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  • FIRST POST
    • sourcrates
    • By sourcrates 18th Sep 18, 9:40 PM
    • 17,694Posts
    • 16,639Thanks
    sourcrates
    DMP mutual support thread part 13 !!
    • #1
    • 18th Sep 18, 9:40 PM
    DMP mutual support thread part 13 !! 18th Sep 18 at 9:40 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 8:03 AM.
    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 expressed are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
Page 83
    • Moveslikeagger
    • By Moveslikeagger 11th Jun 19, 6:48 PM
    • 46 Posts
    • 20 Thanks
    Moveslikeagger
    Hi Tuxedocat.

    I wouldnít pay a penny until they default you and pass your debts to collection agents. That took around 4/5 months with mine so gives you time to save some money. Also interest will stop and the Dcas are easier to deal with. I stopped paying my creditors 6 months ago. I have started making payments to wescott and moorcroft who are collecting my debts. I do not receive letters or calls anymore I just make sure I pay on the 1st of the month like I have agreed. I set up my DMP on my own and find it straightforward especially as I can pay who I want when I want!
    • notpropaganda73
    • By notpropaganda73 11th Jun 19, 8:45 PM
    • 4 Posts
    • 0 Thanks
    notpropaganda73
    Hi all, new to the forum.

    I set up a DMP with StepChange back in January, it's been ok so far in that I feel a lot less stress and can manage the monthly payment to them, but I really wish I had found this forum and the advice given first. I have been lucky enough to receive some inheritance money now and I'm considering wiping clear a few of my debts and was wondering what folks here thought. My total outstanding debts are:

    Everyday Loans - £10k
    AQUA CC - £2k
    First Direct OD - £445
    Lloyds CC - £670
    Tesco CC - £670
    Capital One CC - £280
    Barclaycard - £1450

    I've received £4,500 so was considering clearing most of the credit cards and focussing my repayments on the Everyday Loans. When I check my credit file I only see 3 defaults on there at the moment - Barclaycard, Tesco and Capital One. Should I use this money to clear as much of the non-defaulted debts as I can?

    However having read about Emergency Funds I'm wondering if I shouldn't be so hasty to use this money in this way. StepChange have been helpful but have very much been saying it's up to me. Any advice appreciated.
    • Willing2Learn
    • By Willing2Learn 12th Jun 19, 11:31 AM
    • 3,552 Posts
    • 3,158 Thanks
    Willing2Learn
    Hi notpropaganda73 and welcome to the forum

    If it were me, I would focus the settlements on the accounts that have been defaulted and also passed to a DCA.

    The remaining funds would go into a savings account as my Emergency Fund.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • notpropaganda73
    • By notpropaganda73 12th Jun 19, 11:54 AM
    • 4 Posts
    • 0 Thanks
    notpropaganda73
    Hi - thanks a mill for the response.

    StepChange have said that if I clear only some debts, it would be seen as preferential treatment and the remaining creditors may take further action to recover the debt. They've also suggested attempting a full and final settlement with my current lump sum however I really don't think the creditors would agree to this.

    It's a bit difficult to get my head round at the moment. None of the debts have been passed to DCA's as yet, it's still very early doors for my DMP and while a few accounts are showing as defaulted now I am thinking that I could get back into some sort of manageable situation.

    It's a nice situation to be in I suppose, worrying how best to clear down debts rather than where I found myself a few short months ago!
    • Willing2Learn
    • By Willing2Learn 12th Jun 19, 12:04 PM
    • 3,552 Posts
    • 3,158 Thanks
    Willing2Learn
    Since you have three accounts that have defaulted, that represents three accounts where you have broken your original credit agreement. A defaulted account remains on your credit files for six years from the date of default and is considered pretty toxic data. Even if you fully cleared all the accounts today, the toxic data would still be marked on your credit files for the full six years.

    A creditor who has not defaulted the account will not accept any reduced settlement offer. Why would they? After all, the credit agreement still stands and they are earning interest and fees!

    How have the other accounts been marked on your credit files?
    Are you still paying interest on your Everyday Loans account? (What is your interest rate APR).
    Last edited by Willing2Learn; 12-06-2019 at 12:07 PM.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Adamthom85
    • By Adamthom85 12th Jun 19, 12:08 PM
    • 3 Posts
    • 1 Thanks
    Adamthom85
    Just a little update. I have spoken to SC today and explained everything and they couldn't have been more helpful. They are going to add all my new debts onto the plan for me. They did say if it happens again they will cancel the plan so I need to make sure I make this work.

