DMP mutual support thread part 13 !!

originalfool

Willing2Learn said:

originalfool said:

After tonight’s abuse I’m so tempted to walk away but I still  need to protect stuff. I need to make sure there are no written communications, any advice? For background, we are both alcohol dependant, but when I work I cope!

There will be written correspondence.  There is no way to get around that.  All you can do is reduce the amount of letters, by taking ownership of the financial problems, and by writing to your creditors first, keeping them 'in the loop'.

Many people with alcohol dependency successful navigate through this process.  You just have to make the financial side of things your priority.  Also, I recommend Cognitive Behavioural Therapy (CBT), as evidence has proven that CBT can be part of the solution when addressing alcohol dependency.   
 
I say again, you need to start a new thread.

Thank you, I’ve looked at everything & I think snowballing should be my first step, thank you all for your advice.

originalfool

So I think I can manage but if I work extra hours, roughly £200 per shift do I save it to my non existent emergency fund or pay off the debts

Suseka97

Time_To_Change said:

In this case I would stop paying, yes  - in fact, have done exactly that on getting a similar response to my CCA requests to PRA. I wrote and thanked them for looking into the matter and said that I would now be focussing on my enforceable debts, but would be happy to re-enter into an agreement at some point in the future.  Now that was something like 2 years ago and I've just sat on them waiting for offers of a discount I'm  happy with.  There are others who simply stop paying and walk away completely - but I'm planning to clear the balances eventually (this year most likely).  For me the reason is so I can draw a line under it and not worry that they may eventually dig something up.  Even if they did, I'd just pay a monthly amount I'm happy with - this type of thing no longer worries me.  

Sorry for all the questions but I have now had another letter from them today saying we have enclosed copy documents as requested and please contact our office within 10 working days to arrange settling the balance. It looks like the documents are just a load of fairly recent statements but I have no idea if this now makes the debt enforceable. They have not said the debt is enforceable now but just said about contracting them to make payment. This has left me pretty confused now.

From what you've said I don't think those new statements prove anything, but I would definitely do as W2L has suggested and head over to the AAD forum.  I had CCAs checked out by them and some did prove to be enforceable, but those had included a copy/or reconstituted copy of my original agreement - one with an e-signature.  The ones I had that returned with just statements were not, but I never bothered checking them because I had the letter from PRA that confirmed them as UE. I think you've just been sent more paperwork and unless you receive a letter that says its now enforceable, then take it its not.  Always good to get these things checked out by a legal beagle though and you'll find plenty to help you out on AAD. 

One last thing to add here, as it may help you and others - is that although a debt may be confined as UE, that doesn't mean it's not owed.  The debt purchaser can continue to chase you for payment and they might even make threats about possible court action.  I would say that the PRA group are one of the more professional outfits I've dealt with and with mine they've just sent periodic statements asking me to contact them to make an arrangement to pay and offer varying discounts.  It's a bit of a cat and mouse game, but one worth playing (in my view).

Suseka97

NewHappyDad said:

Hi All, looking for any advice on remortgaging whilst on a DMP. I've been on a DMP since Apr last year paying £450pm to a debt combined of 2 loans, 2 credit cards and 1 overdraft, currently amounting to £10k. There has been no failures of payments towards the DMP since it began, however I have arranged a 2 month (this month and last) lower payment with Stepchange which was put in place to allow some breathing room whilst I was hit with an unexpected council tax bill - which I had no option but to pay within 2 months.
My current mortgage (not covered under DMP) is on a fixed term ending in June this year, (no missed payments - £126k outstanding). I would be looking to remortgage in June and pulling some equity out of the house to pay off the whole of my outstanding DMP in one go, plus allowing some left over equity (cash) for some additional home improvements. My house is currently worth approx £220k after a recent extension was made to the property. I would like to understand the possibility of me being accepted for a re-mortgage under my current situation, (credit rating showing v.poor and on DMP) and whether anyone has had any experience or tips they can share of how to get a mortgage offer in similar circumstances to mine. I am worried i'm going to get stuck in the cycle of not being able to clear the debts as I cannot establish a route to the equity within my property.... Appreciate any advice on offer! 

I can't help with the remortgage along with pulling out more equity - although I did remortgage with the same provider at lower interest rates during my DMP.  I guess my question to you is why would you move unsecured debt into secured debt?  If it were me I'd try to get a better interest rate, that might lower your current mortgage payment and save that up for those home improvements you're after.  Also, by effectively increasing your mortgage (clearing your non secured debts - assuming you could get an equity release agreed) you've now turned interest free debt (again, assuming these are now defaulted with no interest and charges) to interest bearing debt.

Time_To_Change

Suseka97 said:

Time_To_Change said:

In this case I would stop paying, yes  - in fact, have done exactly that on getting a similar response to my CCA requests to PRA. I wrote and thanked them for looking into the matter and said that I would now be focussing on my enforceable debts, but would be happy to re-enter into an agreement at some point in the future.  Now that was something like 2 years ago and I've just sat on them waiting for offers of a discount I'm  happy with.  There are others who simply stop paying and walk away completely - but I'm planning to clear the balances eventually (this year most likely).  For me the reason is so I can draw a line under it and not worry that they may eventually dig something up.  Even if they did, I'd just pay a monthly amount I'm happy with - this type of thing no longer worries me.  

Sorry for all the questions but I have now had another letter from them today saying we have enclosed copy documents as requested and please contact our office within 10 working days to arrange settling the balance. It looks like the documents are just a load of fairly recent statements but I have no idea if this now makes the debt enforceable. They have not said the debt is enforceable now but just said about contracting them to make payment. This has left me pretty confused now.

