DMP mutual support thread part 13 !!

swansea_lad

sourcrates said:

swansea_lad said:

I have been in a DMP since September 2019, I paid off my HSBC credit card and they have today issued a default. Is there anything I can do? 

Can`t default a debt that`s been paid off.

Written complaint would be in order.

I paid it off in full on 3/8/22 i had a default notice sent from Experian today.

rachy185

Hi does anyone know why stepchange ask for 1 month bank statements? It wouldn't be a problem but just wondering what are they wanting too see. Tia

sourcrates

rachy185 said:

Hi does anyone know why stepchange ask for 1 month bank statements? It wouldn't be a problem but just wondering what are they wanting too see. Tia

From the stepchange website -

What documents do you need to set up my DMP?

After your debt advice session with us, we’ll send you your personal action plan. If we’ve emailed you your plan, it’ll be waiting for you in your inbox shortly after you’ve spoken to us. If we've posted it to you it'll be there in the next few days.

To make sure your DMP is set up as quickly as possible please send the following documents and information to us as soon as possible: 

1. Please send us proof of your highest income. This should match the amount you gave us during your debt advice session. If it doesn’t make sure you include a note to tell us why. It also needs to include your name and can be one of the following:

• Your most recent payslip (dated within the last 3 months)

• A recent bank statement that shows your income received (dated within the last 3 months, and you can also highlight your income figures if you feel this would help us identify it quicker)

• For benefits, please send your most recent award letter (all pages and this should include the amount of benefits that you are currently receiving)

rachy185

sourcrates said:

rachy185 said:

Hi does anyone know why stepchange ask for 1 month bank statements? It wouldn't be a problem but just wondering what are they wanting too see. Tia

From the stepchange website -

What documents do you need to set up my DMP?

After your debt advice session with us, we’ll send you your personal action plan. If we’ve emailed you your plan, it’ll be waiting for you in your inbox shortly after you’ve spoken to us. If we've posted it to you it'll be there in the next few days.

To make sure your DMP is set up as quickly as possible please send the following documents and information to us as soon as possible: 

1. Please send us proof of your highest income. This should match the amount you gave us during your debt advice session. If it doesn’t make sure you include a note to tell us why. It also needs to include your name and can be one of the following:

• Your most recent payslip (dated within the last 3 months)

• A recent bank statement that shows your income received (dated within the last 3 months, and you can also highlight your income figures if you feel this would help us identify it quicker)

• For benefits, please send your most recent award letter (all pages and this should include the amount of benefits that you are currently receiving)

Thankyou that helps, in my case it will be the last one. I assume they won't want screenshots would it be possible for uc to send a statement out if I rang them? 

April22

Please can I ask for some advice. I’ve been in my DMP for 5 months, but I’ve started travelling to the office so my fuel bill has increased by £100 a month. I currently pay £900 to my DMP each month. I did a budget review online with Stepchange but it said it’s not agreed and I need to call them. I’m worried now that my DMP could be cancelled or stopped if they don’t agree to a reduced payment. If I don’t call will my payments stay as normal? Please let me know if you’ve experienced this 
thank you 

sourcrates

April22 said:

Please can I ask for some advice. I’ve been in my DMP for 5 months, but I’ve started travelling to the office so my fuel bill has increased by £100 a month. I currently pay £900 to my DMP each month. I did a budget review online with Stepchange but it said it’s not agreed and I need to call them. I’m worried now that my DMP could be cancelled or stopped if they don’t agree to a reduced payment. If I don’t call will my payments stay as normal? Please let me know if you’ve experienced this 
thank you 

I doubt it will be stopped, but if it is, what`s stopping you making the same payments instead ?

All Stepchange do is pass on your money, there just a 3rd party payment company really.

They most likely just want to discuss this with you, so if you need the extra money, stand your ground, and if they won`t agree, just go self managed, either way it should not be a problem.

Wall69

Hi,just after some advice.  So 5 years into a DMP with SC.  Still got a whopping amount to go.
After reading lots and lots on these forums have decided to go self managed.   Will
immediately pay off several of the smaller debts so will only have about 4 creditors left.   

