DMP mutual support thread part 13 !!

[Deleted User]

adz2ka wrote: »

Hi all, new here so be nice

Currently in around 27k debt with 1 loan and 4 credit cards. Came to the realisation that something drastically needed to change last year and devised a self finance plan to begin repaying. 6 months down the line, I'm struggling so I'm deciding on the DMP route.

I've completed the tool on StepChange and they've budgeted £385 per month to be repaid.
Firstly, is it possible to ask them to drop it to £350? I think this will take a very tiny weight off in the grand scheme of things. If this is possible, how do I do it?

Secondly, many people mention an emergency fund. I'm thinking the best way would be to open a new bank account and switch my wage over to this and not touch it for 3 months and in those 3 months contact my existing creditors saying I have been in touch with StepChange and currently creating an action plan and say I am unable to afford any repayments at the time being (essentially hoping on a default). Does this seem a suitable approach? If so, are there are letter templates I can access that I can send my creditors?

Once I've saved a few months wages, is it that point I should start my DMP? So return the direct debit form they've sent me around April pay day?


Sorry for all the questions

:hello:hi and welcome aboard.


Don't worry about people on here being nice:). We've all been in the same debt boat, starting out on our DMP journeys with trepidation. No judgements here:beer:

You mentioned a new bank account and that is usually an essential first step prior to embarking on a DMP. You should have an account with a bank/financial institution with whom you have no debts and do all your debt repayments through that. If you start a DMP owing money to x bank whether on an overdraft, loan or credit card and still get your salary etc paid into that bank they have the right of 'offset' which means they can use the money towards debt repayment. There's been lots written on this in previous posts so if you have a chance please read back as much as you can. There's a lot to plough through:eek:, this is a very busy thread, but you'll find answers to a lot of your queries and, I hope, plenty of reassurance:T


Good luck:beer:

ChelbyH5

Hi all, thanks for the great advice so far. I have another couple of questions...
I have completed the details on SC and they are sending me a pack to set up the DMP. I have noticed that I’ve misses one of my creditors off the list, it’s a small one but nevertheless should be included. Can I just let them know or do I need to start the process again?

Also, I’m eager to get the DMP underway because the anxiety and pressure of it all is really getting to me. I’ve noticed thiu

ChelbyH5

Sorry, I was saying..
I’ve noticed others have taken time to get an emergency fund together first. I haven’t done that and I’m not sure how I would go about it. Is there anyone else that hasn’t done this? I think my feat is legal action or ramifications if I just stop paying without the DMP being on the table.

Last thing, is there anyone who has had a DMP recommended but it has failed? I’m starting to see this as my only hope and I’m worrying that it won’t come together and be the answer I’m hoping for.

Thanks again

sourcrates

tantaraza wrote: »

However, I’m not sure how to phrase the need for a payment break to the other creditors — is there a draft or template letter somewhere I could use?

If anyone could point me in the right direction, I would really appreciate it.

Thank you

Hi,


Standard National Debtline template letter can be found here :


https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

biker_rob

Hi all

My self-managed DMP begins next week after what seems like ages. For me, the process has gone quite smoothly. 4 out of 5 creditors have agreed to my offers and standing orders have been setup. The only fly in the ointment is Ba*clays (£5000 OD owed to them) have not responded at all and I have re-sent my offer letter three times now. They are also adding charges which is annoying. The only thing I can think of is that it's such a huge organisation that my letters are somewhere in their system. Hopefully, they'll get back to me soon but for the other 4 creditors it's been effortless and that's including a payday loan company.

If anybody new is reading this and considering going the DMP route then you couldn't be in a better place. The support and advice here has been invaluable and I can't thank the posters on this forum enough.

I've gone from not sleeping last year and feeling sick with worry about my debts to sleeping very well now and feeling totally in control of my debts. It's going to be a long journey for me and maybe I'll be the one advising people in the future because I've learnt so much going through this process.

sourcrates

ChelbyH5 wrote: »

Hi all, thanks for the great advice so far. I have another couple of questions...
I have completed the details on SC and they are sending me a pack to set up the DMP. I have noticed that I’ve misses one of my creditors off the list, it’s a small one but nevertheless should be included. Can I just let them know or do I need to start the process again?

Also, I’m eager to get the DMP underway because the anxiety and pressure of it all is really getting to me. I’ve noticed thiu

ChelbyH5 wrote: »

Sorry, I was saying..
I’ve noticed others have taken time to get an emergency fund together first. I haven’t done that and I’m not sure how I would go about it. Is there anyone else that hasn’t done this? I think my feat is legal action or ramifications if I just stop paying without the DMP being on the table.

Last thing, is there anyone who has had a DMP recommended but it has failed? I’m starting to see this as my only hope and I’m worrying that it won’t come together and be the answer I’m hoping for.

Thanks again

Hi,


A DMP is an informal arrangement, so you can add or remove creditors as you see fit.


Emergency funds have been covered in a post (above) as recent as yesterday, withholding payments to creditors is the normal source of funding, the debt collection process can take many months, even years, nothing happens at any great speed, so a few months saving up payments, is hardly noticed, it also helps if you write and inform your creditors of your intentions.


Remember, you are in charge, you call the shots, you do things at your own pace, not the creditors, you are at the start of this process, so its understandable that you are nervous of the consequences, and of the unknown, once you've settled down in a few weeks, you'll wonder what all the fuss was about.


Homeowners don`t have many options to repay unaffordable debt due to the assets they own, for everyone else there are insolvency options, depends on your individual circumstances.

tantaraza

sourcrates Thank you very much! I expect I’d need a bit longer than thirty days — what are the likely responses to be if I ask for two months instead?

sourcrates

tantaraza wrote: »

sourcrates Thank you very much! I expect I’d need a bit longer than thirty days — what are the likely responses to be if I ask for two months instead?

Just tell them 2 months, they either like it or lump it, don’t go looking for their approval, you decide how this plays out not them.

You are in control remember.

Dandytf

Is it true that once dmp is finished and eventually when defaults are removed (from the 6 years)
When does the sometimes mentioned additional 6 years be added and why.
Only asking as I know my last default will be off 2022 I think though the thought of that becoming 2028 for credit rating to recover is chilling indeed.

Willing2Learn

Hi Dandytf,

I'm a little confused by your query. There is no additional six years. The defaults are removed from your CRA records six years from the date of default.