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  • FIRST POST
    • sourcrates
    • By sourcrates 18th Sep 18, 10:40 PM
    • 18,623Posts
    • 17,538Thanks
    sourcrates
    DMP mutual support thread part 13 !!
    • #1
    • 18th Sep 18, 10:40 PM
    DMP mutual support thread part 13 !! 18th Sep 18 at 10:40 PM
    Welcome to the DMP mutual support thread Part 13 !!

    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 DMP related questions are welcome.

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

    The old thread can be found here :

    https://forums.moneysavingexpert.com/showthread.php?t=5623951


    This Forum tip was included in MoneySavingExpert.com's weekly email!
    Last edited by Former MSE Andrea; 13-03-2019 at 9:03 AM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, 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 expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
Page 109
    • Changingtimes
    • By Changingtimes 20th Oct 19, 3:01 PM
    • 56 Posts
    • 14 Thanks
    Changingtimes
    Having been with Stepchange now for 10 months I am debating if to go self managed or not. Are there any pros v cons.
    If self managed i am guessing you send your SOA and your offer?
    Payments once agreed i presume you make by Standing Order as opposed to bank card?
    Is there anything else to be considered in SM?
    Any advice welcomed

    DEBT FREE MISSION ☆☆DMP COMMENCING 01/01/19 ☆☆
    - CURRENT DEBT £22,000 - DEBT FREE BY OCTOBER 2020
    UPDATE 01/09/2019 - BUSTED £10,000 - CURRENT DEBT £12,0000
    • sourcrates
    • By sourcrates 20th Oct 19, 3:50 PM
    • 18,623 Posts
    • 17,538 Thanks
    sourcrates
    Having been with Stepchange now for 10 months I am debating if to go self managed or not. Are there any pros v cons.
    If self managed i am guessing you send your SOA and your offer?
    Payments once agreed i presume you make by Standing Order as opposed to bank card?
    Is there anything else to be considered in SM?
    Any advice welcomed
    Originally posted by Changingtimes
    Itís just like things were prior to debt management, but the amount you pay is governed by you, not your creditors.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, 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 expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • Changingtimes
    • By Changingtimes 20th Oct 19, 4:03 PM
    • 56 Posts
    • 14 Thanks
    Changingtimes
    Thanks Sourcrates. So it's a case of making offers and hoping they accept? Reason I ask SC pay 1 of my creditors a lot more than another that I have more outstanding balance with. Surely they should be paying the higher debt the higher amount ? Example
    XX is owed £2500 and getting £100 a month then XXX is owed £1500 and getting £200 a month. A lot of smaller debts are now paid or nearly paid.
    How do you guys on SM work out your offers?

    DEBT FREE MISSION ☆☆DMP COMMENCING 01/01/19 ☆☆
    - CURRENT DEBT £22,000 - DEBT FREE BY OCTOBER 2020
    UPDATE 01/09/2019 - BUSTED £10,000 - CURRENT DEBT £12,0000
    • sourcrates
    • By sourcrates 20th Oct 19, 9:28 PM
    • 18,623 Posts
    • 17,538 Thanks
    sourcrates
    Thanks Sourcrates. So it's a case of making offers and hoping they accept? Reason I ask SC pay 1 of my creditors a lot more than another that I have more outstanding balance with. Surely they should be paying the higher debt the higher amount ? Example
    XX is owed £2500 and getting £100 a month then XXX is owed £1500 and getting £200 a month. A lot of smaller debts are now paid or nearly paid.
    How do you guys on SM work out your offers?
    Originally posted by Changingtimes
    Again, thatís up to you, you can either just pay everyone a proportionate payment from your disposable income, or pay them pro rata, pay a larger debt more than a smaller one, itís entirely up to you.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, 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 expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • Suseka97
    • By Suseka97 20th Oct 19, 11:09 PM
    • 858 Posts
    • 944 Thanks
    Suseka97
    ...... So it's a case of making offers and hoping they accept? Reason I ask SC pay 1 of my creditors a lot more than another that I have more outstanding balance with. Surely they should be paying the higher debt the higher amount ? Example
    XX is owed £2500 and getting £100 a month then XXX is owed £1500 and getting £200 a month. A lot of smaller debts are now paid or nearly paid.
    How do you guys on SM work out your offers?
    Originally posted by Changingtimes
    I've never quite understood how SC work out the payment allocation, which was much like yours in terms of smaller debts getting a bigger piece of the pie. If you go on to the NEDCAB website they have a repayment calculator based on your disposable income that would give you an indication of how the split might work.
    • DaveAllen
    • By DaveAllen 21st Oct 19, 12:05 PM
    • 7 Posts
    • 0 Thanks
    DaveAllen
    Sorry if I'm posting in the wrong place, and my apologies if all the information is in the 109 pages of this thread.

