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  • FIRST POST
    • sourcrates
    • By sourcrates 18th Sep 18, 10:40 PM
    • 15,560Posts
    • 14,640Thanks
    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 2
    • kram
    • By kram 20th Sep 18, 10:06 PM
    • 131 Posts
    • 117 Thanks
    kram
    about to kick off my DMP in the next month, got new bank account set up which my October wages will be paid into.

    how much is a recommended emergency fund? while I still have credit available should I use some of that to stash for an emergency?

    also I'm planning on using step change but seen people suggesting self managed. if I kick off with SC can I change to self further down the line?
    Originally posted by sillybilly1983
    Don't feel pressured to jump in & start the dmp straight away.

    How much you need for an emergency fund is up to you, its more how much you think you need if the car / boiler / cooker etc go pop as you will not have access to credit once you start a dmp.

    You can start with sc & change to self managed no problem, look through the previous thread there are several posts about it.

    Have a look at the NEDCAB website, loads of info there as well, here's a link:

    https://nedcab.cabmoney.org.uk/


    Good luck.
    • carbootcrazy
    • By carbootcrazy 21st Sep 18, 2:07 AM
    • 5,070 Posts
    • 28,740 Thanks
    carbootcrazy
    about to kick off my DMP in the next month, got new bank account set up which my October wages will be paid into.

    how much is a recommended emergency fund? while I still have credit available should I use some of that to stash for an emergency?

    also I'm planning on using step change but seen people suggesting self managed. if I kick off with SC can I change to self further down the line?
    Originally posted by sillybilly1983
    Well done on getting started on your DMP journey. I'm sure you'll discover life is much less stressful once you start making your first payments and you see your debt level going down. Good luck to you. Please keep posting any queries you have and let us know how things are going.


    Can't help with using spare credit availability to stash for an emergency fund, sorry. By the time I'd taken my head out of the sand and realised I needed the help of a DMP to clear my debts I was already maxed out on all my credit cards and overdraft. I know of posters on here who did amass an emergency fund using available credit before starting their DMP though. I'm not sure how your creditors would react if you suddenly withdrew/transferred a lot of money from your card accounts and then entered a DMP.


    As for people starting off with SC and then self-managing later, yes it happens all the time. SC are used to it, it's a simple process to do it. All the information on self-managing is on the NEDCAB website. Highly recommended as a resource. Some people have reported changing to self-management after a couple of payments, some after a few months, others like me after a few years. I was with SC for over 4 years and really needed their support for that time. I know I couldn't have cleared so much debt without them and can't praise them enough. It was only when I found out more about Full and Final settlements that I decided to go self-managed so I could temporarily stop/cut my repayments to creditors so I could build up enough savings to make offers. SC are not very amenable to people stopping/cutting payments unless it's for a very good reason like a major emergency and then only for a very short period of time. I'd have stayed with them managing my DMP right to the end otherwise.


    Some posters on here have self-managed their DMP right from the start. It's easy enough to do if you are organized and are the type of person to be able to stick to your repayment plan without someone else taking the responsibility for dealing with it.
    Original Debt: £56804 (@02/13). Now: £9048. Almost sub £9000 at long last.
    • 2babyboys
    • By 2babyboys 21st Sep 18, 9:40 AM
    • 35 Posts
    • 0 Thanks
    2babyboys
    Stepchange
    hi all,

    my first payment to SC is going out in a few days but SC have advised me of 2 creditors that have rejected their offer. Although they day not to worry I am wondering if its worth trying to self manage these two? One is Natwest, other is Virgin. I can offer them a bit more perhaps if self managing?

