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  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 13,759Posts
    • 13,083Thanks
    sourcrates
    DMP Mutual Support Thread - Part 12
    • #1
    • 26th Mar 17, 12:20 PM
    DMP Mutual Support Thread - Part 12 26th Mar 17 at 12:20 PM
    Welcome to the DMP mutual support thread Part 12 !!

    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 questions are welcome.

    Again the old thread was getting a tad long, so time for a new one.

    The old thread can be found here :

    http://forums.moneysavingexpert.com/showthread.php?t=5285089

    Once again, i think the original "newbie" post by sazzie23 still rings true.
    Last edited by sourcrates; 26-03-2017 at 12:50 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/
Page 142
    • sourcrates
    • By sourcrates 9th Feb 18, 12:45 PM
    • 13,759 Posts
    • 13,083 Thanks
    sourcrates

    Starting a DMP looks like a great (or my only) option. It is a bit confusing but the posts on here are helping a lot.

    So far I have spoken to SC and filled in the budget. Currently doing a final, comprehensive, budget so I can see exactly where my costs are. Also opened a new bank account, although with one where I already have a credit card but only £300 left to pay on that card.

    The DEFAULT is something that is not all that clear to me. Is this needed?

    I still have may questions though. Some things are needed to be able to work, like the car and internet plus computer equipment.


    Can writing to the creditors be done by email or is it better to post? I will only write once the bank accounts are sorted out so still a way to go.

    What happens if I write to / inform the creditors, one being the bank, to say I am having difficulties and that I am talking to SC. Will they immediately cancel our overdrafts and drain what little funds are in there?

    Sorry for the long post, and will update as things happen.
    Originally posted by MK-4
    Hi MK-4,

    How much do you owe in total ?

    It really is best to bank where you don`t have debt, as all banks have whats called the right of "set off", which basically means, they can take money from any other account held by you, within there company, to satisfy your debt to them.

    There are rules, and limits to what they can take, but once its taken, its a struggle to get it back, if at all, best to remove the problem from the equation altogether and bank elsewhere.

    The default is not something you really need to worry about, people like to be defaulted because defaults come off your credit file sooner, than arrangement to pay markers do, that`s the main reason.

    In a DMP you set the rules, none of your stuff is at risk, this is not a regulated arrangement, its an unofficial agreement to repay what you owe at a lesser rate than normal.

    Letter is best, but email is acceptable, as long as you have a written record of whats been agreed.
    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/
    • MK-4
    • By MK-4 9th Feb 18, 2:50 PM
    • 27 Posts
    • 12 Thanks
    MK-4
    Hi sourcrates,

    Thanks for your reply. Currently owe £26.5k on credit cards and £5.3k on loans. The OH has £11.8k on credit cards.

    Over the weekend I will transfer all the direct debits to a my new basic bank account. Will probably also transfer the joint account direct debits, and the OH can start depositing her payments into her other bank (different institution) so that can't be taken.

    Once all done, sometime next week, I will write to each creditor.

    Do I stop all payments at the same time as each creditor is written to, or do I wait for their response first?
    • sourcrates
    • By sourcrates 9th Feb 18, 3:15 PM
    • 13,759 Posts
    • 13,083 Thanks
    sourcrates
    Hi sourcrates,

    Thanks for your reply. Currently owe £26.5k on credit cards and £5.3k on loans. The OH has £11.8k on credit cards.


    Do I stop all payments at the same time as each creditor is written to, or do I wait for their response first?
    Originally posted by MK-4
    Just a couple of questions for you.

    Are you both named on the mortgage/deeds for the house, or just one of you, if so which one of you ?

    Am just thinking out loud how long a DMP would take to pay off your 32k of debt plus your partners, as you say your approaching 60, you don't want this debt hanging around into your pension years.

    There may be other options.
    Last edited by sourcrates; 09-02-2018 at 3:22 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/
    • MK-4
    • By MK-4 9th Feb 18, 4:35 PM
    • 27 Posts
    • 12 Thanks
    MK-4
    Yes, both on the mortgage. The mortgage finishes in 2024 and the plan is to be debt free by or before then.

    When I spoke to SC they initially gave a 4 year period, but I expect this may be longer as my budget details are finalised. They did say the wife could not be on the DMP because she is self employed.

