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  • FIRST POST
    • sourcrates
    • By sourcrates 26th Mar 17, 12:20 PM
    • 15,758Posts
    • 14,813Thanks
    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 245
    • January2015
    • By January2015 15th Sep 18, 6:56 PM
    • 2,306 Posts
    • 5,487 Thanks
    January2015
    Quick query if that is ok.......

    Moving to self managed and all creditors have accepted our offers

    We have one creditor - Nationwide - who we have an unenforceable debt with. I sent a letter to them a month ago when we decided to go self managed informing them that we would be paying a token payment of £1 per month as we are prioritising enforceable debts and asking for standing order details to make payments.

    As yet we have not received any correspondence back - would you write another letter or just wait until they decide to contact us?

    Thanks,

    BDFSH x
    Originally posted by BeingDebtFreeStartsHere
    I agree with Sourcrates - if it's unenforceable stop corresponding with them.

    I did this with my one and only UE debt. They kept writing to me offering reduced settlements. I could have ignored it completely, but decided to settle once they got down to 10% of the balance to settle.

    I never answered a single letter until I got the one offering an amount I was willing to settle for.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    • BeingDebtFreeStartsHere
    • By BeingDebtFreeStartsHere 16th Sep 18, 12:56 PM
    • 291 Posts
    • 801 Thanks
    BeingDebtFreeStartsHere
    Hi,


    If its unenforceable why are you paying it at all ?


    They appear to of lost interest in it, so why should you show any ?


    Anyone contacts you about it in future refer them to its status, until then forget about it.
    Originally posted by sourcrates
    I agree with Sourcrates - if it's unenforceable stop corresponding with them.

    I did this with my one and only UE debt. They kept writing to me offering reduced settlements. I could have ignored it completely, but decided to settle once they got down to 10% of the balance to settle.

    I never answered a single letter until I got the one offering an amount I was willing to settle for.
    Originally posted by January2015
    Thank you both so much

    I will wait until they potentially offer a massively reduced settlement figure otherwise ignore the debt completely and concentrate on driving my enforceable debts down.

    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
    • angelrach8
    • By angelrach8 16th Sep 18, 10:02 PM
    • 16 Posts
    • 1 Thanks
    angelrach8
    Hello, have been reading all your very good information and advic on DMP’s and trying to get my head around it all.
    StepChange have recommended a DMP for me, currently have £25k of debt. Mostly on credit cards and one personal loan with an outstanding balance of £11k. All payments are currently up to date but will more than likely not be from this month onwards.
    Unfortunately my circumstances changed this month and I have had to start paying out £850 in childcare out. So this hasnt helped with me trying to keep afloat with all my payments going out and has made my situation much worse.
    I just had a couple of questions for you all before I start on my DMP journey.
    I have a few smaller credit card debts and a small overdraft currently.
    One of my credit cards (MBNA) still has nearly £3000 of available credit. Am I best off to do a money transfer from this card to pay off the smaller debts and my overdraft first? If I did, would they question why I made a transfer before then starting a DMP?
    Also although I haven’t spoken with anyone at StepChange yet but have completed their online debt tool, do I need to send letters to all my creditors ASAP?
    Thanking you in advance!
    Last edited by angelrach8; 16-09-2018 at 10:06 PM.
    • January2015
    • By January2015 17th Sep 18, 12:00 AM
    • 2,306 Posts
    • 5,487 Thanks
    January2015
    Hello, have been reading all your very good information and advic on DMPís and trying to get my head around it all.
    StepChange have recommended a DMP for me, currently have £25k of debt. Mostly on credit cards and one personal loan with an outstanding balance of £11k. All payments are currently up to date but will more than likely not be from this month onwards.
    Unfortunately my circumstances changed this month and I have had to start paying out £850 in childcare out. So this hasnt helped with me trying to keep afloat with all my payments going out and has made my situation much worse.
    I just had a couple of questions for you all before I start on my DMP journey.
    I have a few smaller credit card debts and a small overdraft currently.
    One of my credit cards (MBNA) still has nearly £3000 of available credit. Am I best off to do a money transfer from this card to pay off the smaller debts and my overdraft first? If I did, would they question why I made a transfer before then starting a DMP?
    Also although I havenít spoken with anyone at StepChange yet but have completed their online debt tool, do I need to send letters to all my creditors ASAP?
    Thanking you in advance!
    Originally posted by angelrach8
    You will just be moving the debt by do a transfer from MBNA to other cards. You will still owe the same amount of money, but to a single creditor. I, personally, wouldn't bother transferring.

