DMP mutual support thread part 13 !!

2017spark

usedtobeblue wrote: »

Please can anyone help advise?

Hello - I had this when i was with SC (i'm now SM) and its a standard reply/ warning they have to give you. They were absolutely lovely when I did it, just asked me to make sure there was nothing else and they adjusted my payments accordingly. Nothing to worry about at all

2017spark

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

Just an update for all.... I'm sticking with my SM DMP, I've made updated offers to all my creditors, just waiting for replies.
I have also been listing and selling stuff on ebay/ marketplace with good success so far! about £60 in the last week or so. This is all going towards either upcoming birthdays or bills, I'm snowballing my debts from smallest upwards - the very smallest should be cleared in 4 months
I have also cancelled sky tv - saving £25 per month and reduced my pension contributions to the minimum meaning I'm £63 better off in my payslip.
So far so good and feeling positive
Hope you are all ok xx

2017spark

NeverendingDMP wrote: »

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

Exactly - thank you!
I'm making steps to increase my income and reduce spending - see update post, and feeling more positive. I think this is totally doable within 8 years xx

GibbsRule_No3

2017spark wrote: »

Just an update for all.... I'm sticking with my SM DMP, and reduced my pension contributions to the minimum meaning I'm £63 better off in my payslip.
So far so good and feeling positive
Hope you are all ok xx

Reducing the pension might not be such a good idea in the up coming years, you often pay less tax by paying into a pension and it is really good to have the money when you retire. It might seem good now but what happens when you reach 68 and don't want to work any more but have to because your pension won't sustain you? Really think about it before cutting back on it.

January2015

2017spark wrote: »

Just an update for all.... I'm sticking with my SM DMP, I've made updated offers to all my creditors, just waiting for replies.
I have also been listing and selling stuff on ebay/ marketplace with good success so far! about £60 in the last week or so. This is all going towards either upcoming birthdays or bills, I'm snowballing my debts from smallest upwards - the very smallest should be cleared in 4 months
I have also cancelled sky tv - saving £25 per month and reduced my pension contributions to the minimum meaning I'm £63 better off in my payslip.
So far so good and feeling positive
Hope you are all ok xx

GibbsRule_No3 wrote: »

Reducing the pension might not be such a good idea in the up coming years, you often pay less tax by paying into a pension and it is really good to have the money when you retire. It might seem good now but what happens when you reach 68 and don't want to work any more but have to because your pension won't sustain you? Really think about it before cutting back on it.

I definitely agree with GibbsRule - you are better off keeping the pension contribution. You pay less tax so it's worth more than £63 to you even now, but paying it in to you pension - when you eventually draw the pension - it will be worth so much more every month for years and years.

Seriously - consider reversing that decision on the pension.

Lifeisforliving19

Just wanted to say Hi and that I am not knew to this thread, but have had to sign up again with a new username. Was thinking of changing anyway, but then fate stepped in and today I had a problem with password, so I am now a new me.
Janary2015....you know who I am....I am your cyber twin.:rotfl:

jubilee14

Hi All, am a bit excited and surprised. So as i've been coming to the end of the DMP been trying to get things in place for next stage.... Re-mortgage if possible.

So I was going through bits and bobs and had been advised again to dispute the default date of two of the debts an O/D and an old cc as they took 18 mnths on cc and 2 years on O/d. So i've not heard back from o/d yet. But cc they have agreed to set the default date back to Nov 2012 saying while it was the right thing to do then, its not how they do things now. Also they repaid the interest that was applied up to default date, which meant that the remaining portion is now paid off ( and a bit more in the bank).

So thats it I am debt free! Cannot believe it as had a couple of months to go. I cant thank this particular forum enough from the early days of panic/shame to day to day queries during management to knowing theres folk out there that understand where you are.

Wishing you all the best for your DFD journeys!

Sylvester6

Does anyone here have experience of signing up with Virgin Media whilst on a DMP? They have just installed it in our area and we were thinking of changing but not sure we'll pass the credit check.
Thanks

2017spark

January2015 wrote: »

I definitely agree with GibbsRule - you are better off keeping the pension contribution. You pay less tax so it's worth more than £63 to you even now, but paying it in to you pension - when you eventually draw the pension - it will be worth so much more every month for years and years.

Seriously - consider reversing that decision on the pension.

Completely understand where you are coming from and I did think hard about this - there is is 3% from me and 3% company contributions going on - just not my additional 3% I chose on top. With my company we can up or reduce our payments each month so my plan is to reduce it for one year only - then back up. In this time it will clear 2 separate debts on its own. Thanks for the replies and advice though xx

2017spark

jubilee14 wrote: »

Hi All, am a bit excited and surprised. So as i've been coming to the end of the DMP been trying to get things in place for next stage.... Re-mortgage if possible.

So I was going through bits and bobs and had been advised again to dispute the default date of two of the debts an O/D and an old cc as they took 18 mnths on cc and 2 years on O/d. So i've not heard back from o/d yet. But cc they have agreed to set the default date back to Nov 2012 saying while it was the right thing to do then, its not how they do things now. Also they repaid the interest that was applied up to default date, which meant that the remaining portion is now paid off ( and a bit more in the bank).

So thats it I am debt free! Cannot believe it as had a couple of months to go. I cant thank this particular forum enough from the early days of panic/shame to day to day queries during management to knowing theres folk out there that understand where you are.

Wishing you all the best for your DFD journeys!

Congratulations!! Great News - and enjoy it x