DMP mutual support thread part 13 !!

Time_To_Change

Hi all just wanted to say happy New year to everyone. Also a quick update from me. After having trouble with tesco bank I decided to call them and find out what was happening. The lady was extremely helpful and set up my payment plan and said I will not be bothered anymore for the next 12 months as long as I make my arranged payments. All my accounts are now defaulted and interest has stopped. For anyone considering taking the step just do it. I have self managed my creditors and stayed strong with them and have to say the flexibility in self managing makes it worthwile and has been relatively pain free. All the best and happy New year to all.

Dandytf

1st part interest refund I didn't know had been added in error by hbos.
32 pounds has been added as interest incorrectly which will be refunded to reduce my 2012 hbos overdraft which is still one of my sc dmp debts.
Nice surprise as I struggle towards 2019 and early 2020's to finish this dmp.
Happy new year mser's keep happy with something to yourselves during dmp journey

Tpp2019

Hi

On new yrs Eve I rung Stepchange after reassessing my finances and after having a complete melt down.

I owe 46k they are suggesting a token payment of a £1 for 12mths as I should hopefully have some money from an accident in aug17 which how this all started approx 10k which sort some of it out, hopefully I will be able to do a dmp at the end of 12 mths.

To say I’m scared is an understatement and it looks like I’m going to have a Few crap years but looking at this thread it does look like there is light at the end of the tunnel.

sasha180

ploppy57 wrote: »

Well if it were me, I would pay them as little as possible, in the hope that eventually they would agree to a better discount. They don't need to know how much money you really have to pay them with. Some people like to pay more to get it paid quicker, but personally I would hold out for a better discount
We are currently not paying PRA anything as they have said they are unable to find the CAA paper work and so deem them to be UE in the mean time.

Thanks for your reply, I feel the same way, but when I put my offers in for full and final settlement I listed all my debt, what I was offering pro rata to each debt, and my IE sheet. So now when I contact them they no I only have the one outstanding debt and know I have £500 a month free after paying all priorities, so im worried they will say they want the lot till the debt is paid:-(

System

sasha180 wrote: »

Thanks for your reply, I feel the same way, but when I put my offers in for full and final settlement I listed all my debt, what I was offering pro rata to each debt, and my IE sheet. So now when I contact them they no I only have the one outstanding debt and know I have £500 a month free after paying all priorities, so im worried they will say they want the lot till the debt is paid:-(

But they don't know exactly what your day to day expenses are...you can tweak the I&E quite a bit. Also they don't ask for proof of how much you earn, you could have had a pay cut or a new job? We had to buy a new washing machine and fridge the other year. FIL lent us the money and then decided he didn't want it repaid. But if we had been having to repay it, I would have reduced my DMP payments to allow for this. All sorts of things happen that mean we have to reduce payments.

2017spark

Hi all and Happy New Year!
As many of us are, I'm trying to get my finances sorted - I'm currently doing a SM DMP - early on in the process but happy with it
BUT I owe 26k, I'm paying £113 per month meaning at the current rate I'm doing that for 20 years approx. On top of this I do have a guarantor loan with my sister (I know!) that has 5 years left to run and this is being paid at £395 per month and is why I cannot pay more to the other debts.
So after just under 5 years, I can throw another £400 per month at my debts which will obviously have a big impact
Am I mad trying to do it this way?? I've looked at the IVA etc but I don't think I can get round the loan payment on the guarantor loan and I cannot let this one drop

I have some wiggle room in my budget, and I'm trying to chuck any odd pounds at my debts to reduce them - along with any ebay sales etc. So 'hoping' it will reduce this way too

20 years of debt? I will be 62.... Never got it together to buy a house which I'd love to do. I've been reading about people who have literally chucked everything at their debts for a couple of years and cleared them.... any advice or thoughts?
xxx

sourcrates

2017spark wrote: »

Hi all and Happy New Year!
As many of us are, I'm trying to get my finances sorted - I'm currently doing a SM DMP - early on in the process but happy with it
BUT I owe 26k, I'm paying £113 per month meaning at the current rate I'm doing that for 20 years approx. On top of this I do have a guarantor loan with my sister (I know!) that has 5 years left to run and this is being paid at £395 per month and is why I cannot pay more to the other debts.
So after just under 5 years, I can throw another £400 per month at my debts which will obviously have a big impact
Am I mad trying to do it this way?? I've looked at the IVA etc but I don't think I can get round the loan payment on the guarantor loan and I cannot let this one drop

I have some wiggle room in my budget, and I'm trying to chuck any odd pounds at my debts to reduce them - along with any ebay sales etc. So 'hoping' it will reduce this way too

20 years of debt? I will be 62.... Never got it together to buy a house which I'd love to do. I've been reading about people who have literally chucked everything at their debts for a couple of years and cleared them.... any advice or thoughts?
xxx

Hi,

Check enforceability of all accounts, save a good emergency fund to make full and final offers, encourage creditors to sell debts on as debt buyers will accept much less in settlement.

Do what you can to increase income, try to lower outgoing.

Guarantor Loan can go in IVA, but your sister would become responsible for paying the shortfall.

Only way out is if you both went insolvent.

Suseka97

2017spark wrote: »

..........BUT I owe 26k, I'm paying £113 per month meaning at the current rate I'm doing that for 20 years approx. On top of this I do have a guarantor loan with my sister (I know!) that has 5 years left to run and this is being paid at £395 per month.........
Am I mad trying to do it this way?? I've looked at the IVA etc but I don't think I can get round the loan payment on the guarantor loan and I cannot let this one drop.
20 years of debt? I will be 62.... Never got it together to buy a house which I'd love to do. I've been reading about people who have literally chucked everything at their debts for a couple of years and cleared them.... any advice or thoughts? xxx

Have you spoken to anyone (debt advisor) about your options? I have to admit that had I 20+ years ahead back when I started I would definitely have considered the Bankruptcy/IVA route. It wouldn't have affected my job, but I do have equity in my house and that may have steered me away. As it was with two incomes we were able to pay a much higher sum to keep the years down (although in hindsight our budget was far too strict). You don't have any assets (house) by the sounds of it, so maybe an IVA is something to consider. As to the 'guarantor loan' - I've no experience, but would have thought that would be swept up in the IVA and shouldn't cause any issues for your sister. But hopefully someone else with more knowledge will be along to advise.

NeverendingDMP

In 5 years your debt linked to your sister will be gone and you will then owe 20-21k. At that point there is no reason why you cant save the 395 a month and make settlement offers to finish off the debts. I would imagine by then your debts will have been defaulted, sold on etc and you will be able to strike a deal for a percentage of the remaining balance and so be able to knock the debt down quicker.
Your 20 year plan could be a 5-8 year one that way.
Have a think, get some advice and even though its early days its worth reading up about cca requests and full and final settlement offers in the forum threads to get some ideas.
Also its up to you but saving any spare cash for an emergency fund may be more beneficial than throwing every spare penny at the debts.
Good luck

motivated

Hi all

Quick question. Our old banger car has died and we need to buy a reliable used car. Nothing expensive DH needs it and cannot work without it. We are SM our DMP and reduced our payments for a few months a while back to pay for repairs on it then. It's now costing more than it's worth.

Our creditors were fine then and we soon put our payments back up. However I'm thinking we need to reduce again for a few months. Are our creditors likely to play ball again?

Good start to the new year this is
M