DMP mutual support thread part 13 !!

torheb

I’ve been in a joint DMP for a couple of years with my partner - we are separating (amicably) but not sure how to handle the dmp - will stepchange separate the dmp into our own debts - if he decides to change his to an IVA will it affect the mortgage - feel so weighed down by it all just don’t want me and the kids to end up homeless if I can help it 

sourcrates

Hi,

Credit debts are usually unsecured borowing, so you won`t lose your house no matter what.

It should not be too difficult, as the split is amicable, to sort out between you who pays what, try and keep it as simple as possible, whose name are the debts in yours, his, mixture ?

Don`t expect stepchange to sort this out for you, get it sorted and agreed by yourselves, he takes his debts, you take yours, maybe split payments to any joint debts ???

its your call.

sunshinevicky

Me again! 

So today was payday and felt very strange not losing most of my wages disappear in debt payments! I have paid a chunk off my nationwide CC and put some into my EF. My plan is to clear Nationwide so I can keep my bank account and to have an EF of around £1000.... this will require around 5 months of no payments..... this leads to my question!
Today I received a letter from Capital One thanking me for my letter about financial difficulty and they have frozen interest and charges for 30 days. They have involved an I&E form for me to complete so I can start a payment plan with them. Now I’ve done my I&E all ready to send in with offer of payment via the NEDCAB website but I wanted to hold off for 5 months to do the above (and hope for defaults) but now I’m not sure if I should return this to Capital One now but then why would I say I can’t start payments for so long???? 😬😬

sourcrates

Hi vicky,

You really should not be fussing about what the current owners of your debts think or do, i have said this before, if its defaults you want, then you just ignore your creditors until they default you, no point engaging with them, as all that does is extend the time your accounts are held for, you want it defaulting, not holding, obviously keep an eye on any correspondance, but you engaging with them just extends the time it takes to get defaults.

You need to figure out what you want to achive here, remember, a default is the result of the relationship between you and your creditor breaking down irretrievably, being all touchy feely with them does not get you what you want unfortunatly.

sunshinevicky

sourcrates said:

Hi vicky,

You really should not be fussing about what the current owners of your debts think or do, i have said this before, if its defaults you want, then you just ignore your creditors until they default you, no point engaging with them, as all that does is extend the time your accounts are held for, you want it defaulting, not holding, obviously keep an eye on any correspondance, but you engaging with them just extends the time it takes to get defaults.

You need to figure out what you want to achive here, remember, a default is the result of the relationship between you and your creditor breaking down irretrievably, being all touchy feely with them does not get you what you want unfortunatly.

Thanks Sourcrates.... I think I’m still at that newbie stage where I know that I need to ignore to get the default but I also feel very nervy about it! But you are right what I want is defaults so I need to ignore and send in my I&E when I am ready 🙈

Changingtimes

Hi all
Not posted for a while but wanted to come back with a progress update. I was in £22,000 debt in December 2018. I was in the vicious cycle of paying back loans, credit cards etc and taking out more credit to survive you all know where I am coming from. I wasnt sleeping, I was in a mess.  I had been reading this forum from June 2018 but never had the bottle to follow through with what so many of you were doing, then I had my all important lightbulb moment, and thank god i did when I did.
I got advice from one of the charities and they helped me a lot, they took the stress away and I began to feel happier and was sleeping well.  In January 2020 I decided to thank the Charity for all their help and go self managed. This was scary too dealing with my creditors for the first time myself in 12 months.  Overall the change over wasnt too bad. I have been self managing now since January 2020.  I raised a few complaints with lenders and was successful getting refunds or clearing balances. Ultimately as at now I have reduced my debt from the £22K now on my file £5k - I am proud of myself and all you people in the early stages of DMPs and dealing with your debt, trust me its one of the best things you will ever do.  
Now a question to the experts, as my debt is reducing, certain creditors being cleared, I am some months being left with an amount of money which I would have paid them. So do you think I continue paying this to another debt, or start putting this into my EF?  I had a debt wiped clear which had a monthly payment of £49, shall i put the £49 away or pay it off another debt?
Eitherway, I will be debt free by Christmas 2020 (if not before) and so looking forward to it already (I know its 6 months away LOL).
So all you regulars who helped me, advised me, and shouted at me (Sourcrates) thank you all so much for your help and patience with me, you have in a way saved my life!  Truthfully. Oh, sorry for the long post :-)

sourcrates

Hi,
Sorry for shouting lol, glad your making headway, I think it’s your call what you do with your spare cash, if it makes you feel more motivated, then pay it off the debt.
Roll on Christmas !!

Annie0707

Hi, 

Thank you for your previous comments (sourcrates).  I am looking for some more advice.  Most of my accounts have now defaulted and I have a small EF in place.  I again went through my income and expenditure with Stepchange and they recommended a trust deed via the online application and then when I called them they discussed a DMP (or Scottish equivalent), so advice has been variable from them.  I then spoke with a Scottish firm for advice regarding a trust deed as Stepchange were unable to answer my questions.  I have equity in my home that would cover my debts, so my house would be at risk if I were to enter a trust deed, which is what Stepchange were unable to answer.  I can not lose my home.  I have four kids and would never get another home that would fit us and would end up having to rent.  Whilst speaking with the firm, they suggested that my creditors would not accept a DMP as it appears as though it could take approximately 15 years to pay it off. The total amount may reduce because I have raised affordability complaints with payday lenders and high interest lenders.  Meantime, I was going to ask to pay token payments towards my debt.  I have a template letter ready to go and an outline of my income and expenditure.  My questions are; do I have to detail what I owe each creditor? Do I have to explain why I am unable to pay? I have no real reason, except I have been incredibly stupid and gotten myself into a mess.  Also, my income may reduce due to COVID19 with my maintenance reducing or stopping due to my ex's potential redundancy.  My income may increase by way of reduced child care costs and my ability to work more hours, once my youngest starts school, however again COVID19 has changed the way school will look and my ability to work more hours and homeschool may not be possible for awhile longer.  I will also be in a better position to sell my house in a few years as my older kids leave home, but apart from that I do not expect any windfall at all.   I had hoped to enter a DMP and pay approx £200 a month, but with so much uncertainty regarding my income and the fact that they may not agree, I would like to buy some more time.  Is this a valid plan? 

Thank you for your advice, it has been invaluable.

natlie

Hi. How much debt do you have, if you don’t mind me asking @Annie0707

TomF1983

Hi. I have some questions about plans so thought this would obviously be the best place to ask ,, I'm curtain a paid debt plan with Gregory pennington , I just had my annual statement and its saying I owe 3000k to my creditors now but the total is 3700k with their fees , im paying 187 a month but obviously 20%ish  of that is fees ,  as this amount has dropped from around 11k in 3 years I was thinking about leaving them and managing it myself to avoid the fees and pay it off quicker , one of my concerns that I read the examples of some of the free ones you can set up and it was saying it may try to incorporate my partners finances into my budget as we live together  ? I definitely don't want that to happen , also are the chances of the interest being un frozen high ?

I was thinking about calling the creditors individual and trying to arrange something over the phone before I drop out of the plan is this wise ?

Thanks for reading