    Thanks to those who answered my questions, this has been a huge relief
    • Ehmdc
    • By Ehmdc 12th Jun 19, 7:41 PM
    • 6 Posts
    • 0 Thanks
    Ehmdc
    Maybe on the default accounts ask if they would take a lower amount to settle the debts
    • maggies1970
    • By maggies1970 13th Jun 19, 6:32 AM
    • 6 Posts
    • 1 Thanks
    maggies1970
    Hi ,
    Just quick update. I've decided to self managing my debts. Four of my 6 creditors responded and agreed to my offer ( despite very low offers). Two: Halifax and Lookagain are ignoring my letters so far. Last 2 default, the other ones still marks my debts as a late payment. I'm waiting another 2 months and if it's still the case I will start to make only token payments.
    They all stopped the interest.
    So far everything seems to go very smoothly :-)
    Thank all of you for this forum as it took me step by step through all setting my dmp and helping with huge stress.
    Just want to encourage everyone to go self dmp- it's great feeling to be in control again :-).
    I'm not sure how long should I wait before sending second letter woth my payment offer to ones who has not replied yet?
    Cheers
    Maggie
    • TuxedoCat
    • By TuxedoCat 13th Jun 19, 4:08 PM
    • 3 Posts
    • 1 Thanks
    TuxedoCat
    Hi Tuxedocat.

    I wouldnít pay a penny until they default you and pass your debts to collection agents. That took around 4/5 months with mine so gives you time to save some money. Also interest will stop and the Dcas are easier to deal with. I stopped paying my creditors 6 months ago. I have started making payments to wescott and moorcroft who are collecting my debts. I do not receive letters or calls anymore I just make sure I pay on the 1st of the month like I have agreed. I set up my DMP on my own and find it straightforward especially as I can pay who I want when I want!
    Originally posted by Moveslikeagger
    Hi TuxedoCat and welcome to the forum


    If PayPlan are not able to allow a 3-6 month delay to your DMP start date, then maybe they might consider it acceptable if you were only to make token payments for the first few months. That way, you will be sure of having enough funds for the MOT and applicable car maintenance, while still being able to put something aside as an EF.

    Going to token payments may also encourage your creditors to default your accounts, which would mean no more interest!!!
    Originally posted by Willing2Learn

    Thanks both - I really appreciate the advice.


    I haven't been able to get PayPlan to budge with my agreed payments of £295 as they say my I&E covered contingency £125 and MOT/Repairs £10 which I maybe under budgeted - as so far never had an issue with my car (registered 2015) but maybe didn't think about in months/years to come.


    I told them that's great going forward but I don't have any savings right now - she said that's fine we'll delay until July and you'll have £484 by August according to your budget...not sure she has calculated correctly as my payday is 25th of the month and MOT day is by 15 Aug.


    Everything you say is absolutely correct! I recently received a letter from Capital One saying they are temporarily adding payment arrangement markers to my account - I assume this is the dreaded AP people discuss on here.


    I've been on no interest with Aqua for a while now, up to September and as far as I can see no such arrangement is on my credit file.


    I think if I don't receive the defaults by September/October I will go self managed with token payments. Got a feeling I won't for many of them as the payments offered may be covering the minimum payment (if no interest is being added). Capital One is normally £10-12 minimum whilst they froze interest so I don't think I've done this very well at all!


    Learning curve!
    • Suseka97
    • By Suseka97 14th Jun 19, 6:59 AM
    • 744 Posts
    • 853 Thanks
    Suseka97
    ......
    I think if I don't receive the defaults by September/October I will go self managed with token payments. Got a feeling I won't for many of them as the payments offered may be covering the minimum payment (if no interest is being added). Capital One is normally £10-12 minimum whilst they froze interest so I don't think I've done this very well at all! Learning curve!
    Originally posted by TuxedoCat
    It's a shame that Payplan are not being overly helpful and if it were me I'd just tell them that you are going to defer starting your DMP until later in the year. Use the next few months to set up an EF and then go self-managed. You may well find that if your payments to any of the credit card debts meet their standard minimums, they'll start charging interest again. That's what happened to me during my DMP with Barclaycard. Admittedly after a lot of complaining they dropped the interest amount to a nominal figure - but still charged. That was the moment it dawned on me that I'd be better off handling things on my own, although admittedly it took 3 years for that lightbulb moment.

