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DMP mutual support thread part 13 !!
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Hi there..
After being with Step change for a few years, I've decided to go self managed. Obviously I need to advise Stepchange but when I let my creditors know, do I write to the original creditor (e.g Lloyds) or the managing agent (e,g wescot). A couple of them have been sold off but I'm pretty sure Wescot just manage the accounts for Lloyds. I have one with Intrum which used to be Tesco card but think this was a sold off one as they occasionally send me special offers. Grateful for any help.1 -
ejs365 said:I’m back again. No idea how many times I’ve joined with good intentions to reduce debt. But I’ve finally got to my limit. Wanted some newbie advice on dmps.Currently going through the process with stepchange but I haven’t actually submitted my dmp request, as I had a few questions.Currently I’ve no defaults, am I right in saying I should wait to start the dmp and let my credit accounts default. From last month I’ve starting to miss payments. All priority bills are paid just.SC are giving me a debt free date of 18 years something, am I able to make extra payments to creditors if say, my wages increase one month? (I’m a term time job and wages fluctuate each month)Finally, the big one, I have a husband who’s oblivious to my situation, we have one joint account together with no credit facilities just for everyday bills and groceries etc. Again is his credit score going to be affected? I’m sure it is, because we’re financially associated, just wanted to know if it’ll make a dreadful impact. Thankfully he’s very risk adverse and only has one credit commitment which he would love to get rid of (car loan).
I know it’s taken me this long to take my head out of the sand and I will tell him! Just wanted to get the ball rolling. My kids deserve a happier mum who can sleep and eat properly. Thanks if you’ve read so far. Very anxious mum.
Secondly, you have a clear 6 year timeframe till your credit file starts to heal itself.
As regards extra payments, we would recommend you save any extra cash you come bye, so that further down the line, you may be in a position to make settlement offers on some, or all of your debts, thus reducing the length of your DMP, and the amount you have to repay.
Debt management plans don`t themselves show up on credit files, but any defaults from those debts will do.
So if you share any financial products, mortgage/Bank account etc, your partners credit file will be affected, unfortunately it can`t be helped.
Unless they apply for credit, then it will be of little consequence.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Splatfoot said:Hi there..
After being with Step change for a few years, I've decided to go self managed. Obviously I need to advise Stepchange but when I let my creditors know, do I write to the original creditor (e.g Lloyds) or the managing agent (e,g wescot). A couple of them have been sold off but I'm pretty sure Wescot just manage the accounts for Lloyds. I have one with Intrum which used to be Tesco card but think this was a sold off one as they occasionally send me special offers. Grateful for any help.
If you intend to change the amount you pay, then just put everything in writing, and send to the company who is asking you for money.
Most, if not all DCA/Debt purchasing companies, have the technology for you to pay via there webpage, you don`t have to correspond with them unnecessarily.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Hello, just thought i'd share my DMP journey over the last few years with you all.
About 4 years ago I was really stressed out, couldnt sleep, anxiety and bursts of anger and grumpiness, all because i owed about £40,000 across 6 credit cards, was barely able to pay off the interest each month on them all. I spent absolutely hours looking through these message boards on here to see if there was anything to be done.
I ended up following the advice of sourcrates (absolute legend) and some others and wrote to all my creditors telling them I had no money and was going to be paying them £1 a month from now on. I included my income/outgoings so they could see i had no cash leftover.
We're now 4 years down the line and i'm still going with the £1 a month to each of them. Most of them have been sold on to a second or even third DCA. I've paid off about £40 on each one. No hassle, no stress. Every now and again one writes to me and says they want to review my payment plan but i just send them the income/expenditure form again and say i can only afford £1.
I've got money each month to live on and could pay more but i'm not going to. Part of me accepts i was irresponsible with my spending when i was younger but another part of me thinks the lenders should have known what they were doing and not continued to increase my spending limits when i was clearly unable to pay it off.
Obviously they've all defaulted so I can't apply for mortgages or loans etc but to be honest i dont want them. I do appreciate buying a house is a big thing for a lot of people. I've had various settlement offers through, some as low as 30% but i haven't had the spare cash to pay them off at the time. At some point in the future i'll take them up on the settlement offers but i'm not planning on paying anything over 25%, hopefully i can get them down to 10% with a bit of negotiation.
I suppose i just wanted to put this out there to hopefully put some of the people starting this journey at ease a little. You are in charge. Nothing bad is going to happen so long as you keep in touch and let them know your situation. Get the defaults in as soon as possible and wait for those settlement offers. You'll feel much better once you accept this isn't really a big deal.5 -
sourcrates said:Splatfoot said:Hi there..
After being with Step change for a few years, I've decided to go self managed. Obviously I need to advise Stepchange but when I let my creditors know, do I write to the original creditor (e.g Lloyds) or the managing agent (e,g wescot). A couple of them have been sold off but I'm pretty sure Wescot just manage the accounts for Lloyds. I have one with Intrum which used to be Tesco card but think this was a sold off one as they occasionally send me special offers. Grateful for any help.
If you intend to change the amount you pay, then just put everything in writing, and send to the company who is asking you for money.
Most, if not all DCA/Debt purchasing companies, have the technology for you to pay via there webpage, you don`t have to correspond with them unnecessarily.0 -
I’m terms of mortgages what have been the issues or impact people have come across since establishing your debt plans??0
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debtfreeme2021 said:I’m terms of mortgages what have been the issues or impact people have come across since establishing your debt plans??
If the former, then any form of bad debt that impacts on your credit file will limit your choices - but it doesn't mean it's impossible to obtain. There are mortgage brokers out there who have experience in helping people with adverse credit - often means you won't be able to obtain one from the main high street lenders and the interest rates will be higher. If the latter, then its generally not an issue to remortgage with the same lender (by that I mean move from one fixed term to another) because they only carry out a soft search.
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@Suseka97 thanks for the response , I was thinking about the point of remortgage. Will be happy to stay with the same lender but wondered if my poor credit file after defaulting will have an effect on if they will off a remortgage . Thanks0
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debtfreeme2021 said:@Suseka97 thanks for the response , I was thinking about the point of remortgage. Will be happy to stay with the same lender but wondered if my poor credit file after defaulting will have an effect on if they will off a remortgage . Thanks1
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debtfreeme2021 said:@Suseka97 thanks for the response , I was thinking about the point of remortgage. Will be happy to stay with the same lender but wondered if my poor credit file after defaulting will have an effect on if they will off a remortgage . Thanks
When I was in a DMP I was able to do a product switch (from one fixed rate to another) online in just a few minutes without any issues.1
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