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  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 14,032Posts
    • 13,287Thanks
    sourcrates
    DMP Mutual Support Thread - Part 12
    • #1
    • 26th Mar 17, 12:20 PM
    DMP Mutual Support Thread - Part 12 26th Mar 17 at 12:20 PM
    Welcome to the DMP mutual support thread Part 12 !!

    Here you can find help in starting and running your DMP, self managed, Stepchange, Payplan and any other DMP all welcome here, but we do encourage you to use a free service, not one you pay for.

    There is help on getting interest and charges stopped, how to start with an emergency fund, defaults, token payments and lots more.

    If you are in a DMP or thinking of one, this is the place to be. We are non judgmental and all questions are welcome.

    Again the old thread was getting a tad long, so time for a new one.

    The old thread can be found here :

    http://forums.moneysavingexpert.com/showthread.php?t=5285089

    Once again, i think the original "newbie" post by sazzie23 still rings true.
    Last edited by sourcrates; 26-03-2017 at 12:50 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
Page 145
    • January2015
    • By January2015 13th Feb 18, 7:37 PM
    • 2,069 Posts
    • 5,147 Thanks
    January2015
    Thanks Jan,

    I only have two debts now and as we can see, one is pretty much declaring itself UE as we speak so I would only have one to consult AAD about. Having said that, it is a bigger one......

    When you got the decision from AAD, how did you approach the predator? Did you just write to tell them for the reasons X,Y&Z it was unenforceable and advise that for this reason you would be ceasing payments? If so......what did they come back with?

    Well done by the way !!
    Originally posted by Brogden
    Hi Brogden

    I was advised not to tell PRAT I knew it was UE or why. I totally ignored all communication from PRAT for a year. During that year they wrote to me and asked me nicely if I would make payment, they wrote with settlement offers that gradually reduced and reduced. The only time I responded was when they sent a letter offering to settle at 10% of the outstanding balance.

    I was advised to ignore them, but should things get difficult, i.e a claim be made by PRAT then the AAD team would assist and if necessary their solicitor could help. I never needed any assistance because I am sure PRAT knew it was UE all the time. Patience was what I needed
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    [COLOR=Blue][SIZE=2]
    • January2015
    • By January2015 13th Feb 18, 7:49 PM
    • 2,069 Posts
    • 5,147 Thanks
    January2015
    Hi
    I have been following these threads for a few months now. I am still a bit confused with the general language i.e. CCA, but no doubt it will make more sense with time.
    We have been struggling with debt for a few years now and we are at a point where we can't really ping pong credit card debts to low interest deals (we aren't reducing the debt at all). It hit home when we tried to remortgage with Tesco and they declined our application due to the amount of unsecured debt. The mortgage advisor, in not so many words, suggested we seek help. We tried two different avenue's to consolidate our debts in the last week to consolidate our CC debts to a unsecured personal loans. Not surprisingly they were declined based on our credit rating and the amount of unsecured debt. As so many people are open with their financial situation, I guess I can too. We are £41K in debt with CC's and 1 x personal loan. Not including our overdraft which up to 3 months ago was £3K, we are now staying within £1K. We are lucky to have a good joint income, above the national average.
    I don't think we have the energy or the time (we have 3 children) to do a DIY DMP but I can see the advantages. Everyone seems to approach Step Change, but I have the impression they like to take baby steps to reduce personal debt. In theory we would like to be unsecured debt free in 5 years time, before our eldest daughter starts (if she decides) university. Not sure how achievable this would be.
    Personally, it seems a big leap off a deep crevasse as I don't want a poor credit rating but at the same time we are sick to death of the struggle of debt. Who knows what will happen around the corner.
    I am at work at the moment so it's a bit of a mind dump. Any suggestions based on the information I have given, very much appreciated.
    Originally posted by silentsmith

    I think you are part way to your Light Bulb Moment (LBM). You realise you have a debt problem but haven't quite realised the solution is not to look for more debt to sort it out. You've reached the point where you are being declined for credit - and to be honest you should be grateful, especially grateful you were refused the remortgage. Moving unsecured debt to secured debt is the worst thing you can do.

    You say you don't want a poor credit rating - do you not think you already have one? You are being declined for credit so you credit rating, whilst not trashed, is not good either.

    I would also forget about theories of being debt free by a certain point in your life such as when the kids go to Uni. Yes have it as goal in your mind, but your first target is to deal with the issue and either self-manage or contact one of the debt charities such as Stepchange (SC), National Debtline (ND) or Christians Against Poverty (CAP). Don't make a single payment more to your creditors - start the process now.

