get asked to prove this?

Thanks for your help

Willing2Learn

Hi newdfw2020 and welcome to the forum 

newdfw2020 said:

Hi quick question regards going into a DMP
I have around 50k of debt and after doing the online check with stepchange they recommend I go into a DMP and can pay around £1250 per month towards the debts. 

I've read on here people say it's a good idea to over emphasize some things on the forms to ensure you have money to live on each month, I did that and after bills and the DMP payment I'm left with around £350 per month. I'm just slightly worried at some point stepchange or a creditor may want proof that I spend £30 a month on dentist or £80 a month on clothes or clubs, do you ever get asked to prove this

We always recommend that people build up an Emergency Fund (EF) before they begin their DMP payment schedule. This would require you delaying the start of your DMP by 3-6 months.  This encourages your creditors to default the accounts nice and early, and this will mean the toxic data will be automatically removed from your credit files much sooner.  A defaulted account also means interest and fees are frozen too.

newdfw2020

Thanks, I've already got a small fund behind me (around £1000) so am just going to jump straight in, more worried I'll get picked up on that I have a couple of hundred spare each month (which will got towards f&f offers down the line)

Willing2Learn

With your DMP payments at £1,250/month, it will take 40 months to clear your debt.  Make sure they default the accounts promptly (in accordance with guidance) instead of marking as a payment arrangement (AP) on your credit files, as that would mean the toxic data would be on your credit files for over 3 years longer

vicki84

Hi 
Have any of you arranged a payment plan with PayPal credit?

Thanks

Orsonwelles

Hi.
I am paying token payments at the moment on a self managed DMP. 
Two of my debts are with HSBC, an overdraft and a credit card. The overdraft is relatively small compared to the CC and so I was thinking of paying as much as possible towards this debt to clear it quicker while still paying token payments to the CC. I know that HSBC will not like this but is there anything they can do to stop it?
Thank you

Headabovethewater

Our first 30 days is coming to end soon after 1st hold letter.  Asked for 60 days hold as off sick, most responded with 30 days freeze and some not heard off at all.   Do you send another one out just before the 30 days is up? Or just later when ready to make offer payments? I'm hoping to stretch it to the 6 months for hubby's tax bill and the emergency fund.  Felt very weird missing payments for the 1st time!