    Thanks,
    • Willing2Learn
    • By Willing2Learn 21st Sep 18, 9:46 AM
    • 1,617 Posts
    • 1,226 Thanks
    Willing2Learn
    Hi 2babyboys,

    It is nothing to worry about. NatWest and Virgin will most likely pass the debts on to DCAs for collection. I would just continue to pay your DMP amounts as normal, as that is what you can reasonably afford...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • 2babyboys
    • By 2babyboys 21st Sep 18, 10:04 AM
    • 35 Posts
    • 0 Thanks
    2babyboys
    Hi, one more question...is it worth contacting my lenders to ask them not to issue a default? I know this sounds barmy but I only have been sent 2 default notifications and am wondering how many lenders will just be satisfied with the payments without defaulting me and it its worth begging the others not to default me? Anyone have any experience of this? Thank you
    • Willing2Learn
    • By Willing2Learn 21st Sep 18, 10:10 AM
    • 1,617 Posts
    • 1,226 Thanks
    Willing2Learn
    It is better to have all your debts defaulted rather than marked as an arrangement to pay (or similar marker). If your debts are correctly marked as defaulted, back-dated to when you were 3-6 months in arrears, the default is removed from your credit file six years from the date of default. If the default is not recorded, then the account will stay on your file until six years from the date of the account being settled. The latter is a lot longer
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • January2015
    • By January2015 21st Sep 18, 11:13 AM
    • 2,256 Posts
    • 5,432 Thanks
    January2015
    Hi, one more question...is it worth contacting my lenders to ask them not to issue a default? I know this sounds barmy but I only have been sent 2 default notifications and am wondering how many lenders will just be satisfied with the payments without defaulting me and it its worth begging the others not to default me? Anyone have any experience of this? Thank you
    Originally posted by 2babyboys
    It is better to have all your debts defaulted rather than marked as an arrangement to pay (or similar marker). If your debts are correctly marked as defaulted, back-dated to when you were 3-6 months in arrears, the default is removed from your credit file six years from the date of default. If the default is not recorded, then the account will stay on your file until six years from the date of the account being settled. The latter is a lot longer
    Originally posted by Willing2Learn
    Hi

    The advice from Willing2Learn is spot on. To give you an example...lets say you entered an arrangement to pay a debt of £10,000 by paying reducing payments of £50 per month. Let's say this arrangement started in January 2015 the difference between not having a default and having a default are shown below:

    £10,000 divided by £50 pm = 200 payments (or 16 years 8 months)

    Arrangement to Pay means the AP marker will be on your credit file for the whole time until you clear the debt. In this case until Aug 2023 BUT..... it will also remain for six years after the debt is cleared.... so it will be on your credit files until Aug 2029. That's an awful long time to live with a poor marker on your credit record.

    If the account is defaulted - let's say 3 months after reduced payments began in January 2015... so default registered in April 2015.... the default will remain on your credit file for six years... so will disappear from credit files in April 2021 REGARDLESS of whether the debt is cleared or not.

    Hopefully this explains why we all want prompt defaults applied to our debts.
    Last edited by January2015; 21-09-2018 at 12:22 PM.
    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 21st Sep 18, 1:34 PM
    • 448 Posts
    • 575 Thanks
    Suseka97
    ...............Hopefully this explains why we all want prompt defaults applied to our debts.
    Originally posted by January2015
    Adding to Jan15s helpful advice. A default also means all charges and interest stop, whereas with an arrangement to pay (or similar) that isn't always the case.
    LBM Apr13: 14 Creditors / £85k+ owed / £11k outstanding (3 x UE / 3 x outstanding) DMP on hold
    • dfw big al
    • By dfw big al 21st Sep 18, 1:42 PM
    • 25 Posts
    • 8 Thanks
    dfw big al
    Back once again !!!
    It is with regret that I have to re-join this forum but thankful it still runs due to my failure to remain Debt Free.


    Originally joined 10 years ago and after 6 long DMP years was DF, however in the last 2 years have slipped once again after thinking I could manage the use of CC and PL


    Suffice to say reading through this thread and my previous experience tells me I will get out of it again but cant help kicking myself on a daily basis.


    I am self managing a DMP as only 3 main creditors (B/C, LLoyds & TSB) and all have accepted temporary payment (6 months initially) arrangement and frozen the interest and charges for now!!


    Just awaiting the next step as receiving the Default notices from each account and wondering if any of them will progress to CCJ's???




