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  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 14,368Posts
    • 13,553Thanks
    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 167
    • MK-4
    • By MK-4 13th Mar 18, 6:44 PM
    • 29 Posts
    • 14 Thanks
    MK-4
    Hi

    All my creditors - apart from one have agreed to the 30 day breathing space. One will not do so until I provide them with my SC reference. So the charges are increasing my debt. I have messaged them & said I need more time & will make token payments until I am ready to start with SC. I'm interested to know if anyone else has experienced refusal to put a hold on a CC account until SC reference has been given. Hopefully it will go to a DC after 3 months, but am aware this might not happen!
    Originally posted by NewbieNat
    Similar position here, trying to get a EM fund running. Mine is with H-fax..
    Does SC give a reference when you get the paperwork or only when you start?
    • Summer12
    • By Summer12 13th Mar 18, 7:29 PM
    • 83 Posts
    • 41 Thanks
    Summer12
    Afternoon everyone

    So, today I found out I am being made redundant at the end of this month. Well, being honest I found out I was on the 'hit list' early in December, but there was always the potential that another vacancy would arise that I could be slotted into..... clearly that hasn't happened, so redundancy it is.

    I will get a tax free lump sum of redundancy money (maximum allowed by the government because my employer doesn't give more than that ). I'm not offering that to creditors just yet because I need to know I have a safety net should I not be able to find alternative employment. The redundancy money will cover us for between 18 and 24 months based on our current priority expenditure - of course that may change if mortgage interest rate goes up.

    I will also get a few days annual leave paid to me with my final month's salary.

    Before DMP days I would have been in pieces with worry. Our finances will be extremely tight - even token payments will be a struggle - but at least I know we are budgeting well and we can scrape through for at least a couple of years - but hopefully a job will come along and then the redundancy money will feel like a windfall I can put towards my F&F offers or reducing the secured loan balance

    I am so unconcerned by this - is this normal
    Originally posted by January2015
    Sorry to hear this. Maybe it hasnít quite sunk in yet, maybe this is actually a really positive thing? A nice little lump sum for whatever you choose and a fresh start perhaps doing something different or maybe a couple of small jobs to replace the one full time one. Whatever happens you at least have a few years of budgeting under your belt and the flexibility with a dmp to do what you need to do to get through. Good luck with whatever you decide to do x
    • January2015
    • By January2015 13th Mar 18, 9:28 PM
    • 2,095 Posts
    • 5,188 Thanks
    January2015
    Sorry to hear this. Maybe it hasnít quite sunk in yet, maybe this is actually a really positive thing? A nice little lump sum for whatever you choose and a fresh start perhaps doing something different or maybe a couple of small jobs to replace the one full time one. Whatever happens you at least have a few years of budgeting under your belt and the flexibility with a dmp to do what you need to do to get through. Good luck with whatever you decide to do x
    Originally posted by Summer12
    Oh it's sunk in As I say, this has been on the cards since early December so it hasn't come as a surprise.

    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 13th Mar 18, 9:39 PM
    • 57 Posts
    • 33 Thanks
    NewbieNat
    Similar position here, trying to get a EM fund running. Mine is with H-fax..
    Does SC give a reference when you get the paperwork or only when you start?
    Originally posted by MK-4
    I was given my reference when they were in receipt of my I & E, so before it's set up.
    • sourcrates
    • By sourcrates 13th Mar 18, 10:10 PM
    • 14,368 Posts
    • 13,553 Thanks
    sourcrates
    Oh it's sunk in As I say, this has been on the cards since early December so it hasn't come as a surprise.

    Originally posted by January2015
    You just have to roll with the blows, your a DMP pro now, you know the score very well, I doubt this will faze you.
    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 13th Mar 18, 10:16 PM
    • 2,095 Posts
    • 5,188 Thanks
    January2015
    You just have to roll with the blows, your a DMP pro now, you know the score very well, I doubt this will faze you.
    Originally posted by sourcrates

    Definitely not fazing me I think I've mentioned before we now have 75% of our unsecured debt balance saved. We could already go for F&Fs but we were playing the long game of token payments to push for settling for as little as possible. All I see from this redundancy is a genuine reason to push the DCAs to settle for less
    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]
    • EmergencyNurse
    • By EmergencyNurse 13th Mar 18, 10:30 PM
    • 79 Posts
    • 156 Thanks
    EmergencyNurse
    1: DMP forms sent to SC - CHECK

    2: Confirmation of bank account -CHECK

    3: Contact payroll when new account confirmed - CHECK

    4: Start plan in April giving payroll enough notice to change payment to new bank account.

