DMP mutual support thread part 13 !!

sourcrates

matthewhine said:

Thank you sourcrates, so basically it's likely that most debt will remain unenforceable? 

Think you mean enforcable.

All that is required for most accounts is a reconstituted version of your agreement, made up from any information held on  the companies systems.

It tends to be older debts that have been sold on a few times, where compliant paperwork is lacking.

JA81

Morning,
Here’s the situation. Since my wife went back to education we have struggled with our debts. She already had a large credit card balance and we had 2 loans. I rearranged the loans to reduce the payments and started covering her credit card with balance transfers to mine. This was never a sustainable position but it was what we needed to do so that we could cover our mortgage and childcare costs (we had an income deficit of around £800 per month)
Then 2020 arrived. Firstly this meant we could rearrange our mortgage and reduce the payments by £200 due to our improved LTV and then COVID-19 caused a halt to the childcare costs. So far, so good. However now September is around the corner, while we have been able to reduce debts and meet payments we are going to be back in a deficit, so have spoken to step change and Have the paperwork for a DMP.
As I’ve never missed a payment on my debts, is this likely to be accepted?

Today our outstanding balances total £34k, and our suggested payment is £350 so just under 8 years to clear.

I am also worried about what happens when our mortgage deal ends in 2 years time. Will I be dropped back onto SVR which will make the situation worse?

19ryanh93

Hi all
im about 12 months into my SC DMP. Now going self managed. Some of my accounts have not defaulted yet and my EF is pretty low after having to get a new boiler. 

How would creditors see it if I help of paying for a couple of months to rebuild the EF?

thanks

ryan

sourcrates

19ryanh93 said:

Hi all
im about 12 months into my SC DMP. Now going self managed. Some of my accounts have not defaulted yet and my EF is pretty low after having to get a new boiler. 

How would creditors see it if I help of paying for a couple of months to rebuild the EF?

thanks

ryan

They would see it as it is ryan, missed payments, no more, no less, do what you have  to do.

19ryanh93

sourcrates said:

19ryanh93 said:

Hi all
im about 12 months into my SC DMP. Now going self managed. Some of my accounts have not defaulted yet and my EF is pretty low after having to get a new boiler. 

How would creditors see it if I help of paying for a couple of months to rebuild the EF?

thanks

ryan

They would see it as it is ryan, missed payments, no more, no less, do what you have  to do.

Thanks sourcrates. Would it be best to send them a letter to let them know or just to do hold off without telling them? 

sourcrates

JA81 said:

Morning,
Here’s the situation. Since my wife went back to education we have struggled with our debts. She already had a large credit card balance and we had 2 loans. I rearranged the loans to reduce the payments and started covering her credit card with balance transfers to mine. This was never a sustainable position but it was what we needed to do so that we could cover our mortgage and childcare costs (we had an income deficit of around £800 per month)
Then 2020 arrived. Firstly this meant we could rearrange our mortgage and reduce the payments by £200 due to our improved LTV and then COVID-19 caused a halt to the childcare costs. So far, so good. However now September is around the corner, while we have been able to reduce debts and meet payments we are going to be back in a deficit, so have spoken to step change and Have the paperwork for a DMP.
As I’ve never missed a payment on my debts, is this likely to be accepted?

Today our outstanding balances total £34k, and our suggested payment is £350 so just under 8 years to clear.

I am also worried about what happens when our mortgage deal ends in 2 years time. Will I be dropped back onto SVR which will make the situation worse?

Hi,

First off, DMP`s are something you have to do when you can`t meet your financial obligations, there is no acceptance, or non acceptance, its done, thats it, if a creditor does not like it, as i have posted many times in the past, they simpley sell the debt on, or pass it to a debt collector to manage instead, makes no difference to you who owns your debt, you still pay anyway.

Mortgage deals with the same lender usually do not involve a credit check, so you may be ok.

Once you come to realise that the o% deals have run out, and consolodation never works, DMP is usually the only way for homeowners.

Stavrosflatley

JA81 said:

Morning,
Here’s the situation. Since my wife went back to education we have struggled with our debts. She already had a large credit card balance and we had 2 loans. I rearranged the loans to reduce the payments and started covering her credit card with balance transfers to mine. This was never a sustainable position but it was what we needed to do so that we could cover our mortgage and childcare costs (we had an income deficit of around £800 per month)
Then 2020 arrived. Firstly this meant we could rearrange our mortgage and reduce the payments by £200 due to our improved LTV and then COVID-19 caused a halt to the childcare costs. So far, so good. However now September is around the corner, while we have been able to reduce debts and meet payments we are going to be back in a deficit, so have spoken to step change and Have the paperwork for a DMP.
As I’ve never missed a payment on my debts, is this likely to be accepted?