    If you have made your mind up you are entering a DMP, the first thing to do is to stop all payments to your creditors, then write to them and let them know you are seeking support from Stepchange to deal with your debts and will keep them updated with your progress, tell them you are unable to make any payments at the moment (don't bother with token payments), request they freeze all interest and charges, and state that all communication regarding the account(s) must only be done in writing and you do not give them permission to contact you by phone.

    Start putting any money you could have afforded to pay your creditors to one side to start an emergency fund. This is important as you will no longer have any access to credit.

    When I started my DMP, I raided my credit cards by drawing cash out wherever I could. Yes it raised the debt balance but it gave me a start to my emergency fund. The debt balance went up a bit, but none of my creditor ever commented. I did what I needed to just to survive at the beginning of my DMP.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    • DMP_Tiger
    • By DMP_Tiger 17th Sep 18, 9:33 AM
    • 176 Posts
    • 525 Thanks
    DMP_Tiger
    When I started my DMP, I raided my credit cards by drawing cash out wherever I could. Yes it raised the debt balance but it gave me a start to my emergency fund. The debt balance went up a bit, but none of my creditor ever commented. I did what I needed to just to survive at the beginning of my DMP.
    Originally posted by January2015
    I did this too and the Credit Card fraud department phoned me up because I'd never withdrawn cash on my CC before. They thought my card had been stolen because I did the maximum cash withdrawal 4 days in a row.

    I thought I was going to be in big trouble but the creditor in question have been fine about my DMP and haven't mentioned the cash withdrawal
    August 2018: Secured Debt £70,003 Unsecured Debt (DMP) £34,657 Total £104,660 DFD: March 2031
    November 2018: Secured Debt £68,966 Unsecured Debt (DMP) £34,601 Total £103,567 DFD: March 2031
    • Billy12345
    • By Billy12345 17th Sep 18, 9:48 AM
    • 80 Posts
    • 106 Thanks
    Billy12345
    Hi

    Yes, when I went self managed I wrote to all my creditors and advised them I would be paying £1 per month until xx/xx/xxxx, and subsequently would be paying £xx.xx from xx/xx/xxxx.

    Essentially, I sent them an income and expenditure statement which showed them what I could afford to pay, but told them I would be paying £1 a month for the first 3 months and would start full DMP payments after that. I didn't ask, I just told them this is what would be happening.

    I didn't show a shortfall which meant I could only afford £1 each - the I&E statement showed what I could actually afford. I didn't mention an emergency fund - I let them work out for themselves why I was only going to pay £1 per month.

    I did take the opportunity when going self managed to really re-visit my budget. I almost halved what I had been paying through SC. Not one creditor queried why there was such a drop in the available funds.

    All were fine with it. Go for it
    Originally posted by January2015

    Thanks January2015, your advice is awesome as always. Wasn't sure what the creditors would say about the token payments once a default has been registered but from reading the forum they don't seem to give a monkeys. NEDCAB site here I come.......
    LBM August 2016 = £59,600 Now £48,669. DFD 2037 !!! Getting there slowly but surely
    • January2015
    • By January2015 17th Sep 18, 9:58 AM
    • 2,306 Posts
    • 5,487 Thanks
    January2015
    When I started my DMP, I raided my credit cards by drawing cash out wherever I could. Yes it raised the debt balance but it gave me a start to my emergency fund. The debt balance went up a bit, but none of my creditor ever commented. I did what I needed to just to survive at the beginning of my DMP.
    Originally posted by January2015
    I did this too and the Credit Card fraud department phoned me up because I'd never withdrawn cash on my CC before. They thought my card had been stolen because I did the maximum cash withdrawal 4 days in a row.

    I thought I was going to be in big trouble but the creditor in question have been fine about my DMP and haven't mentioned the cash withdrawal
    Originally posted by DMP_Tiger
    We do what we need to at what is probably the most stressful time of our lives - worrying about keeping up payments, worrying if a DMP is the right thing to do, how will we manage if we have no access to credit cards anymore (which most of us have been using just to get by at this point).