    Stepchange don't take baby steps to reduce debt. They work out a budget you can live on and allowances for emergencies and sundries etc. and they collect the balance of your money to pay your creditors. It's small steps for some and larger strides for others. Each DMP is individual.

    Self managed gives you more control over what is paid to creditors and when it is paid. Stepchange collect of set dates in the month and then it takes a few days to reach the creditors (from memory it used to take ten days but may be less now).

    I suggest you visit SC website and fill in their debt remedy tool (purple box, bottom right of the SC webpage) and see what advice is generated. It's a great starting point for getting your mind thinking.

    Welcome to our forum You've made a great start acknowledging the issue, you just need to put your mind in gear and start the journey towards clearing your debts - whether that is a DMP or devising a plan to pay down the debts without a DMP (if you can).
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    [COLOR=Blue][SIZE=2]
    • ploppy57
    • By ploppy57 13th Feb 18, 8:47 PM
    • 722 Posts
    • 4,650 Thanks
    ploppy57
    Hi
    I have been following these threads for a few months now. I am still a bit confused with the general language i.e. CCA, but no doubt it will make more sense with time.
    We have been struggling with debt for a few years now and we are at a point where we can't really ping pong credit card debts to low interest deals (we aren't reducing the debt at all). It hit home when we tried to remortgage with Tesco and they declined our application due to the amount of unsecured debt. The mortgage advisor, in not so many words, suggested we seek help. We tried two different avenue's to consolidate our debts in the last week to consolidate our CC debts to a unsecured personal loans. Not surprisingly they were declined based on our credit rating and the amount of unsecured debt. As so many people are open with their financial situation, I guess I can too. We are £41K in debt with CC's and 1 x personal loan. Not including our overdraft which up to 3 months ago was £3K, we are now staying within £1K. We are lucky to have a good joint income, above the national average.
    I don't think we have the energy or the time (we have 3 children) to do a DIY DMP but I can see the advantages. Everyone seems to approach Step Change, but I have the impression they like to take baby steps to reduce personal debt. In theory we would like to be unsecured debt free in 5 years time, before our eldest daughter starts (if she decides) university. Not sure how achievable this would be.
    Personally, it seems a big leap off a deep crevasse as I don't want a poor credit rating but at the same time we are sick to death of the struggle of debt. Who knows what will happen around the corner.
    I am at work at the moment so it's a bit of a mind dump. Any suggestions based on the information I have given, very much appreciated.
    Originally posted by silentsmith
    Welcome to the forum. January has given you excellent advice. When we first started our DMP we thought we could get debt free quickly and started off paying quite a lot each month but then when I got made redundant we had to reduce payments and now I only work part. But we pay what we can and have learnt so much from this forum that we are now confident that we will actually get debt free sooner than our current forecast. But you have to take one day at a time. SC were brilliant for us and we have now taken the plunge after 3 years to go SM.
    There is always someone here who can answer your questions but please check out SC and see how they can help
    DMP March '15 £57,549. Now £44,430. almost 23% paid. Went SM Feb '18 to get DF sooner.
    Emergency fund #231... Building up slowly.
    Christmas '18 challenge... £22 /£300
    "There's a Great Big Beautiful Tomorrow, Shining at the end of every day"
    • KID77
    • By KID77 13th Feb 18, 9:23 PM
    • 215 Posts
    • 432 Thanks
    KID77
    Silent Smith:
    We were in similar amount of debt and dame thoughts as you 3 to 4 years ago. I didn't want to entertain a DMP until 1 month, I ran out of credit cards and overdraft funds to steal from, I was distraught and ashamed of our situation.
    The DMP was the best solution apart from a lottery win :-)

    My advice is to write to all your creditors and explain your financial difficulties and seeking advice from Step change and you will be in touch within a few months to start a payment plan. Then go with Stepchange to start with and play around with the debt remedy tool, it's anonymous so no one will know. Exaggerate your figures, add money for dry cleaning, smoking, pets etc and do not leave yourself short as in my opinion, if you can't afford to pay the minimum payment then it doesn't matter whether you are paying £1 or £100, you are still in breach of contract and won't be treated any differently. So my advice is pay a small amount, we paid £190 to start on a debt of £47k, so very small in relation and no issues at all. I then save every month and put this aside for settling the debt in the future at a lesser amount.

