DMP mutual support thread part 13 !!
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I started my DMP on my own back in September, owing approx £45k and payments were to be £403. All creditors agreed. We have now had to switch our mortgage to a new deal which means the mortgage payment has increased.
The Stepchange budget showed that there would now be £279 available to pay off creditors. This will now take around 13yrs for the DMP to be paid off. I was ok with this as there will be pay rises over the years to bring it back, plus in 3yrs time my husband's loan will be paid off and he will assist me with clearing this down further.
Stepchange has written to them all and i have had my first rejection letter from Halifax. Letter does state that they could be moving the debt on and to just keep paying.
I am rather worried now, does anyone know what Halifax's next step could be? I believe they should also be defaulting me any time now.0 -
Just a quick update on my DMP, I called MBNA and straight away they froze my interest for 30 days. The lady on the phone was really helpful and said to call back in 30 days and go through I&E on the phone with her and work out a payment plan. Just for those a bit scared of calling a creditor. Go for it as I was worried but they are not as scary/rude as you think they will be. Tesco and Halifax I have sent letters to so hope to get a response soon! Good luck all0
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Halifax may well 'reject' the new offer but at the end of the day, they have more money than you.I started my DMP on my own back in September, owing approx £45k and payments were to be £403. All creditors agreed. We have now had to switch our mortgage to a new deal which means the mortgage payment has increased.
The Stepchange budget showed that there would now be £279 available to pay off creditors. This will now take around 13yrs for the DMP to be paid off. I was ok with this as there will be pay rises over the years to bring it back, plus in 3yrs time my husband's loan will be paid off and he will assist me with clearing this down further.
Stepchange has written to them all and i have had my first rejection letter from Halifax. Letter does state that they could be moving the debt on and to just keep paying.
I am rather worried now, does anyone know what Halifax's next step could be? I believe they should also be defaulting me any time now.
They will not force you to pay more than you can, this would put you in further financial difficulty, and that is no good to anyone.
Halifax rejected my offer, on a personal loan I have with them, but they still take the reduced amount every month. They defaulted quite quickly too.
Please don't worry - I think some lenders just try to push for more money but if you don't have it then you can't pay it to them.
Good luck.DMP launched 04/07/17 left to pay = £14,238.79 (£16,982.82 original debt.) Thanks to MSE & all you wonderful Forum Peeps!:T0 -
Well, here we are. I think I've made pretty much every mistake possible, eg:
Full switch to new Natwest Account in the middle of October.
Paid £150 off HSBC overdraft, £60 to clear CO-OP overdraft, left me scraping round for pennies and eating whatever was lurking in the freezer until payday.
Discovered that cheques now take 4 days to clear, so the refund I got from a catalogue didn't clear in time to pay one of my direct debits on my new account. That nearly cost me £8.
Paid all my credit cards to the middle of October, so having repeated "well, you haven't missed a payment" conversations with everyone.
Had to use (still perfectly active) credit card to pay car insurance, as the alternative (monthly payment) was a NEW credit agreement. I didn't know.
Everyone (MBNA, Barclaycard, HSBC, Paypal) have been fine so far with the 30 days. Barclaycard were actually lovely. MBNA have (according to my account page) accepted the reduced payment amount. The Co-op have accepted, and even told CAP that I needed to clear the credit on my current account. (So I have an extra £8.94 to play with this month. :T)
Nobody's been paid yet under the DMP, which is making me anxious, even though I know CAP have only had the money for 8 days, and are still waiting to hear back from most of the creditors.
Me being me, I have created (an extremely complicated) spreadsheet to monitor all my little pots of money - which helps a little.
£47,846.11 DEBT DFD Sometime in 20230 -
Hi Energysaving and welcome to the forum.
Just double-checking that with your new NatWest current account, you don't owe any money to any creditor that is part of the RBS group?
A spreadsheet is a perfectly sensible approach, as you need to stick to your monthly budget, and you need to know where every penny is going. I started out with a spreadsheet, then migrated to MS Money and then finally to YNAB in 2012. It's all part of the learning curve, that is how to manage credit accounts, monthly budgets and money in general.
Good luck on your DMP journey!!
I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
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A 13 year plan with the prospect of speeding it up with additional future income sounds like a good way to manage your debt-free journey....The Stepchange budget showed that there would now be £279 available to pay off creditors. This will now take around 13yrs for the DMP to be paid off. I was ok with this as there will be pay rises over the years to bring it back, plus in 3yrs time my husband's loan will be paid off and he will assist me with clearing this down further.
Stepchange has written to them all and i have had my first rejection letter from Halifax. Letter does state that they could be moving the debt on and to just keep paying.
Don't worry about Halifax. They have to accept what you can afford as they have no choice. Just stick to the offered payment plan. A default is good, as it means the toxic debt account drops off your credit files earlier. All Halifax can do is pass your debt on to a DCA, who in turn, can only expect to be paid according to the payment plan you have offered. I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job0 -
Stepchange has written to them all and i have had my first rejection letter from Halifax. Letter does state that they could be moving the debt on and to just keep paying.
I am rather worried now, does anyone know what Halifax's next step could be? I believe they should also be defaulting me any time now.
Halifax moved my loan onto Wescott who just manage debts for them.
Nothing to worry about just different people to pay. :j0 -
Hi willing2learn, I have the majority of my debts with Halifax.. I have a joint account with NatWest (where my mortgage comes out of) never really any money in there just enough to cover bills etc.. will this cause any problems? Didn’t realise Halifax and Nat West are linked?0
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Hi Moveslikeagger,
I believe Halifax is part of the Bank of Scotland group, whereas Natwest are part of the Royal Bank of Scotland group, and are two entirely different beasts. I don't believe there is any link between NatWest and Halifax that should concern you. The problem only arises when you are in debt to a linked creditor, as then they can claim offset payments to recover debt. I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job0 -
Willing2Learn wrote: »Hi Energysaving and welcome to the forum.
Just double-checking that with your new NatWest current account, you don't owe any money to any creditor that is part of the RBS group?
A spreadsheet is a perfectly sensible approach, as you need to stick to your monthly budget, and you need to know where every penny is going. I started out with a spreadsheet, then migrated to MS Money and then finally to YNAB in 2012. It's all part of the learning curve, that is how to manage credit accounts, monthly budgets and money in general.
Good luck on your DMP journey!!
Thank you. I'm fairly sure I don't have any Natwest group creditors - I did spread myself fairly liberally across the banking world. I didn't realise until I started this that John Lewis Partnership card was owned by HSBC, but as I owe both of them, they can just fight it out.:o0
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