DMP mutual support thread part 13 !!

sourcrates · 15 April 2019 at 11:34AM

SkintDad87 wrote: »

Had a reply from uncle buck today, before looking at my account they are requesting an I&E form, and they have said they will work out what I can pay them back from that...I will respond to say 'thanks for your offer of help, but I am seeking debt advice from elsewhere, and once all creditors are informed of my DMP, I will send out offers of payments' is that the correct thing to do?

Also, I asked how much I owe, it was a £500 loan over 6 months, at £158 per month. I have made 3 payments already, but they have quoted that I still owe the full £948! Do i not only owe £474 as I've paid back half?

Sometimes interest keeps been accrued when youve missed payments, that continues until default, ask for a full statement.

sourcrates · 15 April 2019 at 11:37AM

glaister wrote: »

Hi,

My girlfriend's sister has a DMP with Payplan. One of her creditors has been returning her payments to her, and she does not understand why. She has asked Payplan and they have said its normal.

I have done some research into DMPs but can't find about creditors making repayments (when they agreed to the DMP in the first place). I would appreciate if anyone could help at all!

Thanks

Hi,

Most likley because they believe she cannot afford those payments to them, that could be why.

If the debt had been sold on, they would have informed you, ring or write, and ask them, thats the simlest thing to do.

masteront · 15 April 2019 at 3:01PM

Hi all,

New here today after finally admitting I can't cope with my debts (£37k) and burying my head in the sand. I have a couple of quick questions:

1) I hear people talking about an Emergency Fund but how do you do this? Is it as simple as just stopping the payment D/D's and building up the funds in an account?

2) I intend to go down the DMP route, most likely SC, but in terms of building an EF as above, do I need to let creditors know my intentions first before stopping paying? I have a number of D/D's going out in about a week and would ideally not pay the full amount (or any of it at the moment) if possible

3) What is the general guidance on when to start a DMP after stropping paying to build up an EF?

I'm sure these questions have already been asked and answered but I did a search and couldn't find anything clear. Thanks guys.

SkintDad87 · 15 April 2019 at 3:05PM

Quick update - all creditors now rung, 15 in total, explained situation and that I was self managed (some couldn't grasp the idea of this). All have given me 30 days to send in income and expenditure form, and given me bank details and emails/addresses...all going smooth so far!

When I forward on my I&E, along with my offer of what I can pay, do I include, what I am offering to all other creditors also?

And sourcrates, you were right regarding the payday loan - what they had given included all interest on full loan, what I actually owe is alot less

sourcrates · 15 April 2019 at 3:18PM

masteront wrote: »

Hi all,

New here today after finally admitting I can't cope with my debts (£37k) and burying my head in the sand. I have a couple of quick questions:

1) I hear people talking about an Emergency Fund but how do you do this? Is it as simple as just stopping the payment D/D's and building up the funds in an account?

2) I intend to go down the DMP route, most likely SC, but in terms of building an EF as above, do I need to let creditors know my intentions first before stopping paying? I have a number of D/D's going out in about a week and would ideally not pay the full amount (or any of it at the moment) if possible

3) What is the general guidance on when to start a DMP after stropping paying to build up an EF?

I'm sure these questions have already been asked and answered but I did a search and couldn't find anything clear. Thanks guys.

Hi,

Asked and answered 1000 times in the past, but don`t worry.

If you know your going to default, then pre-empt the situation by taking control of it, you should stop all non priority payments yes, write to all your creditors about your intention to go into debt mangement, and that you are taking advice currently from stepchange.

The money that would have formed your creditor payments, now goes into your EF. This can continue as long as it needs to, when your happy, get in touch with stepchange and get the DMP ball rolling.

Stepchange are good at what they do, but there modus operandi is to get you repaying your debts ASAP, they will not sanction time out for gathering an emergency fund, which is why you have to take matters into your own hands.

smiff_50 · 16 April 2019 at 12:21AM

Back again....this thread is amazing.