    I have been in a DMP with PayPlan for ten years now. Cabot own three of the debtor accounts, PRA one, and another with Moorcroft Arrow. There are two others with Barclays collections.

    PayPlan have told me that I would need to find at least 30% of the total outstanding, and only Cabot (having already offered me a 70% discount to settle) may take this. This was in response to an offer by a family member to loan me the money to clear the total amount.

    I understand that after this length of time, and with the debts having changed hands on a number of occasions, some of them may be unenforceable. How do I go about finding this out, please?

    And how do I do this without upsetting the DMP currently in place? And am I likely to get myself into grief with anyone I write to for proof that the debt is still enforceable.

    Thank you all in advance.
    • Willing2Learn
    • By Willing2Learn 21st Oct 19, 12:31 PM
    • 4,629 Posts
    • 4,180 Thanks
    Willing2Learn
    I understand that after this length of time, and with the debts having changed hands on a number of occasions, some of them may be unenforceable. How do I go about finding this out, please?

    And how do I do this without upsetting the DMP currently in place? And am I likely to get myself into grief with anyone I write to for proof that the debt is still enforceable.
    Originally posted by DaveAllen
    Hi,


    Have a good read the DebtCamel article linked below. You can come back here with any further questions you may have
    Debts - why, how & when to ask for the CCA agreement

    And submitting a CCA request to confirm your creditors have compliant paperwork is your right under legislation. It will not cause you any grief...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • YorkieDave
    • By YorkieDave 21st Oct 19, 1:36 PM
    • 2 Posts
    • 0 Thanks
    YorkieDave
    DMP start
    Hi,

    I'm hoping to set up a DMP with my creditors by myself. Long story short - my wife and I were both made redundant and are both now self-employed. The total debt, all in my name is £90k unsecured.

    I'd like a bit of advice please :-)
    I can afford a total of £450 per month for repayments. I can't go for bankruptcy for job reasons.
    Has anyone had any success getting creditors to accept that level of repayment which will obviously mean many years to pay off? My hope is to be able to pay off at a higher rate in the future.
    I'm planning to go to creditors with income / expenditure and repayment proposal based on size of debt and my disposable income. Is there anything else I need to send them?
    Does anyone have any other advice re negotiating with creditors?

    Thanks!
    • DaveAllen
    • By DaveAllen 21st Oct 19, 3:03 PM
    • 7 Posts
    • 0 Thanks
    DaveAllen
    Fantastic, thank you.

    Just realised that the CCAs are around 20+ years old in some cases, even if the defaults are only around 10. Iíll see what comes back.
    • Willing2Learn
    • By Willing2Learn 21st Oct 19, 3:55 PM
    • 4,629 Posts
    • 4,180 Thanks
    Willing2Learn
    I'm hoping to set up a DMP with my creditors by myself. Long story short - my wife and I were both made redundant and are both now self-employed. The total debt, all in my name is £90k unsecured.

    I'd like a bit of advice please :-)
    I can afford a total of £450 per month for repayments. I can't go for bankruptcy for job reasons.
    Has anyone had any success getting creditors to accept that level of repayment which will obviously mean many years to pay off? My hope is to be able to pay off at a higher rate in the future.
    I'm planning to go to creditors with income / expenditure and repayment proposal based on size of debt and my disposable income. Is there anything else I need to send them?
    Does anyone have any other advice re negotiating with creditors?
    Originally posted by YorkieDave
    Hi YorkieDave and welcome to the forum

    Yes, there have been people who have set up a DMP for the long-term (ie with a duration of more than 10 years

    Are you planning to Self-Manage (SM) your DMP? Or are you planning on using the DMP management available from one of the free agencies (the CAB, StepChange or PayPlan)?

    Regardless of which DMP route you are going to take, I would definitely recommend suspending payments to your creditors for six months, so that you can build an appropriate Emergency Fund (EF). This is because an EF protects from the unknown expenses that will pop up every now and then. You need to have the funds available for unknown car repairs, boiler maintenance or whatever else blights your debt-free journey. And besides, an EF is an essential component of any successful monthly budget and DMP

    If you do decide to suspend payments for six months, then you will have to write to each of your creditors. You need to advise them of your plans, and you could include a line stating your scheduled DMP start date DD/MM/2020
    Last edited by Willing2Learn; 21-10-2019 at 4:01 PM.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • sourcrates
    • By sourcrates 21st Oct 19, 4:30 PM
    • 18,623 Posts
    • 17,538 Thanks
    sourcrates
    Fantastic, thank you.

