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  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 14,328Posts
    • 13,526Thanks
    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 159
    • MaryMorrow
    • By MaryMorrow 5th Mar 18, 11:05 AM
    • 2 Posts
    • 1 Thanks
    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.
    Originally posted by Suseka97
    Thanks so much for your reply, it seems so frustrating but clearly self managed is the way to go. Next question... how do I do that? Do I simply write to them and say that I will be managing it myself and want to pay them x amount then overpay where I can to do a snowball and clear it faster?
    • January2015
    • By January2015 5th Mar 18, 11:11 AM
    • 2,089 Posts
    • 5,181 Thanks
    January2015
    Thanks so much for your reply, it seems so frustrating but clearly self managed is the way to go. Next question... how do I do that? Do I simply write to them and say that I will be managing it myself and want to pay them x amount then overpay where I can to do a snowball and clear it faster?
    Originally posted by MaryMorrow
    Use NEDCAB DMP to help you set up your self managed DMP

    The site walks you through step by step and generates all the letters you need for your creditors
    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]
    • usedtobeblue
    • By usedtobeblue 5th Mar 18, 11:18 AM
    • 42 Posts
    • 24 Thanks
    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 ?
    Originally posted by sourcrates


    Hi I知 just in the process of setting it all up, I have the letters ready to send to all my creditors and will send them today! I知 with step change yes, should I maybe seed a secure message to my bank asking them to stop payments immediately?
    • sourcrates
    • By sourcrates 5th Mar 18, 11:23 AM
    • 14,328 Posts
    • 13,526 Thanks
    sourcrates
    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.
    Originally posted by MK-4
    Token payments are a waste of time, they serve no real purpose, and cost the creditor more to process than the payment is actually worth.

    Defaults, this has been covered so many times in the past, but just to clarify, prior to an account defaulting, you are relying on the goodwill of the creditor to stop adding interest to the account, some will, some wont.

    Once an account defaults, the balance is frozen, no further interest or charges can be added, also, you then know you have a clear 6 years until said default drops off your credit file, so in the case of someone in a DMP, defaults are good news.
    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 5th Mar 18, 11:41 AM
    • 723 Posts
    • 4,656 Thanks
    ploppy57
    Token payments are a waste of time, they serve no real purpose, and cost the creditor more to process than the payment is actually worth.

    Defaults, this has been covered so many times in the past, but just to clarify, prior to an account defaulting, you are relying on the goodwill of the creditor to stop adding interest to the account, some will, some wont.

    Once an account defaults, the balance is frozen, no further interest or charges can be added, also, you then know you have a clear 6 years until said default drops off your credit file, so in the case of someone in a DMP, defaults are good news.
    Originally posted by sourcrates
    So in your opinion is it better to pay nothing than to pay 」1?
    DMP March '15 」57,549. Now 」44,226. 23% paid. Went SM Feb '18 to get DF sooner.
    Emergency fund #231... 」1000.
    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, 11:49 AM
    • 14,328 Posts
    • 13,526 Thanks
    sourcrates
    So in your opinion is it better to pay nothing than to pay 」1?
    Originally posted by ploppy57
    I queered this myself with Fatbelly (who works at CAB) he agreed with me that token payments are a waste of time, you either tell them your saving an emergency fund, and they will have to wait until you are ready to start payments, or you just get on with whatever debt solution that has been recommended to you.

    So it makes little difference if you pay 」1 a month or nothing, of course if it makes you feel better, then so be it, but in the grand scheme of things, it matters not a jot.

    If it were me, i would want all accounts defaulted before i started a DMP, if that meant not paying for 6-8 months, then so be it, but that's just my personal take on things.
    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 5th Mar 18, 11:52 AM
    • 723 Posts
    • 4,656 Thanks
    ploppy57
    I queered this myself with Fatbelly (who works at CAB) he agreed with me that token payments are a waste of time, you either tell them your saving an emergency fund, and they will have to wait until you are ready to start payments, or you just get on with whatever debt solution that has been recommended to you.

    So it makes little difference if you pay 」1 a month or nothing, of course if it makes you feel better, then so be it, but in the grand scheme of things, it matters not a jot.

    If it were me, i would want all accounts defaulted before i started a DMP, if that meant not paying for 6-8 months, then so be it, but that's just my personal take on things.
    Originally posted by sourcrates
    But definitely pay nothing while waiting for CAA requests to come back?

