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  • FIRST POST
    • sourcrates
    • By sourcrates 18th Sep 18, 10:40 PM
    • 19,131Posts
    • 18,057Thanks
    sourcrates
    DMP mutual support thread part 13 !!
    • #1
    • 18th Sep 18, 10:40 PM
    DMP mutual support thread part 13 !! 18th Sep 18 at 10:40 PM
    Welcome to the DMP mutual support thread Part 13 !!

    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 DMP related questions are welcome.

    Again the old thread was getting a tad long, so time, yet again, for a new one.

    The old thread can be found here :

    https://forums.moneysavingexpert.com/showthread.php?t=5623951


    This Forum tip was included in MoneySavingExpert.com's weekly email!
    Last edited by Former MSE Andrea; 13-03-2019 at 9:03 AM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, 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 expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
Page 126
    • Willing2Learn
    • By Willing2Learn 14th Jan 20, 6:06 PM
    • 5,199 Posts
    • 4,840 Thanks
    Willing2Learn
    Can creditors get access to look at your bank account . Iíve had a bit of a windfall, but only want to offer part to my creditors as I want to keep some for a rainy day ?
    Originally posted by Fairyfeet2
    No. Creditors do not get access to look at your bank account.

    Could I put the money into say a savings account or a post office bond ? Could the creditors gain access to my savings account ?
    Originally posted by Fairyfeet2
    Yes, you can deposit the money into a savings account so that you earn interest.

    And no, creditors will not be able to gain access to your savings.


    I have posted in your full and final settlement thread too. Please follow my advice to submit CCA requests for all your eligible accounts, before you make any settlement offers.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • sourcrates
    • By sourcrates 14th Jan 20, 7:47 PM
    • 19,131 Posts
    • 18,057 Thanks
    sourcrates
    Sorry continuation ...

    Could I put the money into say a savings account or a post office bond ? Could the creditors gain access to my savings account ?
    Originally posted by Fairyfeet2
    No one has the power to gain access to anything monetary that belongs to you, except the OR in bankruptcy, HMRC, and your bank using the right of set off.
    If a creditor took your money without permission, except in the above circumstances, thatís called theft.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, 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 expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • UH..OH
    • By UH..OH 15th Jan 20, 7:08 AM
    • 2 Posts
    • 0 Thanks
    UH..OH
    Good Morning,

    I have discussed a DMP (or equivalent, I'm in Scotland) with Step Change about 3 months ago, have since stopped paying all creditors and have just this week had a couple of default notice letters. I have been trying to save an emergency fund, although that was depleted over Christmas with a broken boiler and washing machine. However, I am still reluctant to enter into the DMP yet, until I get my emergency fund up again. Do I have time? If they're starting to default? I have ignored everything after my initial contact to give the StepChange reference number, should I answer calls and explain I'm in the same situation, discussing a DMP, or continue to ignore?

    Thank you so much for your help.
    • Finally Solvent
    • By Finally Solvent 15th Jan 20, 8:34 AM
    • 223 Posts
    • 1,593 Thanks
    Finally Solvent
    Good Morning,

    I have discussed a DMP (or equivalent, I'm in Scotland) with Step Change about 3 months ago, have since stopped paying all creditors and have just this week had a couple of default notice letters. I have been trying to save an emergency fund, although that was depleted over Christmas with a broken boiler and washing machine. However, I am still reluctant to enter into the DMP yet, until I get my emergency fund up again. Do I have time? If they're starting to default? I have ignored everything after my initial contact to give the StepChange reference number, should I answer calls and explain I'm in the same situation, discussing a DMP, or continue to ignore?