    Don't feel guilty if you have to raid cash from credit cards to help you get started on a DMP. Only you have to know about it, you don't even have to admit it on this forum.

    Needs must, sometimes
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    • sara2018
    • By sara2018 17th Sep 18, 3:39 PM
    • 2 Posts
    • 0 Thanks
    sara2018
    Hi motivated
    I have just had my DMP activated and wondering how long it takes before you hear from the creditors. I am so hoping they will all agree to the plan and to suspend any further interest but I don't think life is that easy somehow.
    I want to feel the relief that everyone else speaks about.
    • Willing2Learn
    • By Willing2Learn 17th Sep 18, 6:01 PM
    • 1,752 Posts
    • 1,341 Thanks
    Willing2Learn
    Hi Sara2018,

    Your creditors don't have any other realistic option, except to accept the DMP. You may still get computer generated letters, but you can just ignore them since your DMP provides the creditors with a repayment plan.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Steff90
    • By Steff90 17th Sep 18, 6:02 PM
    • 26 Posts
    • 3 Thanks
    Steff90
    Hello everyone

    I'm back...again

    I mentioned in an earlier post I was thinking about entering a trust deed as this was recommended to me by Payplan. A DAS was also one of the options.
    After speaking to a trust deed advisor on another forum I've been told a DAS isn't much different and is a better choice as it isn't a form of insolvency. It would take me 7 months more on a DAS to pay off my debt but in the long run this doesn't make much difference to me.

    I just wondered if anyone else had any experience of being in a DAS? If not are there any threads on here or elsewhere on the internet to give me some advice?

    Thanks again as always
    Around 20K starting point Will get there eventually
    • stuart0161
    • By stuart0161 17th Sep 18, 10:25 PM
    • 16 Posts
    • 1 Thanks
    stuart0161
    Hello. Iím new to this forum, but have read many of the excellent informative pieces of advice and support that have been posted. I am (take a deep breathÖ) £51000 in debt. I have been in denial about it up until just recently, but I have decided enough is enough and I must do something about it as I am starting to sink. Iíve cut up all of my cards, and I do know that I want to have a DMP with Step Change, but I do have a question before I start on my DMP journey (apologies if this has already been asked and answered before). I have stopped all of my direct debits to my creditors and have set up another bank account. My question is regarding the Emergency Fund. I have done what January2015 advised Ė Iíve stopped the payments and written to creditors. The question is, how long can I stop paying them before the DMP begins? I am sure I have read somewhere that it is 30 days? I was actually hoping for longer than that in order to build up an Emergency Fund. If I wanted to make it longer than 30 days should I offer token payments? Thank you in advance for your advice.
    • coolcait
    • By coolcait 18th Sep 18, 12:07 AM
    • 4,249 Posts
    • 13,509 Thanks
    coolcait
    Hello everyone

    I'm back...again

    I mentioned in an earlier post I was thinking about entering a trust deed as this was recommended to me by Payplan. A DAS was also one of the options.
    After speaking to a trust deed advisor on another forum I've been told a DAS isn't much different and is a better choice as it isn't a form of insolvency. It would take me 7 months more on a DAS to pay off my debt but in the long run this doesn't make much difference to me.

    I just wondered if anyone else had any experience of being in a DAS? If not are there any threads on here or elsewhere on the internet to give me some advice?

    Thanks again as always
    Originally posted by Steff90
    Hi Steff

    There are a few threads on MSE about DAS - if you use the advanced search you can find them - along with a lot of threads about the DAS insurance company and random bursts of German

    You say that a DAS would only take about 7 months more than a trust deed. Your creditors would have to freeze interest and charges and couldn't take legal action against you whether you're in a DAS or a trust deed.

    The big difference is that - as you now know - DAS isn't insolvency. A trust deed is.

    If you don't need to declare yourself insolvent, why do it?

    The big debt charities like StepChange and Christians against Poverty will help you with DAS free of charge. So do some local charities - often housing related - plus local CABs and council money advice teams.

