DMP mutual support thread part 13 !!

ditty1234

Hi atfer a year of chilled progress w DMP I now need some help and suggestions!

In April I needed to start a payment break from my DMP w Stepchange due to insecurity of income and being furloughed from my agency job, which has been a great and very regular income up until March.

When I tried to renew my DMP on Stepchange's website I was at a bit of a loss. Even though my income has not gone down I have had my university son at home and had other expenses due to being home all the time, in particular food, utilities and extra broadband. 

I have renewed with numbers similar to my original budget, and now Stepchange wants to talk to me as my DMP runs for more than 10 years, and I need a payment break until November, as the agency won’t start again till October the earliest. They insist they had only agreed to payment break in May and June. I am sure  I said 6 mo from the start.

How do I word it to Stepchange, what do I tell Creditors I got a text and email from PRA today, do I have to reply - I probably should let them know what is going on. 

In the background I have 2 HSBC accounts (Loan and overdraft) that has not been defaulted yet since last March and I am so annoyed. But If I contact them it will just keep going for even longer. So this payment break is partly to force defaults w HSBC.

Any suggestions? My DMP is running for 16 years, but I only have my son home one more year, and after that I will focus 100 % on my debt, and moving to a cheaper place, but that is not possible at the moment.

I am thinking about going self managed, but would rather wait for about an other year or so, as I’ve got lots of other things on at the moment. 

Dmp_beginner

TuxedoCat said:

All of my accounts have now defaulted apart from a large-ish loan with Hitachi in the region of £6k. Currently with FOS as I believe they are treating my unfairly, not heard back yet so would be interested in responses to the above query!

I have cleared arrears on a Halifax CC and Very - will this automatically reflect on my credit file or will it still appear as arrangement to pay etc.  

I have a few that have only just defaulted in April and May which is very annoying considering Barclays and Tesco defaulted almost immediately back in August 2019.

Hitachi are awful for that, all my other accounts defaulted by December 18. Hitachi never defaulted but sold to wescot in January who offered me a reduced f and f which I paid from my ef but now is marked partially settled since May 2020 which means my credit references will not be clear until 2026 but I'm not to bothered really, only finance I ever plan on needing again is for a car when my current one dies hopefully after 2026 xx

natlie

Morning, today my first DMP payment went out of my account but also first Direct who had told me they were giving me 2 months breathing space took my usual monthly payment from my account, I have now spoken to them on the phone and they are reversing the payment (phew) but also Monzo charged the interest on my overdraft even though they said they would stop all fees and charges. 

Nat

Suseka97

panda_magic said:...........I've also noted that some of the other accounts haven't defaulted (but have stopped interest, I think. ) 

I'm coming up to my annual review, so given the general recommendation to build an EF and not pay much for the first 6months. Is it too late to drastically reduce payments and force tescos (and others) hands I. feel bad for the creditors who have treated me well, can I stop only my payments to tesco and those charging interest, or will payplan insist on paying everyone pro rata. Apart from tesco, I'm relatively happy and don't want to rock the boat, but the interest will add about another 7 months to the payment plan.

The answer is yes, Payplan will want to keep paying everyone on a pro rata basis - so the only way to achieve what you want to do is to go self-managed.  Doing so will allow you to keep up the payment arrangements with those who have defaulted and you can stop payments to those who have not - assuming that's what you want to do.

Suseka97

natlie said:

Morning, today my first DMP payment went out of my account but also first Direct who had told me they were giving me 2 months breathing space took my usual monthly payment from my account and Monzo charged the interest on my overdraft even though they said they would stop all fees and charges. Feeling really disappointed, have i just lost this money now? as it will be coming from my EF  Nat

Possibly.  All you can do now is contact First Direct and ask them to refund the payment and also contact Monzo and remind them of their agreement to stop all fees and charges.   But above all, you need to cancel all DDs relating to these accounts - that's usually one of the first things to do.  Anyway, it's worth a shot.

Suseka97

ditty1234 said:..........How do I word it to Stepchange, what do I tell Creditors I got a text and email from PRA today, do I have to reply - I probably should let them know what is going on. 

In the background I have 2 HSBC accounts (Loan and overdraft) that has not been defaulted yet since last March and I am so annoyed. But If I contact them it will just keep going for even longer. So this payment break is partly to force defaults w HSBC.

Any suggestions? My DMP is running for 16 years, but I only have my son home one more year, and after that I will focus 100 % on my debt, and moving to a cheaper place, but that is not possible at the moment.

I am thinking about going self managed, but would rather wait for about an other year or so, as I’ve got lots of other things on at the moment. 

