DMP mutual support thread part 13 !!

dfwb20

sourcrates said:

dfwb20 said:

Hi everyone - another newbie here!
 however the only thing I am unsure of is how to build my emergency fund. I have seen posts here suggesting to delay the DMP for 6 months to build up an EF and have accounts defaulted. Please can someone advise me how to do this?

You don`t pay your credit bill`s, its as subtle and as straightforward as that.

Ah you say, won`t they do horrible things to me, come and take my shackles, imprison my BMX bike, err, No, they won`t.

You must understand how debt collection actually works, its a very long process of calling folk, writing to them, that kind of thing, and can go on for years in a lot of cases, so we always advise you to obviously pay attention to what creditors are sending you, but stop your payments for a few months, in order to build up your fund.

Usually by the time you get around to starting the DMP, your accounts have hopefully defaulted, and may possibly have been sold on, or at least passed to a debt collector.

Once defaulted all charges and interest stop, forever, and you have a clear 6 year time scale to when your file will be rid of the negative information, so it benefits you in two ways.

Brilliant thank you for being so helpful & clear! Makes the whole process seem far less scary! 

emmajaynewithay

Hi. How many full payment breaks with PayPlan accept, do you think? 

I currently pay £600 a month to my 9 creditors and have done for the last 20 months (I've paid off £11K of £35K debt). (Started Dec18)

I have never not paid. I have paid a £9 minimum to PayPlan on 3 times during these 20 months, due to dental care needs, a flat deposit need and an issue with an electricity bill. May 2019, Dec, 2019, Feb 20. 

My bed just broke and I really need to buy a decent one so would ideally make a £9 payment again for August, but I don't want to seem like I am taking the mickey. 

Has anyone else else had a similar concern? Obviously I am concerned about how my creditors would feel too. 

natlie

Hi 
You don't have an emergency fund? If you don't you need to think about putting some of your budget into a separate account for this each month, this is the reason why you are having to stop paying each time something pops us. paypl@n will let you factor an emergency fund contribution into your budget
Nat

Changingtimes

Hi folks hope you are all well.
I am here for some further advise. Jan 19 I started my DMP with SC. After sticking with payments after 12 months I felt more relaxed to move away from SC into a self managed DMP, to do the transition i used NEDCAB site so in Feb 20 I went SM.  Most creditors were ok with this apart from one.  Any way after days or arguing with them and jiggling about with figures with them we agreed on a monthly payment.  I obtained a balance from them before going SM and obviously I my own records of payments, balances etc.  As I have just done a 6 month review of my finances I asked all my remaining creditors for balances. All ok apart from this one (again). I have 1 full payment to make to them, and a final part payment so total due £320 to finalise.  Now they returned with a final figure of £436. I suggested they rechecked their records, they did saying the balance they advised in December was at that date not including any interest.   The issue i have is the loan in question was (i know i was stupid) £3000 and the interest was circa £6300.  Now they are just wanting to squeeze more and more out of me.  Are they allowed to add on more interest? They have never during the SC payments, or my own SM payments advised me they would be adding on more and more interest.  I just feel again I am never going to be rid of this company!
Now i feel like with holding what I consider i owe them until they sort it, or am i in the wrong here?  
I am come so far and this company insistent on trying to knock me back down again.

Suseka97

Changingtimes said:

.............. so in Feb 20 I went SM.  Most creditors were ok with this apart from one.  Any way after days or arguing with them and jiggling about with figures with them we agreed on a monthly payment.  I obtained a balance from them before going SM and obviously I my own records of payments, balances etc.  As I have just done a 6 month review of my finances I asked all my remaining creditors for balances. All ok apart from this one (again). I have 1 full payment to make to them, and a final part payment so total due £320 to finalise.  Now they returned with a final figure of £436. I suggested they rechecked their records, they did saying the balance they advised in December was at that date not including any interest.   The issue i have is the loan in question was (i know i was stupid) £3000 and the interest was circa £6300.  Now they are just wanting to squeeze more and more out of me.  Are they allowed to add on more interest? They have never during the SC payments, or my own SM payments advised me they would be adding on more and more interest.  I just feel again I am never going to be rid of this company!
Now i feel like with holding what I consider i owe them until they sort it, or am i in the wrong here?  
I am come so far and this company insistent on trying to knock me back down again.

The question is whether they had defaulted your account or not.  If they have, then they shouldn't be adding interest - but if not, then they can continue to add interest.   As to your next steps, well I'd write and make a formal complaint and withhold payment until you get a satisfactory response.  Also, is the debt with the original creditor or has it been sold on?  It might help to say who this is with - then people may have some experience with the same that they could share.    You could try the CCA route here and see where you stand on its enforceability.  Or you could just pay these guys off so that you can get rid of them for good.  There's no standard approach really, it's a matter of how much you want to push back on this.

