DMP mutual support thread part 13 !!

natlie

Woo hoo! Thank you, I hope that happens with my Barcl*ycard debt too 

lisamarie85

It’s been a while since I’ve been here! I’ve been in my DMP since January 21, paying a “token” £3 (£1 to each creditor) from January-July 21.

In July I had a pay increase so although it wasn’t required, I redid my budget and upped my monthly payment to £30. 

In October 21 I received a dividend I wasn’t expecting of £3,000 this went straight towards repaying friends & family who could not be taken into account with my DMP, I have since received £500 dividend each month, again all going back to repaying family/friends.

Today I have been given £5000 dividend. So in total £11,000 in dividends between October 21 & April 22. This was all unexpected and now I am concerned how this will look on my next review. Does a dividend need to be declared as it is an income? They only asked for wage slips when setting up the DMP and obviously, dividends do not show on those. I don’t want to be deceitful or get into any trouble for not telling them something but will they expect me to have paid it all towards my DMP? 

I had personal debts that were still outstanding, I have not repaid them all although they are almost cleared now and I have not yet done anything with the £5,000 from today. 

Any suggestions what I should do now? The £6,000 has already gone but the £5,000 is available to do whatever seems best. 

Thanks in advance xx

AndersS

So I've not made a payment to most of my creditors for the last two months and have ignored all communications. I've had the default notices coming through in the post and I think I've had a letter warning that a default will be placed on my account in about a week if I don't make a payment. My understanding is that this is all moving in the right direction, following the advice on here? Today I've had emails and a text from Arvato so presumably this is the next stage. What is the advice from here? Do I continue to ignore until the defaults are all through or should I be speaking to them/explaining my situation? My original plan was to ignore all communications from creditors/debt recovery companies until all the defaults are in place then contact the creditors/debt recovery companies to set up a payment plan. Is that correct? Also any heads up about Arvato would be useful. Thanks

AndersS

Oh and do I need to wait for all accounts to default before making contact and then a payment plan or can I just go ahead and contact the first creditor who defaults me to set up a payment plan? Just concerned that the earlybirds are going to be peeved and possibly take further action if I wait around for the party latecomers 

Zeus75

Hi, first time poster here, just looking for some advice.

Im currently 18 months into a DMP with 8 creditors, £36K still to pay. I made the mistake of carrying on to pay the minimum payment on all of them when setting up my DMP through Stepchange.

6 of them have now defaulted, just waiting for Nationwide loan (£12,300) and MBNA credit card (£7000) to default. The problem is with MBNA my DMP payment to them each month is £119, but the minimum payment required by them is only 1% of the balance, ie £70. I have received a letter from them stating that they will start adding the interest again to the account next month as I am keeping with the minimum payment amount.

Any idea how I can get both accounts to default asap? Any ideas why the Nationwide account hasn't defaulted yet?

Thanks in advance.

sourcrates

lisamarie85 said:

It’s been a while since I’ve been here! I’ve been in my DMP since January 21, paying a “token” £3 (£1 to each creditor) from January-July 21.

In July I had a pay increase so although it wasn’t required, I redid my budget and upped my monthly payment to £30. 

In October 21 I received a dividend I wasn’t expecting of £3,000 this went straight towards repaying friends & family who could not be taken into account with my DMP, I have since received £500 dividend each month, again all going back to repaying family/friends.

Today I have been given £5000 dividend. So in total £11,000 in dividends between October 21 & April 22. This was all unexpected and now I am concerned how this will look on my next review. Does a dividend need to be declared as it is an income? They only asked for wage slips when setting up the DMP and obviously, dividends do not show on those. I don’t want to be deceitful or get into any trouble for not telling them something but will they expect me to have paid it all towards my DMP? 

I had personal debts that were still outstanding, I have not repaid them all although they are almost cleared now and I have not yet done anything with the £5,000 from today. 

