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  • FIRST POST
    • sourcrates
    • By sourcrates 18th Sep 18, 10:40 PM
    • 15,560Posts
    • 14,642Thanks
    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
    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 10
    • January2015
    • By January2015 12th Oct 18, 12:51 PM
    • 2,256 Posts
    • 5,432 Thanks
    January2015
    Hi

    I started my DMP with step change earlier this year and on the whole it has helped a lot. I no longer worry about having a heart attack due to the stress and I can sleep ok most nights. However I am having trouble with Yorkshire Bank. I owe them a lot of money and they are charging 4.12% interest a year. This means that every month my balance is actually going up. Step Change has estimated my debt free date to be 20 something years in the future, which is bad enough . But with my largest debt increasing every month the situation feels hopeless. All the letters / statements from Yorkshire Bank say I agreed to interest rate and it will continue for the life of my loan.

    I am hoping my earning will go up over time and I will be able to pay them more each month, but that is a long way off.

    What should I do? Is it enough to call them and beg for them to reduce the interest?
    Originally posted by Lucylou7
    I wrote the post below to another forum member recently - who is also having trouble with interest being charged. Write to Yorkshire Bank with the same argument I have set out below. It worked for me with Halifax.

    I have no experience with Next, but just write to them and formally request they default the acount - and back the default to the start of your DMP. Make it clear your circumstances are unlikely to improve and therefore unless they support you with defaulting the account and removing interest you will never clear this debt. Let them know you other creditors have fully supported the difficult decision you made to enter a DMP and have defaulted and stopped interest. Tell them you feel they are treating you less favourably than someone who had been irresponsible and walked away from pay the debt completely. If you had done that they would already have defaulted, stopped interest and looked to selling the debt on to a debt collection agency. Tell them you feel you are being penalised for being responsible and seeking support from a debt charity to deal with your debts.

    It may not work, but hopefully they will see sense and behave as they should have in the first place.
    Originally posted by January2015
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    • sourcrates
    • By sourcrates 12th Oct 18, 12:57 PM
    • 15,560 Posts
    • 14,642 Thanks
    sourcrates

    What should I do? Is it enough to call them and beg for them to reduce the interest?
    Originally posted by Lucylou7
    Hi,


    Maybe you could instead take charge of the situation, stop paying them, force the debt to default, eventually they will sell the debt on, interest and charges will stop for good then, and you can deal with it on your own terms.


    If the creditor has refused all reasonable requests to stop interest etc, then little else is left open to you.


    You need to alter your perspective, the bank is not in charge of this situation, you are........alternatively would insolvency, such as an IVA be possible ?
    Last edited by sourcrates; 12-10-2018 at 3:04 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/
    • January2015
    • By January2015 12th Oct 18, 2:19 PM
    • 2,256 Posts
    • 5,432 Thanks
    January2015
    Or you could stop paying them, let the debt default, allow them to sell the debt on, and interest will stop for good then, just a thought.
    Originally posted by sourcrates
    Despite what I said in my post above about writing and arguing they are treating you less favourly than someone who stopped paying altogether - I think Sourcrates is right.

    Stop paying them.
    They will default the account.

    Don't worry about letters etc. Nothing bad will happen. Force them to default the account and then make arrangements to pay it off with your DMP.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    • purplepaws
    • By purplepaws 12th Oct 18, 4:06 PM
    • 51 Posts
    • 54 Thanks
    purplepaws
    Payplan or Step Change? Reviews please.
    Hello! Long time, no post.
    I still lurk around to see how you are all getting on.
    My DMP with Payplan is trundling along quite well now and has been for over a year.


    However, I now have to go-ahead to sort out the debts built up by my OH, following his diagnosis of BPD2 - he now understands why he has had such difficulty in managing his moods and consequential spending sprees - such as remortgaging the house to pay off debts but coming home with a brand new BMW X5. Not an excuse but now a reason to get our stuff in order once and for all.
    He has granted power of attorney to me and this has been accepted by most creditors EXCEPT Barclaycard - but that is another story . . .


    So, back to the title of this post - whilst I'm quite happy with the service from Payplan, is there any benefit in me using Step Change to manager OH's debt or would I be better off starting an plan with Payplan?


    Any constructive comments welcomed!


    Many thanks in advance - thank you.
    DMP launched 04/07/17 left to pay = 15,596.29 (16,982.82 original debt.) Thanks to MSE & all you wonderful Forum Peeps!
    • sourcrates
    • By sourcrates 12th Oct 18, 4:50 PM
    • 15,560 Posts
    • 14,642 Thanks
    sourcrates

    So, back to the title of this post - whilst I'm quite happy with the service from Pay-plan, is there any benefit in me using Step Change to manager Oh's debt or would I be better off starting an plan with Pay-plan?


    Any constructive comments welcomed!


