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DMP mutual support thread part 13 !!

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  • Splatfoot
    Splatfoot Posts: 593 Forumite
    Fifth Anniversary 500 Posts Name Dropper
    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. 
  • sourcrates
    sourcrates Posts: 31,510 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    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. 
    There are a couple of reasons why we suggest you let your accounts default first, firstly, all interest and charges stop, for good.
    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-letter
  • sourcrates
    sourcrates Posts: 31,510 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    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 keep making the same payments, then you don`t need to tell them anything specifically, as they won`t really be interested, as long as they get their payment, it matters little who makes it or when.

    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-letter
  • 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 keep making the same payments, then you don`t need to tell them anything specifically, as they won`t really be interested, as long as they get their payment, it matters little who makes it or when.

    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.
    Thank you @sourcrates. Yes I'm going to carry on paying the same for now. Thanks for your help. 
  • I’m terms of mortgages what have been the issues or impact people have come across since establishing your debt plans?? 
  • Suseka97
    Suseka97 Posts: 1,571 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    I’m terms of mortgages what have been the issues or impact people have come across since establishing your debt plans?? 
    Can you be a bit more specific?  Are you interested in people's experiences of obtaining a mortgage or of remortgaging?

    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.

  • @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 
  • @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 
    It depends on your lender but I haven’t found it an issue. I do a simple deal switch online when my fixed rate comes to an end. I have never defaulted on a mortgage payment as I have always prioritised this payment over anything else. I’ve just signed up to a new 5 year fixed rate at 1% and no credit searches involved at all. Hope it works out for you :-) 
  • Suseka97
    Suseka97 Posts: 1,571 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    @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 
    If you stay with the same lender you shouldn't have a problem. 

    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.  
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