DMP mutual support thread part 13 !!

sourcrates

Al3x2204 said:

 I have just signed up and completed DMP proposal with stepchange. First payment of £478 goes out on the 1st of Feb 21. I have everything set up and wages into a new bank account. However I have today received intended default notices from Halifax on loan and overdraft I had with them. What advice would you give on how to proceed?  

Just ignore them, they are required by the consumer credit act to send them to you, in your case, as you are going into debt management, they are for information purposes only.

You do not need to do anything, expect your other creditors to do the same, its all standard stuff you would normally expect to happen.

CAL2727

Hi everyone. I sent out my letters to all my creditors in December stating I was in financial difficulty etc. I heard back from most of my creditors saying they would put accounts on hold for 30 days etc. I have received letters from two of my creditors asking for me to send them my budget breakdown... Will I send this back to them or wait until the account is first defaulted? I was hoping not to pay anything for 3-6 until the accounts are hopefully defaulted. I’m going self managed 

Suseka97

CAL2727 said:

Hi everyone. I sent out my letters to all my creditors in December stating I was in financial difficulty etc. I heard back from most of my creditors saying they would put accounts on hold for 30 days etc. I have received letters from two of my creditors asking for me to send them my budget breakdown... Will I send this back to them or wait until the account is first defaulted? I was hoping not to pay anything for 3-6 until the accounts are hopefully defaulted. I’m going self managed 

It's just part of the process, they will have put the accounts on hold with a reminder to follow-up, but that doesn't mean you need to respond.  If you ignore those letters you'll probably find you'll get another reminder to two over the coming months, but you can just file them for now  - the debt collection process is a slow one.  The best course of action is inaction until you either get the default, or if you get a letter that gives you a particular concern about a creditors intent.

mrjoshua88

So I’ve managed to secure a job that would enable me to enter into a DMP. I’ve seen it mentioned here a few times, but to clarify, is it best to cease payments and let accounts default before proceeding? Or is that frowned upon by debt charities? 

Al3x2204

Thank you all for advice. It really helps 
I have another question.... my fixed mortgage term ends this year july and I will then look to remortgage. Hopefully remain with the same provider however by then I will have defaults. My current credit is perfect but understand this will take a massive hit now I'm on DMP. Will this effect my ability to remortgage on a decent rate as I am now? 

sourcrates

mrjoshua88 said:

So I’ve managed to secure a job that would enable me to enter into a DMP. I’ve seen it mentioned here a few times, but to clarify, is it best to cease payments and let accounts default before proceeding? Or is that frowned upon by debt charities? 

Yes it is, its good from your point of view, its not something the debt charities would have an opinion on, because by the very nature of been in financial difficulty, you would almost certainly expect the debtor to have defaults/late payments etc.

Stepchange etc, will get involved no matter what stage of the collection process you are at, it makes no difference to anything.

Suseka97

Al3x2204 said:

Thank you all for advice. It really helps 
I have another question.... my fixed mortgage term ends this year july and I will then look to remortgage. Hopefully remain with the same provider however by then I will have defaults. My current credit is perfect but understand this will take a massive hit now I'm on DMP. Will this effect my ability to remortgage on a decent rate as I am now? 

You'll likely find that you won't be able to remortgage with a different lender, but staying with your current provider you should be okay.  I was able to 'switch products' twice with my lender onto one of their standard fixed rate deals with no issues.  When you switch you can do so online in a matter of minutes and it doesn't involve a credit search if you are not looking to borrow more or change the term of your existing mortgage.   Whereas if you try to remortgage with a new provider they will do a credit search and that's where you'll come unstuck.

lisamarie85

So my DMP officially started on Wednesday. I’ve not had any correspondence yet (obviously wasn’t expecting any!) but I’ve just had a text from Halifax stating they’ve reduced my credit limit from £8000 down to £5150 (my owing to them was £4900) so that’s fine, of course, but when I logged into Halifax it’s generated a new statement which doesn’t include any interest. So they’re asking me to pay £49 this month. DMP company is shut until Monday so can’t speak to them, but my creditors were aware I could afford to repay my debts but not when they kept adding more and more in interest. If Halifax had agreed to this, I wouldn’t have had to do the DMP. Or is this just part of the “plan” because of the DMP? 

sourcrates

lisamarie85 said:

So my DMP officially started on Wednesday. I’ve not had any correspondence yet (obviously wasn’t expecting any!) but I’ve just had a text from Halifax stating they’ve reduced my credit limit from £8000 down to £5150 (my owing to them was £4900) so that’s fine, of course, but when I logged into Halifax it’s generated a new statement which doesn’t include any interest. So they’re asking me to pay £49 this month. DMP company is shut until Monday so can’t speak to them, but my creditors were aware I could afford to repay my debts but not when they kept adding more and more in interest. If Halifax had agreed to this, I wouldn’t have had to do the DMP. Or is this just part of the “plan” because of the DMP? 

Its anyone's guess to be honest, if your paying near the usual min payment, they may re-instate interest again, its a pain dealing with creditors at times under these circumstances.

Ideally you should have with held payment for 6 months, and got all your accounts defaulted before hand, that way, all interest and charges stop automatically, and you don`t get the problems you are experiencing.

Your DMP runs much smoother, with a lot less hassle, but this is something the debt charities don`t tell you unfortunately.
See what happens, and be ready to complain if they reinstate interest again.

Debtfreeat50

I have been paiding my DMP for a year and my husband is unaware. He recently was made redundant and used his pay out to pay off some of an outstanding loan. He then took out a new loan for the remainder so he was paying a smaller repayment. I had a bit of anxiety about whether he would be accepted but it has all gone through okay despite a soft search on my credit history. Phew! 
I have also managed to take out a new phone contract and renew the car insurance on a pay monthly basis so looks like the DMP has had minimal impact. Our mortgage has 9 years remaining so shouldn't be an issue ever.