DMP mutual support thread part 13 !!

sourcrates · 17 October 2018 at 1:32PM

NeverendingDMP wrote: »

Hello all. I just wondered if anyone is having any problems getting direct debits set up with creditors. Namely wescott who are dealing with a Sainsbury's loan I had. I ring and set up the direct debit then get the mandate through the post then it doesn't go out of my bank. They write as I've not paid I ring etc etc and it goes on. This month will be the third time it hasn't come out. It was due to be paid in the 7th and still hasn't left my account. I'm going to wait for chasing letters then write back and pass comment about it I think. I'm not messing around they either want the money or not. Just wondered if anyone else has experienced this. I've been paying for three years odd with no problems his has all come about since I swapped my direct debit to a new bank account in summer.

Just get their bank account details and pay via online banking instead.

Suseka97 · 17 October 2018 at 2:59PM

January2015 wrote: »

.........
Seriously get that available budget as low as you realistically can. Don't look at how much longer it will take to clear the debts - look at it as saving for settlements offer at reduced amounts which will shave years off your DMP if you can manage this.

This is sound advice to anyone planning to start up on the DMP route and I advise everyone to take heed and follow it.

I realise its a scary thing at the outset, the thought of having to contact creditors and admit to them and others how dire your financial situation is. In that moment your mindset is fixed on 'doing the right thing', paying back all that you owe and doing it in the shortest time possible - that's a natural and all too familiar response.

But the reality is that life goes on and you want the years ahead of you to be comfortable and stress free (well as stress free as these things can be). What you don't want to do is set a tight budget based on your current emotional response and find that once you embark, you've left yourself with little to live on and end up feeling miserable.

People look at my stats and say things like ' wow, well done for clearing your debt so quickly' and whilst I appreciate the sentiment, I am quick to correct and point out that I set my budget far too high (actually I didn't know I had any other option back then) and the first 2 - 3 years I was miserable. I felt ashamed for being in that position and that I somehow owed it to the creditor to try and pay back as quick as I could.

If I could go back (although that thought makes me feel like :eek:) I wouldn't have signed up to such a high repayment plan and would have accepted that I would be on my DMP journey far longer than it has been.

So please, again, to all and any of you who are about to embark on this journey or who are still thinking about their options - be realistic and don't make this harder than it needs to be.

Sermon over

Time_To_Change · 17 October 2018 at 5:36PM

Hi guys I have just received my first scary reply from barclaycard. They have been great so far and have now sent me the letter below. I am a little unsure if this is a good thing or a bad thing as they have not officially accepted my payment plan? Any advice/explanation of what this means would be great. Thanks in advance.

"Thank you for contacting us, I am sorry to learn of your current difficulties.

As a responsible lender, we wanted to ensure that the payment was affordable for you and we did not want to cause you any further difficulties.

I acknowledge your offer to pay £80.00 per month.

At present we are unable to offer you any form of repayment agreement due to the amount you can afford to pay. Provided you make the payment of £80.00 per month interest and fees will be suspended until further notice.

For your information the following things will now happen:

* Your account will be permanently closed and you will no longer have the ability to use your card

* You may continue to receive letters and statements each month advising you of the arrears on your account, which we are legally obliged to issue

* You will receive a Default Notice. This will give you 60 days from the date of this letter to revert back to your contractual terms, including interest, or a formal demand letter will be issued and a default registered

* If a default is registered, this will reflect on your credit file for six years and may impact your ability to obtain future credit. Your account will be passed to our Recoveries Department. We may make a decision to transfer ownership of your account to a reputable external agency. You will be notified in writing at the time.

If you are in a position to meet your contractual terms by this date, you must call us to advise us of this or the default will still be registered

As you are unable to make your contractual minimum payment at present, we will register a missed payment marker on your credit file each month until your default is registered.

I hope this information has been of assistance to you.

Kind Regards,

sourcrates · 17 October 2018 at 8:21PM

Time to change,

That’s all good, standard barclaycard default letter, agreeing to your proposal, just laying it out in legal parlance as required by law.

