Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • sourcrates
    • By sourcrates 18th Sep 18, 10:40 PM
    • 16,177Posts
    • 15,295Thanks
    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
    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". I have extensive experience of debt, and itís solutions, as well as the collection industry in general.

    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.
Page 45
    • Lifeisforliving19
    • By Lifeisforliving19 12th Jan 19, 5:45 PM
    • 100 Posts
    • 575 Thanks
    Lifeisforliving19
    Hi,


    Welcome to the DMP support group.


    Its always difficult to advise when you have no real information to go on, so this is my basic common sense response, as you are in debt management, its unlikely you will get further credit at present, obviously this balloon payment has come as no surprise to you, yet you have not saved anything towards paying it.


    It appears as though you are still trying to cling to your credit bubble existence, with fancy ideas of expensive cars, and no means to finance them, seriously, you can buy a perfectly good, reliable car for a grand or less, you need to tone down the ambition until your debts are re-paid, and you can then look at building yourself up again.

    I don`t want to come across as been harsh, you just need to re-visit your light-bulb moment me-thinks.
    Originally posted by sourcrates

    Just to add my agreement to this.
    DMP 2015 £57,549, now £42,955 (25% paid)
    EF £315 Mortgage OP's this year £20
    Christmas 2019 £30 SPC #110
    There's a Great Big Beautiful Tomorrow, Shining at the End of Every Day!

    • GibbsRule No3
    • By GibbsRule No3 13th Jan 19, 11:10 AM
    • 716 Posts
    • 396 Thanks
    GibbsRule No3
    I thought taking out more credit while on a DMP can jeopardise the DMP. So not a good idea.
    Paddle No 21
    • Queen of Swords
    • By Queen of Swords 13th Jan 19, 1:28 PM
    • 6 Posts
    • 3 Thanks
    Queen of Swords
    Hi, I have just joined. Had to face up to being in £17000 of CC debt. I tried to get a debt consolidation loan yesterday, but was turned down, and maybe that was for the best? The repayments would have been less than the minimum payments on the cards, but I suppose the lender considers me a bad risk, although I have not yet missed or been late with a payment, and my Experian credit score, (which they used) shows "Good". Considering DMP with Stepchange. Their debt remedy came up with DMP as solution over 4 years 10 months. I feel so stupid and ashamed, and cannot sleep for worry. I am not young and should know better than to have got into this mess at my age! I have no pension to cash in early. I am still working and plan to do so for next 7-8 years, and finally should get my state pension next September in addition to my salary, albeit taxed! I had also thought I would get this at age 60! This should allow me to pay it off even quicker. £8000 CC debt is with Halifax and I wonder if I should ask them if they would consider a debt consolidation loan or to go with the DMP?
    • Moveslikeagger
    • By Moveslikeagger 13th Jan 19, 1:51 PM
    • 43 Posts
    • 17 Thanks
    Moveslikeagger
    Dmp is the best thing I did. Interest has been stopped on all but one of my debts which is saving me loads and debts are not getting higher! My credit file is in pieces anyway so wasn't worried about ruining that! Creditors have been great and its nice having money left over at the end of the month which is actually yours!
    • Queen of Swords
    • By Queen of Swords 13th Jan 19, 2:01 PM
    • 6 Posts
    • 3 Thanks
    Queen of Swords
    Dmp is the best thing I did. Interest has been stopped on all but one of my debts which is saving me loads and debts are not getting higher! My credit file is in pieces anyway so wasn't worried about ruining that! Creditors have been great and its nice having money left over at the end of the month which is actually yours!
    Originally posted by Moveslikeagger
    Thank you for your advice. I think it's the shock of facing up to this, that is making me reluctant to jump in with the DMP, after being in denial for so long. But the worry has really got to me and is spoiling my life, and of course as I can only blame myself, I am feeling pretty low. I am so ashamed and don't want any of my family friends or colleagues to know that I am in debt. Somehow it seems easier to say you have a loan rather than be on a DMP, But that's the whole problem, perhaps. Credit is too easy. This thread is helping as I realise many other people are in the same boat and I must take control. Thanks.
    • Moveslikeagger
    • By Moveslikeagger 13th Jan 19, 2:26 PM
    • 43 Posts
    • 17 Thanks
    Moveslikeagger
    Consolidation just get you into more trouble! Dmp is still a loan just a reduced payment one. Make sure you get an emergency fund together as all the posters will tell you here! Do not consolidate, you will feel relief once it starts and like me you will be able to sleep and not worry about things anymore!
    • carbootcrazy
    • By carbootcrazy 13th Jan 19, 2:41 PM
    • 5,700 Posts
    • 33,985 Thanks
    carbootcrazy
    Thank you for your advice. I think it's the shock of facing up to this, that is making me reluctant to jump in with the DMP, after being in denial for so long. But the worry has really got to me and is spoiling my life, and of course as I can only blame myself, I am feeling pretty low. I am so ashamed and don't want any of my family friends or colleagues to know that I am in debt. Somehow it seems easier to say you have a loan rather than be on a DMP, But that's the whole problem, perhaps. Credit is too easy. This thread is helping as I realise many other people are in the same boat and I must take control. Thanks.
    Originally posted by Queen of Swords
    Welcome to the thread. You've done the hardest part which is facing up to your debt problem. I can still remember what that felt like, even 6 years on, after being in total denial for donkey's years.

