DMP mutual support thread part 13 !!

Cpfc1234

Newmum92 said:

Cpfc1234 said:

Newmum92 said:

Cpfc1234 said:

Newmum92 said:

Newmum92 said:

Hi Everyone

I posted earlier but think it probably got lost amongst all the posts so thought I’d put it here. 

Thank you to everyone who has so far given me advice and reassurance, those of you who have seen my posts will know how anxious I have been but I feel a lot calmer since finding this group! 😊

I’m currently 1 month into the governments “breathing space” which ends at the beginning of April. I’ve missed 1 month of payments and I’m wondering what to do next…. 

I’m going to go self managed using NEDCAB. Obviously all creditors have put holds on my account while I’m on breathing space, but, I need longer than another month to save up an EF so what is the best way to go about it? I have a sensitive job situation so I’m keen to keep in touch with creditor and where possible keep them on board as much as I can. 

Would it be sensible for me to send a letter informing them that once my breathing space ends I intend to set up a DMP and that I’ll be in contact when I have worked everything out? Or is it best to specify a future date for when I’m planning to start my DMP. Or, do I just simply wait? Do I offer token payments to keep them sweet while I spend a few more months building my emergency fund? 

Sorry for all the questions- I feel confused about all the different approaches and no one else knows about my situation so the advice here has been so valuable. 

Thanks! 

Anyone? 😊 

I am 6 months in. I wrote holding letters and all apart from virgin and natwest have held the accounts since day 1 ignored all calls and texts and now the next step is defaults. Moorcroft have emailed and letters to me but will just file them until default confirmed and will then happily set up some payment plan. I am telling you know at 32k in debt I am less stressed and will hopefully be debt free in next 8 to 10 years. The calls die down and as im at the beginning of the next stage that's as much as I know! Good luck 

Cpfc1234 - thanks that’s really helpful from someone who is a bit further ahead. Hope you are coping well with everything and glad your less stressed- I’m at the point where some days I feel more in control but all it takes is a text or letter and I feel panicked 😱 

can I ask when you did your holding letters, did you tell them how long you wanted them to hold it for? Did you make any token payments at all? Im on breathing space via the government scheme which is 2 months, but I spent the first month coming to terms with my debt and deciding what to do and now im entering into my 2nd month but I need to save my EF as I only have £300 saved so far! 

I didn't give a time. I just used a template that was recommended on here on the national debt helpline. I didn't specify a time. Sent the letters and that was that had letter from natwest and virgin saying 30 days Lloyd's mbna and Halifax said would hold until ready. As soon as sent letter I haven't spoken to them since other asking nat west and virgin to consider holding again but no response so just have to accept a few quid will get added on for the time being. Try not to get stressed. Look at it like this. You have made the first step to getting it sorted. You are now in control. You clearly want to pay it pack like myself so they will get the money back eventually. I stopped payments going out and not paid a bean since. Put what I could in a savings account so got something to fall back on if my car or boiler breaks etc. I want the defaults ASAP as what I gathered from advice here 6 years from default it will be gone of my file. Pay them a token and they will default further down the line in a few years so effectively it will be with you for longer. I changed bank also as debt was with bank i was with. Good luck it will become easier

Thanks so much 😊 this thread is great it makes me feel like there are people who I can talk to! Yes I changed banks too- I actually put a claim in for unfair bank charges on my overdraft too. FOS are looking at it and recommending that Barclays refund all charges for the past 6 years so will be interesting to see if that gets upheld. Not sure if it’s something you could look at too? 

Mine was a loan with the bank not an overdraft. Just got to a point where was paying 900 a month just to pay minimum payments and getting knowwhere. So took the plunge. If they refund you keep it safe. Fingers crossed they do! Top up the emergency pot!

egnt

I'm finally starting to get a couple of defaults showing on my credit file. Would I be best sending holding letters now to the companies that have purchased the debts or going straight in with the token payments letter + I&E?

nbamaster

Hi,

Most of my debts have already defaulted. But nothing happened to the overdraft I had at my previous bank. 
Should I expect that to go into default as well?