Here’s the question - after the 6 years pass and the defaults drop off, when I am continuing to pay the four creditors am I still in a DMP or am I just paying historic debts?  Asking for mortgage purposes??? Xx

natlie

rachy185 said:

Hi everyone, just looking for advice really! As far as I've read i understand you need to let your accounts default before arranging a dmp to shorten the time the info is on the credit file. I have currently around 43k debt (5 credit cards and 1 loan) I currently pay around £840 a month on all these accounts. Currently they are 0% on the credit cards apart from a recent transaction i did, so I will be charged on £2900 I think roughly its 28% apr a year. I've done a soa in the past, it shows I have around £350 towards debt. 


I'm worried about stopping the payments to build up the emergency fund, I know it takes time for accounts to default and for the debt to be sold on. I'm worried about the in-between time, the letters and debt collectors turning up. I do want to pay this debt but its unmanageable and will spiral out of control once the 0% ends as early as feb 22. I would just like some of people's experiences and how they dealt with waiting to default. Will the debt collectors take belongings? Or will there enough time whilst waiting for defaults for arrangement plans to be set up?


How did you allocate money to the accounts, I'm thinking across the 6 accounts £50 towards each but I can't see it being enough and with the high debt its going to take forever to pay.

Also whilst waiting for the defaults am I right in thinking that there will added charges for no payments and with my debt being 0% will they start adding interest as I've broken the contract? So essentially I could end up owing a hell of alot more by the time the accounts default?!

Do ccjs happen with regards to credit cards or is that council tax etc? I'm up to date with all the priority debt and will ensure they are always.

I have a million questions but I just can't think straight at the min, I have had a good read but I just need that push to start. I've never missed a payment and its really scary thinking about it.


Thankyou in advance 

Hi

I went straight into my DMP without saving or waiting for defaults. No debt collectors have ever called and I only had a few letters, no phone calls. I signed up with Step Change. I had some charges added to my account in the early days but these were refunded to my account once the default was issued. Most of the accounts defaulted within one year, MBN* actually closed my account, cleared over £4000 of debt and removed the default. 

I know my route isn't advised but I don't think it has hindered my credit file too much 

DaisyDMP

Hello everyone!

After being in a very dark place with our financial situation and feeling like we have no options, I found stepchange and they recommended a DMP. Searching for more info on DMPs brought me here and I have spent the past week reading through the DMP threads and diaries. A very quick thank you to everyone that posts here- it really does make such a difference to know you’re not the only one in this position and there is hope!

We have a huge amount of debt (£70k between us) due to a number of reasons. With prices rising, a very high interest loan and 0% promotions ending, we have just ran out of other options and credit. I think something has hit me this week and we just can’t live like this so we need to do something.

I have tried to take in all the experiences and advice from this thread but have some questions and wondered if anyone can help/advise? For information, we own our house with a mortgage and stepchange’s budget said we would have £1,090 per month to pay to our creditors.

1.      The high interest loan we have is in OH’s name with a high street bank, currently around £28k (our first attempt at consolidating out debt- clearly didn’t work very well!). Is it best not to annoy them by missing payments prior to entering a DMP? I think I read that with big loans sometimes like the security of a CCJ? The creditor is in the same banking group that our mortgage is with if that makes a difference too. 

2.      We have considered self-managing, but would feel more confident to start out with stepchange to get us going. Particularly because we’re concerned over the loan and how quickly they may act. Am I right in saying that stepchange equally distributes your payment between all creditors? So if I pay £1,000, they will give our £29k debt and our £1k debt the same amount? This seems like it will be an issue and won't go down well with our loan creditor.

As with others, the thought of doorstep collectors, bailiffs and legal action are constantly on my mind despite lots of reassurance from these threads! It’s hard not to assume the worst!! 

sourcrates

rachy185 said:

I'm worried about stopping the payments to build up the emergency fund, I know it takes time for accounts to default and for the debt to be sold on. I'm worried about the in-between time, the letters and debt collectors turning up..

Will the debt collectors take belongings? Or will there enough time whilst waiting for defaults for arrangement plans to be set up?




Thankyou in advance 

I just had to come back to comment on this one, it's so far removed from reality, I just have to put your mind at rest about how this process works.

Debt collectors do not turn up at your door, with the exception of a very small number of companies.

Debt collectors are just ordinary folk. like you and I, they have no special powers, or rights of access, they cannot enter your home, unless invited, they do not take goods, the average debt collector is a 17-year-old, fresh out of school, working in a call centre.

You are confusing them with bailiffs, who operate under a court order.

All you will get are standard collection letters, and a few phone calls, calls can be barred, and letters can be binned, please, please try and glean as much information on this as you can, as there is a lot of misinformation out there.