DMP mutual support thread part 13 !!

April22

Suseka97 said:

April22 said:

Hi Everyone

After years of thinking I could cope, experiencing multiple bereavements, and unfortunate health issues, I finally came to the realisation I needed help.

I have £104k of unsecured debt spread across credit cards and loans with; Shawbrook, Nationwide, AMEX, MBNA, Tesco, and Virgin.

Just openly writing this and being honest is a huge step for me.

I completed Step Change’s DMP forms yesterday - and today the plan has been set up to start on May 1st at £900 a month for the next 9.8 yrs.

I didn’t default and up until now have never missed a payment (I know you will tell me that was wrong because you want to get defaults but it’s how I’ve done things) 

I have read a lot of comments on here, and step change said the same to me - that it is what I can afford and not what creditors want me to pay - but I just wondered how long before people heard if their plan was ‘accepted’ by the creditor. I felt a sense of relief knowing I put the forms in, but still not at peace until I know this… 

And do they usually tell Step Change or myself? 

As I spend the next decade on this journey(!) I hope to share with this forum. 

The good and the bad… 

Thank you and nice to e-meet you all 

April x

Firstly, its good you are now dealing with your financial situation and that you've found strength to come along and post on here.  

Now, as you've already pointed out - most of us would have advised you to hold out for those defaults but, ultimately, it's up to you if you want to jump straight in and see how things work out.  Hopefully your creditors will play ball and you'll get those defaults, because that ensures interest and charges stop (with a side benefit that the 6 year clock, to repair your credit file, starts ticking).

As to the question of how long it takes to hear back from creditors as to whether they've accepted the DMP offer - well, some will do so quickly, others may not - but whether they do or don't is irrelevant.  SC will simply send the proposed payment, even if they outright reject it.  You may hear from them direct, or you may hear nothing at all - every creditor is different.

All you need to do is trust the process and let matters take their course and do pop back again if you need any further help along the way. 

Good luck!

Thank you so much, I will let you know how I get on, I really appreciate your kind support 

10a05

Morning all

I have been on a DMP with StepChange for 12 months and I'm interested about switching to a self managed DMP. What is the best way of starting this? Contacting StepChange to cancel the DMP and then contacting my debtors with an offer of payment? or do I keep to same amount that SC were paying?

5 of my debts have defaulted whilst on the DMP, 3 have not (Admiral, Very and Updraft). Before I started the DMP I didn't pay any of my debts for 5-6 months so I could start my DMP with a few defaults at least. Shall I stop paying these three until they default me? Should I ask them to stop the interest?

Suseka97

10a05 said:

Morning all

I have been on a DMP with StepChange for 12 months and I'm interested about switching to a self managed DMP. What is the best way of starting this? Contacting StepChange to cancel the DMP and then contacting my debtors with an offer of payment? or do I keep to same amount that SC were paying?

Yes, you should contact SC and let them know your intentions and from when you plan to stop using their services, usually as soon as your payment for April has been made.  Then you should take a note of all your account details from your online DMP account - who holds the debt, contact details, account numbers and balances.  Once done, you can write to your creditors / DCAs an inform them that from x date you will be handling the DMP direct and then it's up to you whether you continue with the same payment arrangements, or adjust your I&E and make changes.  It's all pretty straightforward.  Some may respond, some may not and just continue to take the payment you send with no further communications.  Some may ask you to complete a new I&E and its up to you whether you choose to do that or not.  That's the beauty of self-managing, you are in control.

10a05 said:

5 of my debts have defaulted whilst on the DMP, 3 have not (Admiral, Very and Updraft). Before I started the DMP I didn't pay any of my debts for 5-6 months so I could start my DMP with a few defaults at least. Shall I stop paying these three until they default me? Should I ask them to stop the interest?

No, don't ask.... raise a formal complaint and stop making any further payments to the 3 accounts who have not yet defaulted. Very are well known for being somewhat stubborn with defaults so you'll need to be persistent and keep complaining.

10a05

Suseka97 said:

10a05 said:

Morning all

I have been on a DMP with StepChange for 12 months and I'm interested about switching to a self managed DMP. What is the best way of starting this? Contacting StepChange to cancel the DMP and then contacting my debtors with an offer of payment? or do I keep to same amount that SC were paying?

Yes, you should contact SC and let them know your intentions and from when you plan to stop using their services, usually as soon as your payment for April has been made.  Then you should take a note of all your account details from your online DMP account - who holds the debt, contact details, account numbers and balances.  Once done, you can write to your creditors / DCAs an inform them that from x date you will be handling the DMP direct and then it's up to you whether you continue with the same payment arrangements, or adjust your I&E and make changes.  It's all pretty straightforward.  Some may respond, some may not and just continue to take the payment you send with no further communications.  Some may ask you to complete a new I&E and its up to you whether you choose to do that or not.  That's the beauty of self-managing, you are in control.