Thank you,

Suseka97

Newmum92 said:

Sorry, another question from me! 😬

What’s the best way to make token payments? I can use my apps to make online payments but I don’t know my login / card details for a couple of my accounts. Am I best writing to them with my holding letters to ask for bank details or do I call them to ask for bank details and then just make the payments. Thanks! 

You've had great advice so far, but I just wanted to suggest that you don't bother with token payments.  Mostly creditors don't want that because it cost more in admin fees to process those tokens, than their actual value.  Just let them know you'll be in touch in due course (don't specify timeframes) and if they write asking for an update - simply state you are still working things through.  Its likely it'll take a good 6 months before you get a default and the more you try to pacify them, the longer it'll take.

Debt collection processes are slow and nothing happens quickly!

Newmum92

Suseka97 said:

Newmum92 said:

Sorry, another question from me! 😬

What’s the best way to make token payments? I can use my apps to make online payments but I don’t know my login / card details for a couple of my accounts. Am I best writing to them with my holding letters to ask for bank details or do I call them to ask for bank details and then just make the payments. Thanks! 

You've had great advice so far, but I just wanted to suggest that you don't bother with token payments.  Mostly creditors don't want that because it cost more in admin fees to process those tokens, than their actual value.  Just let them know you'll be in touch in due course (don't specify timeframes) and if they write asking for an update - simply state you are still working things through.  Its likely it'll take a good 6 months before you get a default and the more you try to pacify them, the longer it'll take.

Debt collection processes are slow and nothing happens quickly!

Hiya

Thank you for your advice, it’s much appreciated. I’ve been reading back through the old DMP threads and your name has come up a lot giving some good advice and it sounds like you’ve been through it all too so I appreciate the input. Yes I do think you are right, I mean defaults are going to happen anyway whether it’s now or in 2 years time so I guess delaying the inevitable isn’t in my best interests and doing token payments isn’t exactly going to stop that long term anyway and I’ll just end up with AP markers. 

Roddy_Piper

Hi Everyone,

I have only posted today for the first time after too long a time (2 years) lurking on these forums!

Long story short, I'm £20k in debt to various lenders (CC's and loans). I don't know how I ended up here but here I am. After way too many years of always, no matter what, meeting at least the minimum payment, 2 weeks ago I just didn't have the means to pay 2 of them. I felt ashamed of myself and got in touch with one of the debt charities and went through everything and you know what I felt better, that I was at least recognising the problem. 

After reading most of this (and the previous 3?) threads I found courage to phone my creditors today, go through my finances and tell them "I can't do this anymore". It's been said many times "the world won't end" and it hasn't, every single one (except Argos, very business like... Wescott etc) were great and understanding. I came away thinking "they probably hear this all the time" and you know what, they probably do. I thought how many "Rich" or "Silicon Valley" people have went bankrupt before? A lot of them! Why should I feel bad.

The advice on these threads is great, the charity I'm talking with wants me to go asap into a DMP plan on 01/04/22, but I found it within me to contact them today too to say "no, I want to think about it a little longer" and they were fine with it. I will go into the DMP when I'm ready, but I'm going to focus on my emergency fund (EF) first for a few months and that's ok. 

In the past 2-3 years my debt has caused my mental health problems, and it's easier to put your head in the sand than face reality. I get that. I feel like today I'm saying no more.

Anyway, sorry if this comes across as preachey, if it helps 1 person (a lurker like I've been) it's worth it. I'm only posting today because of the 'Debt Roll of Honour' thread, if you are new or lurking (especially) please do check it out! I've read it so much of it and I've decided I want that to be me in 5 years or how ever long it takes.

Let's do it. No looking back now, for me anyway

Suseka97

Newmum92 said:

Suseka97 said:

Newmum92 said:

Sorry, another question from me! 😬

What’s the best way to make token payments? I can use my apps to make online payments but I don’t know my login / card details for a couple of my accounts. Am I best writing to them with my holding letters to ask for bank details or do I call them to ask for bank details and then just make the payments. Thanks! 

