DMP mutual support thread part 13 !!

Pennypanj

Norfolk_Jim said:

Bowmonster said:

Hi everyone,
New here and need some advice/moral support. I have about £35k debt, my financial situation job wise etc plus cost of living has become a complete mess and I can't get anywhere near affording payments any more. REALLY don't want to enter into an IVA - they seem like horror stories every time I read about them. Looking to set up a DMP. But it would be extremely minimal payments at the mo and looking like forever to pay off. What do others pay per month and how long are your DMPs currently looking at running? I think I could only afford a max of about £100 per month at the mo. So depressing.

I have a similar amount of debt as you and I pay £150pm which will need to come down at my next review. Debt Free date is 2040. I pay no attention to that as Im unlikely to live that long, Im nearly 60 and not in best of health. Anyway, I dont see why you could not have a DMP. Try Stepchange or look at making your own plan. Do you have anything creditors could take? A house for instance? If you don t there really isnt much they can do besides accept whatever you have left to give them. Even if you do, and I do, that doesnt really stop you having a DMP. I'm assuming your debts are unsecured debts.

Just to add to this..I am 50 and have 49k outstanding on a DMP with Stepchange. I have 9 years of payments left. My family know nothing about it, but what I have done is taken out a life insurance policy (on top of my existing/old one) to cover the outstanding debt, so that if anything should happen to me in the next 9 or so years, they will have the money to clear my debts. Yes, they might be annoyed that I didn't tell them- but at least they won't be footing the bill. It makes me feel a bit better about it. 

Norfolk_Jim

Pennypanj said:

Norfolk_Jim said:

Bowmonster said:

Hi everyone,
New here and need some advice/moral support. I have about £35k debt, my financial situation job wise etc plus cost of living has become a complete mess and I can't get anywhere near affording payments any more. REALLY don't want to enter into an IVA - they seem like horror stories every time I read about them. Looking to set up a DMP. But it would be extremely minimal payments at the mo and looking like forever to pay off. What do others pay per month and how long are your DMPs currently looking at running? I think I could only afford a max of about £100 per month at the mo. So depressing.

I have a similar amount of debt as you and I pay £150pm which will need to come down at my next review. Debt Free date is 2040. I pay no attention to that as Im unlikely to live that long, Im nearly 60 and not in best of health. Anyway, I dont see why you could not have a DMP. Try Stepchange or look at making your own plan. Do you have anything creditors could take? A house for instance? If you don t there really isnt much they can do besides accept whatever you have left to give them. Even if you do, and I do, that doesnt really stop you having a DMP. I'm assuming your debts are unsecured debts.

Just to add to this..I am 50 and have 49k outstanding on a DMP with Stepchange. I have 9 years of payments left. My family know nothing about it, but what I have done is taken out a life insurance policy (on top of my existing/old one) to cover the outstanding debt, so that if anything should happen to me in the next 9 or so years, they will have the money to clear my debts. Yes, they might be annoyed that I didn't tell them- but at least they won't be footing the bill. It makes me feel a bit better about it. 

That seems very kind of you. Do you have a lot of assets that you will leave should you pass away? Your unpaid debts wont fall on your relatives, they will die with you unless you have an estate to leave behind that they could claim against? Is it a moral choice you are making? Remember, it's just business to these companies and their business model will have taken bad debt into consideration. Your debts are not joint debts are they? Inheriting your parters / parents debts is distant history now. But if it makes you feel better then good for you. I think its easier if the debt has been sold on. I dont feel any responsibility towards these debt buying companies - they chose to buy it and its all just part of their business model. Good luck

Charliet2022

Hello, newbie here. I have read lots of comments and they are so helpful

 I have just made an application to Step change, this is currently awaiting approval. I have been approved for breathing space in the meantime. I have opened a bank account not linked to my debts and cancelled all DD, do I now just wait to miss payments. The ‘default payments’ is confusing me a little, I haven’t actually missed any payments yet.  I am also unsure whether I contact the banks myself regarding breathing space etc

thank you 

sourcrates

Charliet2022 said:

Hello, newbie here. I have read lots of comments and they are so helpful

 I have just made an application to Step change, this is currently awaiting approval. I have been approved for breathing space in the meantime. I have opened a bank account not linked to my debts and cancelled all DD, do I now just wait to miss payments. The ‘default payments’ is confusing me a little, I haven’t actually missed any payments yet.  I am also unsure whether I contact the banks myself regarding breathing space etc

thank you 

Hi, I have replied in your other thread, but will do so here as well.
Our usual advice to those who are looking at entering debt management is to stop all payments to there non essential debts until these accounts get defaulted, that would benefit you in two ways, first all interest and charges stop once an account defaults, and second, you get a clear 6 year window until your credit file repairs itself, that was our standard advice.

