DMP mutual support thread part 13 !!

bon007

Ok I will follow that is there a template I should follow offering them a payment on the defaulted accounts ? 

I take it they will then respond to me once I make this offer and give me the details of how to pay or what happens if they will not accept ? 

Sorry I pressed send before 

Ex_welsh_borrower

Just checking in with my progress as I've been lurking rather than posting for the last 6 months. Next month will be a year since I started the DMP and my debt has reduced from £50,939.79 at the start  to £43,807.38 as of today. First time in maybe 18 years I think I have started a year in less debt than the previous year.

Couple of hiccups along the way, found out today that MBNA had not actually defaulted my account so I had a letter to say interest was going to be reintroduced on the balance. Turns out the payment I'm making is more than the minimum without interest but not enough with interest. One stressed phone call later and MBNA have said they should have defaulted the account back in February 2021 so are going to backdate it to then. Does this show on credit reports correctly?

Another anomaly is the HSBC credit card amount on my report is showing as £0 but can clearly see the amount when I login to check.

Month to month budgeting is getting better, I've come to terms with it now and I'm actually enjoying knowing I'm not borrowing to fund a lifestyle I don't need. Our energy costs are going to rise end of this month when we go onto the price cap so that's the next hurdle to overcome. Suspect I'll have a review of my DMP with SC and hopefully we can sort that out to.

DFD Sept 2027 - Would love to be debt free by the time I'm 40 which is late 2025 but that might be a reach

aquafish_2

Ex_welsh_borrower said:

Another anomaly is the HSBC credit card amount on my report is showing as £0 but can clearly see the amount when I login to check.

This happened with my HSBC loan.  They'd sold the account onto Moorcroft so expect the usual letters in a couple of days.

You're doing well, keep it up!

bon007

If I were you, I would start paying the accounts that have defaulted you, a kind of self management if you like, work out your budget, then make payments to the defaulted debts, but save the money for the others, as and when defaults happen, you introduce payment to them.

Also be sure to keep putting something away especially for the emergency fund as well, see how things go.


Hi 

As advised I am going to start  offering token payments to the three accounts that defaulted . Do I start straight away or wait for the 14 days which the letter stated  (Sourcrates) ?

In relation to sending the letter shall I modify a letter from one of the free charities and I understand I need to send the budget to them as well but is there anything else I need  ?  

This will be my first offer so I just wanted to make sure I get this right?

Ex_welsh_borrower

aquafish_2 said:

Ex_welsh_borrower said:

Another anomaly is the HSBC credit card amount on my report is showing as £0 but can clearly see the amount when I login to check.

This happened with my HSBC loan.  They'd sold the account onto Moorcroft so expect the usual letters in a couple of days.

You're doing well, keep it up!

Thank you

I did think it might have been sold but its been £0 on my credit report for months and they are still taking payments... Very strange but the balance is going down when I check on the app so I'm not too worried about it

HelenM05

All of our creditors apart from Nationwide have now acknowledged the cca requests and so far all of the accounts are unenforceable. We stopped the direct debit for our stepchange dmp payment which was due to come out of the account this week and I called stepchange to let them know the situation. Stepchange have advised me to try and settle the larger debts asap, do a new budget and stay on the plan which was not our intention. The plan was to stop paying the dmp so we would be able to negotiate lower full and final settlements for all of the accounts. What has worried me though is the stepchange advisor told me that if we stop making payments the creditors will add interest and charges to the accounts and she was adamant that even though the defaults dropped off the debt collection companies can note missed payments on our credit files again. This is all very confusing as I have previously been advised on this forum that once the debts have dropped off the credit file they can never be added again. I also need to add that in 2 years we will need to change our current mortgage deal so the credit file needs to look as healthy as possible. Help!

Bizz1974

Hi All

I will apologies straight away because I feel like this could be a long post.

I have finally come to the point where I cannot cope with the debts we have built up and realised I need to stop and sort this out. I have been terrified for the past 6 months of the situation and have just been paying things and borrowing straight back. 

Having reached this conclusion and written everything down and come up with a budget with step changes help, I already feel a bit better, now for the questions.

1. I have entered into breathing space already for 60days using stepchange-included in my dmp action plan is my current account overdraft. I have not been able to change the bank account for my salary this month so it will be going into this account-will the bank automatically remove my overdraft, so I cannot use this facility as they will have been notified of the breathing space? Or will this stay in place and I can move salary in time for my next pay day in Feb? If they take away my overdraft I won’t be able to pay my priority bills or living costs.
2. I was planning on getting the dmp setup asap but I am now reading it might be better to leave the credit cards until they go to default status, so that the default marker clears after 6 years. To do this, do I just ignore any communication from them after the breathing space ends? This feels scary and like I might get debt collectors on my doorstep. I am also studying to be an accountant (I realise the irony considering some of the terrible choices I have made to get here!), would this method have any negative affect on my job? I would plan to put the money I am not paying into the dmp for this period into a saving account to build up an emergency fund.
3. I understand that my credit file will be ruined, if a mortgage deal comes to an end in this period-does this mean I will not be able to change to another deal with the same bank even if we are not taking out anymore? Not important at the moment but just something on my mind.
4. Going into a dmp is the only option at the moment. In the future when I earn more can I potentially come out of this and take it over myself?

