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  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 15,518Posts
    • 14,604Thanks
    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 227
    • kram
    • By kram 5th Aug 18, 11:10 AM
    • 129 Posts
    • 117 Thanks
    kram
    Hello all. I've been lurking a bit but grateful to read how everyone is getting on.
    Started my DMP this month, but I've done it slightly differently and I've phoned the credit card companies instead of writing. All except one who didn't pick up the phone and they got a letter.

    Some were a lot kinder than I expected. It seems to be the message of pay what you can for 6 months -even if very little and see if things improve. But the thing is barring a lottery win it is very unlikely to improve.

    Will see what happens next. Hoping to feel a lot calmer about the situation. It can consume you.

    One of the creditors has sent me a new statement showing interest frozen which made me feel a lot better. Interest was £50 a month and I couldn't get a new deal so that one alone makes me feel a lot better.

    It's just scary in the beginning- as a lot of things are.

    Thank you all. xx
    Originally posted by Poor_Single_lady
    I did exactly the same calling all my creditors, but I was still getting loads of calls chasing me.

    The best thing I did was to write to all my creditors and tell them not to phone me and that all future communication regarding this account must be done in writing.

    Well done you.
    • kram
    • By kram 5th Aug 18, 11:18 AM
    • 129 Posts
    • 117 Thanks
    kram
    Thanks, I am doing quite a lot of that. I hadn't thought of starting an emergency fund before reading through some of this thread Seems like such an obvious idea!
    Originally posted by Red Athena
    I was overwhelmed with it all at first but after reading through the forums, it helped me to understand that I was not alone or a failure, I was a normal person trying to do the right thing.

    Good luck with it all.
    • Suseka97
    • By Suseka97 5th Aug 18, 2:57 PM
    • 448 Posts
    • 574 Thanks
    Suseka97
    Thanks, I am doing quite a lot of that. I hadn't thought of starting an emergency fund before reading through some of this thread Seems like such an obvious idea!
    Originally posted by Red Athena
    Glad to hear you're getting everything into perspective now does take a while, for sure.

    The main reason I keep coming on to advise newbies to slow down, give themselves headspace, save for an emergency fund and not to set their DMP payment too high is because I didn't

    I panicked, rushed in, agreed to an extremely high repayment plan (because the thought of being debt free 5 years down the line seemed like a godsend) and didn't build up any emergency fund. I hadn't come across this forum then and only did when I was well and truly aboard the DMP train. With my budget being so darned strict, the first few years of my DMP made me pretty miserable.

    Now that was over 5 years ago and I think DMPs are becoming a bit easier to manage (SC certainly seems to have eased off on being so strict with what they'll allow you to live on) and creditors seem to be a lot more understanding. Or perhaps more accurately, have so many accounts going into default that they are better informed about how to deal with people suffering financial difficulty - and more likely to listen.

    Anyways - I'm in a much better place now and so I'm keen to ensure you and others start off on the right track
    LBM Apr13: 14 Creditors / £85k+ owed / £11k outstanding (3 x UE / 3 x outstanding) DMP on hold
    • Red Athena
    • By Red Athena 5th Aug 18, 8:08 PM
    • 49 Posts
    • 72 Thanks
    Red Athena
    Oh, I have a question that someone may know the answer to. I set up a new bank account to an unlinked bank, but I do have a joint First Direct account with my partner. I have an M&S credit card, and looking into it M&S are owned by HSBC, as are FD. Could they take money from my joint account for a solo debt?


    Edited to add: I found the answer on StepChange and no they cannot. I am not able to post a link because of being a new user!
    Last edited by Red Athena; 05-08-2018 at 8:15 PM.
    • SuzyN
    • By SuzyN 5th Aug 18, 8:25 PM
    • 44 Posts
    • 97 Thanks
    SuzyN
    Today I discovered YNAB - I think I'm in love

    I was reading old posts on the YNAB app and budgeting software (For anyone like me up to yesterday it is like a new way of managing your money via a virtual envelope system) and I read that although it costs $60 a year, if you email them your student card they will give you a year free. Cant believe it!! Within an hour I had my free link back.

    I'm only a pt student and there were no issues at all.

    Cant wait to see how it works out for the rest of the month as I think changing my spending habits is key to my future dmp success.

    Sx
    LBM: July 2018 - Contacted SC

    Paid off to date - £986
    • sourcrates
    • By sourcrates 5th Aug 18, 9:59 PM
    • 15,518 Posts
    • 14,604 Thanks
    sourcrates
    Oh, I have a question that someone may know the answer to. I set up a new bank account to an unlinked bank, but I do have a joint First Direct account with my partner. I have an M&S credit card, and looking into it M&S are owned by HSBC, as are FD. Could they take money from my joint account for a solo debt?