    Thank you so much for your help.
    Originally posted by UH..OH
    Just a few quick comment about default notices. Not sure if it works the same in Scotland but it certainly does here in England that creditors send default letters out with monotony, usually monthly. These are just warnings that they MAY default you unless you pay the outstanding debt etc. It doesn't necessarily mean that they WILL default. Some posters on here have had problems ever getting a creditor to default at all, even after several months/years. If it is a true default it will give you the definite date when the default is to take place
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    • cat_79
    • By cat_79 15th Jan 20, 9:13 AM
    • 31 Posts
    • 67 Thanks
    cat_79
    Do I have to offer all my disposable income
    Hi so I'm setting up my DMP and as I'm on benefits due to a mental illness I don't have much money. I'm wanting to offer 20 pound a month to each of my creditors as this will leave me more money to actually live on. Will they accept such a low offer. Or do I have to offer all my disposable income as this is what step change suggested which is why I'm going it alone.
    • sourcrates
    • By sourcrates 15th Jan 20, 9:21 AM
    • 19,131 Posts
    • 18,057 Thanks
    sourcrates
    Hi so I'm setting up my DMP and as I'm on benefits due to a mental illness I don't have much money. I'm wanting to offer 20 pound a month to each of my creditors as this will leave me more money to actually live on. Will they accept such a low offer. Or do I have to offer all my disposable income as this is what step change suggested which is why I'm going it alone.
    Originally posted by cat_79
    Why not offer a £1 instead ?
    Is an insolvency solution more practical ?
    They will take whatever your circumstances permit, or they will sell on the debt, there is no will they, wonít they, you just pay what you can comfortably afford.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, 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 expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • Finally Solvent
    • By Finally Solvent 15th Jan 20, 9:39 AM
    • 223 Posts
    • 1,593 Thanks
    Finally Solvent
    Hi so I'm setting up my DMP and as I'm on benefits due to a mental illness I don't have much money. I'm wanting to offer 20 pound a month to each of my creditors as this will leave me more money to actually live on. Will they accept such a low offer. Or do I have to offer all my disposable income as this is what step change suggested which is why I'm going it alone.
    Originally posted by cat_79
    When you say StepChange want you to use all your 'disposable income' to repay your debts I'm a bit confused, sorry

    Did you phone SC and speak to someone or did you use the online Debt Remedy tools on their website which allows you to play around with figures yourself with no commitment? If you have inputted all the sums you need to spend in the various budget catagories it should leave you with a figure of what you actually have available for debt repayment. For people who have always believed in being totally truthful it goes against the grain to have to be a bit inventive with your actual expenses. Some people put down a sum for cigarettes when they don't even smoke, or pets when they don't even have any. Make sure you claim a slightly higher amount in such as grocery, transport etc catagories than you actually spend. That way the amount of money you have left for debt repayment is less but your life will be slightly less harsh than it might otherwise be. A DMP is a marathon not a sprint. You'll still get the debts repaid but over a slightly longer period.


    I hope your health improves very soon and your DMP goes well. Once it's up and running I guarantee you'll feel so much better about your financial state.
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    • cat_79
    • By cat_79 15th Jan 20, 9:02 PM
    • 31 Posts
    • 67 Thanks
    cat_79
    I think i am all set now to get started. my question is what happens with regards to my overdraft? Should I default with this as well or will it go straight to court if I do that? I have written to all my creditors and advised I am going to delay payment for 6 months in order to build an EF, is this the right thing to do? I have also asked for only written communication as I find speaking on the phone to be overwhelming. I am really scared doing this but needs must.
    • sourcrates
    • By sourcrates 15th Jan 20, 9:27 PM
    • 19,131 Posts
    • 18,057 Thanks
    sourcrates
    I think i am all set now to get started. my question is what happens with regards to my overdraft? Should I default with this as well or will it go straight to court if I do that? I have written to all my creditors and advised I am going to delay payment for 6 months in order to build an EF, is this the right thing to do? I have also asked for only written communication as I find speaking on the phone to be overwhelming. I am really scared doing this but needs must.
    Originally posted by cat_79
    No need to be scared, itís simply business, your overdraft is a debt and should be included in your DMP, have you opened a new basic bank account with a new bank with whom you have no debt ?

    That is your priority, and should be the first thing you do, no one will be going to court.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, 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 expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • cat_79
    • By cat_79 15th Jan 20, 10:05 PM
    • 31 Posts
    • 67 Thanks
    cat_79
    No need to be scared, itís simply business, your overdraft is a debt and should be included in your DMP, have you opened a new basic bank account with a new bank with whom you have no debt ?

