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  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 14,356Posts
    • 13,543Thanks
    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 160
    • Summer12
    • By Summer12 5th Mar 18, 5:03 PM
    • 83 Posts
    • 41 Thanks
    Summer12
    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.
    Originally posted by ploppy57
    Can I ask if you have ever been asked to supply wage slips etc to back up your i&e sheet when going self managed. Our problem is most of our enforcable debt is with our bank so they know everything we spend on
    • January2015
    • By January2015 5th Mar 18, 5:12 PM
    • 2,095 Posts
    • 5,188 Thanks
    January2015
    Can I ask if you have ever been asked to supply wage slips etc to back up your i&e sheet when going self managed. Our problem is most of our enforcable debt is with our bank so they know everything we spend on
    Originally posted by Summer12
    Move your bank account asap.... never bank where you have debt

    I've never been asked for wage slips or bank statements by anyone other than Stepchange. Once we went self managed, no-one asked and if they did I would have ignored them

    Over 2 years in self managed, paying token £1 per month to each creditor and happy to keep doing so
    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, 5:14 PM
    • 2,095 Posts
    • 5,188 Thanks
    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?
    Originally posted by ploppy57
    Yes - I&E evidences we cannot afford more than £1 each to our creditors.

    Circumstances change - our did
    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, 5:21 PM
    • 14,356 Posts
    • 13,543 Thanks
    sourcrates
    Can I ask if you have ever been asked to supply wage slips etc to back up your i&e sheet when going self managed. Our problem is most of our enforcable debt is with our bank so they know everything we spend on
    Originally posted by Summer12
    First step before you do or say anything to anyone is.........set up a new basic bank account, with a bank with whom you have no debt !!!
    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, 5:24 PM
    • 83 Posts
    • 41 Thanks
    Summer12
    Move your bank account asap.... never bank where you have debt

    I've never been asked for wage slips or bank statements by anyone other than Stepchange. Once we went self managed, no-one asked and if they did I would have ignored them