    Ours have been defaulted since 2015/16, with the exception of 1 small one. Its just that now we have started SM and trying for CCA's, it seems to put it all in a different light.
    Last edited by ploppy57; 05-03-2018 at 12:13 PM. Reason: Adding txt
    DMP March '15 」57,549. Now 」44,226. 23% paid. Went SM Feb '18 to get DF sooner.
    Emergency fund #231... 」1000.
    Christmas '18 challenge... 」22 /」300
    "There's a Great Big Beautiful Tomorrow, Shining at the end of every day"
    • MK-4
    • By MK-4 5th Mar 18, 12:17 PM
    • 29 Posts
    • 14 Thanks
    MK-4
    I queered this myself with Fatbelly (who works at CAB) he agreed with me that token payments are a waste of time, you either tell them your saving an emergency fund, and they will have to wait until you are ready to start payments, or you just get on with whatever debt solution that has been recommended to you.

    So it makes little difference if you pay 」1 a month or nothing, of course if it makes you feel better, then so be it, but in the grand scheme of things, it matters not a jot.

    If it were me, i would want all accounts defaulted before i started a DMP, if that meant not paying for 6-8 months, then so be it, but that's just my personal take on things.
    Originally posted by sourcrates
    Thanks, that really clears it up, so I will write again to my creditors this month with the "saving an emergency fund" and hold off starting with SC for a few months.
    • January2015
    • By January2015 5th Mar 18, 12:49 PM
    • 2,089 Posts
    • 5,181 Thanks
    January2015
    Token payments.... or no payments ?????

    I totally agree with Sourcrates. Token payments are a bit pointless when starting DMP / saving for an emergency fund. It's also correct they cost the creditor more to process than the 」1 token payment they receive.

    However, I am paying token payments now I have all my accounts defaulted, most transferred from original creditors to DCAs, emergency fund saved. So why am I paying token payments rather than full DMP payments or zero payments. I am paying token payments to 'show willing' with DCAs and keep them on-side so to speak whilst I save for F&Fs. I feel (and it is my opinion only) that if I totally ignore them or don't make some sort of payment they are more likely to start considering more action - what that action may be I have no idea, but worst case scenarios for me would be CCJs or charging orders. I don't want that so I pay token payments. However, during DMP setup, saving for EF and definitely when creditors do not provide information requested under CCA requests - zero payments all the way.

    That's my two pennies worth on this subject
    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]
    • Suseka97
    • By Suseka97 5th Mar 18, 1:00 PM
    • 294 Posts
    • 392 Thanks
    Suseka97
    Hi I知 just in the process of setting it all up, I have the letters ready to send to all my creditors and will send them today! I知 with step change yes, should I maybe seed a secure message to my bank asking them to stop payments immediately?
    Originally posted by usedtobeblue
    Yes, stop all payments to your original creditors now - if you bank online you should be able to go into your account and cancel the direct debits yourself.
    LBM Apr13: 14 Creditors / 」85k+ owed
    Self-managed Aug17
    Current Status: 3 UE's and 3 with CCA's pending / 」11k o/s
    • ploppy57
    • By ploppy57 5th Mar 18, 1:13 PM
    • 723 Posts
    • 4,656 Thanks
    ploppy57
    Token payments.... or no payments ?????

    I totally agree with Sourcrates. Token payments are a bit pointless when starting DMP / saving for an emergency fund. It's also correct they cost the creditor more to process than the 」1 token payment they receive.

    However, I am paying token payments now I have all my accounts defaulted, most transferred from original creditors to DCAs, emergency fund saved. So why am I paying token payments rather than full DMP payments or zero payments. I am paying token payments to 'show willing' with DCAs and keep them on-side so to speak whilst I save for F&Fs. I feel (and it is my opinion only) that if I totally ignore them or don't make some sort of payment they are more likely to start considering more action - what that action may be I have no idea, but worst case scenarios for me would be CCJs or charging orders. I don't want that so I pay token payments. However, during DMP setup, saving for EF and definitely when creditors do not provide information requested under CCA requests - zero payments all the way.