You've had great advice so far, but I just wanted to suggest that you don't bother with token payments.  Mostly creditors don't want that because it cost more in admin fees to process those tokens, than their actual value.  Just let them know you'll be in touch in due course (don't specify timeframes) and if they write asking for an update - simply state you are still working things through.  Its likely it'll take a good 6 months before you get a default and the more you try to pacify them, the longer it'll take.

Debt collection processes are slow and nothing happens quickly!

Hiya

Thank you for your advice, it’s much appreciated. I’ve been reading back through the old DMP threads and your name has come up a lot giving some good advice and it sounds like you’ve been through it all too so I appreciate the input. Yes I do think you are right, I mean defaults are going to happen anyway whether it’s now or in 2 years time so I guess delaying the inevitable isn’t in my best interests and doing token payments isn’t exactly going to stop that long term anyway and I’ll just end up with AP markers. 

Glad to be of help

Yes, I've been part of this forum for quite some time and have certainly gone through all the stages from panic (when I realised we where in a whole world of trouble, financially), shame (not to be able to continue to service my debts), worry (about what might happen when I failed to make my contractual payments), relief (when I realised there was a solution to my financial predicament), control (when I decided to self-manage my DMP and finally the sheer joy of debt freedom.

Of course I made mistakes along the way - one of which was to jump quickly into a DMP (a part of the shame I was feeling) and realising I hadn't given myself any time to build that necessary emergency fund.  Also, I didn't build any 'extras' into my outgoings and I spent the first 2 years of the DMP feeling quite miserable, even though I was tackling the debt.

Also, jumping into the DMP before I had achieved any defaults was a BIG mistake and I had to fight tooth and nail with some of my creditors to get backdated defaults.  In some cases I managed to get the defaults backdated to within 3 - 6 months of failing to make my contractual payments, but a couple held out and only backdated the default from the point I started to raise a complaint, which was over 12 months from when the DMP started.

Anyhoo... the main takeaway is for you to stay in control and don't feel pressured to do anything.  As I have already said, debt collection is a long drawn out process and there are many thousands of people in your position, so take it one step at a time and make sure your DMP works for you!

Newmum92

Suseka97 said:

Newmum92 said:

Suseka97 said:

Newmum92 said:

Sorry, another question from me! 😬

What’s the best way to make token payments? I can use my apps to make online payments but I don’t know my login / card details for a couple of my accounts. Am I best writing to them with my holding letters to ask for bank details or do I call them to ask for bank details and then just make the payments. Thanks! 

You've had great advice so far, but I just wanted to suggest that you don't bother with token payments.  Mostly creditors don't want that because it cost more in admin fees to process those tokens, than their actual value.  Just let them know you'll be in touch in due course (don't specify timeframes) and if they write asking for an update - simply state you are still working things through.  Its likely it'll take a good 6 months before you get a default and the more you try to pacify them, the longer it'll take.

Debt collection processes are slow and nothing happens quickly!

Hiya

Thank you for your advice, it’s much appreciated. I’ve been reading back through the old DMP threads and your name has come up a lot giving some good advice and it sounds like you’ve been through it all too so I appreciate the input. Yes I do think you are right, I mean defaults are going to happen anyway whether it’s now or in 2 years time so I guess delaying the inevitable isn’t in my best interests and doing token payments isn’t exactly going to stop that long term anyway and I’ll just end up with AP markers. 

Glad to be of help

Yes, I've been part of this forum for quite some time and have certainly gone through all the stages from panic (when I realised we where in a whole world of trouble, financially), shame (not to be able to continue to service my debts), worry (about what might happen when I failed to make my contractual payments), relief (when I realised there was a solution to my financial predicament), control (when I decided to self-manage my DMP and finally the sheer joy of debt freedom.

Of course I made mistakes along the way - one of which was to jump quickly into a DMP (a part of the shame I was feeling) and realising I hadn't given myself any time to build that necessary emergency fund.  Also, I didn't build any 'extras' into my outgoings and I spent the first 2 years of the DMP feeling quite miserable, even though I was tackling the debt.