    It is a learning curve for sure - but you seem to have a good sense of what to do, so good luck with it
    • Suseka97
    • By Suseka97 14th Jun 19, 7:01 AM
    • 744 Posts
    • 853 Thanks
    Suseka97
    ........Just want to encourage everyone to go self dmp- it's great feeling to be in control again :-).
    I'm not sure how long should I wait before sending second letter woth my payment offer to ones who has not replied yet? Cheers Maggie
    Originally posted by maggies1970
    Good to hear things are working themselves out and it sounds like you have everything in hand. As for the ones who haven't replied, I wouldn't bother writing again. Just set up the payments and carryon.
    • 10kclark
    • By 10kclark 16th Jun 19, 8:25 AM
    • 1 Posts
    • 0 Thanks
    10kclark
    Hi everyone, new to this forum

    I was wondering if someone could clear up a few questions for me? First a bit of background info

    I’m £19,000 in debt with 13 creditors of different nature and have just set up a dmp, in the very first few steps (signed contracts, cancelled direct debits etc.) I haven’t missed any payments up until now,

    My questions are:

    1) Are creditors likely to stop interest and fees once dmp is setup and they are received regular payments? I’ve seen a lot of people have had problems with this, do you just ride it out and eventually fees and interest will stop?

    2) if a debt is sold to a debt collection agency are they likely to try and take further action or accept the dmp? (I really don’t want people knocking on the door)

    3) people have mentioned receiving harassing calls and letters? What’s the best way to deal with this and does it normally stop after a while?

    4) last but by no means least, I’m aware that this is an informal agreement and that worries me, I don’t want to get hounded by creditors if I’m trying my best and keeping up with my dmp payments, is IVA a better option for me? I have no sellable assets, and am not a home or car owner


    Sorry for the massive haul of questions, thankyou I’m advance for any help
    • Cem13009879
    • By Cem13009879 16th Jun 19, 8:46 AM
    • 8 Posts
    • 0 Thanks
    Cem13009879
    Taking the self managed plunge from SC
    After much through, Iíve decided Iím going to go self managed. Iíve only been with SC since September, and have made all my payment so far but I have no EF and would like some time to build one up. Iím thinking of going self managed, making token payments and then starting from September. I also have a few small depths between £100-200 which are included in my SC plan that I would like to clear quickly, leaving larger ones. Iím nervous as my anticipated end date for SC was Oct 2020 but not that date will get further and further when I decide to pay less, but Iím sure it will be fine! Fingers crossed
    • Lou2010
    • By Lou2010 16th Jun 19, 5:44 PM
    • 3 Posts
    • 0 Thanks
    Lou2010
    Newbie to DMP
    Hi All,

    I took the plunge and called Stepchange yesterday and it is looking like a DMP is the route to go down.
    I have gone through my income and expenditure, using a lot of the recommended amounts from Stepchange because let's face it I dont currently spend anything on stuff like haircuts, magazines etc. as I haven't had a spare penny lately.
    I have £51k of debt over 14 creditors and my monthly repayment worked out at £487 and an estimated 8 years 11 months to pay off my debts.
    I have worked out what I will have spare a month after all my priority Bill's, food shop, DMP payment etc. And it seems a lot. Now i know i haven't been used to any quality of life lately with no spare money which is why i need a DMP and some of this spare needs to be saved for MOT, emergencies etc.
    Can anyone share what they are left with monthly and how much they are able to save etc.?
    • Suseka97
    • By Suseka97 17th Jun 19, 8:23 AM
    • 744 Posts
    • 853 Thanks
    Suseka97
    Firstly hello and welcome to the forum

    ,,,,,My questions are:
    1) Are creditors likely to stop interest and fees once dmp is setup and they are received regular payments? Iíve seen a lot of people have had problems with this, do you just ride it out and eventually fees and interest will stop?
    Originally posted by 10kclark
    Some will do so pretty quickly, others take a little more time and you find some wont stop charging - period. Folks on here with debts with Very have found them to be particularly stubborn. So its hard to say really. Hopefully most, if not all, of yours will do so.

