DMP mutual support thread part 13 !!

19ryanh93

sourcrates said:

19ryanh93 said:

Hi all
So I’m about 12 months into my self managed DMP. However I have been getting overpaid by work. Which my own stupidity I didn’t realise. I now have to pay it back £200 a month for 9 months. Would it reflect badly if I asked creditors to accept a token gesture of a reduced amount for that period of time?

thanks in advanced. 

Who cares ?

Needs must, don’t they, they are non priority debt remember.

Very good point. Thanks. Would you include the letter from work stating what is being taken and reheat period when contacting them?

sourcrates

19ryanh93 said:

sourcrates said:

19ryanh93 said:

Hi all
So I’m about 12 months into my self managed DMP. However I have been getting overpaid by work. Which my own stupidity I didn’t realise. I now have to pay it back £200 a month for 9 months. Would it reflect badly if I asked creditors to accept a token gesture of a reduced amount for that period of time?

thanks in advanced. 

Who cares ?

Needs must, don’t they, they are non priority debt remember.

Very good point. Thanks. Would you include the letter from work stating what is being taken and reheat period when contacting them?

Yes if you want to, its going to happen whether your creditors like it or not, so they have no choice but to accept it.

Also you don`t "ask" them to accept token payments, you tell them that`s what they are going to get, you need to take charge of the situation, and that includes not asking for things but telling them how things are going to be, due to your circumstances.

That way you can ascertain your position much better.

newlifejan20

good evening every one. after struggling for years, i finally stop paying the creditor (5 of them, 4 of them already defaulted. amex sent email they defaulted me in January but yet to reflex that on credit file) last year and managing my own dmp. With the forum help almost every one is so far on token money except firstsource which is representing amex. every time i sent them letter about my financial difficulties, they reply with settlement offer. they dont acknowledge my difficulties nor sent me any bank information to setup payment (for now token money untill i return to work). there website seems to be generic and no info about payment. is there any one have similar situation with them? any help will be highly appreciate. thanks

aquafish_2

Hi guys.  Starting my plan mid April with StepChange for 4 creditors.  I've had a letter today from MBNA saying my account is being transferred to their recoveries team.  They are accepting my affordable repayments but they recommend I speak to a debt management company.  The next paragraph is that they temporarily accept my monthly payment ongoing but that my agreement to make full monthly payments is still in full force.  Is this just a generic letter?  The wording seems a bit strange to me.

sourcrates

aquafish_2 said:

Hi guys.  Starting my plan mid April with StepChange for 4 creditors.  I've had a letter today from MBNA saying my account is being transferred to their recoveries team.  They are accepting my affordable repayments but they recommend I speak to a debt management company.  The next paragraph is that they temporarily accept my monthly payment ongoing but that my agreement to make full monthly payments is still in full force.  Is this just a generic letter?  The wording seems a bit strange to me.

Sounds like a generic letter to me.

Non payment would usher in a default much quicker, and also quicken the timescale till the debt is sold on.

Ideally when you start debt management, the original creditor would be out of the picture, and you would be dealing with your debts new owners instead.

I believe they should have phrased that as "debt advice company" for example step change, not given you reference to the fee charging variety.

hanbab

Hi  everyone, been scanning through this incredibly helpful thread but couldn’t find an answer to something that’s giving me sleepless nights. 

We are one month in to a DMP with PayPlan, paying £1.7k a month on £69k of debt across 14 loans/credit cards/overdrafts. In this first month we’ve been sent the default notices for a fair few (not all) of these. However on speaking to three of the credit cards (Lloyds, MBNA, Barclaycard) it would appear that the payments end up over my minimum payments for each because they’ve removed interest/charges from the account (without that, we would be below minimum payments). One adviser told me I shouldn’t be in a DMP if I could make the min payment, but I’ve tried negotiating individually with creditors before and none of them would stop interest/charges until we entered the DMP. Don’t think I should be taking those three credit cards out of the DMP because then chances are the interest and charges will be added back on and we won’t be able to make min payments or inroads into paying it all off. Anyone else been in this situation? Are we doing the right thing sticking with the DMP?

Also, I think even though the notice of default has been issued on each of those accounts, technically a default won’t be registered as we’re making min payments - from what I’m reading in this thread this is a bad thing as we want defaults registered earlier than later? I don’t know what to do here so any advice on that appreciated. 

Final question - it hadn’t occurred to
me to build up an EF before the DMP started and I’m regretting as now starting to realise we won’t be able to access credit for emergencies like the car for a long time. Payplan seem pretty strict on asking permission for any additional budget
that would lower the monthly payment to them. I’m wondering if we should do something like make a much smaller payment for one month to build an EF, though as it’s by direct debit to Payplan I bet they wouldn’t accept it? Anyone taken a one month break from their DMP for this reason? If I get really lucky I may get a bonus from work in May, I was thinking might be sensible to keep hold of that instead of chucking it all at Payplan. Desperately trying to do the right thing here but not sure we’re approaching all this in the right way

sourcrates

Hanbab,

Ideally you don`t pay anything until the debts have all been defaulted and sold on.
Debt purchasing companies don`t care about minimum payments.

Take a year off, then start again with the new owners.

Your creditors are wrong, you should be in a DMP yes, its just you are 6-8 months too early starting it.

hanbab

Thanks Sourcrates. I’ve done some more research and thinking, and unfortunately this option isn’t open to us if I want to keep my job - if I stop payments for 6 months then I have to self report to the professional body I’m registered with and they can disbar me, which my employer may not take kindly to. I guess our only option is to plod on, watch for defaults coming in, and if it gets the point of late defaults being registered, we will need to write and ask them to backdate them to the start of the DMP. 

Suseka97

hanbab said:

Thanks Sourcrates. I’ve done some more research and thinking, and unfortunately this option isn’t open to us if I want to keep my job - if I stop payments for 6 months then I have to self report to the professional body I’m registered with and they can disbar me, which my employer may not take kindly to. I guess our only option is to plod on, watch for defaults coming in, and if it gets the point of late defaults being registered, we will need to write and ask them to backdate them to the start of the DMP. 

In that case, and going back to your earlier post, if you do get a bonus in May then just keep that back for your EF and any salary increases you get over time.  I found BC fairly easy to handle when it came to getting defaults, but if you are making payments in excess of their minimums I think it may be an uphill struggle and be mindful that if they haven't defaulted they could well start adding back interest and charges.

HappyDaysAreHereAgain

I’m just looking for some advice what to do next with a couple of things if that’s ok? I’ve had a letter this morning from one creditor stating that unless I pay the full balance outstanding my a certain date, I’ll be defaulted (it’s the default notice). Do I need to respond? I have a DMP with SC - do they need to be informed of this?

Also, I had an email from SC saying that my one creditor is no longer dealing with my account (it had gone to debt recovery department and when I had the letter explaining this with the new reference I had already referred the details onto SC). SC are now saying that the creditor is no longer dealing with my credit so I need to provide more details - I haven’t had any further details so not sure what SC want? SC have said they will stop payments in 6 weeks if I don’t update the information (plus the payment to them has been held this month). What’s the best thing to do? 

Thanks.