    Over 2 years in self managed, paying token £1 per month to each creditor and happy to keep doing so
    Originally posted by January2015
    Yep already have one different account set up and just applied at the weekend for another. Accounts thing at work down at the moment so canít change account number for wages to go into! New accounts already set up for OH. Direct debits being transferred. CCAs letters gone out and financial difficulties letters waiting to go as soon as confirmation of wages being set up into new accounts - i have certainly listened and taken all your great advice. Taking one month ďon holdĒ then hopefully 6 months token for emergency fund set up time (maybe 12 if I can manage it). Just also need to formally set up the I&E. So much to do itís a full time job in itself! Thanks again to everyone who advised against a secured loan to clear it all glad I didnít go down that route now ( not that I probably would have got one anyway!)
    • ploppy57
    • By ploppy57 5th Mar 18, 5:27 PM
    • 723 Posts
    • 4,656 Thanks
    ploppy57
    Can I ask if you have ever been asked to supply wage slips etc to back up your i&e sheet when going self managed. Our problem is most of our enforcable debt is with our bank so they know everything we spend on
    Originally posted by Summer12
    No not at all. As others have already said though...first rule of DMP, set up a basic bank account where you have no debts. We went with N/wide. Basic account but with a debit card and no facility for overdraft so you can't get into trouble again.
    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"
    • mrsdann
    • By mrsdann 5th Mar 18, 8:05 PM
    • 3 Posts
    • 0 Thanks
    mrsdann
    Hi Newbie here so any advice would be gratefully received.
    I have been robbing Peter to pay Paul for a while now and then to top it all I split from my partner and my wages decreased by a considerable sum each month. This has had a huge knock on effect on my ability to afford my debt payments.
    To cut a long story short I currently have unsecured debts of 38K. These are through a bank loan, 3 credit cards, 3 catalogues, a large overdraft and a debt to DWP for an overpayment many moons ago. Currently my minimum payments on all but the overdraft are equal to nearly £1200 per month. I have been paying my loans and credit cards and then using the cards to pay for food and bills etc.
    Anyway the constant worry is affecting not only my mental health but also my well being. (High blood pressure/anxiety/depression on top of a heart condition) I have now taken the first step and looked at my finances through step change and they advised a DMP. Reading through some of this thread though has now left me wondering what my first steps should be.
    I have opened a new bank account to transfer my wages and bills into as my loan and 1 credit card is with my current bank.
    What should I do now? Currently due to how I have been juggling I have only defaulted on one account. When I change my wages into my other account this will also default the overdraft.
    Should I be sending letters before starting a DMP with Step Change?
    Should I stop my payments and offer token payments?
    Do I wait for all accounts to default and build an emergency fund with my disposable income?
    Where do I start???? I feel so confused !!!
    • January2015
    • By January2015 5th Mar 18, 8:26 PM
    • 2,095 Posts
    • 5,188 Thanks
    January2015
    Hi Newbie here so any advice would be gratefully received.
    I have been robbing Peter to pay Paul for a while now and then to top it all I split from my partner and my wages decreased by a considerable sum each month. This has had a huge knock on effect on my ability to afford my debt payments.
    To cut a long story short I currently have unsecured debts of 38K. These are through a bank loan, 3 credit cards, 3 catalogues, a large overdraft and a debt to DWP for an overpayment many moons ago. Currently my minimum payments on all but the overdraft are equal to nearly £1200 per month. I have been paying my loans and credit cards and then using the cards to pay for food and bills etc.
    Anyway the constant worry is affecting not only my mental health but also my well being. (High blood pressure/anxiety/depression on top of a heart condition) I have now taken the first step and looked at my finances through step change and they advised a DMP. Reading through some of this thread though has now left me wondering what my first steps should be.
    I have opened a new bank account to transfer my wages and bills into as my loan and 1 credit card is with my current bank.
    What should I do now? Currently due to how I have been juggling I have only defaulted on one account. When I change my wages into my other account this will also default the overdraft.
    Should I be sending letters before starting a DMP with Step Change?
    Should I stop my payments and offer token payments?
    Do I wait for all accounts to default and build an emergency fund with my disposable income?
    Where do I start???? I feel so confused !!!
    Originally posted by mrsdann
    Hi and welcome

    Don't panic - we've all been where you are and it get's so much easier quite quickly

    Firstly stop all payments to your creditors. Do not worry about making token payments.

    Then be brave and pick up the phone and call your creditors and tell them you are seeking financial support and advice from Stepchange. They will be fine with you. They will immediately put a 30 hold on all contact and hold interest and charges as well. They might ask for your Stepchange reference number - if you have it then fine to give it to them but don't panic if you don't - just tell them you are still sorting things out with SC and don't have it yet. They will be fine.

    Then take a deep breath and come and chat on here. We will all help you muddle through the setup of your DMP and dealing with creditors

    Edit: Don't be scared to tell your creditors you cannot pay them whilst you are sorting things out with SC. Again - they will be fine with this. They are used to this happening.

    If you don't feel able to phone then use the online account messaging that some accounts have. If not then if you really can't phone them, then put this information in a short letter.