    That is your priority, and should be the first thing you do, no one will be going to court.
    Originally posted by sourcrates
    I have set up a new bank account and i am in the process of doing an income and expenditure. Should I advise that I am not going to pay for the next 6 months of should I just advise I am having difficulty paying. I have read on the forums that I want them to default my account.
    • sourcrates
    • By sourcrates 15th Jan 20, 10:10 PM
    • 19,131 Posts
    • 18,057 Thanks
    sourcrates
    I have set up a new bank account and i am in the process of doing an income and expenditure. Should I advise that I am not going to pay for the next 6 months of should I just advise I am having difficulty paying. I have read on the forums that I want them to default my account.
    Originally posted by cat_79
    Problem with bank accounts is they take an age to default you.
    Writing and explaining your situation may help, but banks are notoriously slow in actioning these things.

    You may have to wait until they get fed up and sell the debt on, someone will buy it, then you can start paying it off.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, 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 expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • 2017spark
    • By 2017spark 17th Jan 20, 1:52 PM
    • 46 Posts
    • 55 Thanks
    2017spark
    Hi all - I just wanted to let someone know that i have finally taken action and set up my DMP with Stepchange today! Sadly i have been here before but thought i coud do better on my own (i cant!) I have a long road ahead, but i know it can be done.
    Paperwork will be returned Monday, payslip at the end of next week.
    I'm hoping to get my DD taken at the end of Feb so not long too wait to get started
    I also joined WW (and put it in my budget!) - so time to get all things sorted that need to be....

    Hope you are all having a good day xx
    • Pennypanj
    • By Pennypanj 17th Jan 20, 11:13 PM
    • 11 Posts
    • 2 Thanks
    Pennypanj
    Hi all, I am a newbie here, and have a couple of questions about DMP through SC. I have 8 creditors ( although some duplicates) Sainsburys Bank, Lloyds, Virgin, Admiral Loans, Next which amounts to 56k. I am so ashamed and all of my salary is going on essential bills and these replayments...I have nothing left. My OH doesn't know...he is self rightious and abusive so I just can't even go there.
    I have completed the SC I/E form...well in truth I have completed it twice trying out different figures. The reason is my OH currently pays £300 into my account for food (by standing order) but its not likely to last due to his work and also we might be splitting up (thats another story!) ...so my first question is- should I include that in my income or just not mention it? Is there a point where SC ask for my bank statement?
    Also...if while on the DMP, if I was to accrue some extra money...like a bonus from work...or selling stuff on ebay...would I be allowed to save that and then use it as a lump sum to clear the DMP sooner? Would anyone know if it went into a 'clean' account?.
    Also, has anyone had any problems with these creditors. I'm most worried about Lloyds. I have 2 loans and an overdraft with them and the final loan was only taken out 3 months ago. Looking back I'm shocked that they gave it to me...because a basic afffordabilty check would have shown that I couldn't afford it..but it went through online, no problem and I used it to pay the builders invoice.(home improvements)
    This is a bleak situation and is all consuming so I
    thank you for any advice in advance!
    • MrLolly
    • By MrLolly 18th Jan 20, 1:08 AM
    • 45 Posts
    • 31 Thanks
    MrLolly
    Iíll try to answer some of your worries:

    1- StepChange wonít ask for bank statements. They will ask for a payslip to prove salary that youíve declared...

    2- Extra money from work / bonuses ect should be treated as such: Ďextraí- no need to declare it. A DMP is an informal (non-legally binding) way of paying off your debts. They only know what you tell them, but debt charities try and promote transparency so that their relationships with creditors is maintained.

    3- The Lloydís loan... maybe in a few months once the dust has settled, you could make an affordability complaint about them actually ever lending you this money in the first place. Could get some of the interest / charges removed although the original loan amount would still be owed.

