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DMP mutual support thread part 13 !!

edited 13 March 2019 at 9:03AM in Debt-Free Wannabe
3.4K replies 475.5K views
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  • [Deleted User][Deleted User]
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    MoneySaving Newbie
    about to kick off my DMP in the next month, got new bank account set up which my October wages will be paid into.

    how much is a recommended emergency fund? while I still have credit available should I use some of that to stash for an emergency?

    also I'm planning on using step change but seen people suggesting self managed. if I kick off with SC can I change to self further down the line?

    Well done on getting started on your DMP journey. I'm sure you'll discover life is much less stressful once you start making your first payments and you see your debt level going down. Good luck to you:beer:. Please keep posting any queries you have and let us know how things are going.


    Can't help with using spare credit availability to stash for an emergency fund, sorry. By the time I'd taken my head out of the sand and realised I needed the help of a DMP to clear my debts I was already maxed out on all my credit cards and overdraft:o. I know of posters on here who did amass an emergency fund using available credit before starting their DMP though. I'm not sure how your creditors would react if you suddenly withdrew/transferred a lot of money from your card accounts and then entered a DMP.


    As for people starting off with SC and then self-managing later, yes it happens all the time. SC are used to it, it's a simple process to do it. All the information on self-managing is on the NEDCAB website. Highly recommended as a resource. Some people have reported changing to self-management after a couple of payments, some after a few months, others like me after a few years. I was with SC for over 4 years and really needed their support for that time. I know I couldn't have cleared so much debt without them and can't praise them enough. It was only when I found out more about Full and Final settlements that I decided to go self-managed so I could temporarily stop/cut my repayments to creditors so I could build up enough savings to make offers. SC are not very amenable to people stopping/cutting payments unless it's for a very good reason like a major emergency and then only for a very short period of time. I'd have stayed with them managing my DMP right to the end otherwise.


    Some posters on here have self-managed their DMP right from the start. It's easy enough to do if you are organized and are the type of person to be able to stick to your repayment plan without someone else taking the responsibility for dealing with it.
  • 2babyboys2babyboys Forumite
    38 posts
    Part of the Furniture 10 Posts Combo Breaker
    hi all,

    my first payment to SC is going out in a few days but SC have advised me of 2 creditors that have rejected their offer. Although they day not to worry I am wondering if its worth trying to self manage these two? One is Natwest, other is Virgin. I can offer them a bit more perhaps if self managing?

    Thanks,
  • Willing2LearnWilling2Learn Forumite
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    Hi 2babyboys,

    It is nothing to worry about. NatWest and Virgin will most likely pass the debts on to DCAs for collection. I would just continue to pay your DMP amounts as normal, as that is what you can reasonably afford... :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • 2babyboys2babyboys Forumite
    38 posts
    Part of the Furniture 10 Posts Combo Breaker
    Hi, one more question...is it worth contacting my lenders to ask them not to issue a default? I know this sounds barmy but I only have been sent 2 default notifications and am wondering how many lenders will just be satisfied with the payments without defaulting me and it its worth begging the others not to default me? Anyone have any experience of this? Thank you
  • Willing2LearnWilling2Learn Forumite
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    It is better to have all your debts defaulted rather than marked as an arrangement to pay (or similar marker). If your debts are correctly marked as defaulted, back-dated to when you were 3-6 months in arrears, the default is removed from your credit file six years from the date of default. If the default is not recorded, then the account will stay on your file until six years from the date of the account being settled. The latter is a lot longer :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • edited 21 September 2018 at 11:22AM
    January2015January2015 Forumite
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    edited 21 September 2018 at 11:22AM
    2babyboys wrote: »
    Hi, one more question...is it worth contacting my lenders to ask them not to issue a default? I know this sounds barmy but I only have been sent 2 default notifications and am wondering how many lenders will just be satisfied with the payments without defaulting me and it its worth begging the others not to default me? Anyone have any experience of this? Thank you
    It is better to have all your debts defaulted rather than marked as an arrangement to pay (or similar marker). If your debts are correctly marked as defaulted, back-dated to when you were 3-6 months in arrears, the default is removed from your credit file six years from the date of default. If the default is not recorded, then the account will stay on your file until six years from the date of the account being settled. The latter is a lot longer :)