    Many thanks in advance - thank you.
    Originally posted by purplepaws

    Hi,


    Not much between them really, step-change is a debt charity, funded by contributions from the credit industry and from other commercial partners.


    Payplan is one of the largest commercial debt help organisations in the UK.
    They're able to offer free debt help to their clients because they are funded by contributions from the credit industry and from other commercial partners, much the same as step-change are.


    Service from both should be similar.
    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/
    • biker_rob
    • By biker_rob 13th Oct 18, 10:33 AM
    • 15 Posts
    • 14 Thanks
    biker_rob
    DMP update. I sent letters to 4 creditors 2 weeks ago, Tesco Bank have replied by text to say they have placed the account on hold for 30 days which is good. Nothing from Capital One and MBNA although I've noticed that phone calls have stopped for a few days now so I'm assuming they've done the same. Perhaps letters are on their way.

    Pounds to Pocket contacted me by email this morning. They said they are in receipt of my email (which is incorrect as I sent them a letter) and that they need further information so my account status can be updated. They are requesting the Step Change reference number which I am certain I included on the letter (I will check when I get home from work tonight).

    I'm guessing that they are trying to get into a dialogue with me so if I didn't include the reference number on my letter, I will send another letter with this information and reiterate that I only want to be contacted by letter.

    My Nationwide account is up and running now, have let employers know so my salary goes in from this month. Cleared any remaining funds from Barclays (who I have an overdraft with) and will send them the holding letter on Monday. All DDs cancelled so will be setting up new ones on Monday in my new account.

    Getting there. My EF will be in place by end of next week, so will be contacting Step Change soon to start the DMP. I do think I could go self-managed as I've surprised myself how organised I've been but feel happier letting SC take the reigns initially and enable me to have some time to breath and get on top of things.

    Love the support on this thread, reading other people's posts has been really motivating.
    • carbootcrazy
    • By carbootcrazy 13th Oct 18, 10:59 AM
    • 5,070 Posts
    • 28,740 Thanks
    carbootcrazy


    So, back to the title of this post - whilst I'm quite happy with the service from Payplan, is there any benefit in me using Step Change to manager OH's debt or would I be better off starting an plan with Payplan?


    Any constructive comments welcomed!


    Many thanks in advance - thank you.
    Originally posted by purplepaws
    Were you meaning would it be better to keep things totally separate and use a different company rather than the same one that's dealing with your DMP?
    Original Debt: 56804 (@02/13). Now: 9048. Almost sub 9000 at long last.
    • Time_To_Change
    • By Time_To_Change 13th Oct 18, 11:36 AM
    • 38 Posts
    • 19 Thanks
    Time_To_Change
    Hi all just a quick query and an update. All my letters have been sent and all accounts are now on hold. MBNA have so far been helpful and surprisingly after hearing other people's problems so have barclaycard. My total income did not match my breakdown in my I&E form as somehow I had taken off my partners income in the breakdown but included it in the total. Barclaycard wrote to me saying they do not expect me to pay more than I can afford and have put an extra 2 weeks hold on my accoun for me to review my offer. I shall just write back and explain my error and that my original offer still stands. Tesco Bank have been very quiet and put my account on hold but have barely bothered me at all. It is still very early days and i am sure it will become more stressful but I am now starting to feel more confident and assured that I have done the right thing in self managing my creditors. Part of the reason I went self managed was because I had to exclude one credit card from my DMP as I quite often have a lot of expenses to cover at work with fuel hotel bills etc. Stepchange and payplan did not seem to keen on this idea. My question is should I have mentioned this other card and the reason I am excluding it to my other creditors? I didn't mention it as I didn't see it to be necessary and was worried it may complicate things. I am just a little concerned that they may see my credit file and ask why I didn't include this. As always any advice would be much appreciated.
    • sourcrates
    • By sourcrates 13th Oct 18, 11:45 AM
    • 15,560 Posts
    • 14,642 Thanks
    sourcrates
    My question is should I have mentioned this other card and the reason I am excluding it to my other creditors? I didn't mention it as I didn't see it to be necessary and was worried it may complicate things. I am just a little concerned that they may see my credit file and ask why I didn't include this. As always any advice would be much appreciated.
    Originally posted by Time_To_Change

    No one else`s business but yours T To C.


    If they ask, you simply say its a priority payment, necessary for work purposes, wear as all the other unsecured debts are non priority payments.


    Keep it simple and concise.
    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/
    • Time_To_Change
    • By Time_To_Change 13th Oct 18, 12:20 PM
    • 38 Posts
    • 19 Thanks
    Time_To_Change
    No one else`s business but yours T To C.


    If they ask, you simply say its a priority payment, necessary for work purposes, wear as all the other unsecured debts are non priority payments.


