Advice before starting DMP

Grumpelstiltskin

You will be able to do this, just don't panic what ever your creditors say.

Keep posting with whatever problems you have.

Sam2018

Grumpelstiltskin said:

You will be able to do this, just don't panic what ever your creditors say.

Keep posting with whatever problems you have.

Thank you - am definitely feeling a lot less panic stricken now I’ve made the decision to do it. 

Sam2018

Just been going through bank statements today - this is a list of the last payments to non secured debts I thought there was 14 accounts but there’s 17 (was counting Tesco and MBNA once but have 2 cards for each, plus hadn’t counted Natwest in either) 

*NATWEST CC -£100.00 

TESCO 1 BANK -£79.03

CREATION.CO.UK - asda card -£73.68

CREATION.CO.UK - currys -£82.84

1 MBNA LIMITED -£283.91 

HALIFAX -£100.00

PAYPAL CREDIT -£100.00

*JD WILLIAMS (owed £365.81) -£38.80

FLUID CREDIT CARD -£177.53

SHOP DIRECT GROUP - very -£58.01

*HME RTL GRP  - Argos card (Owed £223.58) -£28.42

DEBENHAMS CARD -£239.41

AQUA CREDIT CARD -£53.79

*FREEMANS  (owed £162.36 -£13.10

2 MBNA LIMITED -£75.16

TESCO 2 BANK -£48.41

*NEXT account (owed £626.20) -£40.00

Total monthly payments = £1,592.09

that’s just showing monthly payments which are on minimum payments, so can absolutely see why I’ve been struggling as got mortgage, utilities, insurances, food etc on top.  

Question - I mentioned before about carrying on paying my Natwest credit card because my mortgage is also with Natwest and I’d rather not default Natwest. I believe this is possible if I self manage DMP rather than using one of the debt charities. Aware they will probably restrict card once they see other defaults on credit report and won’t use it anyway, will cut it up. It’s a low rate interest card, something like 6.9%. 

But I’m also thinking about not defaulting on JDWilliams, Argos Card, Freemans and Next account. Outstanding amounts are a few hundred each so I can get these paid off whilst I wait for the defaults for everything to come through - or is this not a good idea ?

I’m thinking that 12 defaulted accounts would be easier to manage, excluding Natwest card aswell, than 17 

Popping to town shortly to get new SIM card, got old phone charging up and then will sit this evening logging into all the accounts, get balances, change my phone number and then cancel each direct debit. 

Once direct debits cancelled, I’ll be £1600 almost better off. Less around £500-£600 a month I’ve been using credit cards to manage each month, so say £1000. £500 a month for a few months to clear JDWilliams, Argos, Freemans and Next and £500 to emergency fund pot. 

Then eventually £400 for debt repayments, £500 savings, £100 plus extra towards Natwest card - rough figures atm

Grumpelstiltskin

You really do need to get a current account away from Nat West, don't think you need to be loyal to them, they wouldn't be loyal to you.

Sam2018

Grumpelstiltskin said:

You really do need to get a current account away from Nat West, don't think you need to be loyal to them, they wouldn't be loyal to you.

I’ve applied for a Monzo account this afternoon, for my emergency pots   I’ve also got an old HSBC current account I can use aswell if needs be, as don’t think any of my debts are attached to them. 

My partner has been very understanding about it all, as my DMP will affect his credit record aswell, but he is insistent on keeping everything with Natwest as it is and im trying not to overly worry him, well anymore than I already have anyway. 

RAS

One of the most important lessons is that whatever the regrets, we can only act on the situation now.

I'd be wealthy if I had a quid for all the wrong decisions l've made. We can only make them based on what we know and understand at the time and most of the time we're working on partial information. It's a miracle anything goes right.

stu12345_2

I recently asked a creditor to default me on my aqua card debt, they said normally after 3 to 6 months of being in arrears.. they said they will do a manual default to speed up repair to my credit report. the only thing they asked before they would do it was I up to date with my priority debts. yes I am  I said.

and I  will not produce any financial statement to them.

Sam2018

RAS said:

One of the most important lessons is that whatever the regrets, we can only act on the situation now.

I'd be wealthy if I had a quid for all the wrong decisions l've made. We can only make them based on what we know and understand at the time and most of the time we're working on partial information. It's a miracle anything goes right.

A good way to look at it!  I’m getting there, slowly 🙂

stu12345_2 said:

I recently asked a creditor to default me on my aqua card debt, they said normally after 3 to 6 months of being in arrears.. they said they will do a manual default to speed up repair to my credit report. the only thing they asked before they would do it was I up to date with my priority debts. yes I am  I said.

and I  will not produce any financial statement to them.

That’s good to hear - one of mine is Aqua too!

Sam2018

Well I’ve logged in all the accounts and changed my phone number to a PAYG,  turned that phone off and chucked it in the cupboard  they can ring as often as they like! Quite happy to deal with emails and letters. 

And now I’ve cancelled all the direct debits apart from NatWest, JDWilliams,  Argos, Freemans and Next, until I decide what to do with them. 

Balances outstanding:- 
Tesco card 1 £2088 
Tesco card 2 £1676
Creation credit card £2036
Creation curry’s £686
Mbna card 1 £8091
Mbna card 2 £3596
Fluid card £2489
Very £1176
Debenhams card £5647
Aqua card £1409
Halifax card £2942
Paypal credit £1987
Total £33823

I will do a proper SOA when I can, just not going to get time before Christmas. Task for the New year. 

New Year, New me - not a stressed out one racing to the cash points every month seeing what cash I can get out from credit cards, to pay the credit card direct debits (can’t believe I’ve been so stupid for so long!) 

Monzo app still whirling round saying they are checking my information but hopefully will hear from them soon. Will delete all old card numbers from everything online as I go along, debit card only from now on! 

Thanks again to everyone who’s commented, you’ve all really helped me keep my nerve and just get on with it. Very grateful ☺️ 

fatbelly

I notice you have three (incl Aqua/Fluid) companies who gave you a second card. That opens up an obvious opportunity for complaint

https://debtcamel.co.uk/affordability-complaints-2-cards-lender/