DMP Mutual Support Thread - Part 12
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Thanks so much, I really appreciate your advice. I will go ahead and do this. But one more thing to mention. We have 12k credit union loan too. Repayment come from husbands wages. We hoped to pay this off with secured loan but continue to save in credit union before starting the DMP. This would mean we would have enough saved in three years to meet the final payment in our hire purchase car arrangement. As we will have no credit rating in theee years we would have no car st that
Also Can I just check, when do I cancel direct debits for all CCs and loans? I am worried about the timing of setting up new back account and paying salaries into that account, but direct debits for debts coming out of old account, which I cant close because of the overdraft, and there being no money in that old account. Wont Santander charge me for unpaid debits? Or would this be suspended once Ive written to Santander? Sorry, I prob am overthinking Im just a worrier!
Sorry I'm a bit confused. You said earlier you wanted to take out a £5k secured loan to pay back your mum and now a further £12k to clear the credit union debt. I really think you need to call Stepchange and get advice. You cannot add a secured loan to the DMP as such - what happens is it becomes a priority debt and will reduce your available funds for the DMP (which extends the term of the DMP). But the advice we are giving is to not do this, because a secured loan is the thing that could ultimately put your house at risk in the future.
Whatever you do or don't do - your first step is to contact your creditors and let them know that you are no longer able to service the debt (loans) or make minimum payments (CCs). Tell them you have contacted SC and give them the reference number - most, if not all, will put your account on immediate hold and so they won't try to draw down the direct debt amount. At the same time set up a new bank account, because it can take a week or more to get one up and running. When it's done you can them move across your other direct debits and salaries. Creditors know DMPs take a while to set up, so once you've contacted them make a note to do so again in say 3 weeks time and ask them to put the account on hold for a further 30 days. All this will give you time to save some money from the payments you would otherwise have made and you could probably clear your overdraft (if that concerns you) and continue with the loan payment to your bank until the DMP is up and running.
Even if the timings don't work out exactly - once you've moved your household bills and priority direct debits over to your new account and your salary goes in, it doesn't really matter if a bill is rejected from your old account and you get charged for it. You can sort that out by adding the charges into the DMP balances once things are up and running.
This is really more straightforward than it seems, you just need to sit down and work through it systematically.0 -
Sorry I'm a bit confused. You said earlier you wanted to take out a £5k secured loan to pay back your mum and now a further £12k to clear the credit union debt. I really think you need to call Stepchange and get advice. You cannot add a secured loan to the DMP as such - what happens is it becomes a priority debt and will reduce your available funds for the DMP (which extends the term of the DMP). But the advice we are giving is to not do this, because a secured loan is the thing that could ultimately put your house at risk in the future.
Whatever you do or don't do - your first step is to contact your creditors and let them know that you are no longer able to service the debt (loans) or make minimum payments (CCs). Tell them you have contacted SC and give them the reference number - most, if not all, will put your account on immediate hold and so they won't try to draw down the direct debt amount. At the same time set up a new bank account, because it can take a week or more to get one up and running. When it's done you can them move across your other direct debits and salaries. Creditors know DMPs take a while to set up, so once you've contacted them make a note to do so again in say 3 weeks time and ask them to put the account on hold for a further 30 days. All this will give you time to save some money from the payments you would otherwise have made and you could probably clear your overdraft (if that concerns you) and continue with the loan payment to your bank until the DMP is up and running.
Even if the timings don't work out exactly - once you've moved your household bills and priority direct debits over to your new account and your salary goes in, it doesn't really matter if a bill is rejected from your old account and you get charged for it. You can sort that out by adding the charges into the DMP balances once things are up and running.
This is really more straightforward than it seems, you just need to sit down and work through it systematically.
Ok I will do all this. My issue with the extra 12 k is to pay the credit union before the DMP kicks in. This is solely because the car will need a final payment in 3 years and if we pay the credit union off we will be able to keep our savings in that account and keep saving so we can pay the car final payment. If we don’t I’m worried we won’t have enough and will lose the car. Thanks again for taking the time to help. This site has given me hope0 -
Hiya, I’ve been on my DMP for nearly a year and am soon coming into some money, what is the best way to ask for the settlement figure? Is it called f&f?
And if it’s too much and I decline do they normally come back with a lower offer in the future?