    Thanks for your help and would be very pleased to hear of any other options.
    • sourcrates
    • By sourcrates 9th Feb 18, 5:44 PM
    • 13,759 Posts
    • 13,083 Thanks
    sourcrates
    Yes, both on the mortgage. The mortgage finishes in 2024 and the plan is to be debt free by or before then.

    When I spoke to SC they initially gave a 4 year period, but I expect this may be longer as my budget details are finalised. They did say the wife could not be on the DMP because she is self employed.

    Thanks for your help and would be very pleased to hear of any other options.
    Originally posted by MK-4
    Probably DMP your best bet then, was thinking DRO for partner, maybe IVA for you, but if you can clear in 4/5 years with DMP, go for that.
    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/
    • ploppy57
    • By ploppy57 9th Feb 18, 5:56 PM
    • 714 Posts
    • 4,610 Thanks
    ploppy57
    Yes, both on the mortgage. The mortgage finishes in 2024 and the plan is to be debt free by or before then.

    When I spoke to SC they initially gave a 4 year period, but I expect this may be longer as my budget details are finalised. They did say the wife could not be on the DMP because she is self employed.

    Thanks for your help and would be very pleased to hear of any other options.
    Originally posted by MK-4

    We are in a similar position. I am 60 and mortgage finishes in 2025. We have £45k left to pay and have had to drop payments making it look like years before we are DF. However the plan is to pay more if/when we can and also now that we have gone self managed, to try and save and get some good F&F's.
    Luckily my OH is 12 years younger so at least he will still work full time for a bit after I retire....not that I have any plans to retire yet.
    DMP March '15 £57,549. Now £44,430. almost 23% paid. Went SM Feb '18 to get DF sooner.
    Emergency fund #231... Building up slowly.
    Christmas '18 challenge... £22 /£300
    "There's a Great Big Beautiful Tomorrow, Shining at the end of every day"
    • MK-4
    • By MK-4 9th Feb 18, 6:34 PM
    • 27 Posts
    • 12 Thanks
    MK-4
    We are in a similar position. I am 60 and mortgage finishes in 2025. We have £45k left to pay and have had to drop payments making it look like years before we are DF. However the plan is to pay more if/when we can and also now that we have gone self managed, to try and save and get some good F&F's.
    Luckily my OH is 12 years younger so at least he will still work full time for a bit after I retire....not that I have any plans to retire yet.
    Originally posted by ploppy57
    Very similar situation to you. Also no intention to retire, just trying to find some sort of business that can be done (from home) when my retirement is forced on me.
    My intention is to follow something like you are doing, SC for a couple of years then self managed to try to reduce the DF date.
    • KID77
    • By KID77 9th Feb 18, 7:38 PM
    • 215 Posts
    • 432 Thanks
    KID77
    Evening, hope everyone is well.
    We have officially gone self managed from 1st Feb which is alot less daunting than I thought. As my OH is being made redundant, I wrote to them all offering £1 token payment for 3 months and also put a CCA request at the bottom of each letter.
    Most of them ignored the CCA request but accepted token payment so I will chase on the CCA request in a few weeks.
    However, the fabulous news is that 3 x MBNA debts which were sold to PRA Group as soon as defaulted have come back as unenforceable, this is approx £12k of debt. They have attached paperwork which they say is the paperwork they have been sent so far and based on this its unenforceable blah blah blah. As they have some sort of paperwork which they obvioulsy realise is legally useless, I assume no other paperwork will turn up....
    I would like to get the 3 accounts closed so plan to write to them offering £100 or something as final settlement.
    Just as FYI, the accounts were opened 2005, 2010 and 2011 so it really is worth everyone sending CCA requests.
    I am not holding out much hope for the others but will still follow up as you never know.
    Thank you for all the advice on this forum and even though I don't post much, I read everything and appreciate all the advice offered.
    DMP Number 437
    LBM May 2015 47k in debt
    Starting DMP 1st July 2015
    • January2015
    • By January2015 9th Feb 18, 10:36 PM
    • 2,054 Posts
    • 5,125 Thanks
    January2015
    However, the fabulous news is that 3 x MBNA debts which were sold to PRA Group as soon as defaulted have come back as unenforceable, this is approx £12k of debt. They have attached paperwork which they say is the paperwork they have been sent so far and based on this its unenforceable blah blah blah. As they have some sort of paperwork which they obvioulsy realise is legally useless, I assume no other paperwork will turn up....
    I would like to get the 3 accounts closed so plan to write to them offering £100 or something as final settlement.
    Just as FYI, the accounts were opened 2005, 2010 and 2011 so it really is worth everyone sending CCA requests.
    I am not holding out much hope for the others but will still follow up as you never know.
    Thank you for all the advice on this forum and even though I don't post much, I read everything and appreciate all the advice offered.
    Originally posted by KID77
    Fantastic news - so pleased for you