    Wish me luck !!!
    Here we go then £35910 September 2018
    • Suseka97
    • By Suseka97 21st Sep 18, 4:15 PM
    • 448 Posts
    • 575 Thanks
    Suseka97
    .......I am self managing a DMP as only 3 main creditors (B/C, LLoyds & TSB) and all have accepted temporary payment (6 months initially) arrangement and frozen the interest and charges for now!!
    Just awaiting the next step as receiving the Default notices from each account and wondering if any of them will progress to CCJ's??? Wish me luck !!!
    Originally posted by dfw big al
    Sorry that you find yourself back in this situation - but on a positive note you know there is light at the end of the tunnel. You'll be receiving the normal and routine warnings about potential defaults - they won't be the actual defaults at such an early stage. There's no reason any of your debts would result in a CCJ unless at any point you decided to completely ignore your debts and attempts at collection. Anyway, you know the routine and sound like you already have everything in hand, so good luck
    LBM Apr13: 14 Creditors / £85k+ owed / £11k outstanding (3 x UE / 3 x outstanding) DMP on hold
    • sourcrates
    • By sourcrates 21st Sep 18, 7:50 PM
    • 15,560 Posts
    • 14,640 Thanks
    sourcrates
    I have just joined this forum,thank God I did as it's giving me a little bit of hope.Reckon I've got about 14 credit cards most defaulted from 2014 onwards(69k)I'm on a DMP with SC for about 4 years,I've only just realised that some may be unenforceable as they were opened before 2007.I've just requested CCA on 3 of them,all of them have been sold on but when the DCA sent me any letters I just burnt them as I was on DMP,Of course I now want to contact the holders of these debts to request CCA-Any advice?
    Originally posted by andythe cab
    Hi,

    Should show on your credit file who owns the debts.

    CCA request is a good step to take, can be rewarding.

    You only need write to whoever is currently collecting the debts, itís there responsibility to pass the request down the line to the OC.
    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/
    • andythe cab
    • By andythe cab 21st Sep 18, 8:10 PM
    • 2 Posts
    • 1 Thanks
    andythe cab
    Cheers mate,i realise I eventually need to self manage if I'm going to get any benefit from any potential nonenforceable debts,although it's been nice not to be pestered by creditors while with SC,some creditors have sent discount offers which makes me suspect they're getting a bit twitchy as a few will fall off credit report in 2 years,also some accounts from 1997 to 2003
    • sourcrates
    • By sourcrates 21st Sep 18, 8:33 PM
    • 15,560 Posts
    • 14,640 Thanks
    sourcrates
    If they can’t provide the paperwork then they cannot be enforced in court, so you will not have to pay them if you so choose.
    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/
    • angelrach8
    • By angelrach8 21st Sep 18, 8:34 PM
    • 16 Posts
    • 1 Thanks
    angelrach8
    Thank you for the advice from january and Tiger on the previous thread.
    I have just requested my application pack from StepChange and they have said that my direct debit date will be the 19th of the month. 3 days before payday so will have to ask to move.
    Iíve seen others delaying their first DMP payments so they are able to add to their emergency fund. Can I just ring StepChange and request when this starts?
    Letters to creditors being printed and posted tomorrow and all direct debits cancelled.
    Feeling relieved and nervous at the same time if thatís possible 😂
    • Suseka97
    • By Suseka97 22nd Sep 18, 6:50 AM
    • 448 Posts
    • 575 Thanks
    Suseka97
    .........I have just requested my application pack from StepChange and they have said that my direct debit date will be the 19th of the month. 3 days before payday so will have to ask to move.
    Iíve seen others delaying their first DMP payments so they are able to add to their emergency fund. Can I just ring StepChange and request when this starts?
    Originally posted by angelrach8
    You can determine which day and date the payments/DMP should start - so if you've only just requested the pack you can simply let SC know that you'll fill the paperwork in, but intend to delay start until x date. When you write to your creditors you can also indicate to them that you're in the 'process of 'setting up the DMP and that payment will commence in x months time.
    LBM Apr13: 14 Creditors / £85k+ owed / £11k outstanding (3 x UE / 3 x outstanding) DMP on hold
    • January2015
    • By January2015 22nd Sep 18, 8:21 AM
    • 2,256 Posts
    • 5,432 Thanks
    January2015
    Thank you for the advice from january and Tiger on the previous thread.
    I have just requested my application pack from StepChange and they have said that my direct debit date will be the 19th of the month. 3 days before payday so will have to ask to move.
    Iíve seen others delaying their first DMP payments so they are able to add to their emergency fund. Can I just ring StepChange and request when this starts?
    Letters to creditors being printed and posted tomorrow and all direct debits cancelled.
    Feeling relieved and nervous at the same time if thatís possible 😂
    Originally posted by angelrach8
    Stepchange used to collect direct debits twice a month, but I believe they have changed that now to a single option. If you visit the Stepchange website they list the options to make payments - if the DD date doesn't suit you, look at the other options.