Any suggestions what I should do now? The £6,000 has already gone but the £5,000 is available to do whatever seems best. 

Thanks in advance xx

Debt management plans are, as you know by now, an informal kind of payment arrangement, there are no rules to break here.

I`m going to assume your using Stepchange, or one of the other free debt advice charities, whose mantra is to treat all creditors fairly, so its more than likely you may fall foul of there rules here.

Having said that, you are not obliged to declare anything to anyone, this is not a formal insolvency arrangement or anything of that nature, if you choose to pay off one creditor, and keep token payments to the rest, then that is your choice, basically you do what you think is best with that money.

sourcrates

AndersS said:

Oh and do I need to wait for all accounts to default before making contact and then a payment plan or can I just go ahead and contact the first creditor who defaults me to set up a payment plan? Just concerned that the earlybirds are going to be peeved and possibly take further action if I wait around for the party latecomers 

That`s not really how things work in debt collection land.

Once your accounts default, they may be sold, whoever buys them may just sit on those accounts for months, occasionally years in some cases, or they may write to you straight away, its anyone's guess basically.

They are sold in bulk you see, large portfolio`s of bad debts in one go, so it can take time to wade through what`s been bought, and so initial contact can take a while, or not, as the case may be.

Where you are concerned, once defaulted, the door is open, so take things at your own pace.

sourcrates

Zeus75 said:

Hi, first time poster here, just looking for some advice.

Im currently 18 months into a DMP with 8 creditors, £36K still to pay. I made the mistake of carrying on to pay the minimum payment on all of them when setting up my DMP through Stepchange.

6 of them have now defaulted, just waiting for Nationwide loan (£12,300) and MBNA credit card (£7000) to default. The problem is with MBNA my DMP payment to them each month is £119, but the minimum payment required by them is only 1% of the balance, ie £70. I have received a letter from them stating that they will start adding the interest again to the account next month as I am keeping with the minimum payment amount.

Any idea how I can get both accounts to default asap? Any ideas why the Nationwide account hasn't defaulted yet?

Thanks in advance.

You have three choices, (1) stop paying them until they default you.

(2) go down the complaints route, however this may be tricky as your paying more than the required minimum payment.

(3) Go self managed, change your payments so they are all below the minimum, or stop altogether, until they default you.

AndersS

sourcrates said:

AndersS said:

Oh and do I need to wait for all accounts to default before making contact and then a payment plan or can I just go ahead and contact the first creditor who defaults me to set up a payment plan? Just concerned that the earlybirds are going to be peeved and possibly take further action if I wait around for the party latecomers 

That`s not really how things work in debt collection land.

Once your accounts default, they may be sold, whoever buys them may just sit on those accounts for months, occasionally years in some cases, or they may write to you straight away, its anyone's guess basically.

They are sold in bulk you see, large portfolio`s of bad debts in one go, so it can take time to wade through what`s been bought, and so initial contact can take a while, or not, as the case may be.

Where you are concerned, once defaulted, the door is open, so take things at your own pace.

Ah I see! That's great, thank you

lisamarie85

sourcrates said 

do what you think is best with that money.

The problem is- I’ve never been known for my savvy financial decisions which is why I’m in this mess. 

I owe just over £13,000 to PRA from my Barclaycard debt which was passed to them. 

I owe almost £5,000 to PRA for my Halifax debt which was passed to them. 

I owe almost £5,000 to Tesco who have never passed on my debt. 

My thoughts on this £5,000 would be to approach Tesco and see if I can get full and final settlement but I’m scared of doing this and rocking the boat 🙈 I’m
not sure why. I heard PRA aren’t too keen on making discounts/reductions and I can’t afford to settle both accounts with them. 

You’re correct, I’m with PayPlanPlus… so I’ve not told them anything about dividends or my ideas yet. 

If I did approach Tesco and we could make an agreement, would they just be removed from my DMP? And the £30 be divided between the remaining two creditors?