10a05 said:

5 of my debts have defaulted whilst on the DMP, 3 have not (Admiral, Very and Updraft). Before I started the DMP I didn't pay any of my debts for 5-6 months so I could start my DMP with a few defaults at least. Shall I stop paying these three until they default me? Should I ask them to stop the interest?

No, don't ask.... raise a formal complaint and stop making any further payments to the 3 accounts who have not yet defaulted. Very are well known for being somewhat stubborn with defaults so you'll need to be persistent and keep complaining.

Thanks Suseka97

I'll raise a formal complaint. Should they backtrack the interest accrued over the last 12 months? Should I stop making payments to these three in the hope they then default me?

apollostarbuck

Paid off my DMP with the help of family. The debt was about 11k. Interestingly enough, they asked why I hadn't just asked to pause/lower the household contributions I was making (was living at home)?

I called Stepchange to ask what their advice would have been had I gone to them for guidance on whether a DMP was appropriate. They said the same thing: if a large chunk of my income went to household contributions when living with parents, ask them if its possible to reduce that. 

I then called the company that advised me to get a DMP, and they said they can't give advice on my expenses.

sourcrates

Fellalis89 said:

Hello all,

I wondered if I could seek some guidance on my SOA below and what to do regarding my next steps. I will be starting a new job as of next week, so wages are an estimate using MSE tool. Due to this my true payday payment won't be reflected until 25.05.22.

Petrol is an overestimate with contingency built-in due to current inflation rates. Hopefully, it isn't this high but I'd roughly guess I would need a full tank per week which is around £70-£80 per week (depending on which petrol station I go to) and I have to include there are five weeks in some months so building the safety net in this pot seems needed. This is because my new job is 1.5 hours away and I will be travelling 3 times per week, plus driving around as normal. I could be wrong but I'd hate to under budget and struggle getting to work.

Any advice and guidance would be much appreciated!! TIA x

Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget Summary                                         Amount(£)

Total monthly income                                                 2,043 (estimate of new income as of 25.05.22)

Monthly expenses (incl. HP & secured loans)           1,568.19

Available for debt repayments                                   474.81

UNsecured debt repayments                                     856.04

Amount short for making debt repayments                -381.23

Personal Balance Sheet Summary                            Amount(£)

Total Assets (things you own)                                    127,000

Total Secured & HP Debt                                            -77,729

Total Unsecured Debt                                                 -27,355

Net Assets                                                                    21,916

Household Information

Number of adults in household                                     1

Number of children in household                                   0

Number of cars owned                                                  1

(3)Income, Expense, Debt & Asset Details

Income                                                                         Amount(£)

Monthly income after tax                                             2043

Partners monthly income                                             0

Benefits                                                                        0

Other income                                                                0

Total monthly income                                                   2043

Expenses                                                                     Amount(£)

Mortgage                                                                     290

Secured/HP loan payments                                         0

Rent                                                                             0

Management charge (leasehold property)                   0

Council tax                                                                   96

Electricity                                                                     68.5

Gas                                                                              68.5

Oil                                                                                 0

Water Rates                                                                 28.78

Telephone (land line)                                                    0

Mobile phone                                                               10

TV Licence                                                                   13.37

Satellite/Cable TV                                                         36.3

Internet services                                                            0

Groceries etc.                                                                160 (dog food and household products included)

Clothing                                                                          40

Petrol/diesel                                                                   400 (estimate)

Road tax                                                                         2.5

Car Insurance                                                                 36

Car maintenance (including MOT)                                 45

Car Parking                                                                    0

Other travel                                                                    0

Childcare/nursery                                                           0

Other child related expenses                                         0

Medical (prescriptions, dentists, opticians etc.)             0

Pet Insurance/Vet bills                                                   14.25

Buildings Insurance                                                        4.5

Contents Insurance                                                        4.5

Life Assurance                                                                0

Other Insurance                                                              0

Presents (birthday, christmas etc.)                                 16

Haircuts                                                                          10

Entertainment                                                                 80

Holiday                                                                           20

Emergency Fund                                                            60

(Unnamed monthly expense)                                         0

Account Fee                                                                  17 (to be cancelled, replace with breakdown cover)

Amazon                                                                         7.99

Gym                                                                               39 (ends July 22)

Total monthly expenses                                                 1568.19

Secured & HP Debt Description  Debt(£) Monthly(£)         APR(%)

Mortgage                                       77729    (290)                4.24

Secured & HP Debt totals              77729    -                       -

Unsecured Debt Description       Debt(£) Monthly(£)         APR(%)

Admiral Loan                                 9479       322                13.09

Lloyds Loan                                   2710       153                 22.3

MBNA Card                                   4572       50                   20.93

Car Finance                                   6467       141                  7.9

DWP                                               139         10                     0

Sofa Finance                                  255        42.52                0

Virgin Card                                     2933       87.52             23.29

Capital One Card                            800         50                    0

Unsecured Debt totals                   27355    856.04   -

Asset Description                             Value (£)

Cash      0

House Value (Gross)                       120000

Shares and bonds                            0

Car(s)                                                7000

Other assets (e.g. endowments, jewellery etc)    0

Total Assets                                       127000

This wants moving to the general DFW forum, Ambassador please.