If it were me I'd be complaining, loudly and I'd stop making payments and would be as difficult with them as they have been with you - but I'm a stubborn so and so and am happy to get into letter tennis just for the hell of it 

brightoctober19

Hello everyone! Myself and my wife have just had our DMPs accepted through SC and they will start on the 1st September, we are looking at a debt free life in around 2 years which is such a relief after a tough few years.
Could anyone advise me if it is likely that our creditors will accept the DMP? I have one credit card (capital one) that is very behind on payments and about to default so this worries me that they won’t accept and will just keep piling the interest on. My wife also has a Very account in the same situation, so it would be helpful to hear from anyone who has been in this situation.
Am I ok to just send “token” payments to my creditors this month so we have an emergency fund set aside for our commencement date?

Basically I feel very positive about the whole situation and that we have taken the steps to clear our debt but then all these niggling worries about creditors not accepting the DMP, sending me CCJs etc etc 

brightoctober19

Also just to add none of our debts have actually defaulted yet, is this ok? We just wanted to get started paying off. 

sourcrates

Hi,
No one sends a CCJ, it’s a county court process that a creditor, or anyone else,  has the option of using if you don’t pay your debts.
It makes no difference, as I’ve said on here many times before, if a creditor accepts the DMP or not, doesn’t matter to you who owns your debt, you just make your monthly payment as usual.
If, a creditor is not happy with the arrangement, they simply sell the debt, or pass it to collectors and Stepchange pay them instead.

So that is not even an issue.

Defaulted debts leave no trace on your file after 6 years, arrangement to pay markers stay 6 years after you finish repaying your debt.

Save a good emergency fund, it’s essential.

Suseka97

brightoctober19 said:

Hello everyone! Myself and my wife have just had our DMPs accepted through SC and they will start on the 1st September, we are looking at a debt free life in around 2 years which is such a relief after a tough few years.
Could anyone advise me if it is likely that our creditors will accept the DMP? I have one credit card (capital one) that is very behind on payments and about to default so this worries me that they won’t accept and will just keep piling the interest on. My wife also has a Very account in the same situation, so it would be helpful to hear from anyone who has been in this situation.
Am I ok to just send “token” payments to my creditors this month so we have an emergency fund set aside for our commencement date?

Basically I feel very positive about the whole situation and that we have taken the steps to clear our debt but then all these niggling worries about creditors not accepting the DMP, sending me CCJs etc etc 

Firstly, well done on taking steps to remedy your debt problems.
I've had experience of CapOne and had no problems with them as far as 'accepting' the payment plan - but you will need to push them for a default.  They should stop interest etc., but might not default for a good few months yet.  As for Very, I have no personal experience there, but if you look back on this thread you'll find others have and they are notorious for not defaulting - so be prepared for a battle, that doesn't mean they keep lumping on charges (others will confirm), but as Sourcrates has said - you want the defaults so that 4 years after you've finished the DMP the Ds will drop off.  Otherwise it'll be 6 years after you've finished the DMP (so 8 years in total), if the DMP runs for 2 years as you suggest.
I wouldn't bother with tokens, it's totally unnecessary at this point - if you've not done so already, then let them know you are in discussion with SC and they will put your accounts on hold for 30 days as a first step.  Then just let the DMP take its course.

Now, if it were me - and again, if you read back on this thread you'll find this advice is often given to newcomers - I'd delay the DMP start by a few months still to build up the EF first.  It'll help with nudging those defaults and also give you some breathing space.  A good EF is vital to the success of a DMP.  Unfortunately as good intentioned as SC is, they always want to get the DMP up and running quickly and the EF amount they allow in the I&E is often insufficient if some unexpected expense occurs early doors into the DMP.  But it's your choice of course  

Debtfreeat50

brightoctober19 said:

Hello everyone! Myself and my wife have just had our DMPs accepted through SC and they will start on the 1st September, we are looking at a debt free life in around 2 years which is such a relief after a tough few years.
Could anyone advise me if it is likely that our creditors will accept the DMP? I have one credit card (capital one) that is very behind on payments and about to default so this worries me that they won’t accept and will just keep piling the interest on. My wife also has a Very account in the same situation, so it would be helpful to hear from anyone who has been in this situation.
Am I ok to just send “token” payments to my creditors this month so we have an emergency fund set aside for our commencement date?

Basically I feel very positive about the whole situation and that we have taken the steps to clear our debt but then all these niggling worries about creditors not accepting the DMP, sending me CCJs etc etc 

I entered into DMP in February and Capital One defaulted almost immediately whereas Very have not as yet but have not added any interest or fees on. As I only have 10 years left on my mortgage and do not wish to have any future credit then I have not pushed for any defaults.
I wouldn't worry too much about whether the DMP will be "accepted" as I think only about half of my creditors sent a formal letter but all have been happy to take the payments each month and none have added interest. Had a battle with Hitachi charging 25 pounds for a letter each month but have had it all refunded. Have had no phone calls and very little post apart from the defaults and has all gone amazingly smoothly. One debt now cleared and three thousand paid off my total of 20000.