DMP Mutual Support Thread - Part 12

sourcrates · 23 May 2018 at 11:32PM

phil788660 wrote: »

Hello everyone. This is my first post. I wondered if anyone could help with the following:

I entered into a debt management plan with step change over a year ago.

Everything is going well with it but in the next few months I will be coming into some money

The money won't be enough to cover the full total but it should be around 50% of the total owed

I owe 2 debts to Intrun group £24k and £2k and 2 debts to PRA group £6k and 8k

So in total £40k ish. The above debts were sold to the PRA and Intrun group in January this year and I have not missed any payments.

I wondered if anyone on here has any experience of what would be a good starting point to offer to settle and how would I approach this?

Thanks in advance

Phil

Hi,

Just like most things, there is a correct process to follow.

From the numbers you have quoted, you will be lucky to achieve a 50% reduction, but its not impossible.

First job is to send CCA requests to all relevant accounts, see if they can produce compliant paperwork (if they cannot do so, it strengthens your hand in the negotiation stakes).

CCA template letter here :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-%28sole-name%29.aspx

Next, dependent on the response you get, go in with your first offer at say 20%, you want to use this template letter :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

Dont be put off by a rejection, you can always increase your offer.

Its best to do these negotiations yourself, rather than involve stepchange, keep at it and hopefully you will get the results you want.

phil788660 · 24 May 2018 at 11:32AM

Many thanks for the quick reply its appreciated.. Please excuse my naivety but I just wanted to know about CCA requests.

Are they usually supplied to the agency that takes on the debt?
What is the benefit to them not being able to produce the CCA documents?

Thanks again

Phil

Gill42 · 24 May 2018 at 10:46PM

Hi all I've been looking into DMP with step change.. Got afew things wrong on my first attempt
my out goings were wrong gas and electric missed off not by much but seems to of changed my situation . So I've since been back and filled out the debt remedy. It's know telling me that bankruptcy would be the best solution for myself. I really don't want to do that. I'm gonna call step change tomorrow. Just needed to air on here as I'm feeling very stressed and anxious tonight. I'm just about to stop paying my creditors and I'm scared silly.. Anyone else got bankruptcy as best possible solution to their situation.

January2015 · 24 May 2018 at 10:54PM

Gill42 wrote: »

Hi all I've been looking into DMP with step change.. Got afew things wrong on my first attempt
my out goings were wrong gas and electric missed off not by much but seems to of changed my situation . So I've since been back and filled out the debt remedy. It's know telling me that bankruptcy would be the best solution for myself. I really don't want to do that. I'm gonna call step change tomorrow. Just needed to air on here as I'm feeling very stressed and anxious tonight. I'm just about to stop paying my creditors and I'm scared silly.. Anyone else got bankruptcy as best possible solution to their situation.

Just because bankruptcy is an option doesn't mean you have to take that option. It's your debt resolution plan and you need to be comfortable with the route you take.

That said, is there a reason you don't want to go down the bankruptcy route ?

Gill42 · 24 May 2018 at 11:10PM

I've been paying my creditors until now the thought of going bankrupt is worse than DMP to me. Which has made me have massive anxiety moments. I would go to pieces I feel massively overwhelmed with all of this. I've had my head in the sand for a couple of years now. But bankruptcy has a big stigma with it the shame of people knowing. Thanks for letting me vent..

January2015 · 25 May 2018 at 8:54AM

Gill42 wrote: »

I've been paying my creditors until now the thought of going bankrupt is worse than DMP to me. Which has made me have massive anxiety moments. I would go to pieces I feel massively overwhelmed with all of this. I've had my head in the sand for a couple of years now. But bankruptcy has a big stigma with it the shame of people knowing. Thanks for letting me vent..

I can totally relate to how you are thinking and feeling. Go with whatever solution is right for you and makes you feel comfortable and able to live with it. The important thing is you are addressing the problem with your debts.

