DMP Mutual Support Thread - Part 12

[Deleted User] · 21 September 2017 at 9:34PM

btoTHeg

Suseka gave great advice as always but I thought I'd just put in a plug for the NEDCAB (North East Derbyshire Citizens Advice Bureau) website that a lot of people use because they provide good template letters and a wealth of information. It's all FREE:j and you can register and save your details to make future amendments quicker. I didn't bother myself, I just used the regular site and pinched the ideas and wording of the template letters;)

here's the link I referred to earlier.

https://nedcab.cabmoney.org.uk/documents/dmp/2b)%20Self%20Help%20DMP%20(Transferring).pdf

Have a good read right to the bottom and it may help you to decide whether you want to self manage or not. Personally, I'd say 'go for it' but we're all different so I wouldn't want to try to influence you. There's also loads of useful information on the main NEDCAB website.

I contacted my creditors to say I was going to self-manage and they all sent me a copy of their own I&E forms. They varied a bit so it might be best just to complete a generic one, such as the NEDCAB one and send it off to all your creditors. I can't see why they wouldn't accept it and it will certainly save you a lot of time filling in lots of differently styled forms.

Suseka97 wrote: »

I see carbootcrazy has responded and advised I didn't use any sort of template myself (so not sure where these are but am sure others will provide the link/s), I just wrote to them advising that from x date I would be making payments direct and asked for the account details and confirmation of balance outstanding. I then just messaged SC (followed up by a letter) to let them know when my last payment for allocating to creditors would be made. They, in turn, contacted me to confirm that instruction and wished me success on the continuation of my DMP. That's it.

If you've not completed a recent annual I&E review, you might find creditors ask for one - if so, just fill one out using either the SC debt remedy tool, or something similar you'll find on the NEDCAB site and you can manipulate the figures as you wish. My advice would be to continue making the same payment to each as you are now -at least until everything has been transferred over and then you can negotiate with each creditor individually if your circumstances change or if you're in a position to offer those F&Fs. Obviously as you clear each debt it's then up to you whether to increase payment to the remainder or save that bit extra for future F&Fs.

From what I've read on posts by other 'self-managed' peeps is that creditors/DCAs are fairly relaxed about it as long as they are getting paid and are being kept informed. But as I said before - if you go self-managed and find yourself in difficulty with any particular creditor/DCA then there are plenty on here who can offer advice on how to handle them.

alana171 · 22 September 2017 at 7:39PM

Another question.......just started DMP with step change as previously stated. A lot of posts say they had accounts defaulted.....what does that mean exactly? SC commented that everything would be up and running soon and my first payments would be on the 1st November, so I have stopped all my direct debits to the debts even though some would have been paid before this.....is that correct? How do accounts become defaulted? Thanks for all the help!

btoTHeg · 22 September 2017 at 10:37PM

Thanks you sourcrates; Suseka and carbootcrazy for the great advice and help.

I’ll be sorting all this out over the next few weeks so will let you know how I get on

sourcrates · 23 September 2017 at 11:47AM

alana171 wrote: »

Another question.......just started DMP with step change as previously stated. A lot of posts say they had accounts defaulted.....what does that mean exactly? SC commented that everything would be up and running soon and my first payments would be on the 1st November, so I have stopped all my direct debits to the debts even though some would have been paid before this.....is that correct? How do accounts become defaulted? Thanks for all the help!

Hi,

You need to do your research, there are plenty of websites that cover everything to do with debt matters :

National Debtline
Stepchange
Payplan
Debt Camel

Are four of the best.

They explain the process very clearly, especially Debt Camel, its better you read up on it yourself rather than me posting columns of information.

CHW1 · 23 September 2017 at 12:12PM

Help - I'm a forum newbie and don't even know if I'm posting correctly! I am braving a weekend of trying to face my debt nemesis but don't know what to do. 9 years ago I was post relationship end and left with financial carnage. I set up a DMP with Money Debt and Credit - paid to them for years at a monthly fee (wasn't told of any alternative) this was sold on to Lawrence Charlton and continued, then out of the blue the companies closed down. I am now being chased by companies and don't know what to do. It has cost a fortune over the years and suddenly I have defaulted. I'm not even sure who I owe what to anymore! Have I been fleeced by these companies? What do I do and where do I turn. I tried hard to get back in control and feel my life is unravelling! On top of this I'm experiencing business debts, all in all I'm starting to get very stressed - help! Thanks in advance.

sourcrates · 23 September 2017 at 12:57PM

CHW1 wrote: »

