DMP mutual support thread part 13 !!

bootneckshuffle

Hi everyone,

Been lurking around on these forums and posts and trying to get an idea of who is in similar position to myself.

Little bit about my situation:

50k worth of CC debts, across 6 cards
Shared ownership home with my wife and 2 kids (75% rent 25% mortgage)
Decent car on PCP with 40 months left to pay on that

I've looked at IVA inside and out but worried about the impact where the home is concerned and also the car. Looked at DMP through step change, would take 9 years to pay! Not really sure what else to do? Haven't been defaulted yet but missed 3-4 payments so surely thats around the corner? 

What would be stopping me from just keep on not paying, waiting for the CC companies to default me and they sell the debt on, then offering the DCA much lower lump sum? Does this happen through a DMP anyway if I went down that route with step change for example?

Any help/advice is greatly appreciated.

Thanks.

Sparkle2501

Hi
Ive set up a self run DMP and so far 4 accounts have defaulted 2 of which have been sold. My question is do I ask for CCA’s before I start repayments with them?
thanks 

bootneckshuffle

When is the best time to ask for CCA proof? Do you wait until defaulted?

sourcrates

bootneckshuffle said:

When is the best time to ask for CCA proof? Do you wait until defaulted?

Sparkle2501 said:

Hi
Ive set up a self run DMP and so far 4 accounts have defaulted 2 of which have been sold. My question is do I ask for CCA’s before I start repayments with them?
thanks 

@bootneckshuffle

I answered on your other post, CCA requests work best on old defaulted debts that have been sold at least once.

@Sparkle2501

Same advice applies to you.

Sparkle2501

Thank you 

peachy15

Hi, I am new to the forum and have been reading some posts and advice from ambassadors. 

I have not told anyone about my debt due to the embarrassment and shame I feel. Sadly not even my husband as he will be so disappointed. I know I developed an issue with emotional spending over the years and it spiralled. I finally felt ready and strong enough to face it all (£40+k 😳😓) head on. 

My only reasonable option seemed to be a DMP. I went direct to stepchange for this and I feel some relief now, 5 months into the process.  

If only I had found this forum sooner!! I didn’t have an emergency fund set up and wish I had prior to starting the process. 

I don’t want my husband to be affected by my debt, this is my debt that I have sought help to deal with (including counselling). Will he be impacted in terms of credit score? 

At what stage in the future would we be able to apply for a new mortgage? We currently have a low fixed rate for 7 years. If my husband were to apply for a mortgage alone would this be an option? 

I am so grateful this space to share. 

Thanks in advance for the advice. 

sourcrates

peachy15 said:

Hi, I am new to the forum and have been reading some posts and advice from ambassadors. 

I have not told anyone about my debt due to the embarrassment and shame I feel. Sadly not even my husband as he will be so disappointed. I know I developed an issue with emotional spending over the years and it spiralled. I finally felt ready and strong enough to face it all (£40+k 😳😓) head on. 

My only reasonable option seemed to be a DMP. I went direct to stepchange for this and I feel some relief now, 5 months into the process.  

If only I had found this forum sooner!! I didn’t have an emergency fund set up and wish I had prior to starting the process. 

I don’t want my husband to be affected by my debt, this is my debt that I have sought help to deal with (including counselling). Will he be impacted in terms of credit score? 

At what stage in the future would we be able to apply for a new mortgage? We currently have a low fixed rate for 7 years. If my husband were to apply for a mortgage alone would this be an option? 

I am so grateful this space to share. 

Thanks in advance for the advice. 

Obviously you share a financial product in your mortgage, now what effect that will have on his ability to obtain credit I don`t know, it will also depend on when your accounts default, as defaults stay on file for 6 years regardless of what you do.

Once the defaults associated with your DMP have dropped off your file, your credit worthiness will be in a much better place, I guess it will all revolve around timing.

MrsLD

Has this happened to anyone else?

I started my DMP last May. All creditors agreed to the offer and froze interest and charges. Only one has defaulted me. Two of the remaining three have this week written to me to say that I am on track with payments again so they are going to start charging me interest again... this remains totally unaffordable of course. I have managed to make myself call one of them today who said that for some reason my card remains active. He can see the DMP agreement  and just advises that I ask my DMP provider to contact them. I will do this on Monday but I am so confused. 

I am guessing that this means these two providers will now default me? Annoying that they did not do it 9 months ago.  And I just wondered, has this been the same experience for anyone else- the sudden unexpected decision to act as if the dmp isn't there and charge interest again?

sourcrates

@MrsLD

Yes, it can be a problem when you rush into a DMP without having your accounts go to default first.

I`m guessing your DMP payment is the same or more than the contracted payment, which will mean you are still meeting the terms of your agreement, so they won`t default you, instead they will want to retain your custom.

Are you using stepchange? this is a common problem with them.

If you want interest to stop, your payment must be well below the minimum required contractual payment, in fact its best to stop paying altogether, allow the debts to default and be sold on, then start a DMP.

You have jumped the gun somewhat, its a mistake many people make thinking they are doing the right thing unfortunately they are not.

MrsLD

My dmp payment is way below the contractual amount which is why I am so confused! For the provider I spoke to today I 'should' pay £397 a month; via the DMP they get £199. I'm with payplanplus. I've sent them a message but will just have to call them Monday and ask them to go back to creditors and start again.

If I had read this thread before getting debt advice I'd have done what you all say and let things collapse entirely before starting a dmp... but I thought I could bloody rely on the advice I got from professional, government promoted advisors