    Hope this helps.
    • sourcrates
    • By sourcrates 18th Sep 18, 12:19 AM
    • 15,758 Posts
    • 14,813 Thanks
    sourcrates
    Hello. Iím new to this forum, but have read many of the excellent informative pieces of advice and support that have been posted. I am (take a deep breathÖ) £51000 in debt. I have been in denial about it up until just recently, but I have decided enough is enough and I must do something about it as I am starting to sink. Iíve cut up all of my cards, and I do know that I want to have a DMP with Step Change, but I do have a question before I start on my DMP journey (apologies if this has already been asked and answered before). I have stopped all of my direct debits to my creditors and have set up another bank account. My question is regarding the Emergency Fund. I have done what January2015 advised Ė Iíve stopped the payments and written to creditors. The question is, how long can I stop paying them before the DMP begins? I am sure I have read somewhere that it is 30 days? I was actually hoping for longer than that in order to build up an Emergency Fund. If I wanted to make it longer than 30 days should I offer token payments? Thank you in advance for your advice.
    Originally posted by stuart0161
    Hi,

    Take as long as you like, the debt collection process is not fast, itís got to go through numerous stages, it can take years, so a few months is nothing.

    Just remember to keep your creditors informed of what you are doing, that will keep the calls and letters to a minimum.

    Also with the new data protection rules, you can specify how your creditors can contract you, most opt for contact in writing only, I see no reason to be any different.
    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 18th Sep 18, 8:23 AM
    • 31 Posts
    • 14 Thanks
    MK-4
    Hi motivated
    I have just had my DMP activated and wondering how long it takes before you hear from the creditors. I am so hoping they will all agree to the plan and to suspend any further interest but I don't think life is that easy somehow.
    I want to feel the relief that everyone else speaks about.
    Originally posted by sara2018
    Hi Sara,
    I am not the expert on here but have been with StepChange for 5 months now. It is hard to believe that it has been so easy, and why I did not do this years ago.
    None of my creditors are adding interest and no nasty letters, just normal computer generated ones.
    Some defaults have come through but that is a good thing.
    The emergency fund is crucial though.
    The relief started a little at the beginning but is better day by day with not having to worry constantly on how to pay the debts.
    Most people seem to have occasional hiccups, but I have not had any yet.
    Welcome and good luck.
    • Steff90
    • By Steff90 18th Sep 18, 8:24 AM
    • 26 Posts
    • 3 Thanks
    Steff90
    Coolcait thank you
    Made me laugh about the German I can imagine!

    Yes helpful advice as always! I think it's the better option for me. Although a trust deed is quicker it is only 7 months quicker and putting into perspective the amount of time I've been in debt this isn't a huge difference for me!

    I'll have a look on the advanced search and see what I can come across. The girl from Payplan is calling me back on Thursday to see what I want to do. It's all very mind boggling! Never getting myself into this position again!!!
    Around 20K starting point Will get there eventually
    • biker_rob
    • By biker_rob 18th Sep 18, 9:13 AM
    • 16 Posts
    • 15 Thanks
    biker_rob
    Wondering if DMP is best for me
    Hi all

    Firstly can I thank all of the knowledgeable and supportive people on this thread already. I started reading through the thread last week and it inspired me to face up to my debt problem head on and deal with it now. All my unsecured debt has been taken out since 2016 after divorce, depression, losing job then winning job back again. Things are steady and constant now although being behind on non secured debt is keeping me up at night and causing me anxiety again. I need to face this challenge head on and try to reduce my fears.

    Yesterday, I took the step of contacting Step Change who were brilliant I have to say. Their recommendations in order were:

    IVA
    Bankruptcy
    DMP

    I chose DMP as I felt it would allow me more flexibility over IVA and bankruptcy. Also, I would prefer to pay back the money I owe rather than write it off.

    Now the facts. I currently owe £22,579 to 5 creditors:

    1 personal loan
    2 credit cards
    1 overdraft
    1 payday loan

    I have £97 available a month to pay into a DMP. The projection to clear this is 19 years and 5 months to pay this off. This will drop to 16 years and 11 months in March 19 as I will have brought council tax arrears up to date.

    I will be looking for better deals on energy, phone/broadband etc and when my mobile phone contract expires in April 19 I will be going sim only, saving further money and of course all extra funds will go into a DMP. This will reduce the projected date even further.

    The most beneficial thing I have is the ability to work extra shifts at work. There is no guarantee to how many I could do a month but any extra money from these would go into a DMP to further reduce the time paying back.

    With that in mind do the experts here think it's worthwhile or should I consider going with the IVA or bankruptcy options as recommended?

