DMP mutual support thread part 13 !!

PatKeyboard

Hi All, 
New to the forum so wanted some advice on my situation and also some maybe obvious answers to questions that I couldn't find. Also - inspiring to see so many people finally getting on top of their finances, I am jealous!

I am in approx £22k of debt. £8k Virgin, £8k Barclaycard, £5k overdraft, £500 credit card. This has been going on for years and I am fed up of never paying anything but interest, It will kill me long-term. I've missed payments in the past.
I put all my details into the StepChange website this morning and they recommended a DMP over almost 5 years at £400 a month. 
They say their direct debit cannot be taken out of the account with the overdraft - that's fine, I can just use my Monzo. But will I have to get my employer to start paying my salary into my Monzo account? Will I have any access at all to that HSBC bank account whilst this is ongoing? 
Secondly - I know I shouldn't do this - but I have another credit card. It has about £2k of debt on it and the limit is £3.5k. I am quite scared that I won't have any buffer at all on the SC plan so I ideally want to keep this one open and settle the debt myself. I have read that this won't look favourable to the other creditors and can affect their compliance. Will I have to add this to the plan as well? Does anyone have any experience of "getting away with it"? 
Final question - when providing the initial evidence to SC - particularly bank statements - I do have some historic bonuses from work. These are not the norm and not guaranteed. Are SC likely to query this? 
Thanks
Josh

jools1985

PatKeyboard said:

Hi All, 
New to the forum so wanted some advice on my situation and also some maybe obvious answers to questions that I couldn't find. Also - inspiring to see so many people finally getting on top of their finances, I am jealous!

I am in approx £22k of debt. £8k Virgin, £8k Barclaycard, £5k overdraft, £500 credit card. This has been going on for years and I am fed up of never paying anything but interest, It will kill me long-term. I've missed payments in the past.
I put all my details into the StepChange website this morning and they recommended a DMP over almost 5 years at £400 a month. 
They say their direct debit cannot be taken out of the account with the overdraft - that's fine, I can just use my Monzo. But will I have to get my employer to start paying my salary into my Monzo account? Will I have any access at all to that HSBC bank account whilst this is ongoing? 
Secondly - I know I shouldn't do this - but I have another credit card. It has about £2k of debt on it and the limit is £3.5k. I am quite scared that I won't have any buffer at all on the SC plan so I ideally want to keep this one open and settle the debt myself. I have read that this won't look favourable to the other creditors and can affect their compliance. Will I have to add this to the plan as well? Does anyone have any experience of "getting away with it"? 
Final question - when providing the initial evidence to SC - particularly bank statements - I do have some historic bonuses from work. These are not the norm and not guaranteed. Are SC likely to query this? 
Thanks
Josh

I don't know the answer to your question about continuing to keep one credit card active. No doubt someone else will be able to advise you. I was also nervous about having no access to credit. I took advice from this board and delayed my first payment to Stepchange by 3 months, building an emergency fund up. It's worked well for me. When I had to send bank statement to Stepchange my income was higher than usual due to a lot of overtme worked, which was highly unusual. I just explained to them what my take home pay usually was and sent a payslip showing the overtime and one without. It didn't cause any problem.

Good luck with your plan.

natlie

PatKeyboard said:

Hi All, 
New to the forum so wanted some advice on my situation and also some maybe obvious answers to questions that I couldn't find. Also - inspiring to see so many people finally getting on top of their finances, I am jealous!

I am in approx £22k of debt. £8k Virgin, £8k Barclaycard, £5k overdraft, £500 credit card. This has been going on for years and I am fed up of never paying anything but interest, It will kill me long-term. I've missed payments in the past.
I put all my details into the StepChange website this morning and they recommended a DMP over almost 5 years at £400 a month. 
They say their direct debit cannot be taken out of the account with the overdraft - that's fine, I can just use my Monzo. But will I have to get my employer to start paying my salary into my Monzo account? Will I have any access at all to that HSBC bank account whilst this is ongoing? 
Secondly - I know I shouldn't do this - but I have another credit card. It has about £2k of debt on it and the limit is £3.5k. I am quite scared that I won't have any buffer at all on the SC plan so I ideally want to keep this one open and settle the debt myself. I have read that this won't look favourable to the other creditors and can affect their compliance. Will I have to add this to the plan as well? Does anyone have any experience of "getting away with it"? 
Final question - when providing the initial evidence to SC - particularly bank statements - I do have some historic bonuses from work. These are not the norm and not guaranteed. Are SC likely to query this? 
Thanks
Josh

