I want to break free....

in Debt Free Diaries
165 replies 10.6K views
MovingForwardsMovingForwards Forumite
12.8K Posts
10,000 Posts Third Anniversary Name Dropper Photogenic
✭✭✭✭✭
I have finally decided to self manage my DMP as I'm hacked off with the DMC; they are the reason I have a CCJ.

My debts are from around 2013/4, smost of the defaults were prior to this, when life completely spiralled and my marriage went belly up. I have several defaults and the CCJ. My history is starting to clean up as the historical defaults, late payments and payday loans are dropping off each month. I'm also showing I'm responsible with credit by having a sub-prime credit card and paying it off in full.

I'm going to submit a PPI letter to my old bank as my old credit card and an old loan both had PPI added; I have no other companies with PPI. I'm aware the deadline is August 2019.

I'm planning on snowballing my debts to get rid of them, whilst also saving a little bit each month to build my savings up as they will take a bit of a knock back this month.

I've opened up a basic account so I can have standing orders set up for the debts out of that account. I can then build up a bit of money to pay off the debts/make offers as the only one on my history that needs to show as full settlement is the CCJ.

I have no interest in a DRO etc due to having savings, worked so hard to get this far and so desperate to get out of renting this year!

When I manage to secure a full-time permanent role, I'm PT temping at the moment, I will then be throwing even more money at my debts to get them cleared this year so I can start afresh again.

Lastly, i'm in Scotland so thankfully prescriptions and eye tests are free and saves me a fortune each month!

All my debts are no longer with the original companies and I've located the CCA template. The debts are in order of my snowball plan (no interest any more):
1. £168.96
2. £907.96 (CCJ)
3. £1887.60
4. £6,819.95

So, I know they are nowhere near the extent of others keeping a diary and have also come down over several years as I've been picking them off.

As soon as I get my new account number I will be transferring part of my savings over to give me an initial cushion / buffer and knocking the first debt out the game on a f&f, subject to their response to the CCA.

Carrying forward what is left of my savings towards debt two and adding some money each week, hopefully in a few months that will be gone.

Debt three and four will need a bit of work but hopefully I will be in a full-time role by then!

There won't be huge comments and updates from me on this, it will just be once a month so I can see the balances go down; I already have a spreadsheet and paper diary to keep track.
«13456717

Replies

  • beanieloubeanielou Forumite
    77.8K Posts
    Part of the Furniture 10,000 Posts Mortgage-free Glee! Name Dropper
    ✭✭✭✭✭✭
    Happy shiny new diary :)
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~**
    MFW. Finally mortgage free February 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
  • MovingForwardsMovingForwards Forumite
    12.8K Posts
    10,000 Posts Third Anniversary Name Dropper Photogenic
    ✭✭✭✭✭
    A couple of baby steps taken so far.

    Cashed in most of my S&S ISA and am waiting on a cheque for that.

    1. Waiting for details of my new account, which hopefully will be received by the time my cheque arrives.

    2. CCA letter template and PPI letter template have been emailed to my works address so I can deal with them tomorrow.

    3. Reworked my monthly budget to incorporate my debt payments and the 'extra' £45 I will have due to not paying a DMC.

    Debt balances stand at:

    1. £168.96
    2. £907.96 (CCJ)
    3. £1887.60
    4. £6,819.95
  • edited 13 May 2019 at 1:39PM
    MovingForwardsMovingForwards Forumite
    12.8K Posts
    10,000 Posts Third Anniversary Name Dropper Photogenic
    ✭✭✭✭✭
    edited 13 May 2019 at 1:39PM
    1. Holding letters prepared for 3x debts.
    2. CCA request letters prepared for 3x debts.
    3. Update letter, and confirming I am paying direct from now on, prepared to CCJ solicitors.
    4. Letter emailed to paid DMC severing services, asking for balances and all yearly financial statement letters to be sent to me. --- that felt so good!
    5. Prepared details of ex's debts to hand over to him the weekend! Yippee

    6. Need to find or buy envelopes.
    7. Need to buy stamps.
    8. Need to send letters today.

    9. Confirmation received that my new bank account has been opened; this is purely for my debts to get paid from.

    Edit - all letters posted!
  • MovingForwardsMovingForwards Forumite
    12.8K Posts
    10,000 Posts Third Anniversary Name Dropper Photogenic
    ✭✭✭✭✭
    I've my account details for my new account and have started transferring a little bit of money across.