    Just realised that the CCAs are around 20+ years old in some cases, even if the defaults are only around 10. Iíll see what comes back.
    Originally posted by DaveAllen
    Extremely unlikley they will have any paperwork whatsoever in that case, however they may just suprise you, definitely send them as it will improve your position no end if they cannot produce them.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, 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 expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • startingadmp
    • By startingadmp 21st Oct 19, 7:41 PM
    • 4 Posts
    • 0 Thanks
    startingadmp
    Hi all,

    I've finally come to terms with the problem I currently have with existing debts, and am looking to start on a DMP in the very near future.

    Currently I have just shy of £35k of debts, with the Stepchange Debt Remedy tool suggesting a £500 per month repayment; this is affordable, so really want to press ahead. (Reason for going with Stepchange rather than on my own is due to the number of creditors).

    As a newbie to all this, just wanted to check if there's anything I've missed. A lot of payments are due on between 28/10 and 1/11 (due to payday) - I've cancelled all Direct Debits and in the process of cancelling CPAs. In addition, I'm in the process of opening a basic bank account, as I have a credit card and overdraft with my current account provider.

    Ideally, I'm looking to hold off "officially" starting the DMP until January, in part to build up an emergency pot and in part to get Christmas out the way. I'm already on a repayment plan with two creditors (both unsecured payday loans), but for the remainder I've never missed a payment previously. Is this feasible?

    In any case, what are the next steps? Should I wait for each cancelled payment to be missed and then send each creditor a letter saying that I'm speaking to Stepchange?

    My plan was to miss payments on 28/10, 28/11, and 28/12 for most creditors, and to make payments to my current bank until the new basic account is sorted and wages transferred across.

    Any advice would be great!
    • Willing2Learn
    • By Willing2Learn 21st Oct 19, 8:05 PM
    • 4,629 Posts
    • 4,180 Thanks
    Willing2Learn
    Ideally, I'm looking to hold off "officially" starting the DMP until January, in part to build up an emergency pot and in part to get Christmas out the way. I'm already on a repayment plan with two creditors (both unsecured payday loans), but for the remainder I've never missed a payment previously. Is this feasible?

    In any case, what are the next steps? Should I wait for each cancelled payment to be missed and then send each creditor a letter saying that I'm speaking to Stepchange?

    My plan was to miss payments on 28/10, 28/11, and 28/12 for most creditors, and to make payments to my current bank until the new basic account is sorted and wages transferred across.
    Originally posted by startingadmp
    Hi,

    You will need to hold off starting your DMP with StepChange until closer to the official start date. You say January, but I suggest April instead, as you may want to consider suspending your accounts, to build up a full six months-worth of savings toward your Emergency Fund (EF).

    You would of course, have to write to your creditors, to suspend you accounts, advising that your DMP start-date will DD/MM/2020. Having three or even six months saved up in your EF, will cover you against unforeseen obstacles that will occur from time to time.

    Other than your letters will be sending to your creditors, I think you have just about got most things covered.
    Last edited by Willing2Learn; 21-10-2019 at 8:07 PM.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • startingadmp
    • By startingadmp 21st Oct 19, 11:13 PM
    • 4 Posts
    • 0 Thanks
    startingadmp
    Thanks for that Willing2Learn, really useful.

    One other quick question - playing with the StepChange debt remedy tool, depending on the figures I put in for cost of living, I can sometimes be recommended an IVA, sometimes a DMP. Just out of interest, anyone know if there's a figure of what is likely to be granted a DMP?

    For example, if you can pay at least 1% of your debt monthly, creditors may agree to a DMP, while if you can only pay 0.5-0.8% of your debt monthly, you'd have to go down the IVA/bankruptcy route.

    Guess I'm just interested in what would make StepChange recommend an IVA as a solution as opposed to a DMP.
    • sourcrates
    • By sourcrates 22nd Oct 19, 12:20 AM
    • 18,623 Posts
    • 17,538 Thanks
    sourcrates
    Thanks for that Willing2Learn, really useful.

    One other quick question - playing with the StepChange debt remedy tool, depending on the figures I put in for cost of living, I can sometimes be recommended an IVA, sometimes a DMP. Just out of interest, anyone know if there's a figure of what is likely to be granted a DMP?

    For example, if you can pay at least 1% of your debt monthly, creditors may agree to a DMP, while if you can only pay 0.5-0.8% of your debt monthly, you'd have to go down the IVA/bankruptcy route.

    Guess I'm just interested in what would make StepChange recommend an IVA as a solution as opposed to a DMP.
    Originally posted by startingadmp
    There debt remedy tool is a bit of a blunt instrument to be honest, you need to have sufficient disposable income for an IVA, there is a calculation they use to determine this, but for the life of me Iíve forgotten what it is.

    There are other factors involved of course, although there are no limits, ideally you should have quite a large amount of debt if you choose the IVA route, as the feeís you pay with this kind of arrangement are high, and are paid before the creditors get their cut, they amount to around 6/8k on average, and can be more than this, so your monthly payment has to be enough to cover the fees, plus what eventually will go to the creditors.

