DMP mutual support thread part 13 !!

PurpleMouse5

I've just got confirmation my DMP is set up with Stepchange. Because of the way the money is split one creditor (Fluid credit card by Newday) is going to end up with slightly more than the minimum payment I would have paid before the DMP. Will this cause any issues? Thanks

sourcrates

PurpleMouse5 said:

I've just got confirmation my DMP is set up with Stepchange. Because of the way the money is split one creditor (Fluid credit card by Newday) is going to end up with slightly more than the minimum payment I would have paid before the DMP. Will this cause any issues? Thanks

Well yea it might, if your paying more than the min payment, then they won`t stop charging you interest will they.

Nor will they default the account, it will be just as if you were paying it normally.

This is why I don`t like the Stepchange approach, but it is what it is I suppose.

Hols2021

Hi,

I am getting emails and texts from Arvato saying that my card issuer has issued a Default and i need to make a plan with them now but there is noting on my credit file and i've only missed two payments which is marked on my credit file. I have not had a letter through about the Default either, do i keep ignoring them until the default is on my file? Thanks

sourcrates

Hols2021 said:

Hi,

I am getting emails and texts from Arvato saying that my card issuer has issued a Default and i need to make a plan with them now but there is noting on my credit file and i've only missed two payments which is marked on my credit file. I have not had a letter through about the Default either, do i keep ignoring them until the default is on my file? Thanks

Default has 3 separate meanings in finance.

(1) Default sums in arrears, money you owe when you`re behind on your payments, can lead to ....

(2) A Default notice (being issued in writing) advising you are behind with your payments and giving a date, usually 14 days, to rectify the breach, otherwise....

(3) A Default may/will be registered on your credit file.

Your account is not defaulted until the above process is complete, and the defaulted account is shown on your credit file, with the date it defaulted.

April22

Olivia42 said:

Hi, really desperate for some help and hoping someone can advise. I’ve been in a DMP with stepchange for 3 years now and no problems until now. One of my creditors is Lowell which was originally Creation Finance through DFS. I pay stepchange on the 1st of the month. Looking at my Lowell statements stepchange usually pass the payment to Lowell by around the 7th. For some reason in June this wasn’t paid til the 15th. Lowell have reported a missed payment for June. They said that the payment date of the original agreement is the 10th and as I didn’t pay by then, what they have reported is accurate and they won’t remove it. Stepchange said when they set up plans they ask creditors to change payment dates to the 28th and so Lowell should have done this. Lowell said they can’t change the payment date and basically said the only way to stop this happening again is to set up a plan with them directly. Stepchange then said to raise a complaint with lowell which I asked to do, they said I could but it would be rejected so there was no point. Is there anything I can do here? 

Also wondering why I’m getting a missed payment marker when they had the payment 5 days later. Julys was on time. Surely this is late rather than missed, although that’s beside the point. 

We are meant to be moving house soon and I’m obviously extremely concerned about how this will affect my mortgage offer. 

Hi

i actually came on here because I’m having the exact same issue. 

Payments to Stepchange on the 1st, they are passing it on sometime around the 10th but it just misses the payment date for all of my accounts so is showing as a ‘missed payment’ on my credit file. Even though I always make the payment on time… pretty annoying tbh! 

Hols2021

Thank you sourcrates, could i also ask if anyone knows, my husband has a CC with our Mortgage provider and we have been trying to keep up with payments but the minimum payment is £180 a month and we just can't afford it now with all the costs increasing with food, petrol, gas/electricity and so we have now missed a couple of payments, we are really worried this will affect our Mortgage in some way or we won't be able to renew it when the fixed rate runs out, has anyone had any experience of this?

sourcrates

Hols2021 said:

Thank you sourcrates, could i also ask if anyone knows, my husband has a CC with our Mortgage provider and we have been trying to keep up with payments but the minimum payment is £180 a month and we just can't afford it now with all the costs increasing with food, petrol, gas/electricity and so we have now missed a couple of payments, we are really worried this will affect our Mortgage in some way or we won't be able to renew it when the fixed rate runs out, has anyone had any experience of this?

Your mortgage and credit card, are separate credit agreements, even though they are provided by the same lender, they are separate as chalk and cheese.

A mortgage is a priority secured debt, a credit card is not, its an unsecured, non priority debt, so if you default on the card, it will not affect your mortgage, as long as you continue to pay the mortgage on time obviously.

PurpleMouse5

sourcrates said:

PurpleMouse5 said:

I've just got confirmation my DMP is set up with Stepchange. Because of the way the money is split one creditor (Fluid credit card by Newday) is going to end up with slightly more than the minimum payment I would have paid before the DMP. Will this cause any issues? Thanks

Well yea it might, if your paying more than the min payment, then they won`t stop charging you interest will they.

Nor will they default the account, it will be just as if you were paying it normally.

This is why I don`t like the Stepchange approach, but it is what it is I suppose.

Thanks. Well it looks like with the bills increase I won't be paying the min payment any more soon anyway so I guess it'll sort itself out that way

swansea_lad

Is there any benefit paying off the Credit Card to prevent a default being registered on your credit file? I have £380 on a HSBC card, ive been paying with Payplan since September 2019, ive received a letter today saying they will default the account.

natlie

Hi

Just an update, I  am 2 years in to my DMP and I have 2 years left to go. I have paid off £15,133 and I have £11,441.07 left to pay. I have 1 year until the next debt is cleared, 2 have been paid off in full. 

I am so glad I did this, strangely, although I now have a load of defaults my credit score has improved? 

I still need to get on top of my budgeting but getting there 

Nat