    This is the only time I recommend phoning creditors - when initially starting a DMP. After that, everything in writing
    Last edited by January2015; 05-03-2018 at 8:28 PM.
    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]
    • mrsdann
    • By mrsdann 5th Mar 18, 8:42 PM
    • 3 Posts
    • 0 Thanks
    mrsdann
    Thank you so much for your reply. I have had a few text messages today asking me to call but I think I will take your advice and contact by online messaging as talking about it on the phone is still making me very anxious.
    I have a new bank account and have transferred the balance from my old account into it. Do I cancel all direct debits now? The ones set up are for my mobile, insurances, prescription costs, rent, council tax etc. I was going to cancel each one after payment and then ring and set them back up in my new account.
    Part of me is still terrified of taking this step whilst the other is totally relieved. Its a very strange feeling but hopefully it can only get better.
    • January2015
    • By January2015 5th Mar 18, 8:50 PM
    • 2,095 Posts
    • 5,188 Thanks
    January2015
    Thank you so much for your reply. I have had a few text messages today asking me to call but I think I will take your advice and contact by online messaging as talking about it on the phone is still making me very anxious.
    I have a new bank account and have transferred the balance from my old account into it. Do I cancel all direct debits now? The ones set up are for my mobile, insurances, prescription costs, rent, council tax etc. I was going to cancel each one after payment and then ring and set them back up in my new account.
    Part of me is still terrified of taking this step whilst the other is totally relieved. Its a very strange feeling but hopefully it can only get better.
    Originally posted by mrsdann
    Will there be sufficient to cover the Direct Debits in your old account (either cash or overdraft) ? If so, let them go through on the old account. If you are worried about it then cancel them and contact each company and arrange to pay either over the phone for this month or set up a new direct debit.

    It really, really does get better very quickly. You will soon not be panicking about making ends meet each month and you will not be scared of 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]
    • NewbieNat
    • By NewbieNat 5th Mar 18, 9:17 PM
    • 57 Posts
    • 33 Thanks
    NewbieNat
    Hi Mrsdann

    I'm at the same stage as you, and it is such a worry. I've just received my new basic bank card & account. I think I will arrange for my wages at the end of the month to go to my new account but pay the DD's from my old account & then close it. It's the timing that is making me panic!! I have money going into my account in 2 weeks time so will just withdraw that & pay into my new account. Does anyone know how long it takes to make a new DD active? Is there a template letter to send to my current bank regarding closing the account? Apologies for all the questions, I feel that I've taken on another full time job
    • January2015
    • By January2015 5th Mar 18, 10:37 PM
    • 2,095 Posts
    • 5,188 Thanks
    January2015
    Hi Mrsdann

    I'm at the same stage as you, and it is such a worry. I've just received my new basic bank card & account. I think I will arrange for my wages at the end of the month to go to my new account but pay the DD's from my old account & then close it. It's the timing that is making me panic!! I have money going into my account in 2 weeks time so will just withdraw that & pay into my new account. Does anyone know how long it takes to make a new DD active? Is there a template letter to send to my current bank regarding closing the account? Apologies for all the questions, I feel that I've taken on another full time job
    Originally posted by NewbieNat
    Don't send your existing bank a letter about closing the account - especially if you have existing debts such as credit cards or loans with the same bank. I assume you do if you have opened a new bank account elsewhere.

    Leave the bank account to just idle away whilst you are setting up your DMP. Cancel the DDs etc after the last payment you want made from that account, cut up your cards, cancel any standing orders.... and then leave the account alone.

    Once the dust settles and your DMP is up and running you can close it if you want to. Most of us couldn't close our bank accounts because we had overdrafts with them which went into the DMP pot... can't close an account that has a debt associated with it
    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 6th Mar 18, 8:40 AM
    • 4,815 Posts
    • 27,341 Thanks
    carbootcrazy
    Don't send your existing bank a letter about closing the account - especially if you have existing debts such as credit cards or loans with the same bank. I assume you do if you have opened a new bank account elsewhere.

    Leave the bank account to just idle away whilst you are setting up your DMP. Cancel the DDs etc after the last payment you want made from that account, cut up your cards, cancel any standing orders.... and then leave the account alone.