    Hi

    The advice from Willing2Learn is spot on. To give you an example...lets say you entered an arrangement to pay a debt of £10,000 by paying reducing payments of £50 per month. Let's say this arrangement started in January 2015 the difference between not having a default and having a default are shown below:

    £10,000 divided by £50 pm = 200 payments (or 16 years 8 months)

    Arrangement to Pay means the AP marker will be on your credit file for the whole time until you clear the debt. In this case until Aug 2023 BUT..... it will also remain for six years after the debt is cleared.... so it will be on your credit files until Aug 2029. That's an awful long time to live with a poor marker on your credit record.

    If the account is defaulted - let's say 3 months after reduced payments began in January 2015... so default registered in April 2015.... the default will remain on your credit file for six years... so will disappear from credit files in April 2021 REGARDLESS of whether the debt is cleared or not.

    Hopefully this explains why we all want prompt defaults applied to our debts.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k :eek: I'm driving it down:j
    £1k emergency fund (member #84:j) £1k/£1k
  • Suseka97Suseka97 Forumite
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    ...............Hopefully this explains why we all want prompt defaults applied to our debts.

    Adding to Jan15s helpful advice. A default also means all charges and interest stop, whereas with an arrangement to pay (or similar) that isn't always the case.
  • It is with regret that I have to re-join this forum but thankful it still runs due to my failure to remain Debt Free.


    Originally joined 10 years ago and after 6 long DMP years was DF, however in the last 2 years have slipped once again after thinking I could manage the use of CC and PL :mad:


    Suffice to say reading through this thread and my previous experience tells me I will get out of it again but cant help kicking myself on a daily basis.


    I am self managing a DMP as only 3 main creditors (B/C, LLoyds & TSB) and all have accepted temporary payment (6 months initially) arrangement and frozen the interest and charges for now!!


    Just awaiting the next step as receiving the Default notices from each account and wondering if any of them will progress to CCJ's???




    Wish me luck !!!:(
    Here we go then :mad: £35910 :eek: September 2018
  • Suseka97Suseka97 Forumite
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    dfw_big_al wrote: »
    .......I am self managing a DMP as only 3 main creditors (B/C, LLoyds & TSB) and all have accepted temporary payment (6 months initially) arrangement and frozen the interest and charges for now!!
    Just awaiting the next step as receiving the Default notices from each account and wondering if any of them will progress to CCJ's??? Wish me luck !!!:(

    Sorry that you find yourself back in this situation - but on a positive note you know there is light at the end of the tunnel. You'll be receiving the normal and routine warnings about potential defaults - they won't be the actual defaults at such an early stage. There's no reason any of your debts would result in a CCJ unless at any point you decided to completely ignore your debts and attempts at collection. Anyway, you know the routine and sound like you already have everything in hand, so good luck :)
  • sourcratessourcrates Forumite, Board Guide
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    I have just joined this forum,thank God I did as it's giving me a little bit of hope.Reckon I've got about 14 credit cards most defaulted from 2014 onwards(69k)I'm on a DMP with SC for about 4 years,I've only just realised that some may be unenforceable as they were opened before 2007.I've just requested CCA on 3 of them,all of them have been sold on but when the DCA sent me any letters I just burnt them as I was on DMP,Of course I now want to contact the holders of these debts to request CCA-Any advice?

    Hi,

    Should show on your credit file who owns the debts.

    CCA request is a good step to take, can be rewarding.

    You only need write to whoever is currently collecting the debts, it’s there responsibility to pass the request down the line to the OC.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
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