Suseka97

10a05 said:

Suseka97 said:

10a05 said:

Morning all

I have been on a DMP with StepChange for 12 months and I'm interested about switching to a self managed DMP. What is the best way of starting this? Contacting StepChange to cancel the DMP and then contacting my debtors with an offer of payment? or do I keep to same amount that SC were paying?

Yes, you should contact SC and let them know your intentions and from when you plan to stop using their services, usually as soon as your payment for April has been made.  Then you should take a note of all your account details from your online DMP account - who holds the debt, contact details, account numbers and balances.  Once done, you can write to your creditors / DCAs an inform them that from x date you will be handling the DMP direct and then it's up to you whether you continue with the same payment arrangements, or adjust your I&E and make changes.  It's all pretty straightforward.  Some may respond, some may not and just continue to take the payment you send with no further communications.  Some may ask you to complete a new I&E and its up to you whether you choose to do that or not.  That's the beauty of self-managing, you are in control.

10a05 said:

5 of my debts have defaulted whilst on the DMP, 3 have not (Admiral, Very and Updraft). Before I started the DMP I didn't pay any of my debts for 5-6 months so I could start my DMP with a few defaults at least. Shall I stop paying these three until they default me? Should I ask them to stop the interest?

No, don't ask.... raise a formal complaint and stop making any further payments to the 3 accounts who have not yet defaulted. Very are well known for being somewhat stubborn with defaults so you'll need to be persistent and keep complaining.

Thanks Suseka97

I'll raise a formal complaint. Should they backtrack the interest accrued over the last 12 months? Should I stop making payments to these three in the hope they then default me?

Ideally, a default would be applied from between 3-6 months of you failing to make the contractual payment.  However, these are only guidelines and some creditor's choose not to.  So, even if you do manage to get them to backdate the default, it doesn't necessarily mean they will automatically refund interest and charges applied during the extended timeframe - but you could raise that as an issue when you make your formal complaint.

I had to push for a number of defaults and was mostly successful, not always getting it backdated to to within that 3-6 timeframe it's fair to say - but sooner than originally applied.  Several months, if not a year, later I recall getting two letters relating to some Barclaycard accounts in which they said that having reviewed their records they found they had not treated me fairly and they refunded me the additional interest and charges that had accrued, along with compensation.  This came totally out of the blue, I had not raised an issue, nor had I complained.  Go figure!

Anyway, I would definitely stop making payments to those that are refusing to default - to see if you can force their hand. 

Ex_welsh_borrower

natlie said:

Hi,

I’m 2 years into DMP now and I had a from MBN* this week who had transferred my account to Westcott saying they’d made a mistake last year when they defaulted me as I had continued to make payments and that as a gesture of goodwill they have deleted the default and cleared my £4100 balance. Anyone heard of this before, I can’t believe it!!!!
thanks
Nat

The same thing happened to me in March, a 2.5k debt originally with Lloyds was sold to the PRA group then out of the blue I had a letter saying the same and they wrote it off. It's confused me as all my debts I have made payments on just not the contractual amount hence the defaults. Are all my defaults valid or is there grounds to challenge them?

StepChange told me that they had heard of a number of clients getting the same letters recently too.

Newmum92

Morning 😊

I know I am getting ahead thinking of moving house when I’m just starting my DMP journey! But I want to understand how things will work as it’s very important to me to be able to move house in say 6-7 years. 

If all my accounts have dropped off my credit file by then, but I still am in the DMP, will I have to include all the debts? And will it just be that they will be taken into the affordability calculation? Or is there a way round it? Thanks 

April22

Hi Guys
I just thought I’d post an update.
It’s been 2 weeks since I entered my DMP - 2 out of 6 companies have accepted the payment offer, and 4 have ‘acknowledged it’ 
(step change said that’s just them saying it’s not the minimum payment so they won’t ‘accept’ it - although I’m not paying the minimum on the 2 that did accept it) 
I think this is good news. 

I must say I feel a huge weight lifted between the DMP and the support from the lovely people in this group. I have heard this so many times and thought it was made up - but I can honestly say I’ve been sleeping so much better this past week. I’ve also been honest and told my family I’m entering into this plan. They didn’t react the way I dreamt up that they would - they have been so supportive.
I can finally see a light at the end of a long tunnel
April x