    Don't beat yourself up about still being in debt at a somewhat advanced age. I was already retired when I finally realised there was no possible way I could escape from my self-inflicted debt torment unless I asked for help. A SC DMP was the best financial move I ever made.


    I think the refusal of a consolidation loan for you was definitely for the best. It can only prolong the debt rather than address the underlying problem. I've been there myself and know that I just made things worse by feeling complacent and carrying on spending once my debts were consolidated into a lower monthly payment than I'd previously been paying my creditors individually .


    As for your feeling that it's easier to say you have a loan rather than a DMP, do you mean say it to convince yourself? A consolidation loan is still credit whichever way you look at it and just masks the problem rather than fully addressing it. As for what you tell other people in your social/family circle is entirely up to you. They won't know about your DMP unless you choose to tell them. I had very pressing reasons for not telling my OH that I had crippling debts (and hiding them while appearing to carry on as normal was a massive strain). Looking back, I don't know how I got through it. I also didn't tell him about my DMP. We have no joint accounts, all our finances are separate, and we don't open one another's post. Not being married, although living together, we have different surnames so there's no likelihood of letters addressed to Mrs..... arriving and being opened in error.


    I was very anxious in the pre-DMP days when creditors were phoning all the time on the landline but once on the DMP and I'd asked for all communication to be by post or email all worrying phone calls stopped


    It's often easier when a partner/friend or family member knows the full situation as a trouble shared is a trouble halved as they say. Sometimes the reassurance and emotional support, not to mention a hug when things get bad can only be for the good. As I say, I chose to forgo all that and it worked for me but it definitely wouldn't for many others. You must do what seems best for you.


    Good Luck. Keep posting and asking any questions you have. We've all been where you are now, mired in debt and unsure what to do. There is light at the end of the tunnel, I promise
    Last edited by carbootcrazy; 13-01-2019 at 2:45 PM.
    Original Debt: £56804 (@02/13). Now: £3427..


