DMP mutual support thread part 13 !!

Ethel_and_Ernest

Hi,

Just a quick question regarding I&E if going self managed from the start...

We are with StepChange and everything is ready to sign. We have managed to delay our start date until January 2019 because we have big outgoings for November and December.

Ideally, we would like to start repaying in February or even March to allow us to build an emergency fund. StepChange seem keen on starting ASAP and have suggested making a part payment in December with whatever surplus we have. As budgeting is a new concept to us, I want to make sure the figures are manageable before committing to the DMP. The SC DMP proposal is that we clear c.53k at £651 a month.

We have seven accounts across four creditors. All accounts are now in arrears by 1 - 2 months and creditors have been made aware of the situation. All are still adding charges, but everyone has received their £1 token payment this month.

How would the I&E process work if self managing? Will they need to see evidence of income? The reason I ask is that hubby's wages can vary but his overtime is not guaranteed.

Also, how would we work out what to pay each creditor from our monthly surplus.

We're not running, or hiding anything. We want to pay back every penny we owe. However, it is worrying me that the SC budget calculations might be a bit too tight for the long haul.

Any advice welcome!

Thanks,
Ethel xx

sourcrates

Ethel_and_Ernest wrote: »

How would the I&E process work if self managing? Will they need to see evidence of income? The reason I ask is that hubby's wages can vary but his overtime is not guaranteed.

Also, how would we work out what to pay each creditor from our monthly surplus.

Any advice welcome!

Thanks,
Ethel xx

Hi Ethel,


That is the beauty of self management, you make the decisions, no one else, just you, only a court can demand evidence of income, everything else is just a request, which can be refused.


You call the shots, you decide who gets paid what and when, the whole process is under your control, are you getting the gist here lol

biker_rob

Ethel_and_Ernest wrote: »

Hi,

Also, how would we work out what to pay each creditor from our monthly surplus.

Thanks,
Ethel xx

Hi Ethel

I'm currently starting to self-manage my DMP. I had consulted with Stepchange and their advice was excellent but after reading the fantastic posts on this thread and receiving some equally excellent advice from the guys here I've decided to go it alone.

I used the Nedcab website. Just register and it'll save every part of the process.

In answer to your question, the Nedcab website will work out what to pay after you complete your income and expenditure then generate offer letters to your creditors.

https://nedcab.cabmoney.org.uk/dmp.asp

RonnieC

Good afternoon,

this is my first post on this forum after having done some reading and making a couple of realisations.

APOLOGIES IF MY QUESTIONS HAVE BEEN ANSWERED SEVERAL TIMES ALREADY ON THIS OR OTHER THREADS, I'M NEW TO THIS!

I'm currently in a DMP with Moneyplus, and this has been running for 8 or 9 years and I've never missed a payment.

I'm now in a position to start thinking about making F&F offers. I have checked on the fees that Moneyplus charge for negotiating with creditors for F&F settlement, they charge 35% of any reduction, so of course I am looking at doing this all myself.

I have noticed that a lot of people are sending CCA requests. I'd like to know if it would be worth my while doing this myself before attempting to negotiate F&Fs?

Also, should I continue to pay Moneyplus as normal while my creditors either respond to CCA requests, or to F&F offers?

About my situation:-

14 creditors
total debt approx 28k
none appear on credit file as all defaulted more than 6 yrs ago

My intention is to become debt free ASAP and apply for a mortgage so I'm keen to keep my credit rating as high as possible. Will doing any of this appear on my credit file at all???

Many thanks for any advice on offer, it would be much appreciated.

Ethel_and_Ernest

Thank you Sourcrates and Biker_rob

Our plan was to let StepChange take control initially, then take the reigns in a year or two once it had all settled down.

I'm struggling with the idea that it's really as simple as it sounds. I wish we'd tackled this years ago!

Ethel x

sourcrates

RonnieC wrote: »

I'm currently in a DMP with Moneyplus, and this has been running for 8 or 9 years and I've never missed a payment.

I'm now in a position to start thinking about making F&F offers. I have checked on the fees that Moneyplus charge for negotiating with creditors for F&F settlement, they charge 35% of any reduction, so of course I am looking at doing this all myself.

I have noticed that a lot of people are sending CCA requests. I'd like to know if it would be worth my while doing this myself before attempting to negotiate F&Fs?

Also, should I continue to pay Moneyplus as normal while my creditors either respond to CCA requests, or to F&F offers?

Hi,


I would advise ditching money-plus as soon as possible, makes no sense to keep adding to their profits does it, you should send CCA requests first, and dependent on what comes back, then make your written offers of settlement to them.


You can stop your payments, if all accounts have gone from your credit file, nothing you now do will have any affect on it whatsoever.

JBear2018

Afternoon.

