DMP mutual support thread part 13 !!

ChelseaWoody27

Hi everyone,

I have a bit or an urgent issue that I'm hoping someone would be able to help me with.

My debt had got to an unmanagable point and through lots of advice I reached out to StepChange. I've applied (succesfully) for Breathing Space for all of my debts and had submitted my information for a DMP through them yesterday. After seeing all my Breathing Space requests coming in I spent a while digging in a spreadsheet and realised that with those two months space I could clear enough of my horrible debts (payday loans) and then manage the remaining credit card debt myself - without having any defaults or serious black marks on my record for 6 years.

Delighted I've called StepChange to withdraw my DMP for the time being but I've been told that withdrawing COULD mean that my BreathingSpace only lasts 30 days, not the 60 that I would need to see through this plan.

I was so excited, motivated and ready to put debt behind me in a way that didn't stop me getting a mortgage anytime soon but this has thrown a real spanner in the works. If I can get the 60 day freeze I can get on top of this. Is what StepChange have said accurate, is there anyway around this? I feel really deflated and could really use some advice.

sourcrates

ChelseaWoody27 said:

Hi everyone,

I have a bit or an urgent issue that I'm hoping someone would be able to help me with.

My debt had got to an unmanagable point and through lots of advice I reached out to StepChange. I've applied (succesfully) for Breathing Space for all of my debts and had submitted my information for a DMP through them yesterday. After seeing all my Breathing Space requests coming in I spent a while digging in a spreadsheet and realised that with those two months space I could clear enough of my horrible debts (payday loans) and then manage the remaining credit card debt myself - without having any defaults or serious black marks on my record for 6 years.

Delighted I've called StepChange to withdraw my DMP for the time being but I've been told that withdrawing COULD mean that my BreathingSpace only lasts 30 days, not the 60 that I would need to see through this plan.

I was so excited, motivated and ready to put debt behind me in a way that didn't stop me getting a mortgage anytime soon but this has thrown a real spanner in the works. If I can get the 60 day freeze I can get on top of this. Is what StepChange have said accurate, is there anyway around this? I feel really deflated and could really use some advice.

Take as long as you like, you will get a few late payment markers, but that`s about it.

All the "freeze" does, is stop collection activity, if you can manage a few calls and the odd letter, then don`t worry about it, just carry out your plan, you don`t need any freeze.

ChelseaWoody27

sourcrates said:

ChelseaWoody27 said:

Hi everyone,

I have a bit or an urgent issue that I'm hoping someone would be able to help me with.

My debt had got to an unmanagable point and through lots of advice I reached out to StepChange. I've applied (succesfully) for Breathing Space for all of my debts and had submitted my information for a DMP through them yesterday. After seeing all my Breathing Space requests coming in I spent a while digging in a spreadsheet and realised that with those two months space I could clear enough of my horrible debts (payday loans) and then manage the remaining credit card debt myself - without having any defaults or serious black marks on my record for 6 years.

Delighted I've called StepChange to withdraw my DMP for the time being but I've been told that withdrawing COULD mean that my BreathingSpace only lasts 30 days, not the 60 that I would need to see through this plan.

I was so excited, motivated and ready to put debt behind me in a way that didn't stop me getting a mortgage anytime soon but this has thrown a real spanner in the works. If I can get the 60 day freeze I can get on top of this. Is what StepChange have said accurate, is there anyway around this? I feel really deflated and could really use some advice.

Take as long as you like, you will get a few late payment markers, but that`s about it.

All the "freeze" does, is stop collection activity, if you can manage a few calls and the odd letter, then don`t worry about it, just carry out your plan, you don`t need any freeze.

So you would recommend taking the breathing space, hoping it lasts the full 60 but just riding out one !!!!!! credit card payment in Dec if it doesn't ?

sourcrates

ChelseaWoody27 said:

sourcrates said:

ChelseaWoody27 said:

Hi everyone,

I have a bit or an urgent issue that I'm hoping someone would be able to help me with.

My debt had got to an unmanagable point and through lots of advice I reached out to StepChange. I've applied (succesfully) for Breathing Space for all of my debts and had submitted my information for a DMP through them yesterday. After seeing all my Breathing Space requests coming in I spent a while digging in a spreadsheet and realised that with those two months space I could clear enough of my horrible debts (payday loans) and then manage the remaining credit card debt myself - without having any defaults or serious black marks on my record for 6 years.

Delighted I've called StepChange to withdraw my DMP for the time being but I've been told that withdrawing COULD mean that my BreathingSpace only lasts 30 days, not the 60 that I would need to see through this plan.

I was so excited, motivated and ready to put debt behind me in a way that didn't stop me getting a mortgage anytime soon but this has thrown a real spanner in the works. If I can get the 60 day freeze I can get on top of this. Is what StepChange have said accurate, is there anyway around this? I feel really deflated and could really use some advice.

Take as long as you like, you will get a few late payment markers, but that`s about it.

