DMP mutual support thread part 13 !!

Suseka97

@Brave_Up  @crm23 - I have to admit I a little surprised to hear that SC are recommending DMPs for such lengthy periods of time.  I do understand that if someone is a homeowner, then Bankruptcy is off the table - but surely an IVA that would last for just 5/6 years would be the better option (if a DRO is not feasible).   Of course there may be other factors that make a long DMP the only choice and if that's the case then I do understand and agree that being on some sort of plan is better than none.

@Brave_Up - I wouldn't worry if you find yourself hit with a sudden bill and you have insufficient EF to cover.  You would then simply tell SC (I'm assuming it's SC) that you need a payment holiday to cover that particular expense and then start up again. If it were me I would go self-managed when you feel ready, so you can be in control of the DMP payment and if you needed to suspend the payment along the way, you could.  

@SotonDad87 - please don't fret.  It is as sourcrates has already said, you can't pay what you don't have.  They'll simply suspend the DMP until you find alternative employment and if the payment gets reduced because your income is less, then so-be-it.  There's nothing set in stone when it comes to DMPs; t is an informal arrangement between you and your creditors.  

nbamaster

Hi everyone,

Couple of weeks ago I sent out holding letters to my creditors (asking them to hold action, stop interest and told them I will be back in touch in due course) stopped all non essential payments. I would like to build my EF for the next 5-6 months. 


2 creditors replied so far that they won't contact me for 30 days and if I need more time I have to let them know.

1. So my question is, should I tell them I need more time or ignore them completely for now?

2. Only 2 creditors (out of 5) responded to the letters I sent to them.
I am starting to wonder if I used the right postal address as it can be quite confusing with the amount of different addresses they use.


Thank you

Suseka97

nbamaster said:

Hi everyone,

Couple of weeks ago I sent out holding letters to my creditors (asking them to hold action, stop interest and told them I will be back in touch in due course) stopped all non essential payments. I would like to build my EF for the next 5-6 months. 

2 creditors replied so far that they won't contact me for 30 days and if I need more time I have to let them know.

1. So my question is, should I tell them I need more time or ignore them completely for now?

2. Only 2 creditors (out of 5) responded to the letters I sent to them.
I am starting to wonder if I used the right postal address as it can be quite confusing with the amount of different addresses they use.

Just use whatever address you can find on previous paperwork or online, your letters will eventually reach the correct department.  As for keeping in touch, there's really no need and its best just to wait until they contact you again, which may or may not be in 30 days.   If they do contact you again asking for an update, then just say you need more time - but don't be specific.  

In truth, its quite easy to hold off creditors for up to 6 months, even longer if needs be.  In the main these are computer generated letters and no-one is actually looking at your file, they simply don't have the resources or interest.  Oftentimes, after several months have passed, they'll pass your account to the debt collection department or sell it on to a DCA.

lindoz

Hi,

Sorry if similar to  this has been asked before, I have had a DMP with Payplan since May 2019.
I have 7 creditors, and some have added interest on and off during this period, at present I think there is just one that has interest added.
 I pay £346 each month, but  I have got a sum of money that I  can transfer to help pay off some of the debt.
The total amount owed is currently just under £12,000.
I was wondering if the best thing to do is to pay off the debt in full , where I'm accruing interest, and maybe make a big dent in the other 2 that had charged it in the past,,,,,  Or maybe  spread the money over all the 7? Also what is the best way to approach making extra payments to the plan, is there any detriment to doing this ?
Any advice, very welcome.

Thankyou in advance, Lindoz

Cpfc1234

Evening all. Just a quick question. My holding letters have been sent in using the national debt line templates. Do you wait for a response before cancelling direct debits? Do you let them know you are cancelling them or just do it. I've heard nothing yet and payments will be due out in 10 days. Many thanks in advance for replies and have a good weekend. Cheers 

sourcrates

Cpfc1234 said:

Evening all. Just a quick question. My holding letters have been sent in using the national debt line templates. Do you wait for a response before cancelling direct debits? Do you let them know you are cancelling them or just do it. I've heard nothing yet and payments will be due out in 10 days. Many thanks in advance for replies and have a good weekend. Cheers 

Heavens sake just do it lol.

Cpfc1234

Excellent. I have done...many thanks for the bluntness haha

sourcrates

Cpfc1234 said:

Excellent. I have done...many thanks for the bluntness haha

Creditors don`t always acknowledge your letters, they just file them.

In my experience its better to just "do your thing" then allow them to catch up.

Good luck with it.

Cpfc1234

Thank you. I have trawled the forum and people like you sharing your knowledge is priceless. Keep up the good work

ditty1234

lindoz said:

Hi,

Sorry if similar to  this has been asked before, I have had a DMP with Payplan since May 2019.
I have 7 creditors, and some have added interest on and off during this period, at present I think there is just one that has interest added.
 I pay £346 each month, but  I have got a sum of money that I  can transfer to help pay off some of the debt.
The total amount owed is currently just under £12,000.
I was wondering if the best thing to do is to pay off the debt in full , where I'm accruing interest, and maybe make a big dent in the other 2 that had charged it in the past,,,,,  Or maybe  spread the money over all the 7? Also what is the best way to approach making extra payments to the plan, is there any detriment to doing this ?
Any advice, very welcome.

Thankyou in advance, Lindoz

Hi if they have added interest your debt has not been defaulted. So think about going self managed before you pay anything, check which debts are enforceable and focus on paying those once defaulted. If you go self managed you can also pay out some smaller debts out and simplify. 
I lowered my active debt from 24.000 to about 9000 something by one being unenforceable and one on hold, I have not paid off much to be honest. And at the moment a family member is seriously ill, so I am working less than usual, so only paying what I can.  
I have had offers to buy out one of the unenforceable loans at 35% but I don't have the money to do that.

You might be younger and in more of a rush, but I would advise to read this whole thread and make sure you go through all of the steps with default, that they have original credit agreement, and then set up a self managed dmp where you can negotiate with debitors on a case to case basis. 

https://www.nationaldebtline.org/fact-sheet-library/credit-agreements-getting-information-ew/

ANd mainly listen to board guides - not to me :-)