Maverick87 · 17 October 2018 at 8:36PM

Hi guys,

Good news : my DMP is official as of today for £53k via stepchange with payment starting 1st November.

However I have another card I now need to join on to the DMP but fear it will mess up everything I have done with stepchange.

It was left out of the DMP as I use it for work expenses which get reimbursed every couple of weeks. Today they have just completely slashed my balance with over £1000 pending transaction which will take me over my new credit limit. Not sure if related to my creditors recieving their letters (are NatWest and Halifax linked??)

I am thinking of just adding this remaining balance now to my DMP and completely getting rid of all available credit, trying to manage my weekly work expenses with real cash.

How do I add this new debt, can I go self managed for this card only and how would I hand the income/expense proof now?, feel like I would massively pee off stepchange to now add this new card in.

Please help

Time_To_Change · 17 October 2018 at 9:12PM

sourcrates wrote: »

Time to change,

That’s all good, standard barclaycard default letter, agreeing to your proposal, just laying it out in legal parlance as required by law.

Thank you sourcrates just need to get the same result from the others now.

Suseka97 · 17 October 2018 at 9:26PM

Maverick87 wrote: »

.......
I am thinking of just adding this remaining balance now to my DMP and completely getting rid of all available credit, trying to manage my weekly work expenses with real cash.
How do I add this new debt, can I go self managed for this card only and how would I hand the income/expense proof now?, feel like I would massively pee off stepchange to now add this new card in.
Please help

I think its wise to add this one in and all you need to do is contact SC and get them know. Don't fret about it - these things happen and SC will be fine about it. You can easily explain why you excluded the card and why now you need to add it in. It'll change the amounts payable to each of the others, but that won't matter.

debtfreegirluk · 17 October 2018 at 9:54PM

I have a DMP and most of my creditors have defaulted me. Am I correct in saying after 6 years (even though the DMP won’t be anywhere near complete) the defaults will drop off my credit file and it will look “normal”?
I ask as I am currently studying Law (part time and won’t be done for 6 years) and to register with the Solicitors regulation authority you need to show (at the time probably via credit check) that you are financially viable.
Does anyone have any idea?

Maverick87 · 17 October 2018 at 10:36PM

Thank you 🙂

Out of curiosity how have people dealt with their income increasing while being on a DMP.

Im fortunate in that I could probably expect my salary to go up £3-5k per year for the next few years but if I'm totally honest....I don't want to increase my DMP payments.

How do you tackle I&E in this case, I thought income needs to actually reflect the truth and there's only so much smoking and pet bills you can have a month...

[Deleted User] · 18 October 2018 at 7:43AM

Maverick87 wrote: »

Thank you ��

Out of curiosity how have people dealt with their income increasing while being on a DMP.

Im fortunate in that I could probably expect my salary to go up £3-5k per year for the next few years but if I'm totally honest....I don't want to increase my DMP payments.

How do you tackle I&E in this case, I thought income needs to actually reflect the truth and there's only so much smoking and pet bills you can have a month...

If you are with someone like SC they ask for an annual review of your I&E but this can be done by phone as I always did. I think it can be done online too but they always asked me to phone them to discuss it. Nothing heavy though, it was always just a nice, friendly chat. They genuinely tried to help me. They never asked me to send in any proof of earnings in the form of payslips/bank statements when it came to review time. They simply asked if there had been any changes since the last review. What you choose to tell them is entirely down to you;). Having said that though, I'm speaking as someone whose income comes from pensions. I assume the situation would be the same for people who are working and receive payslips.

In my case I had to tell the truth about one of my pensions (the state one) as the annual increases (pitifully small though they were) were well-publicised so I couldn't really say nothing had changed:(.. It might look a bit fishy to say your salary never increases at all during the lifetime of a long DMP but there's certainly plenty of scope to be economical with the truth.

DMP mutual support thread part 13 !!

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