DMP mutual support thread part 13 !!

sourcrates

debtfreeme2021 said:

Afternoon all ,  playing the waiting game and avoiding the calls and letters until today when I think I have received my first notice of default from Very (Shop Direct Finance) . The notice is headed Notice of Default Sums under the Consumer Credit Act 1974. However enclosed is an info doc saying Have you been sent an arrears notice. They are basically charging me for a debt collection letter fee and a missed minimum payment fee. Having not experienced a default I’m not sure if the account is now fully defaulted as passed to debt collection so I await to here from them or this is further warning letter . Maybe as I’m new to all this reading that I’ve broken the terms of the credit agreement in black and white has made me panic and the threat of legal action set me off into a spiral of guilt but I’m sure this is the right direction I want things to go in until I can get everything formally set up with a DCA . I’m sure everything will get better with experience but I’m still feeling it overwhelming to ignore the calls and letters but doing ok so far . So appreciate this group to vent as without it I would be very much doing this alone . Thank you all 

That`s not a default notice.

It`s a notice of default sums in arrears.

Basically either over limit fee`s/late payment fee`s or some other fee that they have added.

Its nothing whatsoever to do with defaulting the account.

Its just a notice informing you of the fee`s they have added, continue as you have being doing, no need to worry, its a well trodden path, you will recognise a default notice as it will be titled as such, and give you 14 days to rectify the breach, if you do not do this, a default will be added to your credit file  etc etc.

Sounds a lot worse that it is, when you do get it, all it means is the relationship between you and the creditor has ended, and your account will likely be sold, don`t entertain anyone until this happens.

debtfreeme2021

@sourcrates @ditty1234 thank you both , learning as I go along !!!! Will stick with the waiting game and sitting on my hands probably a good idea 👍🏻 

Breezyboo

Hi all,

I've been in a DMP now for 13 months with around 16 months left to go on it. I've gone via stepchange and have only recently found these boards. I've seen that people write to get a CIA is it to see if they have the paperwork and then you can offer lump sums of lower amounts for final payments? Has anyone been very successful with this whilst paying a DMP? I want to try and get this debt paid off ASAP so looking at all ways of how I could do this and possibly reduce the total amount paid off to get it done quicker?

Suseka97

Breezyboo said:

Hi all,

I've been in a DMP now for 13 months with around 16 months left to go on it. I've gone via stepchange and have only recently found these boards. I've seen that people write to get a CIA is it to see if they have the paperwork and then you can offer lump sums of lower amounts for final payments? Has anyone been very successful with this whilst paying a DMP? I want to try and get this debt paid off ASAP so looking at all ways of how I could do this and possibly reduce the total amount paid off to get it done quicker?

Anyone can send off a CCA request to their creditors at any time, but these tend to be for older debts that have been passed to a debt collection agency and in the hope that they will not be able to find the requisite paperwork (they will have to go back to the original creditor for it).  If they cannot comply then the debt is deemed unenforceable and that opens up the possibility of getting full and final settlements.

With that said, its not guaranteed and some DCAs will still hold back on offering discounts regardless of the status of the debt.  PRA is one such DCA who is pretty resistant to F&Fs and it can take years (literally) to get them to accept reduced offers.  Of course if a debt is UE you can also walk away and pay nothing until they either find the paperwork (and some do eventually dig it up) or until they are willing to consider offers.

One thing I will say is that it is not a 'quick' option.

Norfolk_Jim

Hi. I wanted to come back and say thank you to all those who took time to reply to my last posting. I think it will be obvious to all that I posted during a depressive episode. Im back on meds now and starting to feel much better though my indebtedness does play on my mind a lot.

I did not follow any of the advice other that to address the depressive episode because I recocognise when that condition is worse than other times and not to make any serious decisions during the episode. So currently I'm still with Stepchange though I will be thinking long and hard about self managed over the Christmas period.

Because my Debt Free day is decades away there is a part of me that worries that eventually my creditors will try and get their money back through the courts. I thought that if I was working with the debt charity any court would see Im doing my best to deal with my debts and treat me accordingly.

The amount I pay each month is down by around 60% on when my DMP started and Im going to have to change my budget again when I know what my new utility bill will be (My provider is one thats gone bust) so it will be lower still.

There is a couple of things I dont like about Stepchange. Each time I review my budget with them their recommendation is bankruptcy. I dont want that as Id lose my house so I ask to keep the DMP in place, and they do.

I also find their policy of treating all creditors equally, while understandable, frustrating as I am a fan of snowballing debt. Being able to pay ,off a debt motivates me to keep going and gives me encouragement, where as spreading, I dont know, £1000 between all my creditors is like scratching the surface of all of them and getting nowhere. Id like to pay off my Nationwide card. All the rest have been sold on - I feel no obligation to those who made a commercial decision to sell or buy my debt - I had no part in that but Nationwide have been very helpful and accomodating and Id just "Feel" better if I paid them off. I probably could as Ive been selling off our belongings on ebay (Wife is a hoarder / OCD) and putting the money aside.

This does not seem to  be an option while Im with Stepchange.

2.5 years from now I will get a significant windfall and I was hoping to use it for F&F offers - however nearly all my accounts are now with PRA and from what Ive read they are not into F&Fs So I was wondering if instead I should use it to pay off my 2nd & 3rd mortgages which would life my income a fair bit (My secured v unsecured debt is around 50/50) and Im wondering if thats the way I should go.

Big post sorry but just wanted to share the bigger picture. Many thanks again to all

Suseka97

Norfolk_Jim said:

.........Because my Debt Free day is decades away there is a part of me that worries that eventually my creditors will try and get their money back through the courts. I thought that if I was working with the debt charity any court would see Im doing my best to deal with my debts and treat me accordingly.
If it ever got that far (court action) then you would be able to provide plenty of evidence of your attempts to repay the debts, so I really wouldn't worry about how the courts would view your situation - be that self-managing or using 3rd party services.