    Edited to add: I found the answer on StepChange and no they cannot. I am not able to post a link because of being a new user!
    Originally posted by Red Athena
    Good question, I would say yes, you need to remove all avenues such as this.
    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 6th Aug 18, 4:50 PM
    • 44 Posts
    • 26 Thanks
    usedtobeblue
    Good news
    Good afternoon everyone,
    Just thought id share a quick update with you all. First off is some good news, my loan (which was my biggest debt at £19k) has been defaulted by first direct and straight off knocked the interest that i would have been paying, lessening the debt now to £14k. It feels like a wee £5k windfall lol.
    Tesco bank, next and Barclaycard have also all defaulted me, just waiting on mbna and virgin now and it will be a full house. Im really pleased with how things are going and really wish i had done this years ago instead of just adding to it. My dfd date is estimated as June 2024, seems like such a long time away but at least im on the right track.
    The old spending devil lands on my shoulder occasionally and i have to reign it in as i really want to continue with the little bit of savings ive managed to gather up.Its not easy but its worth it.
    learning to live again, slowly but determined £30k in debt, but dealing with it and proud
    • SuzyN
    • By SuzyN 6th Aug 18, 5:07 PM
    • 44 Posts
    • 97 Thanks
    SuzyN
    How long did each of your creditors take to default you? I have the same set (except first direct) and am wondering what they are likely to do?! Brilliant news re your loan
    LBM: July 2018 - Contacted SC

    Paid off to date - £986
    • usedtobeblue
    • By usedtobeblue 6th Aug 18, 5:08 PM
    • 44 Posts
    • 26 Thanks
    usedtobeblue
    How long did each of your creditors take to default you? I have the same set (except first direct) and am wondering what they are likely to do?! Brilliant news re your loan
    Originally posted by SuzyN
    HI, I stopped my direct debits in March and my first dmp payment went out in June. My new credit report shows the defaults dated august, so not long at all.
    learning to live again, slowly but determined £30k in debt, but dealing with it and proud
    • Red Athena
    • By Red Athena 6th Aug 18, 10:21 PM
    • 49 Posts
    • 72 Thanks
    Red Athena
    Well it does not fill me with confidence that today I received a bank account application pack from StepChange *as discussed* (nope) rather than the DMP pack.
    • SuzyN
    • By SuzyN 6th Aug 18, 11:55 PM
    • 44 Posts
    • 97 Thanks
    SuzyN
    Well it does not fill me with confidence that today I received a bank account application pack from StepChange *as discussed* (nope) rather than the DMP pack.
    Originally posted by Red Athena
    Nope not good!!
    LBM: July 2018 - Contacted SC

    Paid off to date - £986
    • DMP_Tiger
    • By DMP_Tiger 7th Aug 18, 9:39 AM
    • 174 Posts
    • 488 Thanks
    DMP_Tiger
    Well it does not fill me with confidence that today I received a bank account application pack from StepChange *as discussed* (nope) rather than the DMP pack.
    Originally posted by Red Athena
    I received a Barclays basic account application pack from Stepchange, even though they knew that I already banked with Barclays and have a loan and Barclaycard with them....although SC did say that Barclays wouldn't steal my money as long as I was making the agreed DMP payments to them. It seemed a bit risky though so I opened a new account with Nationwide.

    The actual DMP application pack came by email shortly after I'd completed the online debt remedy tool (same day).
    • backandevenmorebroke
    • By backandevenmorebroke 7th Aug 18, 10:30 AM
    • 25 Posts
    • 38 Thanks
    backandevenmorebroke
    Morning all!

    So letters slowly coming back in from creditors, 2 have asked for information about my budget. I am reluctant to give them any info at the moment as I want to take my time so I can build my emergency fund up along with paying off some dental treatment that I'm already committed to. This means it might take me a good 5 months until I crack on with my DMP. Do I just send them to budget but make it clear I am taking some breathing space to build up emergency funds? Or do I just write back without a copy of my budget and tell them I will be back in touch with my budget as my circumstances are due to change in the next few months (which isn't a lie)? Any help will be much appreciated!
    Total Debt June 2018 £23,064 /£0 Paid off
    Ultimate Savings Goal £0/£1000
    Holiday Pot £0/£500
    • Suseka97
    • By Suseka97 7th Aug 18, 12:17 PM
    • 448 Posts
    • 574 Thanks
    Suseka97
    Morning all!.........
    So letters slowly coming back in from creditors, 2 have asked for information about my budget. I am reluctant to give them any info at the moment.......... Do I just send them to budget but make it clear I am taking some breathing space to build up emergency funds? Or do I just write back without a copy of my budget and tell them I will be back in touch with my budget as my circumstances are due to change....
    Originally posted by backandevenmorebroke
    It's always a good thing to get your creditors on board in the early stages - so yes, go back to them with your I & E, but make it clear that the DMP will start from x date. You can state the reason as being a) money to save for EF (to minimise the likelihood of having to vary payments should and unexpected bill hit you), b) the dental work commitments and c) anything else you like (which you could make up if you're so minded to).

