DMP Mutual Support Thread - Part 12

motivated · 5 December 2017 at 8:53PM

sourcrates wrote: »

Better saving up the spare money to do a possible full and final in the future, then you take that particular problem out of the equation.

Good point. Thanks Sourcrates I will do that. But being as it will take me many years to clear them at the rate I’m paying them. Would there be an issue with the length of time. They have been ok with my offer of payment so far.
M

sourcrates · 5 December 2017 at 11:03PM

motivated wrote: »

Good point. Thanks Sourcrates I will do that. But being as it will take me many years to clear them at the rate I’m paying them. Would there be an issue with the length of time. They have been ok with my offer of payment so far.
M

Affordability is the key thing, you can’t be asked to pay more than is affordable.

They can’t take what you don’t have.

lunalola · 7 December 2017 at 10:45PM

Hi all! :wave:

So i have recently taken big steps towards my debt problem by contacting SC and making the decision to set up a DMP. - SO SCARY!

There's so much fantastic information on this thread, so thank you! I do however have some questions...

In order to save up some emergency fund, I have cancelled my credit card direct debits (I haven't missed payments yet but it is spiraling out of control and I would have been very close to missing!) Is this the right thing to do? What will happen next? I have read about token payments, but how do I send these and do I need to send an accompanying letter?

Also, should I wait a couple of months before signing the SC agreement?

Sorry if these are stupid questions, my head is spinning!

TIA

sourcrates · 7 December 2017 at 11:29PM

lunalola wrote: »

Hi all! :wave:

So i have recently taken big steps towards my debt problem by contacting SC and making the decision to set up a DMP. - SO SCARY!

There's so much fantastic information on this thread, so thank you! I do however have some questions...

In order to save up some emergency fund, I have cancelled my credit card direct debits (I haven't missed payments yet but it is spiraling out of control and I would have been very close to missing!) Is this the right thing to do? What will happen next? I have read about token payments, but how do I send these and do I need to send an accompanying letter?

Also, should I wait a couple of months before signing the SC agreement?

Sorry if these are stupid questions, my head is spinning!

TIA

Hi,

In my opinion token payments are a waste of time.

Send a short letter to each creditor explaining your situation, and that you are taking advice from stepchange.

2/3 months time, start your DMP.

Nothing will happen, you may get letters an calls, if you do, refer them to your previous letter.

lunalola · 7 December 2017 at 11:43PM

Thank you sourcrates, very useful information! I feel much better now having taken even the tiniest of steps. I have also decided to switch bank accounts as advised by SC so this should hopefully all be completed in the next week or so

LadyMorticia · 9 December 2017 at 1:40PM

Hey everyone! Hope you're all doing okay.

Still on my DMP with StepChange but still very tempted to go self-managed so that I have more control. Not sure how I'd go about that though? And I'd like to drop to token payments for a few months as we've had quite large expenses but StepChange are refusing for me to drop to a short term TPP.

motivated · 9 December 2017 at 1:52PM

LadyMorticia wrote: »

Hey everyone! Hope you're all doing okay.

Still on my DMP with StepChange but still very tempted to go self-managed so that I have more control. Not sure how I'd go about that though? And I'd like to drop to token payments for a few months as we've had quite large expenses but StepChange are refusing for to drop to a short term TPP.

Hi LadyMorticia

I was with SC and decided to go SM. I used the NEDCAB site. It generates all budgets, letters etc for you. Even one to SC explaining that you will be going SM.

It also saves all of your details so you can update letters etc if and when you need to.

As for the token payments, I added into the letters that for X amount of months I will be paying £1.00 token payments due to high vet bills and car costs. (Ive been paying token payments to CCs for about 5 months now). All replied and we’re fine about it. I also added that I want all communication to be done in writing only.

If you do decide to go down the SM route just take note of all account numbers, balances etc

Although I wobbled after a couple of months I stuck with it and find it easier as you have more flexibility.

Good luck
M

alana171 · 11 December 2017 at 11:52PM

Has anyone who has gone self managed had success in paying much smaller payments over a longer period of time and smashing out the smaller debts completely?
Looking at what I pay SC every month £356, i could pay my smallest two cards off in 3 months, if i was able to pay just minimal amounts (like £1) to others. Would they be likely to accept that? And would they accept it over a long time frame ( like a debt snowball effect i suppose)
Just thinking aloud really and considering my options as I could have half my debts paid off within a year if I could get small payments from everyone else...

sourcrates · 12 December 2017 at 12:41AM

alana171 wrote: »

Has anyone who has gone self managed had success in paying much smaller payments over a longer period of time and smashing out the smaller debts completely?
Looking at what I pay SC every month £356, i could pay my smallest two cards off in 3 months, if i was able to pay just minimal amounts (like £1) to others. Would they be likely to accept that? And would they accept it over a long time frame ( like a debt snowball effect i suppose)
Just thinking aloud really and considering my options as I could have half my debts paid off within a year if I could get small payments from everyone else...

Doesn’t matter if they accept or not, all they will do is sell on the debt eventually if they don’t like it, they certainy won’t refuse your payment.

Snowballing down debts is a very good idea, you should go self managed ideally, then you can choose who, when, and what to pay.

Nothing happens quickly in debt collection usually, if it’s legal action your worried about, you will get plenty of warning if they take that route giving you time to deal with the matter.

Personally I think,it’s a great idea, as you can negotiate your own settlement figures when balances get low enough.

alana171 · 12 December 2017 at 9:21AM

Thanks Sourcrates
They wouldn’t load all the interest back on would they? Like you say I can only afford what I can afford.
This SM way is looking quite appealing, especially as I’ll be able to clear a load within a few months.

DMP Mutual Support Thread - Part 12

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free