    That's my two pennies worth on this subject
    Originally posted by January2015
    Thanks Jan. Still can't decide if I should just stop the token payments to L*nk until they provide the CCA's, or tell them I am going to do it. Its the fact that they haven't even acknowledged our letters. Wondering if they actually received them.
    DMP March '15 」57,549. Now 」44,226. 23% paid. Went SM Feb '18 to get DF sooner.
    Emergency fund #231... 」1000.
    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, 1:39 PM
    • 14,328 Posts
    • 13,526 Thanks
    sourcrates
    Just to clarify, if token payments are all you can afford, for example, you don`t have sufficient funds for a DMP and other forms of insolvency are not appropriate for you, then by all means pay 」1 a month.

    I am speaking specifically about DMP`s here.

    And as regards a CCA request, you are not obliged to pay that account until the documentation you requested has been received.
    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 5th Mar 18, 2:23 PM
    • 83 Posts
    • 41 Thanks
    Summer12
    So if you haven!!!8217;t defaulted on a credit card yet but have sent CCAs and so far had no response (and you know they!!!8217;ve received the letter as it was sent recorded delivery) are they entitled to add fees and charges whilst you pay nothing waiting for their response?
    • sourcrates
    • By sourcrates 5th Mar 18, 2:40 PM
    • 14,328 Posts
    • 13,526 Thanks
    sourcrates
    So if you havent defaulted on a credit card yet but have sent CCAs and so far had no response (and you know they;ve received the letter as it was sent recorded delivery) are they entitled to add fees and charges whilst you pay nothing waiting for their response?
    Originally posted by Summer12
    Usually an account is put on hold whilst the request is actioned.

    All it says in the actual legislation is :

    (4) If the creditor under an agreement fails to comply with subsection (1)

    (a) he is not entitled, while the default continues, to enforce the agreement.

    so its a bit vague in respect of what you want to know.
    Last edited by sourcrates; 05-03-2018 at 2:43 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/
    • Summer12
    • By Summer12 5th Mar 18, 2:47 PM
    • 83 Posts
    • 41 Thanks
    Summer12
    Usually an account is put on hold whilst the request is actioned.

    All it says in the actual legislation is :

    (4) If the creditor under an agreement fails to comply with subsection (1)

    (a) he is not entitled, while the default continues, to enforce the agreement.

    so its a bit vague in respect of what you want to know.
    Originally posted by sourcrates
    This is why I think I値l follow the first request up with a second later stating they are in default and should put the account on hold. Thanks Sourcrates
    • carbootcrazy
    • By carbootcrazy 5th Mar 18, 3:49 PM
    • 4,809 Posts
    • 27,314 Thanks
    carbootcrazy
    Token payments.... or no payments ?????

    I totally agree with Sourcrates. Token payments are a bit pointless when starting DMP / saving for an emergency fund. It's also correct they cost the creditor more to process than the 」1 token payment they receive.

    However, I am paying token payments now I have all my accounts defaulted, most transferred from original creditors to DCAs, emergency fund saved. So why am I paying token payments rather than full DMP payments or zero payments. I am paying token payments to 'show willing' with DCAs and keep them on-side so to speak whilst I save for F&Fs. I feel (and it is my opinion only) that if I totally ignore them or don't make some sort of payment they are more likely to start considering more action - what that action may be I have no idea, but worst case scenarios for me would be CCJs or charging orders. I don't want that so I pay token payments. However, during DMP setup, saving for EF and definitely when creditors do not provide information requested under CCA requests - zero payments all the way.

    That's my two pennies worth on this subject
    Originally posted by January2015
    Totally agree with your take on this, January, and the way you are dealing with things. I'm doing exactly the same with token payments for exactly the same reason.
    Make 」10 A Day Challenge 2018: Jan-May: 」1988.00+. June: 」287.77


    Original Debt: 」56804 (@02/13). Now: 」9618
    . Under 」10K at long last.
    • ploppy57
    • By ploppy57 5th Mar 18, 3:57 PM
    • 723 Posts
    • 4,656 Thanks
    ploppy57
    Ok, have written a follow up CCA letter to L*nk, just to make myself feel better before stopping payments while we wait for their reply. I will now stop the SO's for the 3 accounts until we hear from them.
    DMP March '15 」57,549. Now 」44,226. 23% paid. Went SM Feb '18 to get DF sooner.
    Emergency fund #231... 」1000.
    Christmas '18 challenge... 」22 /」300
    "There's a Great Big Beautiful Tomorrow, Shining at the end of every day"
    • ploppy57
    • By ploppy57 5th Mar 18, 4:01 PM
    • 723 Posts
    • 4,656 Thanks
    ploppy57
    Token payments.... or no payments ?????