    Once the dust settles and your DMP is up and running you can close it if you want to. Most of us couldn't close our bank accounts because we had overdrafts with them which went into the DMP pot... can't close an account that has a debt associated with it
    Originally posted by January2015
    Very useful advice, as always, January

    Still on the subject of bank accounts I have a Nationwide basic account now since starting my DMP and couldn't be happier with it. However, I still have my Lloyds full account (not sure what it's called) as I never closed it and neither did they. They have withdrawn my small arranged overdraft facility because I hadn't used it for 3 years, or at least that's what they told me. It featured on my DMP at the beginning but I paid it off asap. They sent me a new contactless bank card for this account fairly recently so I assume they still want me as a customer. There is no money in this account, I haven't used it since starting my DMP in 2013 but I'd like to hang onto it just in case. Getting a 'proper' bank account when I've a trashed credit record would be nigh on impossible.


    I keep seeing various switching offers on MSE and elsewhere and wonder whether that might be possible. The money would certainly be a big help. I assume they credit check in these cases but wonder whether they are so stringent when switching from a top bank to another. Any ideas please, or should I just sit on it for now until my defaults start dropping off my file during 2019?


    You said at the end of your post that you can't close an account that has a debt associated with it. I still have a big Lloyds credit card debt and wonder why this is why they have left the bank account open. Not sure if the two things are related though.
    Make £10 A Day Challenge 2018: Jan-May: £1988.00+. June: £315.12


    Original Debt: £56804 (@02/13). Now: £9618
    . Under £10K at long last.
    • January2015
    • By January2015 6th Mar 18, 8:56 AM
    • 2,095 Posts
    • 5,188 Thanks
    January2015
    Very useful advice, as always, January

    Still on the subject of bank accounts I have a Nationwide basic account now since starting my DMP and couldn't be happier with it. However, I still have my Lloyds full account (not sure what it's called) as I never closed it and neither did they. They have withdrawn my small arranged overdraft facility because I hadn't used it for 3 years, or at least that's what they told me. It featured on my DMP at the beginning but I paid it off asap. They sent me a new contactless bank card for this account fairly recently so I assume they still want me as a customer. There is no money in this account, I haven't used it since starting my DMP in 2013 but I'd like to hang onto it just in case. Getting a 'proper' bank account when I've a trashed credit record would be nigh on impossible.


    I keep seeing various switching offers on MSE and elsewhere and wonder whether that might be possible. The money would certainly be a big help. I assume they credit check in these cases but wonder whether they are so stringent when switching from a top bank to another. Any ideas please, or should I just sit on it for now until my defaults start dropping off my file during 2019?


    You said at the end of your post that you can't close an account that has a debt associated with it. I still have a big Lloyds credit card debt and wonder why this is why they have left the bank account open. Not sure if the two things are related though.
    Originally posted by carbootcrazy
    Hi CBC

    I wouldn't risk using your Lloyds account until the CC debt has been cleared because of the right of set-off .... but I'm sure you know that already However, nothing to stop you keeping the account open for a point in time when you can use it. Perhaps Lloyds have left it open in the hope you deposit money in it one day that they can then quickly nab towards clearing the CC debt..... we'll always wonder, but never really know

    Regarding switching offers..... not available to us DMPers unfortunately. They do credit check as they are for accounts with lending facilities (aka overdrafts ) and they run a credit check when applying for them. I would have been switching whenever I could for the free money if they were available to us I will happily wait to see you post about switching and get paid to move banks as soon as your defaults disappear and you have a shiny, clean credit file

    Have a great day
    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 6th Mar 18, 9:54 AM
    • 83 Posts
    • 41 Thanks
    Summer12
    Morning

    Re: direct debit switches Iíve opened a Nwide flex direct 0 overdraft facility obviously!! and then used their switch facility to send over all the dd. I think it is called a partial switch as Iím leaving the account open ....purely because thereís a massive overdrawn overdraft so would be able to close it anyway. Hopefully dds come over ok but more concerned about wages making it over actually.