Been lurking here for a while, actually helped me set up a DMP through PayPlan at the start of the year and it's gone well. Found that the debt was spiralling and I was constantly worrying, some may say it wasn't much but it was getting me down. It totalled around £5500 - if I didn't do something it would've got much worse.

It's been going well, with a couple of added payments due to doing well at work I have managed to get the total debt down to £2746.

I have 4 creditors and thinking of making potential settlement offers to test the waters see if they'd accept. Would I go through PayPlan or send the letters directly?

Any extra advice for settlement offers? % to go in with at first? maybe try 20% of each debt to test the water and see the counter offer?

Not sure if there are any particular rules regarding F&F's?

Any Help/Advice appreciated.

Suseka97

Ethel_and_Ernest wrote: »

Thank you Sourcrates and Biker_rob
Our plan was to let StepChange take control initially, then take the reigns in a year or two once it had all settled down.
I'm struggling with the idea that it's really as simple as it sounds. I wish we'd tackled this years ago!
Ethel x

Hi Ethel

Seriously, it is that simple and like you I wish I'd tackled my debts years earlier. I know you want to go with SC in the first instance, totally understand that - but I doubt they'll let you hold off until February / March next year.

What you may have to do is tell SC you are not going to send back your paperwork until February / March 2019. They'll then just stop the process and you'll have to get in touch with them again in the new year. All you then do is write to your creditors and stall - by saying you are currently working on a financial solution and will be in touch in x month to commence payment. With that you might find that at least some of them will default you and that'll stop any more interest and/or charges being applied.

At the end of the day - this has to work for you in the long term and SC are simply 'agents' and whilst they will obviously be keen for you to start this, sooner rather than later, you need to keep in mind that you are in control and you start when you're ready. That's not meant as a criticism towards SC by the way.

Norfolk_Jim

Hello, I've been reading through the posts after being given a link to this thread while I was on the DFW board.
I am considering the advice Stepchange have given me to go on a DMP or go bankrupt. I really don't want to go bankrupt but my DMP would last 30+ years. However I will 55 in less than a year and I do have a pension I could cash (Not my main pension for retirement) and I was thinking that after a time I could use it to make F&F offers on my overall debts (c£45,000)
I bank with Nationwide. I also have an account with Metro at a branch in London. My mortgage is with Nationwide as are all my SO's and DD's. I also owe nearly £4000 to my nationwide credit card.
Ahead of going on a DMP should I be looking to transfer all of my DDs and SO's to Metro? (I'm not sure how I would do day to day paying in with Metro - I only got the account to use when in Europe) or would it be worth trying to keep my current account with Nationwide somehow?

[Deleted User]

Norfolk_Jim wrote: »

Hello, I've been reading through the posts after being given a link to this thread while I was on the DFW board.
I am considering the advice Stepchange have given me to go on a DMP or go bankrupt. I really don't want to go bankrupt but my DMP would last 30+ years. However I will 55 in less than a year and I do have a pension I could cash (Not my main pension for retirement) and I was thinking that after a time I could use it to make F&F offers on my overall debts (c£45,000)
I bank with Nationwide. I also have an account with Metro at a branch in London. My mortgage is with Nationwide as are all my SO's and DD's. I also owe nearly £4000 to my nationwide credit card.
Ahead of going on a DMP should I be looking to transfer all of my DDs and SO's to Metro? (I'm not sure how I would do day to day paying in with Metro - I only got the account to use when in Europe) or would it be worth trying to keep my current account with Nationwide somehow?

I fully understand when you mention the 'age' thing as 33 years is an eyewatering length of time to be still on a DMP when you are 54 now. If it's any consolation I was already well into my 60s and retired when I started my DMP back in 2013, owing almost £57,000 at the start. I didn't have a pension pot to draw down, I'm on a final salary local government pension so had no option but to just do a straight DMP.Like you, bankruptcy was never a route I was willing to take. I made the fatal error of going at my DMP repayments hell for leather and paying more per month than I could really afford (my fault not SC's) just to clear the debts in the shortest time. Life was miserable and I then reduced my payments to a happy medium. After about 4 years I decided (after the example of others on here and the great advice always so willingly given) to self-manage, cut to token payments and build up a F&F settlement pot. I'm now just starting making my settlement offers as, thanks also to a few smallish PPI payouts, I'm in a financial position to do it. It's a great feeling.


As for the banking situation I know nothing about Metro Bank but do know that the usual advice is never bank (have your salary etc paid in there) with an institution who you have debts with. It looks like you should definitely find an alternative to Nationwide. I'm with Nationwide myself, I opened a basic account with them prior to starting my DMP as I had a large CC debt with my original bank, Lloyds. Nationwide was one of the few banks I didn't owe anything to:o. You have to be careful that you don't opt for a bank that's part of the same banking 'family' as one you have debts with.


I hope someone will be along to give you more specific advice. Good Luck:beer: