DMP mutual support thread part 13 !!

FTB19

Hi guys

In the process of setting up a DMP with Payplan. Hoping to switch to self managed eventually but for now this seemed the best option.

feel equal parts scared but relieved and excited.

Any advice is well appreciated as I start my journey 🤞

alxofn1

Hello all

i am about 5 months into a DMP and one of my creditors MBNA have sent a letter asking me to respond. Though StepChange and I have been making regular payments as per our offer it is asking me to contact MBNA and has issued a default notice with a date saying that further action will be taken beyond that date should the arrears not be paid by this date. 

From what I’ve gathered on the forum this is one of those “regulatory” letters par the course. I tried to contacted MBNA but their lines not open until Monday to say I am on a DMP and sent StepChange the default paperwork but I wanted to ask if this does indeed sound like the usual? 

Sorry - am just a worry wart!

Many thanks

HappyDaysAreHereAgain

Thanks for all previous advice re: default from a creditor. Since then 3 creditors have sold my debt on, defaults are now on my credit report and the debt company have acknowledged my DMP with SC. That’s all grand.

However, I had an email from Next, (I hadn’t included them on the DMP because that was one I could manage to pay off) and they told me that due to updated information from a credit report, they were putting my account on hold for 3 months. I’m guessing it’s all to do with affordability etc but I wasn’t expecting it and hadn’t prepared for this eventuality. They have still asked for minimum payment but what are they likely to do at the end of it? Ask for a pay plan, reduce my limit? I have never missed a payment and have been a customers for over 10 years so I am a little surprised they did this with no notice! 

sourcrates

alxofn1 said:

Hello all

i am about 5 months into a DMP and one of my creditors MBNA have sent a letter asking me to respond. Though StepChange and I have been making regular payments as per our offer it is asking me to contact MBNA and has issued a default notice with a date saying that further action will be taken beyond that date should the arrears not be paid by this date. 

From what I’ve gathered on the forum this is one of those “regulatory” letters par the course. I tried to contacted MBNA but their lines not open until Monday to say I am on a DMP and sent StepChange the default paperwork but I wanted to ask if this does indeed sound like the usual? 

Sorry - am just a worry wart!

Many thanks

Standard default notice, file and carry on.

L1cklePickle

Hello! I have a bank account question please - I have various savings with three banks I have credit card debt on (Halifax, Lloyds and Barclays-Barclaycard)

The savings accounts are for various things - one is named school uniform - one is for my child's birthday - one is for emergency savings.  Should I not be saving with these creditors now I am entering into a DMP?

Also - I note people changing their bank accounts if they have a creditor with that one. Barclays is my current account and I have a 3k figure outstanding with Barclaycard - but no overdraft - do I need to change it or will it be okay now I am with stepcchange?

Thank you for any responses you may have for me

sourcrates

L1cklePickle said:

Hello! I have a bank account question please - I have various savings with three banks I have credit card debt on (Halifax, Lloyds and Barclays-Barclaycard)

The savings accounts are for various things - one is named school uniform - one is for my child's birthday - one is for emergency savings.  Should I not be saving with these creditors now I am entering into a DMP?

Also - I note people changing their bank accounts if they have a creditor with that one. Barclays is my current account and I have a 3k figure outstanding with Barclaycard - but no overdraft - do I need to change it or will it be okay now I am with stepcchange?

Thank you for any responses you may have for me

Never bank where you have outstanding delinquent debt, they can use the right of set off to take money from any account held in your name, within their banking group.

Suseka97

L1cklePickle said:

................Also - I note people changing their bank accounts if they have a creditor with that one. Barclays is my current account and I have a 3k figure outstanding with Barclaycard - but no overdraft - do I need to change it or will it be okay now I am with stepcchange?

I would have expected Stepchange to advise that you need to change your bank account to one that has no connection with any of your existing debts.  I do recall that SC used to advise people to open up a Barclays 'Basic' account and included an application form among all the other paperwork you have to sign,  even if someone had debts with Barclays, so perhaps that's what they are expecting you to do.  If it were me I would move my banking to a completely separate provider.  Might be worth having a chat with SC.

TKF2021

Hello all

On Monday I sent off my DMP to SC but now wish I had read these forums first. I have no EF built up and all my unsecured loan direct debits come out on Tuesday. Is it realistically too late for me to let my creditors know I can cancelling payments and seeking advice/dmp from SC? I can then ask Stepchange to start the DMP in say July so I can build up a good couple of months worth of money.

Does anybody also have a template to send to the creditors if this is a good idea?

User_060921

Just cancel the direct debits 

Suseka97

TKF2021 said:

Hello all

On Monday I sent off my DMP to SC but now wish I had read these forums first. I have no EF built up and all my unsecured loan direct debits come out on Tuesday. Is it realistically too late for me to let my creditors know I can cancelling payments and seeking advice/dmp from SC? I can then ask Stepchange to start the DMP in say July so I can build up a good couple of months worth of money.

Does anybody also have a template to send to the creditors if this is a good idea?

If you have completed all the paperwork and returned it to SC, then its best to call them and let them know you want to defer the starting date.  As for your creditors, then you should have cancelled your regular direct debit payment already and if you haven't, then best to cancel asap.  Also, are any of your debts are linked to your current account?  If yes, then you should change banks before the DMP starts - if not, then you can carry on with the existing current account.  Most people tend to have debts linked to their bank account (loans and/or credit card) - hence the question.