I was thinking 3 months break in payments before resuming payments when moving from step change to self managed. However I would really like a solid emergency fund to fall back on. Would I be taking the p**s saying 5-6 months? Has anyone done this before?

Thanks

Suseka97 · 16 April 2019 at 9:26AM

smiff_50 wrote: »

Back again....this thread is amazing.
I was thinking 3 months break in payments before resuming payments when moving from step change to self managed. However I would really like a solid emergency fund to fall back on. Would I be taking the p**s saying 5-6 months? Has anyone done this before?
Thanks

Some have, with success, and others get hassled by the creditor or DCA to get the payment plan back up and running as quickly as possible. So there's no real way of knowing how successful you would be delaying by 5 - 6 months. That said, there's no harm in trying (you've nothing to lose). If your concern is whether a creditor/DCA will start formal (court) proceedings if they were not happy with the delay - well that's highly unlikely.

When you write you don't necessarily have to indicate a timeframe when payments will recommence. You can be a little vague and simply say you are planning to manage your own DMP and in doing so will be re-evaluating your financial position and that you will be in touch with regards to a formal offer of payment in due course. You could say that you have a number of urgent bills to settle (car, boiler, other) if you want to offer a reason for a delay, but I don't think they care that much really. The main thing is to stay in touch and keep them updated.

What you should always remember is you are just an account (number) to a large organisation and most of the letters you'll receive are computer generated. The wheels turn very slowly and several weeks/months can pass by quite easily before they take notice.

When I went SM (after 4 years on a managed DMP) I sent off CCA requests and it took the DCAs close to 6 months to respond. During that time I didn't pay them anything. So it also depends on where you are in the process.

smiff_50 · 16 April 2019 at 11:27AM

Hi Suseka97, thanks for such a detailed reply. That's very helpful. I guess I've just got used to being on auto pilot with stepchange. But every since I've started looking into self managing I've realised I should have taken control far sooner. I just want to use this opportunity to rebuild an emergency fund.

Thanks

Suseka97 · 16 April 2019 at 1:00PM

smiff_50 wrote: »

Hi Suseka97, thanks for such a detailed reply. That's very helpful. I guess I've just got used to being on auto pilot with stepchange. But every since I've started looking into self managing I've realised I should have taken control far sooner. I just want to use this opportunity to rebuild an emergency fund.
Thanks

I felt much the same when I finally decided to go self-managed although I was grateful for the help from SC at the outset. Once you get your head around the whole process, you'll find it much more flexible. For example, Barclaycard reinstated interest charges when the monthly DMP payment rose as a result of annual reviews and as each creditor was paid off. When I spoke with SC they wouldn't reduce the BC payments to ensure I kept under their threshold and that's what finally prompted me to take control.

For you it makes sense to build up an EF, especially if (like me) you didn't from the outset and I think a 6 month grace period should do the trick. I hope it works out - but don't be hassled by creditors if they get a bit pushy

Dandytf · 16 April 2019 at 9:12PM

Since had quick scan of SC dmp status since r.b.s. Text confirming 10 pounds has been added to payments from early May.
From Noodle it seems my last default could drop off from Jan 2021 which honestly would be amazing.
With some considerable effort and a bit of luck, I intended to find a way to reduce one more year from dmp to almost match early 2021
Though I'll allow a few months to establish if I can either make more considerable savings or extra shifts maybe during 2019/2020.
Recent small VM savings went yesterday after my shower failed.
Though grateful I got short notice Monday electricians to supply and install a new shower.
And great to know I had enough in VM savings account to cover cost.
It seem as I thought during 2018VM has become a deposit what I can when I can which is maybe upto two or three times per year, which acts as an emergency fund for home/maybe car.
Mser's-continue with dmp's be it new or existing- it's starting to feel nice when it becomes part of essential budget re payments as important as other costs etc.

DMP mutual support thread part 13 !!

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