    Read back on this thread and previous ones if you can, it's alot but the more you read and understand before entering the DMP the better informed you will be.

    Sorry I am rambling and typing from my phone so not the easiest but good luck on whatever you decide xx
    DMP Number 437
    LBM May 2015 47k in debt
    Starting DMP 1st July 2015
    • KID77
    • By KID77 13th Feb 18, 9:26 PM
    • 215 Posts
    • 432 Thanks
    KID77
    Summer12

    Even if your creditors can't provide CCAs and debts are classed as unenforecable, if you stop paying or try to negotiate settlement, this can and likely will still be marked on your credit file and affect your credit rating.


    Apologies if you realise that already but just wanted to point it out :-)
    DMP Number 437
    LBM May 2015 47k in debt
    Starting DMP 1st July 2015
    • KID77
    • By KID77 13th Feb 18, 9:28 PM
    • 215 Posts
    • 432 Thanks
    KID77
    Will someone please tell me how to quote like the rest of you?

    I consider myself quite technically savvy but have no bloody idea how to quote !!!55357;!!!56832;
    DMP Number 437
    LBM May 2015 47k in debt
    Starting DMP 1st July 2015
    • motivated
    • By motivated 13th Feb 18, 9:35 PM
    • 2,194 Posts
    • 4,343 Thanks
    motivated
    Will someone please tell me how to quote like the rest of you?

    I consider myself quite technically savvy but have no bloody idea how to quote !!!55357;!!!56832;
    Originally posted by KID77
    Hi kid

    Just below the post you are wanting to quote there is a quote button. Click it and it will add it to a new post. You then continue to write under it

    To quotes multiple posts use the pink and orange balloon thingys

    Hopefully I have not confused it further.
    M
    I have arrived in DMP land and I like it, I may stay a while
    LBM £82,590 Jan 17/£77,182.91 May 18
    Short term goal £1523.73/£1796 / PDBX 18 # 31 - £2885.52/£5,000
    • sourcrates
    • By sourcrates 13th Feb 18, 9:52 PM
    • 14,032 Posts
    • 13,287 Thanks
    sourcrates
    Will someone please tell me how to quote like the rest of you?

    I consider myself quite technically savvy but have no bloody idea how to quote !!!55357;!!!56832;
    Originally posted by KID77
    Press the big blue buttony thing that says QUOTE on it
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    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 forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • KID77
    • By KID77 13th Feb 18, 9:58 PM
    • 215 Posts
    • 432 Thanks
    KID77
    Thanks guys, I don't have those options on my phone view but have found a + sign which leads me to a drop down menu with quote options so problem solved xx
    DMP Number 437
    LBM May 2015 47k in debt
    Starting DMP 1st July 2015
    • Zerodebtsoon
    • By Zerodebtsoon 13th Feb 18, 11:48 PM
    • 15 Posts
    • 8 Thanks
    Zerodebtsoon
    Hi all

    I have previously been on here under a different user name but after years of not posting and forgotten details I had to start again.

    We have been on a dmp with Stepchange for 4 years and tracking well, 50% of our debt cleared and if we stay as we are should be debt free by 2020 (around £17k remaining).

    After reading some of the inspirational stories on here I have been considering self managing as we would like to try and save for full and finals and see if we can get debt free soooner.

    So firstly I need to send CCA request letters. I have a template letter ready but wanted to check about the postal order / £1 payment. The problem is we live overseas so if it has to be a postal order I will struggle ! Has anyone sent a cheque or is that not the done thing? Worst case scenario I could ask my sister to get postal orders for me. Any advice would be most welcomed.
    Last edited by Zerodebtsoon; 13-02-2018 at 11:51 PM. Reason: Typos
    • January2015
    • By January2015 14th Feb 18, 12:28 AM
    • 2,069 Posts
    • 5,147 Thanks
    January2015
    Hi all

    I have previously been on here under a different user name but after years of not posting and forgotten details I had to start again.

    We have been on a dmp with Stepchange for 4 years and tracking well, 50% of our debt cleared and if we stay as we are should be debt free by 2020 (around £17k remaining).

    After reading some of the inspirational stories on here I have been considering self managing as we would like to try and save for full and finals and see if we can get debt free soooner.