There is a couple of things I dont like about Stepchange. Each time I review my budget with them their recommendation is bankruptcy. I dont want that as Id lose my house so I ask to keep the DMP in place, and they do.
I guess its because they have to give you this advice given the amount of debt vs repayment period necessary to clear it.  But like you, I would never have considered bankruptcy being a home-owner.

Being able to pay ,off a debt motivates me to keep going and gives me encouragement, where as spreading, I dont know, £1000 between all my creditors is like scratching the surface of all of them and getting nowhere. Id like to pay off my Nationwide card.
Motivation is good, so if you go self-managed you can implement your own version of snowballing and tackle them in turn.  

2.5 years from now I will get a significant windfall and I was hoping to use it for F&F offers - however nearly all my accounts are now with PRA and from what Ive read they are not into F&Fs So I was wondering if instead I should use it to pay off my 2nd & 3rd mortgages which would life my income a fair bit (My secured v unsecured debt is around 50/50) and Im wondering if thats the way I should go.
Personally I wouldn't use excess funds to pay off any unsecured debt if I still had secured debts, so I'd opt for paying off those 2nd & 3rd mortgages if that gives you more disposable income.

Hi N_J, good to hear from you and glad that you are in a better place now and that you are taking care of your mental health

I've made a few comments in your post above and think that you should do as you have suggested and sit down over the Christmas period and consider what would be best for you going forward.  I think self-managing is the way forward, from what I've read, and I think you are more than capable of doing this.  It's just a case of getting organised and having a plan.  PRA are fairly resistant to F&Fs, but its all down to negotiation and a heavy dose of patience.  If you have sent off CCAs (can't remember if you've already mentioned that in previous posts) and any prove to be UE, then you can sit back and give yourself a breather by not making any payments towards them and prioritise the non-UE ones.  After time you can return to the F&F discussion on any UE debts.  If, on the other hand, you have done the CCA thing and all are enforceable, then adjust your I&E to match your plan so that you can set aside some funds to build up a F&F pot.  

The way I look at DMPs now is that if you are happy to trundle along making a DMP payment that is affordable, the length is irrelevant.  Its a mindset thing.  But if being in a long-term DMP is not something you are comfortable with then its good to have a plan to bring it to an earlier close, if that's possible.  I can't recall your level of current debt vs income, but its only money and your health is far more important.

ditty1234

@Norfolk_Jim I just want to but in that I have a to me large balance of over 8000 with PRA and it is unenforceable and I am not paying towards it, and they have offered up to a 60% Discount, This is still beyond my means so have ignored, but just saying that there might be a candle at the end of the tunnel. 

Moveslikeagger

Norfolk Jim.
Firstly I'm glad your feeling better. Try not to over think things. I don't even think about my debts anymore. Life is to short to worry about a few quid. (i still owe over 70k fyi) and I'm only paying small amounts. To these companies these amounts are so small they don't even notice them. So please stop worrying. You only have one life, enjoy it and make the most of it. Things happen, don't feel guilty just learn and move on.

uonsjc31

Hello all,

I just wanted to come back and say thanks for the advice. I always keep up to date with the posts on this forum. Still learning all the time. I have just gone through my 2nd lot of missed payments and of course various letters, phone calls and texts are arriving. I am doing my best to ignore. As some mention, it is a strange battle with your mental state. But, I have been able to sleep at night.

I sent out holding letters in the beginning and all were acknowledged. I mentioned only correspondence via writing. All obliged apart from 1 so far, who still ring daily. I've gone ahead and blocked the number.

Like many have said time and time again, this life is for living, not worrying about stupid money. I have a little one on the way in the new year so I know where I want my focus to be. 

I am around 50k deep, yet 2 pay slips into the emergency fund have given me a lease of life. I can see light at the end of the very long tunnel, but I will be moving forward with everything I have to leave this behind me.

I just wanted others who find themselves at the first hurdle to know that once you build the courage to take the first step, it feels great. I have suffered with debt for some years now and it'll be nice to have a Christmas with massively reduced stress levels.

Put it behind you, and lets all have a better 2022!

Best regards to all. If anyone has any questions about my initial journey, please ask.

Special thanks to @sourcrates and @Suseka97 for your valued advice about 10 pages back in the forum

dprovan

Hi all, i am following this discussion as i am considering a DMP. I have been in debt all my life (49 now), I have never been able to budget- i set a budget of what is to be spent and then use credit cards for most things- that i don't consider to be in my budget- never really properly thinking how these will be paid- always tomorrow or sometime in the future. I struggle to say no to the kids and feel i cant say we cant afford this- they are great kids and would see it as logical to not spend when you don't have the money. The kids are getting older now and semi financially independent and better with money than me thankfully. I have huge unsecured debts 100k. I also have large salary and household income so it is obscene and embarrassing and most of all immature. I have moved credit from card to card for years- however the 0% seem to have dried up for me. Meaning i am currently paying around 30% of my monthly payments on interest. I am thinking i will see how it goes the next month or two when other cards come to the end of the 0%. If i don't have any new 0% offers i think DMP will be inevitable. If the interest could be frozen i could pay a healthy monthly sum and begin to tackle it. Either way whatever path i take - i need to start protecting my money, treating it with respect and budgeting. I need to just use cash now and try to hold onto it more. if i do go down the DMP route is there any advice to prepare. I am feeling quite fragile just now with the realisation of the scale of things so think i need a few weeks to regroup before getting into what is likely to be a demanding process. So far all bills are paid on time with a bit of robbing peter to pay paul- so i have no one banging on the door. Thanks for listening.