    Keep it simple and concise.
    Originally posted by sourcrates
    Thanks Sourcrates I thought this was probably the case but just wanted to get a second opinion. I do have another question if someone could answer it. Will having defaults on my account mean I can no longer shop around to change energy suppliers or insurance company's etc? None of my priority bills are in arrears and are all up to date. Also I have just switched to a new fixed mortgage deal with the same company and they said credit/affordability checks wouldn't be necessary as I am only fixing to a new deal not changing anything. Is this a was the case or am i likely to struggle in 2 years time?
    • SpagBol
    • By SpagBol 13th Oct 18, 12:26 PM
    • 1,369 Posts
    • 10,552 Thanks
    SpagBol
    Just popping in to say... I'm feeling very positive as we haven't borrowed a penny in a year! Our DMP started this time last year and we've paid back about 3k in that time with no interest/charges etc.


    A long way to go but feels good. I wish we'd started it sooner!!


    Keep going everyone!
    DMP started Oct '17: 79,974
    • sourcrates
    • By sourcrates 13th Oct 18, 12:32 PM
    • 15,560 Posts
    • 14,642 Thanks
    sourcrates
    Thanks Sourcrates I thought this was probably the case but just wanted to get a second opinion. I do have another question if someone could answer it. Will having defaults on my account mean I can no longer shop around to change energy suppliers or insurance company's etc? None of my priority bills are in arrears and are all up to date. Also I have just switched to a new fixed mortgage deal with the same company and they said credit/affordability checks wouldn't be necessary as I am only fixing to a new deal not changing anything. Is this a was the case or am i likely to struggle in 2 years time?
    Originally posted by Time_To_Change

    Never had a problem myself, with any insurance product or utility provider, and i had a 6 year IVA.


    If you stay with the same mortgage provider you are usually not credit checked for fixing a new deal.
    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/
    • Summer12
    • By Summer12 13th Oct 18, 7:03 PM
    • 92 Posts
    • 52 Thanks
    Summer12
    Hi everyone, my DMP is going strong and I've just passed 18 months now with it - only 14 years to go unless things improve drastically. Anyway a couple of the debts have been sold and I've updated Stepchange who are absolutely amazing - they have helped me and my stress levels so much BUT - Next are charging interest again which is 1.5 times the monthly payment they are receiving. I spoke to them and they said the year 1 plan had ended and I had to speak to them and agree another plan but I didn't want to do this without consulting Stepchange who told me that with payments continuing to them that this shouldn't be necessary. They sent out a statement/budget pack to all the creditors again and advised me that this would do the trick, but three months on Next are still adding the interest. I just wondered if anyone else had this problem and what they did about it, obviously I can't agree to anything that will render the DMP null and void so I'm a little confused as to what to do next. This is the smallest amount I owe as well so I didn't expect it. Any help gratefully received, thank you.
    Originally posted by Barbie61
    Hi
    I have a Next account which turned out to be unenforceable so I stopped paying them, within 4 months they defaulted it (therefore all interest & charges stopped). Now just get 1 letter a month chasing the debt. Good luck
    • purplepaws
    • By purplepaws 14th Oct 18, 12:42 PM
    • 51 Posts
    • 54 Thanks
    purplepaws
    Were you meaning would it be better to keep things totally separate and use a different company rather than the same one that's dealing with your DMP?
    Originally posted by carbootcrazy

    Well, yes, I suppose I was. Do you think it will make a difference to the people managing it, if they don't know that I have a DMP too?
    DMP launched 04/07/17 left to pay = 15,596.29 (16,982.82 original debt.) Thanks to MSE & all you wonderful Forum Peeps!
    • ruby80
    • By ruby80 14th Oct 18, 6:36 PM
    • 11 Posts
    • 2 Thanks
    ruby80
    Hi, since my posts last week I've cancelled all my DDs for my non-priority debts, opened a new bank account and today have done "holding letters" to my creditors, to be sent out tomorrow.

    Do people think it's any easier to owe smaller amounts to more creditors, or have fewer creditors with larger debts? I owe approx 25,000 to 9 creditors, with the largest debt being 4,500. Does owing smaller amounts draw less attention from creditors?
    • January2015
    • By January2015 14th Oct 18, 9:16 PM
    • 2,256 Posts
    • 5,432 Thanks
    January2015
    Hi, since my posts last week I've cancelled all my DDs for my non-priority debts, opened a new bank account and today have done "holding letters" to my creditors, to be sent out tomorrow.

    Do people think it's any easier to owe smaller amounts to more creditors, or have fewer creditors with larger debts? I owe approx 25,000 to 9 creditors, with the largest debt being 4,500. Does owing smaller amounts draw less attention from creditors?
    Originally posted by ruby80
    I don't think it makes any difference how many creditors you have or how large or small each debt is. It certainly doesn't matter to the creditors and if you are with Stepchange or a similar DMP charity - it won't matter to them.

