DMP mutual support thread part 13 !!

sourcrates

kelslayer said:

Hi
I would like to go self managed, but not sure how to go about this?  do i just write to each creditor? is there a template available? do i have to explain myself to SC? do i have to ring and speak to them or can i just email them?

thanks in advance.

Think back to how you paid your bills prior to stepchange becoming involved, self management is just the same except you tell them how much they get paid and when, instead of them telling you.

Set up online payments using their (prior requested) payment details, write and tell them what your doing, then simply do it.

Explain to SC you prefer to tackle this alone from now on, email, voicemail, snail mail, it matters not.

kelslayer

sourcrates said:

kelslayer said:

Hi
I would like to go self managed, but not sure how to go about this?  do i just write to each creditor? is there a template available? do i have to explain myself to SC? do i have to ring and speak to them or can i just email them?

thanks in advance.

Think back to how you paid your bills prior to stepchange becoming involved, self management is just the same except you tell them how much they get paid and when, instead of them telling you.

Set up online payments using their (prior requested) payment details, write and tell them what your doing, then simply do it.

Explain to SC you prefer to tackle this alone from now on, email, voicemail, snail mail, it matters not.

Great, thanks didnt know if it would be so simple. I have emailed SC!

Suseka97

kelslayer said:

sourcrates said:

kelslayer said:

Hi
I would like to go self managed, but not sure how to go about this?  do i just write to each creditor? is there a template available? do i have to explain myself to SC? do i have to ring and speak to them or can i just email them?

thanks in advance.

Think back to how you paid your bills prior to stepchange becoming involved, self management is just the same except you tell them how much they get paid and when, instead of them telling you.

Set up online payments using their (prior requested) payment details, write and tell them what your doing, then simply do it.

Explain to SC you prefer to tackle this alone from now on, email, voicemail, snail mail, it matters not.

Great, thanks didnt know if it would be so simple. I have emailed SC!

Just to add... make sure you take a note of all your creditor/dca details and balances from your online account.  SC will be fine, they'll simply wish you good luck, but will at some point close your account and you won't be able to go back and retrieve that data.  All you then need to do is write to your creditors and simply tell them what you intend to do.  Some might send you their version of an I&E to complete and if they do, just ignore it and continue making the same payments.  Some might not even acknowledge the changeover - you never can tell.  You'll need to set up standing orders for your recurring payments and then it'll run along just the same as if SC were still an intermediary.  It really IS that SIMPLE  

Suseka97

crystaltina said:

Hi, I’ve literally joined this forum a few days ago and am reading through the posts (but I haven’t reached the first page yet, so my apologies).

I’m at the stage whereby I can no longer manage to repay my debts (£24k) as my long term relationship has ended and as a result, my living costs have increased. The debts are in my name alone and I have never missed a payment (no default on the accounts). 

I called SC earlier this week who explained a DMP is a likely solution. Then I found this forum! Can I please clarify from all that I have read, (I’ve seen so many acronyms that I’ve never heard of before 😫) that if I stop making repayments towards my debts (in the hope that the creditors will eventually default me), interest and charges potentially could stop?  Once an account has defaulted, the creditor will have no ability to apply interest etc. later on in the future? 

That feels so scary - I’ve read so many other people feeling like that too.  

At what point should I start a DMP?  When all creditors have served a default?  And is it at that point, I go back to SC and ask them to manage a DMP for me? So potentially it could be between 3-6 months?  (I really don’t know much about this and until I can fathom it out, I’d much rather ask for SC’s help before I decide to manage it myself). 

My apologies to everyone who must be tired of reading the same questions? I’m sorry!!!

I’d be grateful for anyone’s advice, thank you!

Never any need to apologise for asking questions, that's what this forum is for

It's good that you've not launched straight into a DMP yet, unfortunately many do (which is understandable) and before they've achieved those most sought after defaults, or built up an emergency fund (EF).  To answer a couple of your questions - yes, a default means that all charges and interest stops and no, they cannot then reapply interest and charges in the future.  If you do manage to read back on this thread, even just a few pages - you'll find we advise stopping payments for a minimum of 3 - 6 months - sometimes it'll take a while longer before they'll default - but it'll also allow you to build up your EF.

Nowadays some creditors are quite quick with defaults and some others drag their heels a bit - so you need to be a little steely and hold firm.  You'll get mostly computer generated bumpf with warnings of what happens if you fail to make payments etc. etc, they (creditors) are required to send them.  You can largely ignore those and hold out for the default.

After a good 6 months or so if you want to use SC as an intermediary you can contact them and set the arrangement up, or you might choose to go self-managed (SM).  Do whatever suits you best, but always remember that this is your DMP - you are in control and no-one can tell you what to do (they can only ask )   You might find that your account/s get sold on to a Debt Collection Agency (DCA) before you are ready to get the DMP up and running, but that isn't anything to worry about - if that happens and you're concerned, just pop back on here for advice.

crystaltina

Thank you so much @Suseka97! Your reply is so clear to understand. I’ve been reading so much about it but I’m the sort of person that needs to check my understanding is correct and I’m not barking up the wrong tree!

I am really grateful - thank you. Ok, I’m going to stop repayments and hope I default quickly. 

Suseka97

crystaltina said:

Thank you so much @Suseka97! Your reply is so clear to understand. I’ve been reading so much about it but I’m the sort of person that needs to check my understanding is correct and I’m not barking up the wrong tree!

I am really grateful - thank you. Ok, I’m going to stop repayments and hope I default quickly. 

You're welcome - I would add that some people write to their creditors to let them know they are in financial difficulty and in discussion with a debt charity to consider options.  If you do that, then don't follow up with anything else - don't offer token payments or get into a discussion about repayment plans.  Most creditors put accounts on hold for 30 days as a matter of course.  Also, you haven't mentioned if any of your debts are associated with your bank - if they are then its wise to set up a new bank account with a lender who has no links to any of your debts.  

I'd suggest you grab a coffee/tea and take some time to read back on this thread - its worth the time taken and will provide you with a lot of useful information and shared experiences  

crystaltina

@Suseka97 thank you for all your advice ... I still haven’t reached the first page but I’m getting there (especially the one about the bank. I’ve read on numerous posts about people doing that but I didn’t understand why until you explained that!).

This forum is amazing. I’ve been worrying non stop but it feels like I can take control and life isn’t so bleak!  Thank you everyone!

ditty1234

@sourcrates
Hi Just want to say thanks again to everybody on this board and the board guide in particular - I Just got my HS*C loan default backdated to Nov 19 which means I am now just waiting for my overdraft to be defaulted and hopefully backdated, and then I can start paying it all again. I could not have done this without this board. 

jojay75

Quick question if you get a settlement on your credit card. How long does this show on your credit file as part payment? Been thinking about going down this route but don’t want it to affect future credit checks for mortgages etc.

jools1985

Does anyone have any experience of defaults (or not defaulting) with MBNA? I've been in a DMP with Stepchange for almost 2 years now but MBNA have not defaulted me. I have 2 accounts with them. I received a statement from them today which shows they have begun charging interest again. This means next months minimum payment due is less than the payment they will receive via Stepchange. This has happened before and I rang them they then stopped interest again. This time they say they can't do that. I think it's maybe time to go self managed and make them wait for 6 months or so before I start paying the anything. If I do this is there likely to be a default issued? They have also told me a default was issued in May when it wasn't - I have had no pre default letters and there is no default on my credit report.