Hi

I had a little bit of cash in the bank before I started my DMP so I went straight into it. Some people delay by months to trigger defaults and save an emergency fund. I personally don't think that keeping a card active is a good idea. SC suggest you should declare all of your debt. Re. your bank account I kept my bank acct with an overdraft going by my overdraft was just £250 its still my main account now i just transfer the money to pay SC into a different account. I can't remember providing SC with bank statements I did sent them a pay slip. 

Good luck, well done on paying back the debt I've been on my DMP for 9 months now and its been the best thing, i have money to live off now and a good budget I can even afford to buy new clothes for my kids and myself. 

Nat

Stigzee

Hi all 

thanks for the advice previously. So since I last contacted the forum. I have been disputing a default date. I had a personal loan included in the plan from January 2019. In June 2020 we were issued a default notice but we have not missed a payment in June 2020. What we have been doing js repaying as per the agreed plan.  

The creditor HSBC have stated that the default is correct as it met the criteria for so many missed payments to fall into arrears. However this was in arrears from when the plan started. I have complained twice now that this is unfair treatment and as they don’t specify how many payments I have missed for it to default how am I supposed to know it’s correct. As far as I was concerned I’ve been in arrears since January 2019 because I did not make the contractual payments. 

I have referred this to the FOS last week but any advice would be appreciated 

sourcrates

Stigzee said:

Hi all 

thanks for the advice previously. So since I last contacted the forum. I have been disputing a default date. I had a personal loan included in the plan from January 2019. In June 2020 we were issued a default notice but we have not missed a payment in June 2020. What we have been doing js repaying as per the agreed plan.  

The creditor HSBC have stated that the default is correct as it met the criteria for so many missed payments to fall into arrears. However this was in arrears from when the plan started. I have complained twice now that this is unfair treatment and as they don’t specify how many payments I have missed for it to default how am I supposed to know it’s correct. As far as I was concerned I’ve been in arrears since January 2019 because I did not make the contractual payments. 

I have referred this to the FOS last week but any advice would be appreciated 

Agreed plans do not count towards anything.

Its the original credit agreement that was defaulted on, doesn’t matter if your agreed payments are on time, the damage was already done.

Stigzee

sourcrates said:

Stigzee said:

Hi all 

thanks for the advice previously. So since I last contacted the forum. I have been disputing a default date. I had a personal loan included in the plan from January 2019. In June 2020 we were issued a default notice but we have not missed a payment in June 2020. What we have been doing js repaying as per the agreed plan.  

The creditor HSBC have stated that the default is correct as it met the criteria for so many missed payments to fall into arrears. However this was in arrears from when the plan started. I have complained twice now that this is unfair treatment and as they don’t specify how many payments I have missed for it to default how am I supposed to know it’s correct. As far as I was concerned I’ve been in arrears since January 2019 because I did not make the contractual payments. 

I have referred this to the FOS last week but any advice would be appreciated 

Agreed plans do not count towards anything.

Its the original credit agreement that was defaulted on, doesn’t matter if your agreed payments are on time, the damage was already done.

Thanks for getting back to me. Sorry just checking did you agree with myself or HSBC view on this. 

sourcrates

Stigzee said:

sourcrates said:

Stigzee said:

Hi all 

thanks for the advice previously. So since I last contacted the forum. I have been disputing a default date. I had a personal loan included in the plan from January 2019. In June 2020 we were issued a default notice but we have not missed a payment in June 2020. What we have been doing js repaying as per the agreed plan.  

The creditor HSBC have stated that the default is correct as it met the criteria for so many missed payments to fall into arrears. However this was in arrears from when the plan started. I have complained twice now that this is unfair treatment and as they don’t specify how many payments I have missed for it to default how am I supposed to know it’s correct. As far as I was concerned I’ve been in arrears since January 2019 because I did not make the contractual payments. 

I have referred this to the FOS last week but any advice would be appreciated 

Agreed plans do not count towards anything.

Its the original credit agreement that was defaulted on, doesn’t matter if your agreed payments are on time, the damage was already done.