    5: Make sure all non priority DD are cancelled - CHECK

    6: SC to contact creditors

    7: Transfer all priority DD & SO to new account - GETTING THERE

    8: Let the DMP do its thing - SOON

    9: Enjoy work again - JURY'S OUT

    10: Enjoy my life again - CHECK
    Debt March 2018 £27,596 DMP Start June 2018 Debt Free Date 2022
    • NewbieNat
    • By NewbieNat 14th Mar 18, 6:09 PM
    • 57 Posts
    • 33 Thanks
    NewbieNat
    No 30 Day hold
    I posted recently about one credit card company that will not put my account on a 30 day hold, after informing them of my financial difficulties. They still won't, until I supply them with my I.E. I'm not doing that until I have saved my EF. The positive is that all of my other creditors have. Oh well, so be it. I'm not letting one awkward one stopping my plan. They will get my token payments like the others. Onwards & upwards
    • January2015
    • By January2015 14th Mar 18, 7:32 PM
    • 2,095 Posts
    • 5,188 Thanks
    January2015
    I posted recently about one credit card company that will not put my account on a 30 day hold, after informing them of my financial difficulties. They still won't, until I supply them with my I.E. I'm not doing that until I have saved my EF. The positive is that all of my other creditors have. Oh well, so be it. I'm not letting one awkward one stopping my plan. They will get my token payments like the others. Onwards & upwards
    Originally posted by NewbieNat
    Supply the I&E, get the interest stopped. You are cutting your nose off to spite your face (as the saying goes) if you don't.

    The creditor is not being unreasonable asking for the I&E. You can still save for your EF and delay starting the payments to 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 14th Mar 18, 7:58 PM
    • 57 Posts
    • 33 Thanks
    NewbieNat
    Supply the I&E, get the interest stopped. You are cutting your nose off to spite your face (as the saying goes) if you don't.

    The creditor is not being unreasonable asking for the I&E. You can still save for your EF and delay starting the payments to creditors.
    Originally posted by January2015
    Thanks for your reply. I may well be wrong, but if I supply my I & E that will show that I can afford more than token payments. My plan is too save as much as possible & hopefully be able to make settlement offers further down the line on the smaller debts. Is this not feasible?
    • ploppy57
    • By ploppy57 14th Mar 18, 8:50 PM
    • 723 Posts
    • 4,656 Thanks
    ploppy57
    Thanks for your reply. I may well be wrong, but if I supply my I & E that will show that I can afford more than token payments. My plan is too save as much as possible & hopefully be able to make settlement offers further down the line on the smaller debts. Is this not feasible?
    Originally posted by NewbieNat
    Tweak the I&E to show you cannot afford to pay more....they do not know how much you really need for food, fuel, gas and electric, or even if you smoke or have pets....they will not ask for proof.
    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"
    • NewbieNat
    • By NewbieNat 14th Mar 18, 9:00 PM
    • 57 Posts
    • 33 Thanks
    NewbieNat
    Tweak the I&E to show you cannot afford to pay more....they do not know how much you really need for food, fuel, gas and electric, or even if you smoke or have pets....they will not ask for proof.
    Originally posted by ploppy57
    Thanks Ploppy. The only I & E I have is the SC one. I don't think anything can be changed on it (they sent back a printed copy). As I intend to go with SC in a few months time,I can't send a different one to the creditors.
    • January2015
    • By January2015 14th Mar 18, 9:09 PM
    • 2,095 Posts
    • 5,188 Thanks
    January2015
    Thanks for your reply. I may well be wrong, but if I supply my I & E that will show that I can afford more than token payments. My plan is too save as much as possible & hopefully be able to make settlement offers further down the line on the smaller debts. Is this not feasible?
    Originally posted by NewbieNat
    It doesn't matter if your I&E shows you can afford more than token payments. Just tell them you can't pay more just yet because the boiler broke, the dog's sick, the car's playing up.... something. That will buy you some breathing space.