Today our outstanding balances total £34k, and our suggested payment is £350 so just under 8 years to clear.

I am also worried about what happens when our mortgage deal ends in 2 years time. Will I be dropped back onto SVR which will make the situation worse?

Once you are on a DMP with step change, You can change the monthly budget if your circumstances change. During those first two years of being on the DMP, your finances are likely to improve quite a lot just by having a consistent sum to pay. Why can't you just go back onto another two year fixed once this one runs out? Changing the mortgage deal with the bank (as long as you don't want any additional borrowing) doesn't usually involve a credit check. You just choose which product is right for you and they put you on it.
Good luck with your situation. Getting a DMP with step change genuinely turned my life around!

Nottsman_3

Hello,
I'm in a little bit of a quandry.

I have been in an DMP since January, however since then, me and my partner have decided to split up, and we're now working out the housing situation.

Our current house is worth approx. £180k, and we have around £110k equity in it, which we have agreed to split 50/50. However, because the DMP is not yet 12 months old, no one will (understandably) offer me a new mortgage. The split of the equity will cover my DMP, which I'll obviously pay off, and leave me with more than enough for a deposit once my credit rating improves.

However, I'm now trying to rent, and I've been advised that letting agents wouldn't touch me because of the DMP, even though I'd be able to provide all deposit payments, and proof of income etc to say I can afford. The DMP wouldn't technically be active either once I'm in the property.

I know that private renters are a little less stringent in searches - Is that my only realistic option at the moment?

sourcrates

Nottsman_3 said:

Hello,
I'm in a little bit of a quandry.

I have been in an DMP since January, however since then, me and my partner have decided to split up, and we're now working out the housing situation.

Our current house is worth approx. £180k, and we have around £110k equity in it, which we have agreed to split 50/50. However, because the DMP is not yet 12 months old, no one will (understandably) offer me a new mortgage. The split of the equity will cover my DMP, which I'll obviously pay off, and leave me with more than enough for a deposit once my credit rating improves.

However, I'm now trying to rent, and I've been advised that letting agents wouldn't touch me because of the DMP, even though I'd be able to provide all deposit payments, and proof of income etc to say I can afford. The DMP wouldn't technically be active either once I'm in the property.

I know that private renters are a little less stringent in searches - Is that my only realistic option at the moment?

A DMP is not an actual thing recorded on your credit file, your accounts will either be defaulted, or have arrangement to pay markers, or a combination of both.

Landlords have the option of varying levels of credit check, from a simple identity check, to a full blown credit report, so on most searches those defaults/AP markers are going to show up, some will be ok with that, some won`t, some may require a larger deposit, but most people with imperfect credit files are still able to rent, you may have to shop around a bit.

BooBoo77

Nottsman_3 said:

Hello,
I'm in a little bit of a quandry.

I have been in an DMP since January, however since then, me and my partner have decided to split up, and we're now working out the housing situation.

Our current house is worth approx. £180k, and we have around £110k equity in it, which we have agreed to split 50/50. However, because the DMP is not yet 12 months old, no one will (understandably) offer me a new mortgage. The split of the equity will cover my DMP, which I'll obviously pay off, and leave me with more than enough for a deposit once my credit rating improves.

However, I'm now trying to rent, and I've been advised that letting agents wouldn't touch me because of the DMP, even though I'd be able to provide all deposit payments, and proof of income etc to say I can afford. The DMP wouldn't technically be active either once I'm in the property.

I know that private renters are a little less stringent in searches - Is that my only realistic option at the moment?

I’ve been on a DMP for the last 6 years. When I last moved I said to the letting agents that I’m on a debt management plan, have great landlords references but if they want an extra guarantor in my case, my brother is on standby to do that. Do you have a relative or friend that could act as guarantor? Try not to worry. You will get something sorted I’m sure. I got two rentals agreed like this in the end. I think both letting agents took up the guarantor offer, but I’m not sure whether they would have asked for one, if I hadn’t upfront offered it. It certainly took the worry of being refused out of it for me. Good luck.