From what you've said I don't think those new statements prove anything, but I would definitely do as W2L has suggested and head over to the AAD forum.  I had CCAs checked out by them and some did prove to be enforceable, but those had included a copy/or reconstituted copy of my original agreement - one with an e-signature.  The ones I had that returned with just statements were not, but I never bothered checking them because I had the letter from PRA that confirmed them as UE. I think you've just been sent more paperwork and unless you receive a letter that says its now enforceable, then take it its not.  Always good to get these things checked out by a legal beagle though and you'll find plenty to help you out on AAD. 

One last thing to add here, as it may help you and others - is that although a debt may be confined as UE, that doesn't mean it's not owed.  The debt purchaser can continue to chase you for payment and they might even make threats about possible court action.  I would say that the PRA group are one of the more professional outfits I've dealt with and with mine they've just sent periodic statements asking me to contact them to make an arrangement to pay and offer varying discounts.  It's a bit of a cat and mouse game, but one worth playing (in my view).

That's really helpful thank you. Looking at what they sent me with the original letter that said it was unenforceable does seem to be a reconstituted CCA from barclaycard attached. What confuses me is that they seemed it as unenforceable with this document attached but now they have sent statements in this other letter they seem to imply that it is now enforceable. I will still get it checked though just in case it does prove to be unenforceable. Thanks again

deano1506

Great advice on here - I have been in a DMP for 7 years - had £46k owing and now owe about £5k and will be cleared at the end of the year. I have had some success with F&F settlements -  with reductions of 50% Next, 30% Halifax (Wescot), 80% Creation (Lowell). I am paying about £500 per month in my DMP with less than 12 months to go - So I am actually quite please with these F&Fs so far; however I have only just cottoned on to CCA's and the fact that if they cannot provide or are invalid the debts are unenforcable. All of my debts were defaulted over 6 years ago and most are well over 10 years old. Probably like others I'm a little nervous about asking for the CCA's and then if unenforceable offering 5% as F&F settlement. This would sort me right out, and I can move on to a better more measured financial future. Anyone got any advice, am I doing the right thing?   

Willing2Learn

deano1506 said:

... I have only just cottoned on to CCA's and the fact that if they cannot provide or are invalid the debts are unenforcable. All of my debts were defaulted over 6 years ago and most are well over 10 years old. Probably like others I'm a little nervous about asking for the CCA's and then if unenforceable offering 5% as F&F settlement. This would sort me right out, and I can move on to a better more measured financial future. Anyone got any advice, am I doing the right thing?   

Yup, you are doing the right thing.  No need to feel nervous.  You are just simply following the applicable legislation when you submit your CCA requests.  A ridiculously low F&F offer is completely appropriate, when settling accounts that are unenforceable.  You are definitely more 'honourable' than me, as I would not send a penny on an unenforceable account.   

It must feel great to be approaching the finishing line on your debt-busting journey...

deano1506

Willing2Learn said:

It must feel great to be approaching the finishing line on your debt-busting journey...

Thanks feels good - and maybe I wont be very honourable - they have probably had enough from me :-) Thank you for your great advice and ill keep you guys updated

NewHappyDad

Suseka97 said:

NewHappyDad said:

Hi All, looking for any advice on remortgaging whilst on a DMP. I've been on a DMP since Apr last year paying £450pm to a debt combined of 2 loans, 2 credit cards and 1 overdraft, currently amounting to £10k. There has been no failures of payments towards the DMP since it began, however I have arranged a 2 month (this month and last) lower payment with Stepchange which was put in place to allow some breathing room whilst I was hit with an unexpected council tax bill - which I had no option but to pay within 2 months.
My current mortgage (not covered under DMP) is on a fixed term ending in June this year, (no missed payments - £126k outstanding). I would be looking to remortgage in June and pulling some equity out of the house to pay off the whole of my outstanding DMP in one go, plus allowing some left over equity (cash) for some additional home improvements. My house is currently worth approx £220k after a recent extension was made to the property. I would like to understand the possibility of me being accepted for a re-mortgage under my current situation, (credit rating showing v.poor and on DMP) and whether anyone has had any experience or tips they can share of how to get a mortgage offer in similar circumstances to mine. I am worried i'm going to get stuck in the cycle of not being able to clear the debts as I cannot establish a route to the equity within my property.... Appreciate any advice on offer! 

I can't help with the remortgage along with pulling out more equity - although I did remortgage with the same provider at lower interest rates during my DMP.  I guess my question to you is why would you move unsecured debt into secured debt?  If it were me I'd try to get a better interest rate, that might lower your current mortgage payment and save that up for those home improvements you're after.  Also, by effectively increasing your mortgage (clearing your non secured debts - assuming you could get an equity release agreed) you've now turned interest free debt (again, assuming these are now defaulted with no interest and charges) to interest bearing debt.

@Suseka97

Thanks for the reply. Glad to hear you were able to find a better rate whilst you were on a DMP. That provides some hope for my own situation. Good questions, essentially I suppose I’d like to get the proverbial ever-aching weight of debt off my back, at the earliest opportunity, and saw the method I explained as an option. In an ideal world I would find a better rate when looking for a remortgage, if not, then as near as possible to my current rate. So whilst the points you make are valid and points I will consider when laying out the cost difference for all options, nothing appeals more right now than wiping the DMP and paying one debt entity, I.e. the mortgage lender. I have to say, explained the way you have has made me think...
Thanks

Time_To_Change

When sending a CCA into the AAD forum do I cover up my name and address etc or do they need these to check them properly? Is it ok to just send pictures of each page? Thanks