DMP mutual support thread part 13 !!

booksandcoffee

I entered into a self-managed DMP in 2018, some debts defaulted fairly quickly but others took a lot longer - is it possible, or has anyone had any success with changing the default dates on some debts?

I notified all my creditors of my plan to enter into a DMP and everything has been ticking along nicely. In the beginning I largely just accepted that things would default when they would and I couldn't do anything about that, but now I'm wondering if this is the case. - it would be great if all the defaults dropped off my credit file all around the same time which would only be just over 3 years away.

sourcrates

booksandcoffee said:

I entered into a self-managed DMP in 2018, some debts defaulted fairly quickly but others took a lot longer - is it possible, or has anyone had any success with changing the default dates on some debts?

I notified all my creditors of my plan to enter into a DMP and everything has been ticking along nicely. In the beginning I largely just accepted that things would default when they would and I couldn't do anything about that, but now I'm wondering if this is the case. - it would be great if all the defaults dropped off my credit file all around the same time which would only be just over 3 years away.

Then make a complaint to them, ask them to backdate the default to the time you first got into trouble.

The complaints process is free, and open to all.

Dandytf

Step Change, started with a phone call 2012, ended with a phone call 2021.
Wish dmpr's genuine good luck in their Financial journey.
As step change recently advised, I've got my credit rating back.
Though personally, I have some unsecured debt to contend with.
Budget use continues, positively 

I won't be claiming Debt free, though enjoying dmp free.
I haven't always followed mse ways, though step change dmp budget was an excellent guide to follow, when possible.

mse forums including this one, has proved to be very  helpful.
Enjoy mser's, I'm currently on 3rd job since 2012! -I could never have guessed!. life continues

p.s, 
Life continues even with dmp's etc as does  some luck

andrar

Hey all! I’m coming to the realisation that I need to tackle my debts again (shame on me for letting them spiral after almost being debt free a few years ago). Got a few queries after starting my debt review thingy with stepchange online that I’m hoping you fine people can help with... 

I've just read above about letting debts default for a few months, then enter a DMP, is that right? Does default mean don’t pay the monthly fee? Wouldn’t bailiffs start knocking at my door? That’s what I’m most scared of. I’ve cc debts and a loan and I’m scared someone’s gonna come round and try and take my car if I miss any payments. 

Also if you have spare cash can you pay extra towards your dmp to pay it off quicker? 

TIA for your help with my rookie ways!

Suseka97

@andrar - the reason you'll often read advice about not rushing to start up a DMP is so that your existing creditors might default your account and/or sell on to a DCA (and again, default the account as part of that process).  Basically when a default is applied to an account it means that all interest and charges stop and that allows you to start paying off the capital balance and as a result your debts will reduce a lot quicker.  It also means that the default will drop off your credit file on its 6th year anniversary (another positive).

You really don't need to be worrying, at this early stage, about bailiffs or door knockers.  I appreciate its easy to say and programs such as 'can't pay we'll take it away' heighten that sort of concern.  The fact is debt collection is a long and slow process, especially consumer debts (which is what CC's and Loans are).  

The way forward here is to write to all your creditors informing them that you are in financial difficulty and that you are in the process of seeking debt counselling advice.  Most, if not all, will write back advising they will put your account on hold for 30 days to allow you time to seek help.  Then you could complete the online remedy tools available on either of the Stepchange, Payplan or NEDCAB websites which will give you an idea of what your personal DMP might look like.  Stop all your non priority (debt) payments - but if you have a CC or Loan associated with your bank account - you will need to get a new bank account set up first and organise for your priority payments (rent, mortgage, council tax, utilities etc.) to be transferred over (don't use a switching service).  Also organise for your income (salary, benefits etc.) to be paid into the new account.  If you don't have debts associated your existing bank account, that makes things easier.

Once you've done that, leave it a good 3 - 6 months before you formally set up your DMP.  That gives you time to build up the all important emergency fund and gives you a little breathing space. Usually by then most, or all, of your creditors will have defaulted the account or sold it off to a debt purchaser.   Not all creditors will default or sell on in that timeframe, so depending on the situation you may have to hold out a bit longer, or write and complain.  Hopefully you won't have to!

The takeaway point here is - even if someone came knocking at your door, unless they are court appointed bailiffs they have absolutely no right of access nor any right to remove goods. Consumer debts generally don't end up in court - not unless someone has tried to evade payment and have ignored a creditor or debt collector's numerous attempts to collect the amounts owed.  Even if a creditor or DCA decided to go down that route, you would be given ample opportunity to resolve the matter before it went to court.  But for now, as I said, its really a non-issue if you simply follow the DMP process through, assuming a DMP is the right solution for your situation - and to know that you should first seek the advice from one of the debt charities.  

MsKex

Hi all - I wonder if I could have some advice on the beginning of my DMP journey - I’m nearing the end of my first 30 day hold with creditors and Stepchange have asked me to sign my direct debit form back to them - I’ve been reading about people building an emergency fund up before that though - should I be doing this? Will the creditors and Stepchange wait another couple of months? 