    This is an informal arrangement and you need to be ready to go when it suits you, not your creditors. But of course they have every right to ask for the I&E and when they can expect the DMP to begin.
    LBM Apr13: 14 Creditors / £85k+ owed / £11k outstanding (3 x UE / 3 x outstanding) DMP on hold
    • backandevenmorebroke
    • By backandevenmorebroke 7th Aug 18, 12:44 PM
    • 25 Posts
    • 38 Thanks
    backandevenmorebroke
    Thankyou Suseka
    Total Debt June 2018 £23,064 /£0 Paid off
    Ultimate Savings Goal £0/£1000
    Holiday Pot £0/£500
    • DMP_Tiger
    • By DMP_Tiger 7th Aug 18, 12:59 PM
    • 174 Posts
    • 488 Thanks
    DMP_Tiger
    I used this wording when I sent mine, I was a bit non-committal on the start date:

    As I will no longer have access to credit, Stepchange have advised me to build an emergency fund over the next few months before I begin the ongoing monthly payments. I will therefore be making a token payment of £1.00 per month for approximately 5 months.

    I actually read it on here rather than being advised by Stepchange but "The DMP forum have advised me" didn't sound so good.....
    Last edited by DMP_Tiger; 07-08-2018 at 1:03 PM.
    • Red Athena
    • By Red Athena 7th Aug 18, 1:48 PM
    • 49 Posts
    • 72 Thanks
    Red Athena
    Ohhh, ok! Maybe that will come later then. I asked for a postal copy as my printer is too dodgy. Thanks
    • Red Athena
    • By Red Athena 7th Aug 18, 1:49 PM
    • 49 Posts
    • 72 Thanks
    Red Athena
    That was a reply to Tiger... I canít figure this out on my phone!
    • BeingDebtFreeStartsHere
    • By BeingDebtFreeStartsHere 8th Aug 18, 12:51 AM
    • 288 Posts
    • 796 Thanks
    BeingDebtFreeStartsHere
    Hi everyone,

    Hope everyone is ticking along well in DMP land

    I have finally plucked up the courage to go self managed! All letters ready to be sent tomorrow, StepChange cancelled (final payment this month), then plan to start all standing orders to creditors in September pending their responses and standing order details.

    A couple of questions - my payments to all creditors has reduced compared with the amount apid when with SC - due to an increase in mortgage payments and also the amount we need to spend on support for our autistic son. I have explained this in the letter to each creditor and enclosed an updated I&E. Do you think the creditors will be happy with this or are they likely to challenge the reduced payments?

    Has anyone experienced any difficulties when moving to self managed from SC??

    Anxious but excited (sad I know!!) to be more in control of our finances

    Thanks in advance.

    BDFSH x
    LBM - August 2014
    DMP - started October 2014
    Total Debt Sept 2014 - £70,905.57 July 2018 £50,030.01 (29.4% paid) but proud to be in control and paying back what we've borrowed
    • motivated
    • By motivated 8th Aug 18, 9:01 AM
    • 2,281 Posts
    • 4,639 Thanks
    motivated
    Hi everyone,

    Hope everyone is ticking along well in DMP land

    I have finally plucked up the courage to go self managed! All letters ready to be sent tomorrow, StepChange cancelled (final payment this month), then plan to start all standing orders to creditors in September pending their responses and standing order details.

    A couple of questions - my payments to all creditors has reduced compared with the amount apid when with SC - due to an increase in mortgage payments and also the amount we need to spend on support for our autistic son. I have explained this in the letter to each creditor and enclosed an updated I&E. Do you think the creditors will be happy with this or are they likely to challenge the reduced payments?

    Has anyone experienced any difficulties when moving to self managed from SC??

    Anxious but excited (sad I know!!) to be more in control of our finances

    Thanks in advance.

    BDFSH x
    Originally posted by BeingDebtFreeStartsHere
    Hi BDFSH
    When I went from SC to self managed I also reduced payments. I did exactly as you are doing and wrote to each one explaining the circumstances etc. All of our creditors were fine with it.

    Good luck
    M
    I have arrived in DMP land and I like it, I may stay a while

    LBM£82,590 Jan17/£75,686.91 August 18
    Short term goal 1 =£2873.27/£2873.27
    PDBX 18 # 31 - £4,464.52/£5,000
    Short term goal 2 = Target by Xmas £100/£500
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