    The important thing is you are not seen to be ignoring them and by providing the I&E you are more likely to get interest frozen - which is important because otherwise your debt is just increasing.
    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]
    • ploppy57
    • By ploppy57 14th Mar 18, 9:10 PM
    • 723 Posts
    • 4,656 Thanks
    ploppy57
    Thanks Ploppy. The only I & E I have is the SC one. I don't think anything can be changed on it (they sent back a printed copy). As I intend to go with SC in a few months time,I can't send a different one to the creditors.
    Originally posted by NewbieNat
    When we went self managed I sent my I & E but then told them I would only pay £1 for the first 6 months as we had unexpected household expenses to sort out. They were all fine with that.
    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"
    • NewbieNat
    • By NewbieNat 14th Mar 18, 9:24 PM
    • 57 Posts
    • 33 Thanks
    NewbieNat
    I though if they saw the I & E they'd say to pay that! I'll be adding to the debt by delaying DMP for 6 months, as interest is only frozen for 30 days. Thanks again, I'm learning a lot :-)
    • January2015
    • By January2015 14th Mar 18, 9:48 PM
    • 2,095 Posts
    • 5,188 Thanks
    January2015
    I though if they saw the I & E they'd say to pay that! I'll be adding to the debt by delaying DMP for 6 months, as interest is only frozen for 30 days. Thanks again, I'm learning a lot :-)
    Originally posted by NewbieNat
    Interest is 'initially' frozen for 30 days. Creditors can, and often do, extend that. Also extending the time you don't pay or pay only token payments will also push the creditors to default the accounts sooner and then interest should stop anyway.

    You won't be adding to your debt if you delay the DMP for 6 months if you get the interest frozen.
    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 15th Mar 18, 9:48 AM
    • 42 Posts
    • 24 Thanks
    usedtobeblue
    Good morning all,

    I'm after a little advice, i have tried to read through the thread as best i can, but i have a few queries.
    I sent my letters all off to my creditors, stating my step change reference number but am yet to send the signed contract back to SC. I've now realised that i shouldn't jump straight into the DMP and should be building up an emergency fund.
    My question is now do i contact SC and ask for a delay starting (ideally August)? Or do i just leave it and contact them again when im ready to start? Also do i have to send my creditors letters on a monthly basis to let them know what is happening, or would 1 letter be enough stating i'm going to start a DMP in Jul/Aug and do i continue to use the original reference number SC quoted?
    Also do i send them a copy of my i&e that i have done with sc and offer token payments or just tell them the date that i will be starting and pay nothing?
    Many thanks in advance from a complete novice!
    Last edited by usedtobeblue; 15-03-2018 at 9:57 AM.
    • defected
    • By defected 15th Mar 18, 10:36 AM
    • 14 Posts
    • 7 Thanks
    defected
    Morning

    I have finally had the lightbulb moment after many years of struggling with debt. I am looking to start a DMP and am trying to get everything in order first eg new bank account, emergency fund.

    A couple of questions if anyone can help, i have several credit cards with Barclaycard and therefore owe that creditor a large amount, does this make them more likely to take court action?
    I also have a mortgage with barclays, is this the same company? could this cause an issue, are they more likely to go for a charge on the property?
    thanks in advance x
    • defected
    • By defected 15th Mar 18, 10:38 AM
    • 14 Posts
    • 7 Thanks
    defected
    ps what does I & E stand for is it same as a SOA?
    • usedtobeblue
    • By usedtobeblue 15th Mar 18, 10:48 AM
    • 42 Posts
    • 24 Thanks
    usedtobeblue
    ps what does I & E stand for is it same as a SOA?
    Originally posted by defected
    It stands for income and expediture, its similar to soa but it doesn't count your unsecured debts, just how much funds you have left after you pay out all your essentials, such as mortgage, secured loans, council tax, food, petrol etc. I completed one on step change website (confidentially) and they work out how much a month you have left over to pay your creditors. its a great tool and will give you an idea how much you will pay back per month and how long your dmp will last. Im new to this all too, but learning very quickly x
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