Good luck and keep posting - it's the best way to stay motivated on what can be a long journey - but it doesn't have to be a miserable journey. You will find on here the majority of us love our DMPs and think they are best thing we ever did :beer:

DMP_Tiger · 25 May 2018 at 9:33AM

Morning all. After months of dithering and only being able to pay creditors on time because I have an overdraft and credit cards to live on, I have finally realised that the only way forwards is a DMP. Debt is £32,169 across 2 loans and 3 credit cards as follows:

Barclays Loan £16,073
Shawbrook Loan £4,700
Barclaycard £3,030
MBNA CC £5,018
Aqua Card £3,348

I've got my DMP from Stepchange, I'm currently sitting here deciding whether to sign it and send it back to them or go self-managed. I've read through this entire thread (just part 12) slowly and carefully over the last couple of weeks so I have the knowledge and capability to go SM but I'm thinking a little bit of hand holding and guidance from Stepchange may be helpful to guide me through the scary early stages, even though the guidance and help is all posted on this fantastic forum.

I need to decide quickly because my DD's are all due out on Tuesday and I haven't yet opened a new bank account (currently Barclays) or written any letters.....

Wish me luck as I tentatively begin my journey.....

[Deleted User] · 25 May 2018 at 11:32AM

DMP_Tiger wrote: »

I've got my DMP from Stepchange, I'm currently sitting here deciding whether to sign it and send it back to them or go self-managed. I've read through this entire thread (just part 12) slowly and carefully over the last couple of weeks so I have the knowledge and capability to go SM but I'm thinking a little bit of hand holding and guidance from Stepchange may be helpful to guide me through the scary early stages, even though the guidance and help is all posted on this fantastic forum.

I need to decide quickly because my DD's are all due out on Tuesday and I haven't yet opened a new bank account (currently Barclays) or written any letters.....

Wish me luck as I tentatively begin my journey.....

Welcome, Tiger:wave:. You've come to the right place for all the help, encouragement and advice that you'll need during your journey to debt freedom:beer:

A couple of points I'd like to make from the bit of your post that I've quoted here. Firstly, I appreciate that you might find the help of SC to be really comforting and beneficial in the early stages of your DMP. That's what I and lots of others on here did before gaining the expertise and confidence to feel we could go it alone. I was with them just over 4 years and was very happy with the situation. I only went self-managed when I got to the stage of wanting much more flexibility with my repayments and needed to drop to token payments for several months in order to build up a F&F fund. I don't regret that decision either but I definitely needed SC in the early years. I know a lot of people on here self-manage right from the start so it all depends on what you feel confident in doing. There's lots of advice available on here and elsewhere if you do go down the self-managed route.

Have you sent CCA requests to all your creditors yet? If any debts are deemed unenforceable you don't have to pay them at all although some of us choose to do so:o. Lots of advice available on here.

Have you an emergency fund built up already? If not and having no credit to rely on once the DMP is up and running you'll only be able to spend the money you actually have:( . Emergencies have a nasty habit of cropping up when we can least afford to remedy them:eek:. If the answer is no I would strongly recommend delaying the start of your DMP for as long as you can, 3 months minimum, and save every penny you can in the meantime. I didn't do this and had a very stressful and miserable first year on my DMP where I was worse off than before I started it:(. This wasn't SC's fault, I was so keen to pay off ny debt in trhe shortest time possible that I didn't claim for lots of things in my budget that I should have. Plus, not having found this thread and the wonderful people on it at that time I didn't have a penny to my name in savings:o

Cancel your DDs now, unless you are happy for them to be paid this time, and contact all your creditors to say you are experiencing financial difficulties and are seeking the advice of SC in how to remedy them. They will be surprisingly understanding:j

DMP_Tiger · 25 May 2018 at 11:56AM

Thank you for your reply CBC. I have decided to begin the journey with SC and have emailed them asking if it would be ok to delay the first payment for a few months to build up an EF.

Our boiler is playing up and is 15 years old. I am concerned that it may need replacing although it may be a minor repair, if it does then I would need to pay for it on my Aqua card so maybe I'm best to pay the DD's this month and get the boiler repaired/replaced asap.

I haven't sent off CCA's yet. Due to the constant cycle of borrowing to pay off debt, my debts are all 3 years old or less so presumably they will all be enforceable?

72together · 25 May 2018 at 2:58PM

Hi,

I will be paying my first SC payment in July.

Most of my CC/Store card debts are well over 10 years old. I have read about CCA!!!8217;s and just wanted to know if this is something I should look into doing?

With this all bring new to me I would appreciate some advise please.

Many thanks.

DMP Mutual Support Thread - Part 12

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