    I totally agree with Sourcrates. Token payments are a bit pointless when starting DMP / saving for an emergency fund. It's also correct they cost the creditor more to process than the 」1 token payment they receive.

    However, I am paying token payments now I have all my accounts defaulted, most transferred from original creditors to DCAs, emergency fund saved. So why am I paying token payments rather than full DMP payments or zero payments. I am paying token payments to 'show willing' with DCAs and keep them on-side so to speak whilst I save for F&Fs. I feel (and it is my opinion only) that if I totally ignore them or don't make some sort of payment they are more likely to start considering more action - what that action may be I have no idea, but worst case scenarios for me would be CCJs or charging orders. I don't want that so I pay token payments. However, during DMP setup, saving for EF and definitely when creditors do not provide information requested under CCA requests - zero payments all the way.

    That's my two pennies worth on this subject
    Originally posted by January2015

    So can I just clarify Jan...You are paying token payments to all creditors. So I presume you just tinkered with the I&E forms to make it look like it was all you could afford? When we started SM last month, I said token payments for 6 months but sent an I&E showing what we would pay after the 6 months. So presume just do another one and make it look like we can still only afford 」1?
    DMP March '15 」57,549. Now 」44,226. 23% paid. Went SM Feb '18 to get DF sooner.
    Emergency fund #231... 」1000.
    Christmas '18 challenge... 」22 /」300
    "There's a Great Big Beautiful Tomorrow, Shining at the end of every day"
    • carbootcrazy
    • By carbootcrazy 5th Mar 18, 4:11 PM
    • 4,809 Posts
    • 27,314 Thanks
    carbootcrazy
    So can I just clarify Jan...You are paying token payments to all creditors. So I presume you just tinkered with the I&E forms to make it look like it was all you could afford? When we started SM last month, I said token payments for 6 months but sent an I&E showing what we would pay after the 6 months. So presume just do another one and make it look like we can still only afford 」1?
    Originally posted by ploppy57
    That's what I did, ploppy

    I too initially put a time limit of 6 months on my intention to pay tokens for 6 months. I wish I hadn't now, would have been better to leave it open ended. I didn't mention anything about what the repayment figure would be after the 6 months though. However, all but one of my creditors have let the 」1 agrrement run beyond 6 months without even contacting me. The only one that has quibbled and asked for an updated I&E is Lloyds (via Wescot) and they say in their letter that it's to ensure that I'm still able to afford what I'm paying now. I think I can just about cope with the 」1 I pay them. I'll be sending an updated I&E which will be identical to the last one.
    Make 」10 A Day Challenge 2018: Jan-May: 」1988.00+. June: 」287.77


    Original Debt: 」56804 (@02/13). Now: 」9618
    . Under 」10K at long last.
    • ploppy57
    • By ploppy57 5th Mar 18, 4:23 PM
    • 723 Posts
    • 4,656 Thanks
    ploppy57
    That's what I did, ploppy

    I too initially put a time limit of 6 months on my intention to pay tokens for 6 months. I wish I hadn't now, would have been better to leave it open ended. I didn't mention anything about what the repayment figure would be after the 6 months though. However, all but one of my creditors have let the 」1 agrrement run beyond 6 months without even contacting me. The only one that has quibbled and asked for an updated I&E is Lloyds (via Wescot) and they say in their letter that it's to ensure that I'm still able to afford what I'm paying now. I think I can just about cope with the 」1 I pay them. I'll be sending an updated I&E which will be identical to the last one.
    Originally posted by carbootcrazy

    WE have 5 with them.....all Ll**ds and H/Fax.
    I will just wait till the end of the 6 months and send a new I&E to everybody saying that due to change in circumstances I will continue to pay the 」1.
    In one way I hate it as it looks as though our debt is not going down quick enough, but I do appreciate that we will be able to save and get them paid off quicker in the long run.
    Hoping to pay the small one we have with N*wd*y very soon as it is only just over 」200 left to pay.
    DMP March '15 」57,549. Now 」44,226. 23% paid. Went SM Feb '18 to get DF sooner.
    Emergency fund #231... 」1000.
    Christmas '18 challenge... 」22 /」300
    "There's a Great Big Beautiful Tomorrow, Shining at the end of every day"
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