    So firstly I need to send CCA request letters. I have a template letter ready but wanted to check about the postal order / £1 payment. The problem is we live overseas so if it has to be a postal order I will struggle ! Has anyone sent a cheque or is that not the done thing? Worst case scenario I could ask my sister to get postal orders for me. Any advice would be most welcomed.
    Originally posted by Zerodebtsoon
    Nothing wrong with sending cheques

    I think most of us have moved to basic bank accounts and have no access to cheques anymore - hence the need for postal orders
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    [COLOR=Blue][SIZE=2]
    • Superhoop91
    • By Superhoop91 14th Feb 18, 2:18 AM
    • 59 Posts
    • 8 Thanks
    Superhoop91
    Hi, newbie here. I've got myself so very stupidly into payday loan debts that in the past I could pay off but this time accumulated too many in a short space of time that I won't be able to pay living expenses from next month onwards. I checked out options and SC seemed like a potential helpful way out. I can pay these loans in a few months time but I went to the biggest one and asked to go onto an alternative payment plan and they refused. Is a DMP the right option for me? My debt remedy says I can pay these, my credit card and my overdraft off in 12 months. I'm presuming they'll be a hit to my already awful credit score so is there much harm in going through a DMP as I would to get debt free asap. Let me know please if you need any more information to best help me determine if an SC is best for me. Presuming full interest on these loans, I'm looking at about 7k of debt.

    Many thanks for any help you can offer.
    • Zerodebtsoon
    • By Zerodebtsoon 14th Feb 18, 4:26 AM
    • 15 Posts
    • 8 Thanks
    Zerodebtsoon
    Morning,
    Further to my post above and some more research on debt camel (what a great web site). It seems that I was right if you have enough equity in your house then indeed unsecured creditors can request (and then subsequently take you to court for a charge on your house). Which leads me to the conclusion that I may aswell try the secured loan route even though itíll cost me more,take longer etc before my credit file is trashed by a dmp as after starting one surely any loan offer (if at all) would be an even worse interest rate. Seems to be little difference in unsecured debts to secured debts action just that it takes longer to get there for the creditor. Any one had any experience of creditors threatening to put charge on their house/court action (or actually going ahead with it)? Thank you in advance, going to sleep thinking about it and first think I worry about when I wake.
    Originally posted by Summer12
    This was my biggest fear when we started our dmp, we have equity in our house. We owed £33k when we started our dmp with SC in 2014 to 6 creditors, now down to £17k across 5 creditors and not one has ever threatened a charging order. Dmp was the best thing we did and Iím now looking to go self managed to try and be debt free sooner.
    • Zerodebtsoon
    • By Zerodebtsoon 14th Feb 18, 4:29 AM
    • 15 Posts
    • 8 Thanks
    Zerodebtsoon
    Nothing wrong with sending cheques

    I think most of us have moved to basic bank accounts and have no access to cheques anymore - hence the need for postal orders
    Originally posted by January2015
    Thanks January2015. We have a nationwide account that still has a cheque book (no overdraft or anything so I never closed the account when we started the dmp)

    I just need to find it now as I donít the last time I wrote a cheque !!!128514;

    If not I can order a new one. Will just take longer to get to us in Australia
    • silentsmith
    • By silentsmith 14th Feb 18, 12:46 PM
    • 3 Posts
    • 0 Thanks
    silentsmith
    Thanks
    Many thanks to January, Ploppy and Kidd for your responses. The guidance and information you have given is very helpful.
    Our mortgage product expires at the end of April and we will have to approach our current lender (as clearly no one will touch us with a barge pole). Should I organise and secure a new product first and then organise a DMP?
    • Summer12
    • By Summer12 14th Feb 18, 1:36 PM
    • 79 Posts
    • 37 Thanks
    Summer12
    Thanks Kid77, I thought as much but given that my credit rating is well on its way down the pan I guess it doesnít matter! I thought it may help in feeling less scared going into a dmp however it may all be irrelevant and they have all the agreements etc anyway.
    • WightLyn
    • By WightLyn 14th Feb 18, 2:29 PM
    • 2 Posts
    • 0 Thanks
    WightLyn
    Arrears payment question - Asset Link Capital
    Hi have lurked in here for a while and am in awe at the help and support provided.

    I started my DMP with SC back in Feb 2013 with 6 creditors and a total debt of £44000, almost 5 years later Iíve still got 5 creditors, but the debt is now £12000 Still some way to go, but can almost see the light at the end of the tunnel now. I was paying £500 to SC but due to some issues have had to reduce this to £370 since the start of December.