    Received my cheque for cashing in most of my S&S ISA today and paid into my new account.

    Hopefully my new debit card will turn up this week so I can make the monthly payment towards my CCJ next week, if not I will ask the new bank to do a manual payment across. It will be good seeing the debts going down quicker.

    I've prepared my I&I for when the creditors do respond to me.

    Debating whether to save up and clear the CCJ off first, so it shows as being settled longer ready for when I go for a mortgage.

    I suppose a lot depends on what happens when/if I receive responses to my CCA requests and how much is outstanding on the CCJ; that has been a chain I've dragged for too long.

    Started completing the PPI complaint forms for my old bank and hopefully will get them finished and posted by Monday. I would be happy if they found in my favour and off-set the money against my debt, that's the outcome I am hoping for, rather than them sending me the money. But got to wait and see.

    Debt balances currently stand at:

    1. £168.96
    2. £907.96 (CCJ)
    3. £1887.60
    4. £6,819.95

    Money towards debts/monthly installments stands at:

    £512.14
  • MovingForwardsMovingForwards Forumite
    12.8K Posts
    10,000 Posts Third Anniversary Name Dropper Photogenic
    ✭✭✭✭✭
    Getting into completing my diary now, but once the initial flurry of activity is done it should settle down.

    I've had no response as yet from my creditors, but it's early days yet.

    I have now received my pin and bank card for my new account and can get my standing order set up to pay the CCJ solicitors each month.

    Moved some money from my regular account to my savings accounts and new account today. Interestingly enough I was met with a 9/10 chance of being accepted with a credit card from them; previously I was met with 'may' be accepted, this was around December I think, and was declined at that point.

    But today I thought I would give it a go as it's still a little while before I will be in a position to apply for a mortgage and so would be a healthy gap between whatever happens with the CC application today and a mortgage application months down the line.

    I nearly fell off the sofa when I was asked to complete an application form (was automatically declined last time) and got accepted! This was further confirmed by email within a few minutes and a few hours later I received confirmation my CC was on its way to me. The interest rate is a hell of a lot less than I was given many years ago.

    As with my sub-prime CC this will be used respectfully for petrol etc and paid off in full each month; will probably alternate between the two, demonstrating I can be trusted, show a vast improvement of credit history I've been building up for several months and moving forwards.

    Just goes to show the further the distance from CCJ's, defaults and PDL's you are, the lower the risk you are and the more opportunities that are available.

    My CCJ is now over 4 years old. My current wages are also around the same as I was on 20 years ago, only difference is I am part-time at the moment, and temping, so money is going in each week.

    I really feel like the past is just that, my history and I am no longer serving a 'prison sentence' for my financial blip. I am being welcomed back into society.

    Anyhow, as always I've rambled to myself :)

    I'm still doing my 'move all the pennies under a pound' tactics to build up available money for debts, as well as savings for my mortgage deposit and associated costs.

    Debt balances currently stand at:

    1. £168.96
    2. £907.96 (CCJ)
    3. £1887.60
    4. £6,819.95

    Money towards debts/monthly installments stands at:

    £515.02

    Hopefully, the next time I update this diary it will be to show the payment towards my CCJ and that going down again, but so will my money towards debts, but everything is starting to go in the right direction!
  • MovingForwardsMovingForwards Forumite
    12.8K Posts
    10,000 Posts Third Anniversary Name Dropper Photogenic
    ✭✭✭✭✭
    A quick update to say I've received a really nice letter from the CCJ solicitors, acknowledging my change of circumstances and asking for I&I as they are concerned the instalment amount is too high. Never expected that!

    Anyhow, I'm going to give the I&I to them, agree the payment is a little high but express my intention to maintain it as I don't want this dragged out .

    My plan with them is to keep paying the £70 pm instalment, whilst saving up and after about 3 months clear the outstanding balance in full. So by month 4, or at worst month 5, of my self managed DMP I will have settled the CCJ and get get it marked as satisfied :)

    No other creditors have responded yet.

    The former DMC have twice sent me information which isn't what I asked for. I've sent them yet another email. I guess they are being consistent, consistently !!!!!
  • MovingForwardsMovingForwards Forumite
    12.8K Posts
    10,000 Posts Third Anniversary Name Dropper Photogenic
    ✭✭✭✭✭
    Agreement now set up with the CCJ solicitors, after going through my I&I we have agreed my £70 instalment will carry on.

    Payment made to them for this month and a direct debit has been set up for the remainder of the balance.