    However you choose to make your monthly payment, SC need the payment by 16th each month - so this is always going to be prior to your payday. Your best best may be to phone SC and explain and ask to delay first collecton until the following month - at which time you will be using last month's salary to pay it .... if that makes sense. For example,
    • 22nd October - Paid from employer...... put SC money to one side (perhaps in a savings account so you can't touch it.
    • 18th November - transfer SC money back into main bank account ready for SC to collect DD
    • 19th November - SC collect DD
    • 22nd November - paid again and repeat process ready for next month

    The other altnerative, which may be less messy, is to arrange with SC to start the DMP one month later. You set up a standing order to pay SC the day (or day after) you get paid. SC will hold the money ready to make the payments to your credits the next month - as they would had you paid by DD.

    Hope all this makes sense... and helps
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    • biker_rob
    • By biker_rob 23rd Sep 18, 11:26 AM
    • 15 Posts
    • 14 Thanks
    biker_rob
    I've been referring to the Nedcab website, which is superb. Holding letters generated and modified with my request to be communicated to in writing only. 4 are ready to send, I'm holding back on the one to Barclays until I've moved any remaining monies to my new Natwest account, roughly 2 weeks. I also cancelled the Pounds to Pocket CPA on my debit card. I've started a folder for my DMP to keep all correspondence from my creditors in one place. Should have my EF together by the end of October then I can really get things moving.

    This is empowering, I feel like I'm taking control of my life again.
    • Time_To_Change
    • By Time_To_Change 23rd Sep 18, 2:27 PM
    • 38 Posts
    • 19 Thanks
    Time_To_Change
    Hi all. Is there a website that gives a guideline on I&E amounts? For example what would be seen as a reasonable amount to spend on shopping and clothing etc for a family of 4 each month? Just wondering what the best template is to use for someone going self managed? Thanks.
    • Simonjp
    • By Simonjp 23rd Sep 18, 9:47 PM
    • 21 Posts
    • 0 Thanks
    Simonjp
    Further questions....

    Am on a DMP with sc

    Wanting to go self managed, have read and understand the Nedcab site info

    The question is do I stop the sc payment before getting my self managed up and running?

    If it makes a difference all the debts that can are already defaulted(student loan can’t default I believe?)
    • ploppy57
    • By ploppy57 24th Sep 18, 11:00 AM
    • 749 Posts
    • 4,757 Thanks
    ploppy57
    Just saying Hi on our new shiny thread. Not been on for a while. Just posted on the F&F thread that we have heard back from W*scot re our F&F offer. We offered 15% and they have come back with 30%, this is for 2 of our debts. Can't afford to pay them both off at 30% but wondering if to write back and counter offer at 20 or 25% or whether to just settle one at 30%. Thinking the former actually, as got nothing to lose as even if they say no, we can still go with the one at 30%
    DMP March '15 £57,549. Now £43,583. 24% paid. Went SM Feb '18 to get DF sooner.
    Emergency fund #231... £1500.
    Christmas '18 challenge... £300 /£300
    "There's a Great Big Beautiful Tomorrow, Shining at the end of every day"
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