Also, jumping into the DMP before I had achieved any defaults was a BIG mistake and I had to fight tooth and nail with some of my creditors to get backdated defaults.  In some cases I managed to get the defaults backdated to within 3 - 6 months of failing to make my contractual payments, but a couple held out and only backdated the default from the point I started to raise a complaint, which was over 12 months from when the DMP started.

Anyhoo... the main takeaway is for you to stay in control and don't feel pressured to do anything.  As I have already said, debt collection is a long drawn out process and there are many thousands of people in your position, so take it one step at a time and make sure your DMP works for you!

Ah thank you, I feel so much more reassured hearing from the likes of yourself who have been through it! 

I think I am over worrying here, but my largest debt is a £20k loan (ouch) with AA which I believe is bank of Ireland. Does it matter that the debt is so large would that mean they are likely to treat me harsher and go for legal action more quickly, or shall I treat all my debts the same and just go through the motions? Think I’m just having a minor wobble 😬

sourcrates

Newmum92 said:

Suseka97 said:

Newmum92 said:

Suseka97 said:

Newmum92 said:

Sorry, another question from me! 😬

What’s the best way to make token payments? I can use my apps to make online payments but I don’t know my login / card details for a couple of my accounts. Am I best writing to them with my holding letters to ask for bank details or do I call them to ask for bank details and then just make the payments. Thanks! 

You've had great advice so far, but I just wanted to suggest that you don't bother with token payments.  Mostly creditors don't want that because it cost more in admin fees to process those tokens, than their actual value.  Just let them know you'll be in touch in due course (don't specify timeframes) and if they write asking for an update - simply state you are still working things through.  Its likely it'll take a good 6 months before you get a default and the more you try to pacify them, the longer it'll take.

Debt collection processes are slow and nothing happens quickly!

Hiya

Thank you for your advice, it’s much appreciated. I’ve been reading back through the old DMP threads and your name has come up a lot giving some good advice and it sounds like you’ve been through it all too so I appreciate the input. Yes I do think you are right, I mean defaults are going to happen anyway whether it’s now or in 2 years time so I guess delaying the inevitable isn’t in my best interests and doing token payments isn’t exactly going to stop that long term anyway and I’ll just end up with AP markers. 

Glad to be of help

Yes, I've been part of this forum for quite some time and have certainly gone through all the stages from panic (when I realised we where in a whole world of trouble, financially), shame (not to be able to continue to service my debts), worry (about what might happen when I failed to make my contractual payments), relief (when I realised there was a solution to my financial predicament), control (when I decided to self-manage my DMP and finally the sheer joy of debt freedom.

Of course I made mistakes along the way - one of which was to jump quickly into a DMP (a part of the shame I was feeling) and realising I hadn't given myself any time to build that necessary emergency fund.  Also, I didn't build any 'extras' into my outgoings and I spent the first 2 years of the DMP feeling quite miserable, even though I was tackling the debt.

Also, jumping into the DMP before I had achieved any defaults was a BIG mistake and I had to fight tooth and nail with some of my creditors to get backdated defaults.  In some cases I managed to get the defaults backdated to within 3 - 6 months of failing to make my contractual payments, but a couple held out and only backdated the default from the point I started to raise a complaint, which was over 12 months from when the DMP started.

Anyhoo... the main takeaway is for you to stay in control and don't feel pressured to do anything.  As I have already said, debt collection is a long drawn out process and there are many thousands of people in your position, so take it one step at a time and make sure your DMP works for you!

Ah thank you, I feel so much more reassured hearing from the likes of yourself who have been through it! 

I think I am over worrying here, but my largest debt is a £20k loan (ouch) with AA which I believe is bank of Ireland. Does it matter that the debt is so large would that mean they are likely to treat me harsher and go for legal action more quickly, or shall I treat all my debts the same and just go through the motions? Think I’m just having a minor wobble 😬

You may find that some creditors, when larger sums of money are involved, will try to obtain a CCJ just to secure there position. .
All that means is you will have a CCJ, but you will still repay the debt via a DMP or whatever option you choose, at an affordable rate.