Thanks for any help you can provide.

sourcrates

HelenM05 said:

All of our creditors apart from Nationwide have now acknowledged the cca requests and so far all of the accounts are unenforceable. We stopped the direct debit for our stepchange dmp payment which was due to come out of the account this week and I called stepchange to let them know the situation. Stepchange have advised me to try and settle the larger debts asap, do a new budget and stay on the plan which was not our intention. The plan was to stop paying the dmp so we would be able to negotiate lower full and final settlements for all of the accounts. What has worried me though is the stepchange advisor told me that if we stop making payments the creditors will add interest and charges to the accounts and she was adamant that even though the defaults dropped off the debt collection companies can note missed payments on our credit files again. This is all very confusing as I have previously been advised on this forum that once the debts have dropped off the credit file they can never be added again. I also need to add that in 2 years we will need to change our current mortgage deal so the credit file needs to look as healthy as possible. Help!

Hi,

The stepchange advisor was incorrect, once the default drops off your credit file, no further reporting of that account can happen, no matter what, if it does, then it will be an error on the part of the instigator, and you will have cause  to complain, and have such information removed.

sourcrates

Bizz1974 said:

Hi All

I will apologies straight away because I feel like this could be a long post.

I have finally come to the point where I cannot cope with the debts we have built up and realised I need to stop and sort this out. I have been terrified for the past 6 months of the situation and have just been paying things and borrowing straight back. 

Having reached this conclusion and written everything down and come up with a budget with step changes help, I already feel a bit better, now for the questions.

1. I have entered into breathing space already for 60days using stepchange-included in my dmp action plan is my current account overdraft. I have not been able to change the bank account for my salary this month so it will be going into this account-will the bank automatically remove my overdraft, so I cannot use this facility as they will have been notified of the breathing space? Or will this stay in place and I can move salary in time for my next pay day in Feb? If they take away my overdraft I won’t be able to pay my priority bills or living costs.
2. I was planning on getting the dmp setup asap but I am now reading it might be better to leave the credit cards until they go to default status, so that the default marker clears after 6 years. To do this, do I just ignore any communication from them after the breathing space ends? This feels scary and like I might get debt collectors on my doorstep. I am also studying to be an accountant (I realise the irony considering some of the terrible choices I have made to get here!), would this method have any negative affect on my job? I would plan to put the money I am not paying into the dmp for this period into a saving account to build up an emergency fund.
3. I understand that my credit file will be ruined, if a mortgage deal comes to an end in this period-does this mean I will not be able to change to another deal with the same bank even if we are not taking out anymore? Not important at the moment but just something on my mind.
4. Going into a dmp is the only option at the moment. In the future when I earn more can I potentially come out of this and take it over myself?

Thanks for any help you can provide.

Answers

(1) Banks don`t move that quickly, but you should perhaps have waited until your wages dropped into your account before rushing into breathing space, or at the very least set up a new basic bank account, and transferred your money over, debt collection is a very long process, and nothing will happen quickly, it would have been best to stay quiet whilst this was actioned, then you would not have had to worry, however, we are where we are, you should be ok.

You could stop paying all your accounts today, and apart from the odd letter or phone call, it would be 5/6 months before collections became involved.

(2) Defaults have two benefits, all interest and charges stop, and you have a clear 6 year window till your credit file clears.

(3) Usually a new deal with an existing provider does not require a credit check.

(4) Yes of course, a lot of people do, the emergency fund we encourage you to save has to roles to play, (1) as an emergency fund obviously, and (2) as a pot of cash to make settlement offers with, further down the line.

Good luck with it, any more questions feel free to ask.

uonsjc31

Hi all. 3 to 4 months in now. Going pretty smoothly and feeling alot less stressed. Particularly with a 1 week old baby, i can focus on her. 

I understand the emails etc you may receive with "we may do this, we are looking to do that" but i received this email this morning. Anyone experienced this before? Many thanks

As we have been unable to contact you successfully to discuss the arrears on your account, we are looking to instruct a reconnect agent who will visit you at home on our behalf with the aim of putting you back in touch with us. 

 

In order to prevent this reconnection visit from being instructed, please contact us in the next 48hrs on the contact details below.

 

If we have still not spoken with you after 48hrs from this notification, the visit will be arranged and will take place within 5 working days of the instruction and may incur a charge of up to £90 which may be added to your account.