Thanks for getting back to me. Sorry just checking did you agree with myself or HSBC view on this. 

Well your post is a little hard to follow, but from what I can make out, HSBC are correct.

FCA guidelines, CONC 7.3 FCA Handbook applies, when an account reaches between 3/6 missed payments, a default notice can be issued.

CONC 7.3 Treatment of customers in default or arrears (including repossessions): lenders, owners and debt collectors - FCA Handbook

Although they should treat you fairly, obviously you believe they haven`t so, which is why the FOS exists.
They will now determine this for you.

ditty1234

Stigzee said:

Hi all 

thanks for the advice previously. So since I last contacted the forum. I have been disputing a default date. I had a personal loan included in the plan from January 2019. In June 2020 we were issued a default notice but we have not missed a payment in June 2020. What we have been doing js repaying as per the agreed plan.  

The creditor HSBC have stated that the default is correct as it met the criteria for so many missed payments to fall into arrears. However this was in arrears from when the plan started. I have complained twice now that this is unfair treatment and as they don’t specify how many payments I have missed for it to default how am I supposed to know it’s correct. As far as I was concerned I’ve been in arrears since January 2019 because I did not make the contractual payments. 

I have referred this to the FOS last week but any advice would be appreciated 

Hi I had a dmp for a hsbc overdraft and loan. Stopped paying in  March 2019 and rushed into dmp. In April 2020 I paused dmp due to covid and hsbc finally defaulted loan in October after a complaint and backdated to 2019, overdraft only defaulted in January, and I will file complaint to get back dated. This means I can now finally start paying the balance off, without risking it reverts to having interest added. Just mentioning; be persistent and stop the payments.

Hstyhst

Hey All So currently myself and my partner are managing all of our financial commitments each month but with £40 leftover per month for anything over and above the basics.  However, my partner is currently on long term sick from work and they will be dismissing him due to ill-health and, to be honest, he isn't well enough to work (bi-polar disorder).  I have been looking into DMP solution as when we lose his income (£800) we will be £760 short on meeting our outgoings.  I've had good read through threads and websites but my main questions are if anyone can help please?:
1) Should I set up DMP now or wait for our income to drop when my partner loses his job?  Can we adjust the payments when his income goes if I set up now?
2) Should we continue meeting the non-priority debt repayments for now (I'd like to put some money away for when we are on the DMP so could use the current payments to put some money away which is £1200 monthly)?

To be honest we've never missed a debt repayment so the thought of the red letters and phonecalls is making me slightly anxious but we are heading in that direction one way or another!!!

Suseka97

Hstyhst said:

Hey All So currently myself and my partner are managing all of our financial commitments each month but with £40 leftover per month for anything over and above the basics.  However, my partner is currently on long term sick from work and they will be dismissing him due to ill-health and, to be honest, he isn't well enough to work (bi-polar disorder).  I have been looking into DMP solution as when we lose his income (£800) we will be £760 short on meeting our outgoings.  I've had good read through threads and websites but my main questions are if anyone can help please?:
1) Should I set up DMP now or wait for our income to drop when my partner loses his job?  Can we adjust the payments when his income goes if I set up now?
2) Should we continue meeting the non-priority debt repayments for now (I'd like to put some money away for when we are on the DMP so could use the current payments to put some money away which is £1200 monthly)?

To be honest we've never missed a debt repayment so the thought of the red letters and phonecalls is making me slightly anxious but we are heading in that direction one way or another!!!

Whilst appreciating you say you have been looking into a DMP,  have you actually spoken with one of the debt charities (Stepchange, National Debtline) to see if a DMP is the right solution for you.  I simply ask because you mention your partner's medical issues and the fact he is about to lose his job, and I then presume he will be getting some form of benefits?  

A DMP is certainly an option for many, and may well be the right one for you - but depending on your circumstances there may be others.  For example if your debts amount to under £20k and you have no more than £50 left each month after your essential expenses - you may well be eligible for a debt relief order.

Whatever you ultimately choose I would suggest you stop all non-priority payments now and write to your creditors to tell them you are in financial difficultly, that you are seeking advice from one of the debt charities and will be suspending payment until you are in a position to determine the best course of action.  You may as well mention that your partner is about to lose his job.

Then do seek some advice and take it from there.