    2) if a debt is sold to a debt collection agency are they likely to try and take further action or accept the dmp? (I really donít want people knocking on the door)
    Originally posted by 10kclark
    No, that's highly unlikely. Many find that when debts are sold on to DCAs they are much easier to deal with. There's no reason why they wouldn't just continue to accept your payment plan - they can't get more out of you if you can't afford it. It's all about 'affordability' these days.

    3) people have mentioned receiving harassing calls and letters? Whatís the best way to deal with this and does it normally stop after a while?
    Originally posted by 10kclark
    Again this depends on individual circumstances. You shouldn't get harrassed, or certainly shouldn't accept it if you do. You will get a flurry of letters, and perhaps calls, at the outset. That's just par for the course. If any do call you tell them that all matters relating to the DMP are to be dealt with in writing from now on and that they are to remove your phone contact details from their records. If they don't do that - block them and complain.

    4) last but by no means least, Iím aware that this is an informal agreement and that worries me, I donít want to get hounded by creditors if Iím trying my best and keeping up with my dmp payments, is IVA a better option for me? I have no sellable assets, and am not a home or car owner
    Originally posted by 10kclark
    You won't get hounded by creditors if you stick to the terms of your DMP. Once things are in motion it'll just trundle along. As for an IVA - I've no experience or advice on that, but if a DMP is doable for you I presonally wouldn't pursue a more formalised route.

    Good luck.
    • sourcrates
    • By sourcrates 17th Jun 19, 3:16 PM
    • 17,694 Posts
    • 16,639 Thanks
    sourcrates
    is IVA a better option for me? I have no sellable assets, and am not a home or car owner
    Originally posted by 10kclark
    Defenetly not an IVA, you don`t have enough debt, but have you concidered a debt relief order (DRO) ?

    Look on the stepchange website, the main requirement is that you have less than £50 left at month end (not including debt repayments) this is what most people fall down on.

    You say you havent even missed any payments yet, that is unusual, you are a long way off recovery action, it can take years.
    Last edited by sourcrates; 17-06-2019 at 3:19 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 expressed are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    • Lou2010
    • By Lou2010 17th Jun 19, 8:14 PM
    • 3 Posts
    • 0 Thanks
    Lou2010
    Bank Account Help!!
    I've just started the process of getting ready to start a DMP and opened a new bank account with Halifax.
    I'm now not sure if they are linked with MBNA and could use the right to off set Halifax against MBNA??
    Can anyone help? My list of creditors are below, any recommendations for bank accounts would be helpful if Halifax is not suitable?

    Barclaycard
    MBNA Credit Card x 2
    Aqua credit card
    Newday credit cards x 2
    Ratesetter
    Creation
    Zopa
    Argos store card
    Post Office
    Tesco credit card

    Thanks
    • sourcrates
    • By sourcrates 17th Jun 19, 8:24 PM
    • 17,694 Posts
    • 16,639 Thanks
    sourcrates
    Bank Account Help!!
    I've just started the process of getting ready to start a DMP and opened a new bank account with Halifax.
    I'm now not sure if they are linked with MBNA and could use the right to off set Halifax against MBNA??
    Can anyone help? My list of creditors are below, any recommendations for bank accounts would be helpful if Halifax is not suitable?

    Barclaycard
    MBNA Credit Card x 2
    Aqua credit card
    Newday credit cards x 2
    Ratesetter
    Creation
    Zopa
    Argos store card
    Post Office
    Tesco credit card

    Thanks
    Originally posted by Lou2010
    Hi,

    They are currently separate companies, but, they are both owned by Lloydís banking group.
    You can try Nationwide or the Coop for banking services.
    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 expressed are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    • Lou2010
    • By Lou2010 17th Jun 19, 8:30 PM
    • 3 Posts
    • 0 Thanks
    Lou2010
    Thank you. So if they are separate companies can they not use the right to offset? I am just paranoid as have my wages due to go in on 5th July now!
    • Willing2Learn
    • By Willing2Learn 18th Jun 19, 10:16 AM
    • 3,552 Posts
    • 3,158 Thanks
    Willing2Learn
    Thank you. So if they are separate companies can they not use the right to offset? I am just paranoid as have my wages due to go in on 5th July now!
    Originally posted by Lou2010
    If it were me, I would open a current account with Nationwide or Co-Op as they are both fully independent and it would ring-fence your income.

    Since Lloyds Banking Group own both MBNA and the Halifax, there would be a risk of offset being applied.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

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