Help - I'm a forum newbie and don't even know if I'm posting correctly! I am braving a weekend of trying to face my debt nemesis but don't know what to do. 9 years ago I was post relationship end and left with financial carnage. I set up a DMP with Money Debt and Credit - paid to them for years at a monthly fee (wasn't told of any alternative) this was sold on to Lawrence Charlton and continued, then out of the blue the companies closed down. I am now being chased by companies and don't know what to do. It has cost a fortune over the years and suddenly I have defaulted. I'm not even sure who I owe what to anymore! Have I been fleeced by these companies? What do I do and where do I turn. I tried hard to get back in control and feel my life is unravelling! On top of this I'm experiencing business debts, all in all I'm starting to get very stressed - help! Thanks in advance.

Hi,

Well you've finally come to the right place, in answer to your question, yes, you have been fleeced, there is no need to pay for a DMP.

But you arnt the only one who has been caught out, at least now you are free of them, you should contact one of the free debt charities in my signature, they can organize a DMP for you with no fees wahtsoever.

As a first step, simply write to or phone whoever is chasing you and inform them your seeking advice from a debt charity, that will give you an automatic 30 day reprieve from collection activity.

CHW1 · 23 September 2017 at 2:00PM

Thank you

I'm on a long road but I'm going to look at Step Change to my creditors and see if there is a letter template to start with. Is there any way we can all claim money from these debt management companies who fleeced us for years? I was literally dropped on my toes in February, I didn't know there were free alternatives! Or do we put paying for a Debt Management plan down to a bad experience because I should imagine these businesses have probably shut down anyway (Money Debt and Credit, & Lawrence Charlton). Wish me luck on this journey, I've come too far to loose it all at this stage. Thanks for the reply.

sourcrates · 23 September 2017 at 3:39PM

CHW1 wrote: »

Is there any way we can all claim money from these debt management companies who fleeced us for years? I was literally dropped on my toes in February, I didn't know there were free alternatives! .

I always advise people to put in a written complaint about these debt management companies, although what they do is not illegal, i consider it to be immoral.

They are supposed to tell you there are free alternatives, but most don't bother, or they hide it within there terms and conditions way, way down at the bottom.

dynomot · 23 September 2017 at 5:58PM

Just a quick question.

So at this moment in time all my paperwork has gone off to SC (it went yesterday). It has taken time for it to go as I couldn't find account numbers or agreements with two out of the four pay day lenders I have to deal with (Ferratum and Mr.Lender). I eventually got them (I swear I never had them before) via email.

So far I have contacted HSBC and Barclaycard. Both were OK. HSBC have given me 60 days to get a DMP up and running and were OK about it all (I have the time, to whom I spoke to and what number I called noted for all)and have frozen all interest until then. Barclaycard were actually "nice" and wished me luck in sorting out my debt problems and say yes they'll default my account and freeze the interest on my balance permanently as long as I work with Step Change - so a result there with my biggest creditors (A whopping £14537 BCard and £9274 with HSBC) they have immediately frozen use (obviously) of my credit card and interest for 30 days while they wait to hear from SC.

So to my question. None of my other debts are due their monthly payment until between 1st and 5th of October now. Will Step Change contact them for me before they are due or should I now ? Step Change have said they will,l but I can if I like, just mention "StepChange" and they'll be hearing from them shortly. A bit confused I don't want to contact them, but I have two already who have been OK. Talking myself into it but I suppose I'd better and given the "big two" out of my creditors have already been OK and frozen interest I guess I have nothing to lose and possibly much to gain. Also I'm guessing me telling them sooner rather than me or SC telling them later is better too.

Just thinking and writing here really, but now I'm looking at the post advice from people who have been here and know the drill is good to have.

Thanks for reading.

sourcrates · 23 September 2017 at 6:10PM

Hi dynomot,

You must forget the old way of doing things, it matters not a jot now when the contractual payments are due, that is no longer your concern as you are about to break the terms of your agreement.

You have started well, now you should either write, or phone if you prefer, the rest of your creditors and inform them of the DMP as well, it wont hurt to ask them to stop interest and charges, tell them they will be hearing from Stepchange, and all future payments will come through them.

Collection activity will then cease for 30 days (at least) until your arrangement is up and running, also, and i must stress this point, you will need an emergency fund, so make sure you budget for one, its a quite important point is that.

Lastly good luck with it all, you are doing the right thing.

DMP Mutual Support Thread - Part 12

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