All the "freeze" does, is stop collection activity, if you can manage a few calls and the odd letter, then don`t worry about it, just carry out your plan, you don`t need any freeze.

So you would recommend taking the breathing space, hoping it lasts the full 60 but just riding out one !!!!!! credit card payment in Dec if it doesn't ?

Well, I fail to understand your concerns really, are you wanting to get away with a clear credit file here, is that the plan ?
Because you can take as long as you like to clear your debts at your own pace, breathing space is a bit of a misdemeanour really as all it amounts to is a cessation of collection activity, and a temporary freeze of interest, to many who are considering debt management 60 days is nothing, it takes a creditor that amount of time to respond to a letter.

To be honest, I wouldn't worry that much about missed or late payments, time will mend all that, if you can clear your debt withing a specific timeframe, then go for it, don`t worry about what the creditor`s will do.

natlie

Hi 

I have Payp*l on my DMP though ti was handed to a collection agent called M*orcroft the two have different amounts with around £600 difference on the balance for M*orcroft, I have messaged with no response and its very frustrating 

Also today PayP*l have added a £364 compensatory payment to my account any idea what this is for? 

Thanks
Nat 

sourcrates

natlie said:

Hi 

I have Payp*l on my DMP though ti was handed to a collection agent called M*orcroft the two have different amounts with around £600 difference on the balance for M*orcroft, I have messaged with no response and its very frustrating 

Also today PayP*l have added a £364 compensatory payment to my account any idea what this is for? 

Thanks
Nat 

Moorcroft may just be collecting on behalf of PayPal, have they written to you, do they mention "their client" at all ?

I would have though you yourself would be in a better position to comment on your own PayPal account with regard to compensation payments, if you have any queries just ring or message them, whilst your there, ask them about the balance discrepancy as well, because people on this forum can only speculate on PayPal`s operation the same as you.

Zeus75

Hi,

I am currently 2yrs into a DMP with Stepchange. One of my creditors, MBNA, has still not defaulted my account, which I have over £6K still to pay. This is due to me paying much more via my DMP than the minimum requirement needed from MBNA, which is just 1% of the balance.

During the last 2yrs MBNA have stopped any interest and charges but last week I received an email from them advising that they would start to charge interest & charges again. I queried this with Stepchange who agreed to send details of my DMP to them again in the hope that they would stop the interest.

Yesterday I received an email from SC advised that MBNA would be continuing to add interest and charges, despite the request to stop them. I understand that they have no obligation to stop interest charges etc. Email below:

MBNA Limited have contacted us about the payment we offered them through your plan.

They've told us that they will be continuing to add interest and charges to your account. If you want to know the interest rate and charges they're applying contact them directly.

We'll still carry on paying MBNA Limited and your plan will continue as normal.

MBNA Limited may pass your debt to a different company. To make sure that your plan stays on track you need to let us know if this happens so that we can send payments to the new company instead.

Any ideas of what I can do to stop the interest charges as this will increase my debt not reduce it. I asked SC if they would stop any payments to MBNA in attempt to default but they can't when still part of my DMP.

Any ideas/suggestion of what I can do ?

TIA
Zeus

sourcrates

Zeus75 said:

Hi,

I am currently 2yrs into a DMP with Stepchange. One of my creditors, MBNA, has still not defaulted my account, which I have over £6K still to pay. This is due to me paying much more via my DMP than the minimum requirement needed from MBNA, which is just 1% of the balance.

During the last 2yrs MBNA have stopped any interest and charges but last week I received an email from them advising that they would start to charge interest & charges again. I queried this with Stepchange who agreed to send details of my DMP to them again in the hope that they would stop the interest.

Yesterday I received an email from SC advised that MBNA would be continuing to add interest and charges, despite the request to stop them. I understand that they have no obligation to stop interest charges etc. Email below:

MBNA Limited have contacted us about the payment we offered them through your plan.

They've told us that they will be continuing to add interest and charges to your account. If you want to know the interest rate and charges they're applying contact them directly.

We'll still carry on paying MBNA Limited and your plan will continue as normal.

MBNA Limited may pass your debt to a different company. To make sure that your plan stays on track you need to let us know if this happens so that we can send payments to the new company instead.

Any ideas of what I can do to stop the interest charges as this will increase my debt not reduce it. I asked SC if they would stop any payments to MBNA in attempt to default but they can't when still part of my DMP.

Any ideas/suggestion of what I can do ?

TIA
Zeus

Ditch stepchange, go self managed, drop the payment to MBNA to £1 per month, defaults will soon follow.

Zeus75

Thanks Sourcrates. 

I’ll look at going self managed. Not keen on dealing with MBNA though,  but I’ll have a go. 

sourcrates

Zeus75 said:

Thanks Sourcrates. 

I’ll look at going self managed. Not keen on dealing with MBNA though,  but I’ll have a go. 

Well, the thing is, you don`t have to "deal" with them, you simply make the payment of £1 or whatever, and just let them get on with things, they will likely sell the debt on as well as defaulting you.

You then include the new owner in whatever repayment schedule you have.