    4- overall, the creditors will accept what you pay them. Personally, Iíd rather inflate my spending and make sure I can live a decent quality of life, and increase my payments later on. The important thing is having a DMP in place will keep them off your back
    • Pennypanj
    • By Pennypanj 18th Jan 20, 7:35 AM
    • 11 Posts
    • 2 Thanks
    Pennypanj
    Thank you MrLolly, that is most helpful.
    One more question...my children do extra curricular activities which are paid for monthly. Which section would this go under...its quite alot- around £70 per month. I'm guessing SC would tell me this, but just worried that they might say I should stop their activities, which of.course I don't want to do. ..🤔🤞
    • Worriedmum43
    • By Worriedmum43 18th Jan 20, 8:34 AM
    • 1 Posts
    • 0 Thanks
    Worriedmum43
    I needs some advice Iím in process of setting up DMP owe 72000 to 9 creditors.
    Contacted all my cc and loan so far all helpful on freezing account but 4 days later a received a default notice from Amex seemed bit quick as Iíve not even missed payment to them for another 2 weeks! So Iím now stressed I know itís not easy Iím just so worried Iím going to have my house taken and with 2 kids and Iím not sleeping.
    • Tryingtogetstraight
    • By Tryingtogetstraight 18th Jan 20, 12:24 PM
    • 4 Posts
    • 0 Thanks
    Tryingtogetstraight
    Hi all.
    New to this so here goes....
    Have 39k debt gained over a number of years.
    With Stepchange on DMP.
    Have 5 creditors.
    Have had a compensation claim of around 16k. Obviously I want to get out of debt.... however. I need a car (mine has just cost me £600 to fix (some) of the problems. Lots outstanding). I donít know what is the best course of action?
    Need a car. Older cars need work. Wonít be able to get credit for one. Donít really want to get credit anyway (higher interest for bad credit).
    • Finally Solvent
    • By Finally Solvent 18th Jan 20, 12:51 PM
    • 223 Posts
    • 1,593 Thanks
    Finally Solvent
    Hi all.
    New to this so here goes....
    Have 39k debt gained over a number of years.
    With Stepchange on DMP.
    Have 5 creditors.
    Have had a compensation claim of around 16k. Obviously I want to get out of debt.... however. I need a car (mine has just cost me £600 to fix (some) of the problems. Lots outstanding). I don’t know what is the best course of action?
    Need a car. Older cars need work. Won’t be able to get credit for one. Don’t really want to get credit anyway (higher interest for bad credit).
    Originally posted by Tryingtogetstraight
    Sorry, I'm not sure what you want to know.

    If, as I assume, it's what to do about the compensation claim (congratulations, by the way) now you are on a DMP with SC. There is no reason you need to tell them about this extra money if you don't want to. You could stash it away in a savings account for now until you see a car that you like and then buy it for cash. As you say, obtaining credit when on a DMP is often impossible or, at the very least, eye-wateringly expensive. You know a newer car would be money-saving in the long run so view having savings for one as an essential emergency fund.

    You could also buy a cheaper car and notify SC of the amount you have left that you can use to increase to repay your debts. Don't tell them that you've just bought a car, just tell them you find you have £x in compensation and want to increase your monthly repayments. Better still, IMO, hang onto it all (in an interest-bearing account of some sort, pathetically little though interest rates are nowadays) and inform SC of the extra you have available when you do your next annual review with them after, presumably buying your car.



    That's what I'd do anyway but others may be along and advise you differently. Whatever you decide, good luck on your debt-free journey
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    • Tryingtogetstraight
    • By Tryingtogetstraight 18th Jan 20, 1:05 PM
    • 4 Posts
    • 0 Thanks
    Tryingtogetstraight
    Thanks. That was what I wanted to ask..
    SC know that my car currently is worth about £600 so at my next financial assessment will know I have bought one for 6k ish...
    Would a couple of my creditors accept a settlement? Should I go ahead with that?
    Iím just worried Iíll get into trouble.
    This has already affected my mental health so badly that having the money in my bank account is actually freaking me out!!
    • NoMoneyNoProblemo
    • By NoMoneyNoProblemo 18th Jan 20, 1:25 PM
    • 1 Posts
    • 0 Thanks
    NoMoneyNoProblemo
    New DMP
    Hi guys,

    Not completely new to debt management, but never been in a situation like this before. Currently owe over 13k to 13 creditors (which may seem a drop in the ocean for some, but it's got really out of hand and is definitely my lowest point).
    Question is; I see a lot of people mention creating a new bank account to "start fresh". I currently have a small loan with my bank and a credit card. But I really really don't want to bank with anyone else as I really love my bank (crazy right?)
    What are the chances that they'll just start dipping into my wages to recoup some or all of my debt? Would appreciate any advice.

    Thank you in advance.
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