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  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 13,987Posts
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    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 158
    • sourcrates
    • By sourcrates 4th Mar 18, 1:00 PM
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    sourcrates
    I seriously considered a DRO at first, but it just didn't sit right with me I read stories how other people had conquered their debt as I said I've been a member of ML for many year's. I felt inspired by others, I'm a bit old school its my debt so I'm responsible. A DRO sounded a easier option ( at first) but after reading posts I realised that it wasn't. I could see the pro's of a DRO. Debt cleared quicker, then work on building up credit. I've decided to pay the debt.... ( I'm going to be dead by the time its all paid..not joking) but hoping to plod along and hopefully offer lump sum. BTW January your own posts have been so helpful.
    Originally posted by jaxsmar
    Seriously, if you meet the criteria for a DRO, then do it.

    After one year your debts are cleared, and you can start to live again, if your debts are going to take that long to clear, i fear you have made the wrong choice.
    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/
    • jaxsmar
    • By jaxsmar 4th Mar 18, 1:26 PM
    • 385 Posts
    • 1,563 Thanks
    jaxsmar
    Thanks sourcrates I did ask you for advice on a DRO.. You were helpful now you have me thinking did I make the right choice, but I still stand by my decision perhaps further on down the line I might feel differently and regret it, it really was what felt right for me. Actually Sourcrates you've made a interesting point can you change from a DMP to DRO?
    Penny wise pound foolish #266 emergency fund £150/£1000.
    • sourcrates
    • By sourcrates 4th Mar 18, 1:57 PM
    • 13,987 Posts
    • 13,253 Thanks
    sourcrates
    Thanks sourcrates I did ask you for advice on a DRO.. You were helpful now you have me thinking did I make the right choice, but I still stand by my decision perhaps further on down the line I might feel differently and regret it, it really was what felt right for me. Actually Sourcrates you've made a interesting point can you change from a DMP to DRO?
    Originally posted by jaxsmar
    Yes of course you can.

    I didnít realise we had spoken before, sorry.

    If you meet all the criteria for a DRO, then really itís silly not to take advantage of that, they are after all, put in place to help you.

    You need to apply through an intermediary such as stepchange or CAB.

    At present I think there is a bit of waiting time due to various factors.
    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 4th Mar 18, 1:59 PM
    • 2,063 Posts
    • 5,142 Thanks
    January2015
    Thanks sourcrates I did ask you for advice on a DRO.. You were helpful now you have me thinking did I make the right choice, but I still stand by my decision perhaps further on down the line I might feel differently and regret it, it really was what felt right for me. Actually Sourcrates you've made a interesting point can you change from a DMP to DRO?
    Originally posted by jaxsmar

    Definitely find out if you can change it - the legislation is there to support people like you so make use of it. Don't feel guilty

    You could be debt free in one year and start to plan a debt free life going forward
    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]
    • carbootcrazy
    • By carbootcrazy 4th Mar 18, 2:42 PM
    • 4,706 Posts
    • 26,692 Thanks
    carbootcrazy
    Just to add to the discussion re SC sending applications to set up a Barclays basic account with their packs. They did the same when we started (almost 5 years ago now), which at the time we found quite odd because the majority of debt was linked to Barclays loans and credit cards. When I queried this they said that there was some sort of agreement that when setting up a DMP via SC they (Barclays) would not use the 'right to offset'.
    Originally posted by Suseka97

    Makes me feel like 'Billy-No-Mates' (or whatever the female equivalent is) as they never sent me a Barclay's account application. Maybe because I didn't have any Barclay's products or debts to start with. Probably Barclay's didn't want to lose you completely as a customer.
    Make £10 A Day Challenge 2018: Jan-Apr: £757.05+. May: £1209.25