Thanks for any advice 

andrar

Suseka97 said:

@andrar - the reason you'll often read advice about not rushing to start up a DMP is so that your existing creditors might default your account and/or sell on to a DCA (and again, default the account as part of that process).  Basically when a default is applied to an account it means that all interest and charges stop and that allows you to start paying off the capital balance and as a result your debts will reduce a lot quicker.  It also means that the default will drop off your credit file on its 6th year anniversary (another positive).

You really don't need to be worrying, at this early stage, about bailiffs or door knockers.  I appreciate its easy to say and programs such as 'can't pay we'll take it away' heighten that sort of concern.  The fact is debt collection is a long and slow process, especially consumer debts (which is what CC's and Loans are).  

The way forward here is to write to all your creditors informing them that you are in financial difficulty and that you are in the process of seeking debt counselling advice.  Most, if not all, will write back advising they will put your account on hold for 30 days to allow you time to seek help.  Then you could complete the online remedy tools available on either of the Stepchange, Payplan or NEDCAB websites which will give you an idea of what your personal DMP might look like.  Stop all your non priority (debt) payments - but if you have a CC or Loan associated with your bank account - you will need to get a new bank account set up first and organise for your priority payments (rent, mortgage, council tax, utilities etc.) to be transferred over (don't use a switching service).  Also organise for your income (salary, benefits etc.) to be paid into the new account.  If you don't have debts associated your existing bank account, that makes things easier.

Once you've done that, leave it a good 3 - 6 months before you formally set up your DMP.  That gives you time to build up the all important emergency fund and gives you a little breathing space. Usually by then most, or all, of your creditors will have defaulted the account or sold it off to a debt purchaser.   Not all creditors will default or sell on in that timeframe, so depending on the situation you may have to hold out a bit longer, or write and complain.  Hopefully you won't have to!

The takeaway point here is - even if someone came knocking at your door, unless they are court appointed bailiffs they have absolutely no right of access nor any right to remove goods. Consumer debts generally don't end up in court - not unless someone has tried to evade payment and have ignored a creditor or debt collector's numerous attempts to collect the amounts owed.  Even if a creditor or DCA decided to go down that route, you would be given ample opportunity to resolve the matter before it went to court.  But for now, as I said, its really a non-issue if you simply follow the DMP process through, assuming a DMP is the right solution for your situation - and to know that you should first seek the advice from one of the debt charities.  

Brilliant advice thank you for taking the time to reply and write it all up for me, really appreciate it! 

I’m still a bit wary leaving it 3-6 months, that feels like a long time. I’m assuming you get calls and letters chasing for the payments in that time? I’ll start writing to the creditors today and start the process as least. 

soappie

Hello everyone 

I have been in a DMP with Payplan since 2013. I have paid every monthly agreed payment since that time. My debt is reducing slowly in line with my SOA and is on target for being finished in the next three or four years. 

However, my annual review is due and when I went to complete it, I found  there's a new question this year that asks me about assets and specifically asks me for the value and registration number of my vehicle. The form wouldn't let me progress without providing the car  information so I typed in a random number for the value of the car I use and gave a non-valid registration number.

Can anyone please explain to me why Payplan would need my car registration number? And please also confirm that I don't actually need to give it to them? I am concerned that they may pass that information onto my debtors who might then be able, somehow, to locate my car (even though it's worthless!) and take it away without my consent?

Thanks

Suseka97

MsKex said:

Hi all - I wonder if I could have some advice on the beginning of my DMP journey - I’m nearing the end of my first 30 day hold with creditors and Stepchange have asked me to sign my direct debit form back to them - I’ve been reading about people building an emergency fund up before that though - should I be doing this? Will the creditors and Stepchange wait another couple of months? 

Thanks for any advice 

Your creditors will wait because they have to give you time to determine the best course of action and non payment of a minimum of 3 months is about the norm these days.  They may well write in a few weeks or so asking you to contact them to discuss a repayment plan, or simply ask you to update them on your current situation and all you need to do is write back and say you are still in discussion with the debt charity etc.  

Now Stepchange will want you to get things up and running as soon as possible, that's not an unreasonable expectation, but you can simply say you are not yet ready.  What they may do is close your file and ask you to get back in touch with them when you are ready - and that's fine.  Or they will give you another 30 days or so to set up your DD and then contact you again.  It's a bit of a chicken and egg situation at the start - but its more helpful to you if your creditors default your account/s before you start the DMP and important for you to build up an emergency fund.

Suseka97

andrar said:

Brilliant advice thank you for taking the time to reply and write it all up for me, really appreciate it! 

I’m still a bit wary leaving it 3-6 months, that feels like a long time. I’m assuming you get calls and letters chasing for the payments in that time? I’ll start writing to the creditors today and start the process as least. 

To be honest, the 3 - 6 months will go by before you know it, assuming you don't stand by the front door waiting for the letters to drop . You may get calls, yes, but they are easy to ignore or you can just block the number.  You will also get letters with various levels of warning messages about the implications of non-payment etc., these are par for the course and your creditors are legally bound to send them.  All you need to do is file them away, unless any particular one starts talking about legal action (and by that I mean court action)  which would be much, much, much further down the line.

The magic 3 - 6 months is pretty much the norm really and most creditors will realise you are not going to respond with a payment plan any sooner than that.  A lot of creditors nowadays are pretty quick on the ball with defaults and selling debts on, so hopefully yours will be among them.