Given your work situation, your best bet would be to go self-managed - or you can speak with SC and tell them (or remind them) that you have no regular income to speak of so the DMP needs to stay on hold.  Going SM is no big deal - just takes a few letters and you're done.  Then in November, assuming you are able to restart work, you can rework your I&E to reflect your situation and reset your DMP.  As for your creditors, if if were me I'd be writing to tell them you have no current employment and so the DMP will be suspended until further notice.  It's always a good idea to let them know what's happening, for one thing it'll help stop the flurry of letters you're liking to receive otherwise.

natlie

Thanks @Suseka97 I have had the payment reversed, I phoned to cancel the standing order three weeks ago, which they had a record of but they said it the funds are available they will take the payment, which means I may have to change bank accounts as my main account and loan are with FD. I really don't want to leave them as they have been brilliant in the 13 years I have had my account with them but also don't want to be doing this every month

Suseka97

natlie said:

Thanks @Suseka97 I have had the payment reversed, I phoned to cancel the standing order three weeks ago, which they had a record of but they said it the funds are available they will take the payment, which means I may have to change bank accounts as my main account and loan are with FD. I really don't want to leave them as they have been brilliant in the 13 years I have had my account with them but also don't want to be doing this every month

Ah, so therein lies your problem.   You have a debt with FD and you still bank with them... that's a no no.  It sounds as if they are using the 'right to offset' and so I'm sorry to say that you do need to change banks.  Again, that's another 'first rule of thumb'.  I had debts with my bank and whilst I had banked with them for over 20 years, it still didn't matter when it came to the DMP - I had to move bank accounts.  Its a bit of a pain, yes - but it draws a line under things and gives you a clean slate with your new bank.  

Mick1000

Hi
So after income change for partner (now zero), probably time to start a DMP after a while of juggling debt following lots of irresponsible over-commitment on our part. SOA below. Within a couple years and income will increase if partner can return to work, therefore can avoid more drastic debt management solutions. 

Will go self-managed but my question is around the pro-rata'ing. Some debts I already have arrangements for that are already low/good value (good value questionable perhaps). For example the debt with lloyds I am paying back £67 a month interest free, and will be gone in 10 months or so maybe less. I think i'd like to keep that as is, rather than reduce that payment. Theory being its gone pretty soon and one less thing to deal with if it stays the same. Would then once gone readjust DMP to spread the 67.Maybe thats the wrong thing to do and i should pro-rata it - as it doesnt matte how long it takes i guess. But lets say i definitely wanted to keep it at 67 even if thats not best dmp practice... how do i handle letting other creditors know when it comes to the I&E forms? And do creditors insist on telling them what each payment is going to be?

Thanks all x


[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 1

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 2718

Partners monthly income after tax....... 0

Benefits................................ 80

Other income............................ 0[b]

Total monthly income.................... 2798[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 870

Secured/HP loan repayments.............. 218

Rent.................................... 0

Management charge (leasehold property).. 25

Council tax............................. 186

Electricity............................. 30

Gas..................................... 33

Oil..................................... 0

Water rates............................. 47

Telephone (land line)................... 0

Mobile phone............................ 101

TV Licence.............................. 13

Satellite/Cable TV...................... 40

Internet Services....................... 27.99

Groceries etc. ......................... 200

Clothing................................ 0

Petrol/diesel........................... 120

Road tax................................ 10

Car Insurance........................... 40

Car maintenance (including MOT)......... 15

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 50

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 86

Buildings insurance..................... 24

Contents insurance...................... 0

Life assurance ......................... 25

Other insurance......................... 0

Presents (birthday, christmas etc)...... 0

Haircuts................................ 0

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 0

(Unnamed monthly expense)............... 0

'Borrowed' Credit Card.................. 350[b]

Total monthly expenses.................. 2510.99[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 350000

Shares and bonds........................ 0

Car(s).................................. 1

Other assets............................ 0[b]

Total Assets............................ 350001[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 249000...(870)......1.39

Hire Purchase (HP) debt ...... 6000.....(218)......8.9[b]

Total secured & HP debts...... 255000....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

MBNA Credit Card...............2497......80........25

Santander Credit Card..........3200......120.......28

Aqua Credit Card...............3200......120.......25

Next Store Card................2900......80........29

Paypal Credit..................1100......50........29

Lloyds overdraft...............550.......67........0

Barclaycard Credit Ca..........500.......20........24

Lloyds Credit Card.............500.......15........19

Nationwide Loan................6000......243.......8.6

Sainsburys Loan................10100.....343.......14.1

Lendable Loan..................2700......70........16.9

Tesco Loan.....................11000.....592.......6.9

Shabrook Loan..................2500......173.......16.8[b]

Total unsecured debts..........46747.....1973......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,798

Expenses (including HP & secured debts). 2,510.99

Available for debt repayments........... 287.01

Monthly UNsecured debt repayments....... 1,973[b]

Amount short for making debt repayments. -1,685.99[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 350,001

Total HP & Secured debt................. -255,000

Total Unsecured debt.................... -46,747[b]

Net Assets.............................. 48,254[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

spreadtrader

Hi everyone just a bit of advice please as not sure if next step to take.
Basically stopped paying my monthly payments in December and advised the 3 creditors that I am in financial difficulty. Got a letter from each recently saying they are registering defaults if I don’t pay and I have received a confirmation from BC today saying account is defaulted and I have to pay the full balance otherwise they may take further action.
i have just sent them a soa and with the current situation I can only make very small payment to them, what if they don’t accept it? I’m hoping to increase when my situation hopefully improve but that might be next year niw😱
BTW all the accounts are old mbna back to 95 

BC 2005 when it was egg I think
thx