    No response from the other three creditors as yet.
    Debt balances currently stand at:

    1. £168.96
    2. £837.96 (CCJ)
    3. £1887.60
    4. £6,819.95

    Money towards debts/monthly installments stands at:

    £445.02
  • MovingForwardsMovingForwards Forumite
    12.8K Posts
    10,000 Posts Third Anniversary Name Dropper Photogenic
    ✭✭✭✭✭
    Just spent 30 minutes on the phone to the old DMC, turns out they gave me incorrect information about the debts when I have asked them as they are now saying I only have three debts! I honestly thought one of the basics would be making sure the debt is tallied to the right person, even when the creditor sells/passes it on!

    I'm waiting for a full breakdown of all the payments since the plan was started so I can go over it with a fine tooth comb.

    Jiggled my outstanding debts to show what I actually owe, so it will look a little different from the start of my diary.

    Anyhow, I've had an acknowledgement from now numbered creditor 3, my biggest debt. My account is on hold whilst they deal with my CCA request. I will be putting the money into my 'debt pot account' whilst they look into it then I have the option of paying a lump-sum off to get me back on track if they produce the paperwork. Gut feeling, and not being that lucky, tells me they will!

    No response from newly numbered creditor 2 as yet. They are probably scratching their head over me doing a CCA request on a debt that isn't mine (it's my ex's as we were in a joint plan).

    Debt balances now currently stand at:

    1. £837.96 (CCJ)
    2. £1887.60
    3. £6,819.95

    Money towards debts/monthly installments stands at:

    £446.26
  • [Deleted User][Deleted User] Forumite
    0 Posts
    1,000 Posts Second Anniversary Name Dropper I've been Money Tipped!
    MoneySaving Newbie
    Well done for everything you have got on with so far! And it sounds like good riddance to the DMC!!

    Hopefully you get some good results from your CCA requests :D
  • MovingForwardsMovingForwards Forumite
    12.8K Posts
    10,000 Posts Third Anniversary Name Dropper Photogenic
    ✭✭✭✭✭
    Think my diary is a record of seeing my debts go down and also give people hope that things will improve.

    No acknowledgment from the other creditor as yet, will prepare a follow-up letter tomorrow ready to send out on day 12, I have the stamps and envelopes so incurring no additional expenses.

    I've still yet to receive anything of use from the stupid DMC. I'm following this up (1) because I don't trust them to have given me the correct information and (2) so I can prove my DMP has been going on and maintained when it comes to applying for a mortgage.

    My credit card arrived today from my regular bank and it was added to my account within a few days of applying for it. The credit limit is actually £200 more than when they accepted me, it's quite a useful credit limit and not one I've seen for many years. Yes, I am still in shock I was approved AND have it turn up without the application getting rejected after approval.

    Think I may need a different purse so my debit/credit cards are in one section and my loyalty cards in another; I don't feel comfortable leaving my cards at home.

    I've taken to doing surveys again, sadly it's not giving me PayPal money anymore, but I can exchange survey money for clothes shops and supermarket vouchers. Going to keep building them up, get a voucher and buy food shopping with it, I can then move the money I would have spent between my debt account and deposit accounts.

    My temp job has been confirmed as extended for another 3 months, it's unofficially confirmed as being October when it may be finishing.

    BONUS - the agency have just called me and advised my pay is going up as I have been there 12 weeks, getting an extra 56p an hour! Think it also means I'm auto enrolled into the pension now too so I will 'lose' half of the payrise into the pension. All that is left after the deductions will get split between my debt pot and savings pots.

    Still moving the pennies around and hoping to hit the next £k milestone with my savings by the end of the month.

    I'm focusing on getting rid of the CCJ ASAP as showing satisfied on my CRA will look, and feel, better than it being outstanding.

    My debt pot should start to increase at a reasonable rate from next month as I will be putting in the monthly installment payments even if the creditors haven't replied to me. It means I don't get used to having an extra £40 odd in my pocket, boosts my debt pot and gives me back up money to continue paying the debts or making F&FS when the balance is higher.

    I've printed the PPI forms off so I can complete them by hand the weekend and type it all up when I'm back in work and get the posted off on Monday.

    Debt balances currently stand at:

    1. £837.96 (CCJ)
    2. £1887.60
    3. £6,819.95

    Money towards debts/monthly installments stands at:

    £447.98
This discussion has been closed.
Latest News and Guides