Adjusting DMP Payments

saving_88

Hi, Currently on a DMP which i find is good. Most creditors have defaulted. Just Sainsburys Credit card not playing ball. but they have froze interest. 
Now Currently i pay 160 per month, But a few cost have increased. I may have to amend budget to pay 100 or so a month. Now i have no issues doing this. But i am wary, what if the creditors refuse it, Cancel the plan and start taking legal proceedings like court etc. I want to save a bit too. ATM i get to the end of the month with 20 quid in the account after more cost. 

Any advise, should i amend the budget. Maybe it will force Sainsburys to default it. My drafty loan is on there too and they just about agreed, so unsure if amending will ruin things. 

ManyWays

All the creditors should be fine if you show them an amended budget. I would highlight in the cover letter the major changes. It doesn't make sense to go to court just because you have less money! But it's a hassle contacting them. (This is why it's easier to go through a DMP firm like StepChange.)
Drafty - have you looked at an affordability complaint against them if you used them for more than a few months? 

saving_88

ManyWays said:

All the creditors should be fine if you show them an amended budget. I would highlight in the cover letter the major changes. It doesn't make sense to go to court just because you have less money! But it's a hassle contacting them. (This is why it's easier to go through a DMP firm like StepChange.)
Drafty - have you looked at an affordability complaint against them if you used them for more than a few months? 

I did see the affordability claim, But i didn't want to proceed in case they cancel the plan, then i am left with paying extra to them. I guess i get scared of the terms etc. Thanks for the advise i am amending my budget now. I am with stepchange, so will do via that and see. 

stu12345_2

legal action can be never or years away, you are panicking when not needed.

creditors only consider a ccj if you have blatantly ignored them for months or years or not even gave them a penny for months or years.

you can run your own dmp easily.
you set up standing orders in your bank with your debt  reference number, set the amount you want, easy as that.

you can tell the creditors that's what they are getting not a penny more, you don't need to fill in any of their income expenditure forms. even if they demand. cos they have to accept the money you give them in your monthly standing order, they can't sent it back!!! 

you are the boss, you are in control and if you have more expenditure one month or permanently , you adjust the standing order in your bank. and if you fancy write a short email to creditors explaining this

never ever phone a creditor.never ever.

and only respond to letters if they are letter before action., that's the only time 

the rest you can glance over and file in a drawer or bin, you choose.



do not agree to a direct debit or recurring debit card payment under any circumstances.it puts them in control.

Brie

stu12345_2 said:

legal action can be never or years away, you are panicking when not needed.

creditors only consider a ccj if you have blatantly ignored them for months or years or not even gave them a penny for months or years.

you can run your own dmp easily.
you set up standing orders in your bank with your debt  reference number, set the amount you want, easy as that.

you can tell the creditors that's what they are getting not a penny more, you don't need to fill in any of their income expenditure forms. even if they demand. cos they have to accept the money you give them in your monthly standing order, they can't sent it back!!! 

you are the boss, you are in control and if you have more expenditure one month or permanently , you adjust the standing order in your bank. and if you fancy write a short email to creditors explaining this

never ever phone a creditor.never ever.

and only respond to letters if they are letter before action., that's the only time 

the rest you can glance over and file in a drawer or bin, you choose.



do not agree to a direct debit or recurring debit card payment under any circumstances.it puts them in control.

I agree with most of what Stu says and the others too.  

StepChange will likely suggest that once you have your revised budget done that shows you can afford £100 (or whatever) that the amounts to the various creditors be split on a pro rata basis.  So if you owe someone £1k and another £100 the first one gets 10x the amount the second one does.  And include any slow coaches like Sainsburys as they don't actually need to agree the amounts - they can't get blood from a stone so they might as well accept what they can get.  

As for letters....some creditors will want an update annually, some every 2 or 3 years.  You should respond to those rather than simply bin just so they can ignore you for another year.  Very simple letter "Dear Creditor, nothing has changed, please see attached budget. xxx S88"

And none of this should stop you for putting in an affordability claim.  Worst that can happen is they'll say you don't have a case.  

gwynlas

You do not need to let creditors know your budget particularly if you are going through Stepchange. They will assess affordability and are quite generous on day to day living costs and apply funds pro rata to creditors. If self managing your DMP just tell them you have worked out your affordability and this is it. Annual reviews are handled by Stepchange if you are using them and creditors will hold off on any further action if they are made aware of review date

sourcrates

This is the IVA/DRO board, anything DMP related, please discuss on DFW.