However, due mainly to the cost of living crisis, and FCA advice, creditors are now more reluctant to default an account, than they used to be, instead they are urging the debtor to contact them to set up an affordable payment plan etc etc.

Whilst not a bad thing, it does have drawbacks in that your credit file will usually be marked with an AP marker, (arrangement to pay) these stay on file for 6 years after your last payment, so can be twice as long as a default would show for, also there is no guarantee interest will be stopped, or account charges, so it leaves you in a bit of a catch 22 situation really.

Best advice these days is to do what you are comfortable with and to use the complaints procedure if your not happy with any aspect of your situation.

Charliet2022

sourcrates said:

Charliet2022 said:

Hello, newbie here. I have read lots of comments and they are so helpful

 I have just made an application to Step change, this is currently awaiting approval. I have been approved for breathing space in the meantime. I have opened a bank account not linked to my debts and cancelled all DD, do I now just wait to miss payments. The ‘default payments’ is confusing me a little, I haven’t actually missed any payments yet.  I am also unsure whether I contact the banks myself regarding breathing space etc

thank you 

Hi, I have replied in your other thread, but will do so here as well.
Our usual advice to those who are looking at entering debt management is to stop all payments to there non essential debts until these accounts get defaulted, that would benefit you in two ways, first all interest and charges stop once an account defaults, and second, you get a clear 6 year window until your credit file repairs itself, that was our standard advice.

However, due mainly to the cost of living crisis, and FCA advice, creditors are now more reluctant to default an account, than they used to be, instead they are urging the debtor to contact them to set up an affordable payment plan etc etc.

Whilst not a bad thing, it does have drawbacks in that your credit file will usually be marked with an AP marker, (arrangement to pay) these stay on file for 6 years after your last payment, so can be twice as long as a default would show for, also there is no guarantee interest will be stopped, or account charges, so it leaves you in a bit of a catch 22 situation really.

Best advice these days is to do what you are comfortable with and to use the complaints procedure if you’re not happy with any aspect of your situation.

Thank you so much for you reply. So it would roughly be 6 years to repay… so would that mean an additional 6 years. Really unsure what to do, I was thinking about pausing the DMP and just sit and wait for the defaults, but guess there is a risk that these will take forever.

Penguin_

Quick question, if your credit report says the below



Does that mean that there aren't any others? Reason I am asking is that I know I have a couple of others though they may have dropped off.

sourcrates

Penguin_ said:

Quick question, if your credit report says the below



Does that mean that there aren't any others? Reason I am asking is that I know I have a couple of others though they may have dropped off.

Mainly just generic messages they produce to sell you their credit improvement products, not worth looking at in most cases.

Any defaulted accounts will clearly show on your credit report.

If they have dropped off, then they no longer affect your file, although the related debt may still be outstanding.

Penguin_

Thanks Sourcrates.

Fellalis89

Hi, I've received a letter today advising that my Virgin debt has been moved to Moorcroft but the account is still showing on my credit report as Virgin and the account has not defaulted. 
One letter was from Arrow, who were originally handling my account but I have never received any contact other than a letter today, state that Moorcroft will be 'managing my account'. And the letter from Moorcroft states the 'details have been passed on to act as a collection agent and will now be dealing with my account'.
I was wondering if you could advise how I handle this please? TIA x

sourcrates

Fellalis89 said:

Hi, I've received a letter today advising that my Virgin debt has been moved to Moorcroft but the account is still showing on my credit report as Virgin and the account has not defaulted. 
One letter was from Arrow, who were originally handling my account but I have never received any contact other than a letter today, state that Moorcroft will be 'managing my account'. And the letter from Moorcroft states the 'details have been passed on to act as a collection agent and will now be dealing with my account'.
I was wondering if you could advise how I handle this please? TIA x

It`s a difficult one, debts are occasionally farmed out to collection agents to manage on a creditors behalf, but Arrow Global are a debt buyer, what is their involvement here, are you certain the debt hasn`t been sold ?