    Can I ask what made the 2010 and 2011 accounts unenforceable? From reading your post I think you are saying they sent some documentation but admitted it was UE. It's useful to know
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    [COLOR=Blue][SIZE=2]
    • Summer12
    • By Summer12 10th Feb 18, 11:07 AM
    • 77 Posts
    • 35 Thanks
    Summer12
    Barclaycard shock!
    Hi

    Feeling a bit brighter about things thanks to you guys! Can someone confirm if anyone at anytime can request a copy of the credit card agreement to check if a debt is enforceable or only when an account has defaulted? I ask because going through the figures I noticed that barclaycard bill is £360 per month with only £20 of that going towards the debt. Thatís crazy and I may aswell be starting my dmp and only paying them £20! (It comes out by dd so ashamed to say Iíve never looked at it closely before). Iíve been a customer since 1997 and thatís the interest rate you get for being loyal I guess!!
    • MK-4
    • By MK-4 10th Feb 18, 12:30 PM
    • 27 Posts
    • 12 Thanks
    MK-4
    Probably DMP your best bet then, was thinking DRO for partner, maybe IVA for you, but if you can clear in 4/5 years with DMP, go for that.
    Originally posted by sourcrates
    Thanks for the advice. The IVA looks worrying as we really don't want to risk the house.

    I'm already moving DD's to the new bank account. Just a bit worried about the joint account overdraft - assuming it can't be included in the DMP as my OH is not going to be part of it.
    • Lucky2008
    • By Lucky2008 10th Feb 18, 2:34 PM
    • 11 Posts
    • 7 Thanks
    Lucky2008
    Thanks for the advice. The IVA looks worrying as we really don't want to risk the house.

    I'm already moving DD's to the new bank account. Just a bit worried about the joint account overdraft - assuming it can't be included in the DMP as my OH is not going to be part of it.
    Originally posted by MK-4
    Hi in a similar situation regarding property as mortgage now paid off.Started self-managed DMP for myself only (married) in oct.17
    Owe over £60,000 in CC,loans,overdraft etc.
    An advisor tried to steer me to an IVA but unless I misread,it didn't make any sense.I understood an IVA is marketed as the best solution to protect your property.BUT and here's what I didn't understand.There's a sting in the tail that you have to get a SECURED loan or Remortgage in the last year (which won't be at sensible rates as your credit history is trashed).So now you have a secured debt (fore several more years) at a high rate of interest & because you have capital you are ending up paying all the debt back anyway.Not having some written off as they try to sell it to you & its a legally binding option which will also incur costs of £4000 plus.Partner would have been dragged into an IVA.

    Thanks to finding this forum & posts from the regulars convinced me a DMP was the way to go for now.I still worry about "what can happen - charging ccj etc" even though people say it's very unlikely.

    Didn't have any joint accounts so can't help there hopefully somebody will have experience to advise.
    Last edited by Lucky2008; 10-02-2018 at 3:00 PM.
    • KID77
    • By KID77 10th Feb 18, 2:59 PM
    • 215 Posts
    • 432 Thanks
    KID77
    Hi January

    They have sent me a document titled Credit Card Agreement regulated by the consumer credit act 1974.

    It's then a list of t&cs with a signature box which has no signature as I would have applied online so a box is ticked instead which I assume is online consent/application.

    They have deemed it unenforceable according to covering letter so not sure what is wrong with it, I am going to do some research and see what it should have on it.....

    I'm concerned that they have it wrong and may realise....

    KID xx
    DMP Number 437
    LBM May 2015 47k in debt
    Starting DMP 1st July 2015
    • sourcrates
    • By sourcrates 10th Feb 18, 3:49 PM
    • 13,759 Posts
    • 13,083 Thanks
    sourcrates
    .BUT and here's what I didn't understand.There's a sting in the tail that you have to get a SECURED loan or Remortgage in the last year (which won't be at sensible rates as your credit history is trashed).So now you have a secured debt (fore several more years) at a high rate of interest & because you have capital you are ending up paying all the debt back anyway.Not having some written off as they try to sell it to you & its a legally binding option which will also incur costs of £4000 plus.Partner would have been dragged into an IVA.
    Originally posted by Lucky2008
    Can i just add that if you can`t re-mortgage in year 5, as an alternative measure, you make an extra year of payments instead.