    IVAís are unsuitable for smaller debts, because even though you may be approved, you could end up paying back the full amount plus fees, with no debt written off, wear as with larger debt amounts, there is likely to be a substantial balance left at the end of your arrangement, which is then written off.

    Many, many times people do not do there research correctly, and end up with something they do not understand, paying more than they thought, and not knowing why.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, 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 expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • mhendel86
    • By mhendel86 22nd Oct 19, 12:39 PM
    • 9 Posts
    • 0 Thanks
    mhendel86
    DMP - on the fence
    Hi - I have just come for some advice on starting a DMP please, as I am currently undecided on the best approach?

    I am in a situation where I have ~£62k debt [mixture of loans and credit cards] with monthly payments of around £1100. This is just about manageable each month, although leaving things very tight, and sometimes things are popped on a credit card - I have an average credit rating and no defaults or missed payments on any of my creditors. With all that stuff I am managing, I am struggling to see an end to paying it off at the moment.

    I have spoken to Payplan for some advice, and after going through income & expenditure with them, they have offered to set up a DMP with a monthly payment of £682 - a monthly saving of around £400.

    I am on the fence really with which way to go:
    - stay as I am, continue the making minimum payments, maintain an average credit rating, manage things myself and pay off at some point in the future - my reserve is things tipping the balance and having to rely on the credit card more as I/E is right on the wire - possibly being worse in 6 months time
    - enter into DMP now, let Payplan manage things - take the defaults that I'll get and the hit on my credit rating - but allow myself a more comfortable monthly life

    Having now actually written that in black and white, it seems starting the DMP makes more sense for physical amounts and mental reasons!

    Any advice would be gratefully received. Thanks
    • startingadmp
    • By startingadmp 22nd Oct 19, 8:27 PM
    • 4 Posts
    • 0 Thanks
    startingadmp
    Thanks for all the help so far!

    Final question hopefully (for now )

    I have cancelled direct debit payments but ideally don't want the DMP to start until January, in order to build up an emergency fund. However, aware StepChange wouldn't be too keen on this. In addition, some creditors have CPAs in place; the bank was very unhelpful when attempting to cancel these, but have said they have been (I'm not 100% convinced).

    When should I send a letter to creditors? Before the payments are attempted, or after the first isn't paid? What should it say? How can I stretch non-payment out 3 months before actually starting the DMP formally?
    • YorkieDave
    • By YorkieDave 22nd Oct 19, 10:39 PM
    • 2 Posts
    • 0 Thanks
    YorkieDave
    Iíve never hear of an EF before. Is it common practice and accepted by creditors to set up an
    EF before starting a DMP? Do all creditors accept this and not try to take you to court before 6 months is up?

    Two of the loans I set up were for my business but in my name, with Shawbrook and Zopa. Will a DMP on those affect my business at all?
    • sammy Beebee
    • By sammy Beebee 23rd Oct 19, 9:18 AM
    • 10 Posts
    • 0 Thanks
    sammy Beebee
    So I have just received my first default notice from Tesco Bank (Credit Card balance £1347. Letter sounded scary but I'm assuming in the grand scheme of things the default is actually a positive. My DMP is due to start on the 1st November and I have heard back from most creditors saying that they accept my payment plan and my account has moved to collections department, presumably this will lead to further defaults?
    Current Debt £29,000
    DMP start 1/11/19
    • purplepaws
    • By purplepaws 23rd Oct 19, 9:42 AM
    • 68 Posts
    • 71 Thanks
    purplepaws
    Sorry to keep going on, I appreciate there are lots of people here with questions & you're all working hard to answer them all - but can anyone give me any guidance on this?
    Originally posted by jupitercrash

    Hi Jupitercrash,


    I wanted to reassure you about dealing with MBNA. My experience so far, is that they are really kind when dealing with people with MH problems. My husband was diagnosed as BPD last year - so I finally understand why he used to go out and buy a new car after remortgaging the house to pay for it!

    I've set up his DPB and both written and spoken to MBNA. On the phone they have been fab, very caring and considerate. To be honest, I have been shocked by just how nice they have been. It would appear that many lenders are very aware of the effects of BPD and money. They have asked for a letter from his consultant to confirm his diagnosis, which with my hubbies consent, they now have. I guess it is up to the individual, if you want to share this info, but now they have confirmation of his diagnosis they have been totally supportive and only contact me every 6 months or so. (We are paying nothing, interest has been frozen on £25,000+ debt)


    I do believe that these companies are trying to be better when dealing with customers who suffer with MH issues, this can only be a good thing.


    Good luck x
    DMP launched 04/07/17 left to pay = £14,425.23 (£16,982.82 original debt.) Thanks to MSE & all you wonderful Forum Peeps!
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