DMP Mutual Support Thread (Part Three)

bowz25

hi Mac
I have been on dmp for nearly a year and lloyds did the same with us. The first thing is to cancel the account down to a current account with no charge. You can do this by going into local branch it takes seconds. Our overdrafts are included in dmp as well. LLoyds have only just stopped charging interest after about 10 months on hubbys overdraft with them.

Our charges were way above the £7.00 we paid them a month as well.

The letters you have received you can just file them the cccs do not need any default letters the enforcement letter sound like standard letter they send if it is just saying contact us and it is one sentence letter. (scary i know but it is a standard letter they send, i could decorate a room with the ones they sent us.
Keep going you have taken positive steps to pay your debt. People on these boards are on different stages of paying off debt and you are just as equal,its just that you are at the start of it and soon you will know more as well.
take care
good luck

littlun

I'm thinking about maybe selling our house and renting, but I'm not sure how it would work getting utilities set up with having a DMP.

Has anyone had any problems with that?

Thanks for all the fantastic advice and support on these threads.

WhoopieDoodle

littlun, are you 100% sure you want to sell up?

I ask because when we initially realised the amount of debt we were in, we decided to sell up and rent. However, after a couple of weeks we realised that we would do everything in our power to hold onto our home as we will not be in debt forever (despite it feeling that way).

Are you sure you want to go down this route?

andytwonames

with the housing market the way it is, I doubt it's a good time to sell unless you absolutely have to.

All the expense... the upheaval, the uncertainty...

I shudder at the thought of moving ever again!

rayday2

Macca - we had the same with Lloyds in the end I wrote a huge letter of complaint, detailing the number of times I had written to them informing them of our problems, the payments we had sent and the charges they had pilled on. I also pointed out to them that they were going against charities who they endorse.

In the end I got my charges refunded, accepted payment for a year, payment book (I am a self managed DMP) and a case of wine.

Make sure if you do write that you put FORMAL COMPLAINT at the top. I can if you like later on try to see through my paperwork who I wrote to re an overdraft if it helps. But a bit snowed under till much later this evening with coursework.

cloudnine_2

I agree, I'd be careful of selling up during the current economic climate. Its a buyers, not a sellers market. Historical trends show that house prices will rise again so, theres a chance of creating some equity, something which will never happen when renting. The other thing to remember is that if you receive some capital from a house sale, then CCCS, Payplan or whomever, would expect you to contribute a large part of that towards settling your debts. Unless you seriously face home re possession, I'd protect that capital like a terrier, doesn't matter if its only a few hundred! You might say though that you'll never be able to pay your mortgage off given your current debt ridden situation. But as someone just wrote, how your finances are right now, doesn't mean thats the way they'll be in years to come. Don't 'cut your nose to spite your face.' It does depend on each individual case, but once you give up your mortgage, getting another is going to take years....if ever for some people

Maccapacca

Thanks so much for the quick responses!
bowz25 we have tried to downgrade the account already, today we were told that we must re-apply for a current account and that we may not be accepted! Should we just turn up at the branch and give it a go? Makes me laugh as when we were offered the platinum account originally it was a simple upgrade over the phone! Why they can't do it in reverse is just stupid! I am reluctant to have to reapply for an account that I won't use, won't it show on your credit report? we both have basic bank accounts with Nationwide and HSBC but would like to hope that we can apply for an account with a debit card at some point, would make life alot easier. Am worried about this anyway. Nationwide have said I can try and get a debit card after 6 months but have read that some people here have had trouble doing this. That account is pretty healthy all things considered! but if they say no I would like to try another account that has a basic account with a debit card maybe in a few months time. any advice on this matter too would be great.
Thanks guys!
Mac x

rayday2

Our Lloyds bank account does not appear on any of the credit reports in either mine or my husbands name (it was a joint account but now it has become a debt it has become just in my husbands name).

I applied for an Alliance and Lecicester account a year into our DMP and got debit cards - not sure if these are related to any of your creditors.

littlun

Thanks for the quick responses!

No, I'm not sure about it, it's just something we're thinking about.

We've got a fair amount of equity in the house which we don't want to lose - we'd rather use it to pay off some of our debts.

We won't need another mortgage, because we're planning on emigrating as soon as our debts are paid off and they'd be paid off a lot quicker if we were paying, say, £500 on rent, rather than £900 on mortgage + loan as we are at the moment.

But all of this is academic if we wouldn't pass the credit checks to get utilities or a rental agreement!

Just also noticed someone said they changed to a better insurance deal. I'd assumed I wouldn't be able to switch providers for anything since they'd all do credit checks and reject us due to the DMP. Is this not the case?

rayday2

You will not struggle with utility bills or if you do it will be payment meter. A lot of landlords ask for payment meters anyway so they don't get landed with bills.

As for checks to get a rental agreement, I used to work in an estate agents and it was easier back then to get a credit card with poor credit ratings than it was a tenancy agreement! The problem was that there are insurance policies landlords can take out to guarantee money if tennants stop paying. In order for landlords to get this policy they need a good credit result from the prospective tennants checks.

However, you should be upfront with the estate agents and tell them you have bad credit. As some agents charge you for the application process anyway it is in your interests to make sure you are not wasting your time. You can have someone stand guarantor for you but this involves them being the ones credit checked. Basically you need to ask around at your estate agents before you think about putting your flat up for sale. Don't tell the estate agents your plan though or they may lie to you in order to get your house on the market with them!!