    If you opt for an IVA, it makes sense to glean as much information as you can beforehand, as the rules tend to change, and you don`t always get the hugh write off`s off debt that some companies advertise.
    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/
    • sourcrates
    • By sourcrates 10th Feb 18, 3:55 PM
    • 13,759 Posts
    • 13,083 Thanks
    sourcrates
    Hi January

    They have sent me a document titled Credit Card Agreement regulated by the consumer credit act 1974.

    It's then a list of t&cs with a signature box which has no signature as I would have applied online so a box is ticked instead which I assume is online consent/application.

    They have deemed it unenforceable according to covering letter so not sure what is wrong with it, I am going to do some research and see what it should have on it.....

    I'm concerned that they have it wrong and may realise....

    KID xx
    Originally posted by KID77
    Don`t look a gift horse in the mouth.

    If they admit its unenforceable, in writing, then thank your lucky stars, walk away, and concentrate on the debts that are enforceable.

    Keep the letter in a safe place for future reference, there really is no point in getting into an argument with them over something that`s already gone in your favor.
    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/
    • Onebrokelady
    • By Onebrokelady 10th Feb 18, 4:14 PM
    • 341 Posts
    • 933 Thanks
    Onebrokelady
    So I spoke to my creditors yesterday and told them all I am entering into a DMP with SC and they have put all my accounts on hold,I just got a text from Barclays telling me the account is now on hold and I have to update them on my situation in one month,will they class contact from SC as me updating them or do I have to call them again in 30 days myself
    Just keep swimming
    Original Debt Owed Jan 18 = £17,630 Paid To Date = £502 Debt Now = £17,128
    • KID77
    • By KID77 10th Feb 18, 4:18 PM
    • 215 Posts
    • 432 Thanks
    KID77
    Sourcrates: In your experience an online cca from 2011 should be compliant....they obviously know there is something in the terms that's not?

    I would like to settle the account so its closed and done but I don't want to offer more than 10% and surely they would accept that knowing it a unenforceable.... I am going to read back on January's posts as I know she partially settled a few unenforceables so I will see what she managed it for.
    DMP Number 437
    LBM May 2015 47k in debt
    Starting DMP 1st July 2015
    • sourcrates
    • By sourcrates 10th Feb 18, 4:28 PM
    • 13,759 Posts
    • 13,083 Thanks
    sourcrates
    Sourcrates: In your experience an online cca from 2011 should be compliant....they obviously know there is something in the terms that's not?

    I would like to settle the account so its closed and done but I don't want to offer more than 10% and surely they would accept that knowing it a unenforceable.... I am going to read back on January's posts as I know she partially settled a few unenforceables so I will see what she managed it for.
    Originally posted by KID77
    Without seeing it, i wouldn't know, you can make settlement offers, but some creditors can be funny, and hold out for silly amounts of money.

    Good luck anyway, good idea about January.
    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/
    • kram
    • By kram 10th Feb 18, 4:44 PM
    • 105 Posts
    • 91 Thanks
    kram
    So I spoke to my creditors yesterday and told them all I am entering into a DMP with SC and they have put all my accounts on hold,I just got a text from Barclays telling me the account is now on hold and I have to update them on my situation in one month,will they class contact from SC as me updating them or do I have to call them again in 30 days myself
    Originally posted by Onebrokelady
    I would call them then you know its done & you wont trigger off any extra automated calls texts or letters.

    Good luck with it all.
    • Onebrokelady
    • By Onebrokelady 10th Feb 18, 6:39 PM
    • 341 Posts
    • 933 Thanks
    Onebrokelady
    Ok I will be brave and call them all on the same day,I did speak to very nice people yesterday and I managed to be polite but firm,they asked me lots of questions and I just told them that it was all handed over to Stepchange now so they would have to wait for hem to get in touch
    Just keep swimming
    Original Debt Owed Jan 18 = £17,630 Paid To Date = £502 Debt Now = £17,128
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