    Any advice would be greatly appreciated.
    • Billy12345
    • By Billy12345 18th Sep 18, 11:07 AM
    • 80 Posts
    • 106 Thanks
    Billy12345
    Hi all

    With that in mind do the experts here think it's worthwhile or should I consider going with the IVA or bankruptcy options as recommended?

    Any advice would be greatly appreciated.
    Originally posted by biker_rob

    Hi biker_rob and welcome to this forum.


    I'm not an expert by any means and no doubt some of the others will offer advice too but well done to facing up to your debts, that's a major milestone and shows you are tackling the problem.


    My DMP won't finish for about 19 years either but its a marathon not a sprint so don't worry about the time it'll take. Its a personal choice to go IVA, bankruptcy or DMP but you'll find a lot of people on here who really like their DMP's and are continuing with their lives.


    Don't worry about how much you owe to your creditors, the most important thing when starting out is to build up an Emergency Fund as you'll no longer have access to credit and give a manageable figure to Stepchange when completing your I&E statement.


    Most of us on here started far too high and from time and experience we are now at a more comfortable level. Don't be tempted to pay high amounts straight off as you'll only have difficulty a few months along the line and have to go back and amend your I&E statement. Feel free to have a look at my diary and others too as they really do help.


    You are the most stressful time now but don't worry it'll pass, everyone feels really anxious at the start but you won't get knocks at the door as the debt recovery process takes a long time. I'm two years into my DMP and never had a knock.


    Got to dash now but good luck on your journey and feel free to ask any questions no matter how silly they may seem, we've all been there and done it and will help as best we can.
    LBM August 2016 = £59,600 Now £48,669. DFD 2037 !!! Getting there slowly but surely
    • Takealeap
    • By Takealeap 18th Sep 18, 12:33 PM
    • 6 Posts
    • 1 Thanks
    Takealeap
    Hi. Still working my way through this forum trying to read all the posts and pick out what I need at the moment.

    Had a couple of basic questions if that's ok? Ran through the Step change remedy tool to get an initial bit of advice/recommendations. Should it only be filled in with my share of household bills, or the full amount? My wife and i share all the household bills with me paying slightly more due to my slightly higher wage. I put in the full amounts to begin with and it gave me a figure of £149 for 19 years (I am currently paying around 800 a month to my CC bills). I then realised I should probably only put in my share of the household bills. When I changed it like that, I got a figure of £700 for around 4.5 years. The first figure seems far too low, but the second leaves me in much the same position as I am now, because I've been using the credit cards for about 300 a month to cover costs!
    I want to make sure I'm filling this out correctly so that I dont completely mislead myself. It would be the same for the stoozing SOA tool as well - I want to get that posted in a new thread soon, as per the advice you guys have already given.
    Thanks again for your advice and time :-)
    • make_the_change
    • By make_the_change 18th Sep 18, 1:42 PM
    • 428 Posts
    • 2,224 Thanks
    make_the_change
    I have a debt with Capital One and they have not contacted me for over 18 months for it. Is this normal?
    DMP Started June 2016
    • Willing2Learn
    • By Willing2Learn 18th Sep 18, 2:18 PM
    • 1,752 Posts
    • 1,341 Thanks
    Willing2Learn
    I have a debt with Capital One and they have not contacted me for over 18 months for it. Is this normal?
    Originally posted by make_the_change
    Your signature says you are currently on a DMP. Is the CapitalOne debt included in the DMP or are you saying this debt has somehow fallen through the cracks?


    Had a couple of basic questions if that's ok? Ran through the Step change remedy tool to get an initial bit of advice/recommendations. Should it only be filled in with my share of household bills, or the full amount? My wife and i share all the household bills with me paying slightly more due to my slightly higher wage. I put in the full amounts to begin with and it gave me a figure of £149 for 19 years (I am currently paying around 800 a month to my CC bills). I then realised I should probably only put in my share of the household bills. When I changed it like that, I got a figure of £700 for around 4.5 years. The first figure seems far too low, but the second leaves me in much the same position as I am now, because I've been using the credit cards for about 300 a month to cover costs!
    I want to make sure I'm filling this out correctly so that I dont completely mislead myself. It would be the same for the stoozing SOA tool as well - I want to get that posted in a new thread soon, as per the advice you guys have already given.
    Originally posted by Takealeap
    I would want to be using combined totals for both of you. That would be with the StepChange Remedy Tool and the SOA.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

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