    Original Debt: £56804 (@02/13). Now: £9998
    . Under £10K at long last.
    • ploppy57
    • By ploppy57 4th Mar 18, 2:46 PM
    • 722 Posts
    • 4,650 Thanks
    ploppy57
    Makes me feel like 'Billy-No-Mates' (or whatever the female equivalent is) as they never sent me a Barclay's account application. Maybe because I didn't have any Barclay's products or debts to start with. Probably Barclay's didn't want to lose you completely as a customer.
    Originally posted by carbootcrazy
    We never got sent one either. We had 3 massive debts with BC.
    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"
    • Danny008
    • By Danny008 4th Mar 18, 8:00 PM
    • 25 Posts
    • 7 Thanks
    Danny008
    Hi everyone. I am currently on my 3rd month of saving my emergency fund. I am looking to start my DMP in April. I wrote to all my creditors explaining this. Yesterday I got a letter from Tesco bank saying !!!8216;notice of default!!!8217; and I had to pay all my arrears within 28 days. Is this anything to worry about. I!!!8217;ve not heard anything off any of my other creditors. Thanks in advance.
    • ploppy57
    • By ploppy57 4th Mar 18, 8:04 PM
    • 722 Posts
    • 4,650 Thanks
    ploppy57
    Hi everyone. I am currently on my 3rd month of saving my emergency fund. I am looking to start my DMP in April. I wrote to all my creditors explaining this. Yesterday I got a letter from Tesco bank saying !!!8216;notice of default!!!8217; and I had to pay all my arrears within 28 days. Is this anything to worry about. I!!!8217;ve not heard anything off any of my other creditors. Thanks in advance.
    Originally posted by Danny008
    Don't worry, this is pretty standard practice and a default is good if you are on a DMP.
    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"
    • MaryMorrow
    • By MaryMorrow 4th Mar 18, 11:20 PM
    • 2 Posts
    • 1 Thanks
    MaryMorrow
    Hi
    I hope this is the right place to post this, I am currently on a DMP with StepChange and about 18mths into the plan (2yrs 8mths to go) but have now reached the point where both Virgin and Halifax are adding almost as much interest as I'm paying them !!!128555; I've tried repeatedly to get them to stop and all they say is that I'm not in financial hardship anymore because I'm paying more than 1% of the balance!
    So I'm wondering if I'm better off moving away from StepChange and doing my own DMP? That way I can reduce my payments to the creditors that keep adding interest? Has anyone done this or have any super duper ways to get them to stop adding interest?
    Thanks
    • selinek
    • By selinek 5th Mar 18, 6:20 AM
    • 49 Posts
    • 24 Thanks
    selinek
    Anybody got experience of sending off CCA's to L*nk? Sent the letters on 31st Jan and have heard nothing back from them. PR* were happy to out our accounts on hold, but no communication from L*nk at all. Would you just wait, or write again and chase a response. Currently paying them £1 a month to each account.
    Originally posted by ploppy57
    I had sent 3 CCAís to Link 6 months ago. Heard nothing. At the moment debt UE. donít intend to follow them up or pay unless they produce the original paperwork. Some people one on here hadnít heard from them for well over a year. Just sit tight
    • ploppy57
    • By ploppy57 5th Mar 18, 6:34 AM
    • 722 Posts
    • 4,650 Thanks
    ploppy57
    I had sent 3 CCAís to Link 6 months ago. Heard nothing. At the moment debt UE. donít intend to follow them up or pay unless they produce the original paperwork. Some people one on here hadnít heard from them for well over a year. Just sit tight
    Originally posted by selinek
    So how do you know they are UE, if they haven't yet sent you the paperwork?
    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"
    • Suseka97
    • By Suseka97 5th Mar 18, 7:21 AM
    • 251 Posts
    • 356 Thanks
    Suseka97
    Hi
    I hope this is the right place to post this, I am currently on a DMP with StepChange and about 18mths into the plan (2yrs 8mths to go) but have now reached the point where both Virgin and Halifax are adding almost as much interest as I'm paying them !!!128555; I've tried repeatedly to get them to stop and all they say is that I'm not in financial hardship anymore because I'm paying more than 1% of the balance!
    So I'm wondering if I'm better off moving away from StepChange and doing my own DMP? That way I can reduce my payments to the creditors that keep adding interest? Has anyone done this or have any super duper ways to get them to stop adding interest?
    Thanks
    Originally posted by MaryMorrow
    I have no experience of Virgin - but certainly have with Halifax and also Barclaycard, both of whom were a nightmare. Halifax continued to charge interest and refused to default us for over a year and as soon as we (via SC) started to pay what would have been the equivalent of a minimum monthly payment to Barclaycard they basically put our account back to a 'normal' status and reinstated interest Eventually, after much letter writing and complaining both companies ended up defaulting and selling the debt on at which time interest stopped (although I had to push for backdated defaults, but that's another story).

    So, to answer your question - yes, go self-managed and reduce them both to token (or no) payments until they default and sell on. Set the money aside and save towards either an emergency fund or F&Fs down the line. Stepchange are great in so much as they help people get themselves out of what is often a very stressful situation - but their method of allocation and very stringent policy of playing 'fair' to the creditors allows for no flexibility even when they know creditors are refusing to stop interest charges because they are getting a payment above whatever the companies threshold for stopping interest is. A catch 22.
    LBM Apr13: 14 Creditors / £85k+ owed
    Self-managed Aug17
    Current Status: 3 UE's and 3 with CCA's pending / £11k o/s
    • January2015
    • By January2015 5th Mar 18, 7:32 AM
    • 2,063 Posts
    • 5,142 Thanks
    January2015
    So how do you know they are UE, if they haven't yet sent you the paperwork?
    Originally posted by ploppy57
    Debts UE *BECAUSE* they haven't sent paperwork
    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]
    • January2015
    • By January2015 5th Mar 18, 7:36 AM
    • 2,063 Posts
    • 5,142 Thanks
    January2015
    Hi
    I hope this is the right place to post this, I am currently on a DMP with StepChange and about 18mths into the plan (2yrs 8mths to go) but have now reached the point where both Virgin and Halifax are adding almost as much interest as I'm paying them !!!128555; I've tried repeatedly to get them to stop and all they say is that I'm not in financial hardship anymore because I'm paying more than 1% of the balance!
    So I'm wondering if I'm better off moving away from StepChange and doing my own DMP? That way I can reduce my payments to the creditors that keep adding interest? Has anyone done this or have any super duper ways to get them to stop adding interest?
    Thanks
    Originally posted by MaryMorrow