Thanks for any advice you can give me
Sarah x0 -
I just want to say how grateful I am for this thread and indeed the forum as a whole. I've had a bit of a wobble this weekend and earlier today, was overcome with anxiety - something I thought was in the past in terms of my DMP and debts in general. I took a moment, read the original post and ScentientPoet's excellent account (both of which I have read a few times before) and almost instantly found myself back in a happier place. I then had a good 3 hour nap which I really needed.
I can't imagine how people cope without the advice here and I hope everyone who needs support finds their way to this forum.0 -
Hey!
Just wondering if any of you lovely people could help as I’ve researched this TO DEATH and still feel none the wiser!
I currently about 15 months in to a DMP with SC and everything is running smoothly. Taken on overtime at work & bonuses are helping build up some extra cash nicely on top of my (huge) monthly payment to SC.
My personal situation has changed massively since beginning my DMP (wont bore you with the details!) and now I am in desperate need of renting somewhere of my own to live.
I have 6 months rent up front saved up but naturally, have a couple of defaults on my file with being on the DMP and a ‘Very Poor’ Credit Score.
Is there anyway I will be able to rent in my situation? Or will Landlords take one look at me and run in the opposite direction? Has anyone had any personal experience of renting on a DMP and with defaults?
Like I say, tried to research this but getting very conflicting information so would be greatful for any personal experience/advice!
TIA !!!9786;!!!65039;0 -
DMP_Newbie_91 wrote: »Hey!
Just wondering if any of you lovely people could help as I’ve researched this TO DEATH and still feel none the wiser!
I currently about 15 months in to a DMP with SC and everything is running smoothly. Taken on overtime at work & bonuses are helping build up some extra cash nicely on top of my (huge) monthly payment to SC.
My personal situation has changed massively since beginning my DMP (wont bore you with the details!) and now I am in desperate need of renting somewhere of my own to live.
I have 6 months rent up front saved up but naturally, have a couple of defaults on my file with being on the DMP and a ‘Very Poor’ Credit Score.
Is there anyway I will be able to rent in my situation? Or will Landlords take one look at me and run in the opposite direction? Has anyone had any personal experience of renting on a DMP and with defaults?
Like I say, tried to research this but getting very conflicting information so would be greatful for any personal experience/advice!
TIA !!!9786;!!!65039;
Some tenant screening services offer credit reports to landlords, others don't. ... Because you initiate the check, it counts as a soft inquiry and doesn't negatively affect your credit. Credit bureaus. Equifax and Experian offer several credit screening products for landlords, including credit reports.
It really depends if the landlord uses these services or not.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Onebrokelady wrote: »Your welcome an SOA is a Statement Of Affairs,you list all your incomings and outgoings on here and people can look at it and advise you where you can make savings,I found having a diary on here helps and a spending diary at home and I keep all my receipts so I can track my spending each month,I also pay a lot more attention to my bank account,I have a finance folder where list all my outgoings so I can budget each month and check when my direct debits have been paid,I have a listed budget for everything now,I used to ignore my finances because they were in such a mess but since I've been keeping records of everything I've saved loads of money and don't get any unpleasant surprises
Just want to check... if I do a SOA and am just looking for some advice on how I could improve it... do I post it here on this thread? Or elsewhere?0 -
Just want to thank everyone here.
I've spoken to all 5 creditors about my situation and given them the stepchange reference number.
I was a wreck this time last week and I'm sure it won't all be butterflys and roses from here so I'm going to enjoy the sun today and think up ways to not spend money.0 -
Comingupforair wrote: »Just want to thank everyone here.
I've spoken to all 5 creditors about my situation and given them the stepchange reference number.
I was a wreck this time last week and I'm sure it won't all be butterflys and roses from here so I'm going to enjoy the sun today and think up ways to not spend money.
What a lovely upbeat post:j. Well done on starting the ball rolling and contacting your creditors. That's a big hurdle cleared and one that many new DMPers find very hard to do. So, job done:beer:
There may be the occasional bump in the road of your DMP journey (as there is for many of us however long we've been at it and think we know the ropes:() but it will be nothing to worry about. Just come back on here, tell us what's happened, and I'm sure someone who has been through something similar will be able to set your mind at rest:j
In the meantime, relax and enjoy the sunshine:beer:0 -
I have a letter from Nationwide that says if I don't settle or contact them, they'll get a debt collector involved. Is this basically the same as when Arvato/Westcott got involved my in other debts?
It feels like it probably is but Nationwide's letter seems more formal and pointed than others I have received and it's hard getting through to their phoneline when I work their whole office hours!0
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