County court judgements are nothing to be afraid of, its simply a way of trying to secure payment from you.

Any "forthwith" judgement can be changed to an instalment plan, just by submitting the correct forms to the court.

Newmum92

sourcrates said:

Newmum92 said:

Suseka97 said:

Newmum92 said:

Suseka97 said:

Newmum92 said:

Sorry, another question from me! 😬

What’s the best way to make token payments? I can use my apps to make online payments but I don’t know my login / card details for a couple of my accounts. Am I best writing to them with my holding letters to ask for bank details or do I call them to ask for bank details and then just make the payments. Thanks! 

You've had great advice so far, but I just wanted to suggest that you don't bother with token payments.  Mostly creditors don't want that because it cost more in admin fees to process those tokens, than their actual value.  Just let them know you'll be in touch in due course (don't specify timeframes) and if they write asking for an update - simply state you are still working things through.  Its likely it'll take a good 6 months before you get a default and the more you try to pacify them, the longer it'll take.

Debt collection processes are slow and nothing happens quickly!

Hiya

Thank you for your advice, it’s much appreciated. I’ve been reading back through the old DMP threads and your name has come up a lot giving some good advice and it sounds like you’ve been through it all too so I appreciate the input. Yes I do think you are right, I mean defaults are going to happen anyway whether it’s now or in 2 years time so I guess delaying the inevitable isn’t in my best interests and doing token payments isn’t exactly going to stop that long term anyway and I’ll just end up with AP markers. 

Glad to be of help

Yes, I've been part of this forum for quite some time and have certainly gone through all the stages from panic (when I realised we where in a whole world of trouble, financially), shame (not to be able to continue to service my debts), worry (about what might happen when I failed to make my contractual payments), relief (when I realised there was a solution to my financial predicament), control (when I decided to self-manage my DMP and finally the sheer joy of debt freedom.

Of course I made mistakes along the way - one of which was to jump quickly into a DMP (a part of the shame I was feeling) and realising I hadn't given myself any time to build that necessary emergency fund.  Also, I didn't build any 'extras' into my outgoings and I spent the first 2 years of the DMP feeling quite miserable, even though I was tackling the debt.

Also, jumping into the DMP before I had achieved any defaults was a BIG mistake and I had to fight tooth and nail with some of my creditors to get backdated defaults.  In some cases I managed to get the defaults backdated to within 3 - 6 months of failing to make my contractual payments, but a couple held out and only backdated the default from the point I started to raise a complaint, which was over 12 months from when the DMP started.

Anyhoo... the main takeaway is for you to stay in control and don't feel pressured to do anything.  As I have already said, debt collection is a long drawn out process and there are many thousands of people in your position, so take it one step at a time and make sure your DMP works for you!

Ah thank you, I feel so much more reassured hearing from the likes of yourself who have been through it! 

I think I am over worrying here, but my largest debt is a £20k loan (ouch) with AA which I believe is bank of Ireland. Does it matter that the debt is so large would that mean they are likely to treat me harsher and go for legal action more quickly, or shall I treat all my debts the same and just go through the motions? Think I’m just having a minor wobble 😬

You may find that some creditors, when larger sums of money are involved, will try to obtain a CCJ just to secure there position. .
All that means is you will have a CCJ, but you will still repay the debt via a DMP or whatever option you choose, at an affordable rate.

County court judgements are nothing to be afraid of, its simply a way of trying to secure payment from you.

Any "forthwith" judgement can be changed to an instalment plan, just by submitting the correct forms to the court.

Hi Sourcrates many thanks for your quick reply. Do you know how I could minimise them risk of that or is there not much I can do? I can’t have a CCJ due to my job, if it wasn’t for that I wouldn’t be overly worried but I can’t really have anything that’s on a public register basically! 

Thanks again