    I agree with Suseka - go self managed, drop to zero or token payments. SC are great, but are very inflexible when it comes to situations like this.
    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]
    • sourcrates
    • By sourcrates 5th Mar 18, 8:58 AM
    • 13,987 Posts
    • 13,253 Thanks
    sourcrates
    So how do you know they are UE, if they haven't yet sent you the paperwork?
    Originally posted by ploppy57
    A creditor is not entitled to enforce any agreement whilst they are in breach of a CCA request, until the breach is rectified.
    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/
    • usedtobeblue
    • By usedtobeblue 5th Mar 18, 10:05 AM
    • 41 Posts
    • 24 Thanks
    usedtobeblue
    Sorry me again, this is all so new to me but can someone please tell me, do i just stop paying my unsecured debts? I have never missed any payments before but i was using one credit account to pay another every month so it was only ever going to get worse! I have taken the first steps and opened a new basic account. Do i withdraw my funds and put them into my new account and miss all my payments?
    • ploppy57
    • By ploppy57 5th Mar 18, 10:37 AM
    • 722 Posts
    • 4,650 Thanks
    ploppy57
    A creditor is not entitled to enforce any agreement whilst they are in breach of a CCA request, until the breach is rectified.
    Originally posted by sourcrates
    They haven't even acknowledged the requests. So I have no idea if they have even received them. I had already reduced to token payments of £1 when we started SM last month, so will stop them altogether then and if they contact me I will tell them why.
    PR* were brilliant and wrote back straight away saying account on hold.
    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"
    • sourcrates
    • By sourcrates 5th Mar 18, 10:42 AM
    • 13,987 Posts
    • 13,253 Thanks
    sourcrates
    They haven't even acknowledged the requests. So I have no idea if they have even received them. I had already reduced to token payments of £1 when we started SM last month, so will stop them altogether then and if they contact me I will tell them why.
    PR* were brilliant and wrote back straight away saying account on hold.
    Originally posted by ploppy57
    That is a typical creditor response unfortunately.

    Ring them, or write again, and chase it up, but only if you must, as its currently unenforceable until they do respond to you, however long that may be.

    If you have proof of postage, its deemed to be delivered i think after 3 working days.
    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 5th Mar 18, 10:49 AM
    • 13,987 Posts
    • 13,253 Thanks
    sourcrates
    Sorry me again, this is all so new to me but can someone please tell me, do i just stop paying my unsecured debts? I have never missed any payments before but i was using one credit account to pay another every month so it was only ever going to get worse! I have taken the first steps and opened a new basic account. Do i withdraw my funds and put them into my new account and miss all my payments?
    Originally posted by usedtobeblue
    Hi,

    Err.....yes.....you are no longer making contractual payments are you, you are in a debt management plan, have you written and informed your creditors of your change of circumstances as advised before ?

    Also tell them when you intend to start making your DMP payments, are you using stepchange as your DMP provider ?
    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 5th Mar 18, 10:52 AM
    • 28 Posts
    • 13 Thanks
    MK-4
    Sorry me again, this is all so new to me but can someone please tell me, do i just stop paying my unsecured debts? I have never missed any payments before but i was using one credit account to pay another every month so it was only ever going to get worse! I have taken the first steps and opened a new basic account. Do i withdraw my funds and put them into my new account and miss all my payments?
    Originally posted by usedtobeblue
    Hi, not sure if I can offer much advice but in similar position as you.
    All my direct debits have been cancelled so no payments will go out.
    New account setup to pay essential payments by direct debit, mortgage etc. but NONE of the unsecured creditors.
    Still have to write to one creditor, but not had any response so far from all the others that were written to.

    Something I find a bit confusing is the defaults and token payments. From the posts on here is seems that a default is a good thing, so maybe not paying is the best? Still not that clear in my head though.

    Someone with far better knowledge will be on here soon but make sure you do not have any funds in you old account. (Sourcrates answered while I was typing)
    Last edited by MK-4; 05-03-2018 at 10:54 AM. Reason: Update
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