    So to my questionÖ

    The debt from in question was with Barclaycard but sold to Link Financial. I had a letter from Link Financial at the end of 2017 stating that unless I paid arrears of £236.64 they would begin court action. I spoke to SC who said that it was probably the stage before a default was issued, and to accept the default. But as Barclaycard had never issued a default and not wanting a new default, the others all reach 6 years in the next year or 2, I paid the £236. which was probably the wrong thing to do.

    Now Iíve just had an email from Link Financial to my work email address, which I donít ever remember corresponding with them on but thatís a different issue! The email says:

    Your account is showing as overdue and currently has arrears of £91.00. Please contact this office immediately on free phone 0800 064 4499 in order to make your payment quoting your reference XXXXXXXXX

    I was paying Link £80 reduced to £56 from December, from April I should be able to increase the payments back to £80.

    So my question is should I now try and raise funds to pay the £91.00, speak to Link or ignore it?

    apologies for the long post, hope it makes sense

    Many Thanks

    Lyn
    • selinek
    • By selinek 14th Feb 18, 2:43 PM
    • 49 Posts
    • 24 Thanks
    selinek
    Hi all

    I have previously been on here under a different user name but after years of not posting and forgotten details I had to start again.



    So firstly I need to send CCA request letters. I have a template letter ready but wanted to check about the postal order / £1 payment. The problem is we live overseas so if it has to be a postal order I will struggle ! Has anyone sent a cheque or is that not the done thing? Worst case scenario I could ask my sister to get postal orders for me. Any advice would be most welcomed.
    Originally posted by Zerodebtsoon
    I sent chqs to all 9 of my creditors. Postal orders were the payment of choice as some DCAís were using signatures to on agreements that didnít have one. Not an issue now some of my chqs were returned for ďgood will reasonsĒ Easier track whoís cashed them along with the recorded delivery.

    Welcome back !
    • ramblehan
    • By ramblehan 14th Feb 18, 3:28 PM
    • 592 Posts
    • 1,218 Thanks
    ramblehan
    Hiya. Hope everyone is well in DMP land.

    I currently have a SM DMP, which I am paying back at a £100 a month. Debt is approx £20K. We have had a turn-around in finances, with both of us getting much better paid jobs, and free childcare kicking in shortly, so I am hoping to start putting money aside to pay down debts sooner. Debts were only defaulted in late 2016, early 2017.
    We hope at some stage to go for a mortgage again at some stage - before these debts are going to disappear from our credit file.
    My question is this - am I better off to settle these debts in full so I get a paid in full marker on my file, rather than making F&F offers and getting a partially settled marker. I presume the PS marker would stay on my file until 6 years from default date, and that this might look worse to a mortgage broker?

    Just realised this might be a better question for the mortgage board - but grateful for any responses here too ;-)
    • carbootcrazy
    • By carbootcrazy 14th Feb 18, 3:40 PM
    • 4,721 Posts
    • 26,783 Thanks
    carbootcrazy
    Hiya. Hope everyone is well in DMP land.

    I currently have a SM DMP, which I am paying back at a £100 a month. Debt is approx £20K. We have had a turn-around in finances, with both of us getting much better paid jobs, and free childcare kicking in shortly, so I am hoping to start putting money aside to pay down debts sooner. Debts were only defaulted in late 2016, early 2017.
    We hope at some stage to go for a mortgage again at some stage - before these debts are going to disappear from our credit file.
    My question is this - am I better off to settle these debts in full so I get a paid in full marker on my file, rather than making F&F offers and getting a partially settled marker. I presume the PS marker would stay on my file until 6 years from default date, and that this might look worse to a mortgage broker?

    Just realised this might be a better question for the mortgage board - but grateful for any responses here too ;-)
    Originally posted by ramblehan
    Can I ask if these are old debts (pre 2007)? Have you CCA'd them? It doesn't necessarily have to be pre 2007 debts though as some posters have had great success with newer debts. Should any of your debts prove to be unenforceable because of non-compliant paperwork you would be in a much better position to either stop paying altogether or negotiate a really low settlement amount. January managed paying just 10% of one balance to obtain a F&F settlement. Actually, Full&Final is something of a misnomer as the debts are only partially settled but that's the general term for them. Whatever they're called they end up being settled.


    Sorry, can't help with the mortgage question. Thankfully our mortgage was paid off in the late 1990s
    Last edited by carbootcrazy; 14-02-2018 at 3:43 PM.
    Make £10 A Day Challenge 2018: Jan-Apr: £757.05+. May: £1209.25


    Original Debt: £56804 (@02/13). Now: £9998
    . Under £10K at long last.
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