    Just want everything set up now so we can a fresh start. Spent £500 on tyres last month and then last night 2 more burst on a pot hole.... so need to start that emergency fund!
    • KatieAnne
    • By KatieAnne 6th Mar 18, 1:46 PM
    • 10 Posts
    • 10 Thanks
    KatieAnne
    Had a Default Notice today from MBNA....
    ( Credit Card Balance is 21,000)
    Was going to request CCA, am I best off doing it now or wait for the debt to be hopefully sold on please ?
    ( Got until 20th March)
    I have to say I did feel sick when reading it and it said they may get an external company to collect the debt on behalf of MBNA..... scared they will come after me for the money!!!
    There are other people with high debt like me & hubby but it's spread accross lots of creditors, we have 4 large credit card debts and one Next account.
    We have a simular amount on our other MBNA Card, so I'm sure we will get the default notice for that one next.
    Tesco have defaulted me, but that did not give me shivers.
    Feeling really nervous at the moment.
    I don't know what I would do without this forum, I've read pages of pages of diaries and know that there are so many people in the same situation.
    • January2015
    • By January2015 6th Mar 18, 2:00 PM
    • 2,095 Posts
    • 5,188 Thanks
    January2015
    Had a Default Notice today from MBNA....
    ( Credit Card Balance is 21,000)
    Was going to request CCA, am I best off doing it now or wait for the debt to be hopefully sold on please ?
    ( Got until 20th March)
    I have to say I did feel sick when reading it and it said they may get an external company to collect the debt on behalf of MBNA..... scared they will come after me for the money!!!
    There are other people with high debt like me & hubby but it's spread accross lots of creditors, we have 4 large credit card debts and one Next account.
    We have a simular amount on our other MBNA Card, so I'm sure we will get the default notice for that one next.
    Tesco have defaulted me, but that did not give me shivers.
    Feeling really nervous at the moment.
    I don't know what I would do without this forum, I've read pages of pages of diaries and know that there are so many people in the same situation.
    Originally posted by KatieAnne
    CCA now How old is the MBNA account ?

    Don't worry or feel sick / nervous. Defaults are definitely a positive thing for people dealing with debts through debt management plans
    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]
    • NewbieNat
    • By NewbieNat 6th Mar 18, 5:48 PM
    • 57 Posts
    • 33 Thanks
    NewbieNat
    Than you January2015 for your sound advice. I do however, have an overdraft with my bank. So this changes things I guess. This debt will be added to the DMP, but I don't intend to start it for a few months.
    • lean55
    • By lean55 6th Mar 18, 6:05 PM
    • 3 Posts
    • 0 Thanks
    lean55
    Help no emergency fund
    Hi All,
    i am so glad i have found this group i only wish i had before i started my DMP.
    i have been on my DMP for a year now everything is going well apart from not having a emergency fund which is really worrying me!
    since Christmas i have had a run of bad luck with things breaking down, this month it was the washing machine and the boiler together over £500 i have no spare money so have had to ask family for help which i hate doing.
    The other thing i worry about is not having the excess saved for my two dogs insurance policies
    if anything should happen to them.
    The point of my waffling on is would stepchange let me make six months reduced payments and my creditors accept this so i could save my emergency fund?
    Thank you
    • January2015
    • By January2015 6th Mar 18, 6:10 PM
    • 2,095 Posts
    • 5,188 Thanks
    January2015
    Hi All,
    i am so glad i have found this group i only wish i had before i started my DMP.
    i have been on my DMP for a year now everything is going well apart from not having a emergency fund which is really worrying me!
    since Christmas i have had a run of bad luck with things breaking down, this month it was the washing machine and the boiler together over £500 i have no spare money so have had to ask family for help which i hate doing.
    The other thing i worry about is not having the excess saved for my two dogs insurance policies
    if anything should happen to them.
    The point of my waffling on is would stepchange let me make six months reduced payments and my creditors accept this so i could save my emergency fund?
    Thank you
    Originally posted by lean55
    Yes - contact SC and explain the problems. Tell them you feel you need 6 months to cover these costs. They may initially say 3 months (or something similar). Go with it, and then phone and extend it nearer the end date. It's your DMP, they just help you facilitate it
    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]
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