    From a personal perspective, the only thing that matters to me is seeing the amount I owe reduce. An occasional boost is if one (or more) creditors gets cleared - however that's not as important to me as the seeing the overal amount owed come down.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    • Suseka97
    • By Suseka97 15th Oct 18, 7:35 AM
    • 448 Posts
    • 575 Thanks
    Suseka97
    Thanks Sourcrates I thought this was probably the case but just wanted to get a second opinion. I do have another question if someone could answer it. Will having defaults on my account mean I can no longer shop around to change energy suppliers or insurance company's etc? None of my priority bills are in arrears and are all up to date. Also I have just switched to a new fixed mortgage deal with the same company and they said credit/affordability checks wouldn't be necessary as I am only fixing to a new deal not changing anything. Is this a was the case or am i likely to struggle in 2 years time?
    Originally posted by Time_To_Change
    I've switched twice with my current mortgage provider, on to different deals, during my DMP and its been a breeze. So you'll be fine. I've also switched energy providers without any problems and am looking to do so again.
    LBM Apr13: 14 Creditors / 85k+ owed / 11k outstanding (3 x UE / 3 x outstanding) DMP on hold
    • Icarus01
    • By Icarus01 15th Oct 18, 11:12 AM
    • 45 Posts
    • 31 Thanks
    Icarus01
    Starting a DMP with Gregory Pennington on the 25th. My advisor throughout the whole process has been brilliant. I know they're paid to sound like they care but I feel like this guy generally does. Calls up just to check in and make sure everything is alright ( Poor fella, I probably treated him more like a grief counselor than anything else). I've got 29k in debt with monthly payments of 560. Hopefully should be debt-free in 5 years. One loan wouldn't have been paid off for 7 years so i'm very happy with these monthly payments.


    I'm just hoping all my creditors agree to the DMP.
    • January2015
    • By January2015 15th Oct 18, 11:32 AM
    • 2,256 Posts
    • 5,432 Thanks
    January2015
    Starting a DMP with Gregory Pennington on the 25th. My advisor throughout the whole process has been brilliant. I know they're paid to sound like they care but I feel like this guy generally does. Calls up just to check in and make sure everything is alright ( Poor fella, I probably treated him more like a grief counselor than anything else). I've got 29k in debt with monthly payments of 560. Hopefully should be debt-free in 5 years. One loan wouldn't have been paid off for 7 years so i'm very happy with these monthly payments.


    I'm just hoping all my creditors agree to the DMP.
    Originally posted by Icarus01
    Please, please, please cancel the DMP with Gregory Pennington and contact Stepchange or one of the other free DMP providers.

    You will be paying Gregory Pennington to manage your DMP. Stepchage will do it for free.

    From GP site.....
    What are the costs involved with a debt management plan?
    A fee is taken directly from your monthly payment. It is 18.5% of each monthly payment, subject to a minimum of 38.50 and a maximum of 90.
    That is your good money that could be clearing your debts and not lining the pockets of GP.

    Edit: Based on your monthly DMP payment, 90 each month is going to GP and not to your debts. What the heck!!! Why would you do that. I understand you feel they have supported you. Stepchange or any other free provider would support you - and you have this fantastic group of people who are going through the same process to chat to online. We've been there, struggled through, fought the battles and can give real life advice.

    Over 5 years of your DMP you will be paying GP 5,400. Think how much faster you could be debt free if that went to your debts and not GP.

    Please cancel the GP DMP now and contact SC.
    Last edited by January2015; 15-10-2018 at 11:36 AM.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    • carbootcrazy
    • By carbootcrazy 15th Oct 18, 11:41 AM
    • 5,070 Posts
    • 28,740 Thanks
    carbootcrazy
    Please, please, please cancel the DMP with Gregory Pennington and contact Stepchange or one of the other free DMP providers.

    You will be paying Gregory Pennington to manage your DMP. Stepchage will do it for free.

    From GP site.....
    What are the costs involved with a debt management plan?
    A fee is taken directly from your monthly payment. It is 18.5% of each monthly payment, subject to a minimum of 38.50 and a maximum of 90.
    That is your good money that could be clearing your debts and not lining the pockets of GP
    Originally posted by January2015
    Totally agree, January


    Just to add, in my experience, the Stepchange (free) advisors are brilliant too and I always felt they cared about me and my situation. They've listened patiently and sympathetically to a lot of outpouring of my emotion in the early days of my DMP. They do exactly the same as the paid companies do except they make no charge for it. I'm not being judgemental but it's my opinion that people in debt shouldn't throw good money after bad by paying for someone to help them get out of it when there are excellent free alternatives available. The money you are paying to a debt management company could be used towards repaying your debt balance.
    Last edited by carbootcrazy; 15-10-2018 at 11:44 AM.
    Original Debt: 56804 (@02/13). Now: 9048. Almost sub 9000 at long last.
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