    Make £2019 in 2019 (#68) £49.35/£2019
    • Queen of Swords
    • By Queen of Swords 13th Jan 19, 3:06 PM
    • 6 Posts
    • 3 Thanks
    Queen of Swords
    Thank you for the replies. Why do I need an emergency fund? I read somewhere about having to have another bank account but I don't think I saw that on Step Change.
    • Moveslikeagger
    • By Moveslikeagger 13th Jan 19, 3:17 PM
    • 43 Posts
    • 17 Thanks
    Moveslikeagger
    You cant have a bank account with a bank you have debts with as they can offset your money in your account and use it to pay your debts. I opened a Barclays account as I have no debts with them. Emergency fund is needed as you cant access credit any more so for example if your central heating breaks, car, washing machine etc etc you will need money to pay for this! I have around 1k emergency fund. I didnt pay my creditors for 2 months to save this.
    • Queen of Swords
    • By Queen of Swords 13th Jan 19, 3:37 PM
    • 6 Posts
    • 3 Thanks
    Queen of Swords
    You cant have a bank account with a bank you have debts with as they can offset your money in your account and use it to pay your debts. I opened a Barclays account as I have no debts with them. Emergency fund is needed as you cant access credit any more so for example if your central heating breaks, car, washing machine etc etc you will need money to pay for this! I have around 1k emergency fund. I didnt pay my creditors for 2 months to save this.
    Originally posted by Moveslikeagger
    Ok, I understand. I will check out other banks. My debts are with Smile (Co-op bank), Halifax and Barclaycard. SC said in their action plan for me,
    that my bank may offer me a "clean" account, but maybe I had better open another one. Thank you all again, for this advice and support, I feel like cr*p, just want to curl up in a ball, but I have to pull myself together and get on with this, and reading this advice and positive comments is helping a lot!
    • sourcrates
    • By sourcrates 13th Jan 19, 3:55 PM
    • 16,177 Posts
    • 15,295 Thanks
    sourcrates
    Ok, I understand. I will check out other banks. My debts are with Smile (Co-op bank), Halifax and Barclaycard. SC said in their action plan for me,
    that my bank may offer me a "clean" account, but maybe I had better open another one. Thank you all again, for this advice and support, I feel like cr*p, just want to curl up in a ball, but I have to pull myself together and get on with this, and reading this advice and positive comments is helping a lot!
    Originally posted by Queen of Swords

    Hi,

    Bear in mind its a Basic bank account you need, one which requires no credit check, and offers no overdraught, at present you may still qualify for a standard current account, but that s not what you want.

    You will need to search for them, nationwide do a good one for example.


    There is no shame in your predicament, the majority of people you meet in the street are in debt, most can`t afford the debt they have, but won`t admit it, you have at least admitted you need help, its all down hill from now on, the resources to help you do exist, its just deciding which route to take for the best.
    Last edited by sourcrates; 13-01-2019 at 3:57 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". I have extensive experience of debt, and itís solutions, as well as the collection industry in general.

    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.
    • carbootcrazy
    • By carbootcrazy 13th Jan 19, 4:00 PM
    • 5,700 Posts
    • 33,985 Thanks
    carbootcrazy
    Hi,

    Bear in mind its a Basic bank account you need, one which requires no credit check, and offers no overdraught, at present you may still qualify for a standard current account, but that s not what you want.

    You will need to search for them, nationwide do a good one for example.


    There is no shame in your predicament, the majority of people you meet in the street are in debt, most can`t afford the debt they have, but won`t admit it, you have at least admitted you need help, its all down hill from now on, the resources to help you do exist, its just deciding which route to take for the best.
    Originally posted by sourcrates
    I used to bank with Lloyds but owed them loads and opened a Nationwide Basic Account when I started my DMP. Does everything I need to do and their customer service should you ever have to phone them is excellent. I can highly recommend them
    Original Debt: £56804 (@02/13). Now: £3427..


    Make £2019 in 2019 (#68) £49.35/£2019
    • Queen of Swords
    • By Queen of Swords 13th Jan 19, 4:01 PM
    • 6 Posts
    • 3 Thanks
    Queen of Swords
    Hi,

    Bear in mind its a Basic bank account you need, one which requires no credit check, and offers no overdraught, at present you may still qualify for a standard current account, but that s not what you want.

    You will need to search for them, nationwide do a good one for example.

    .
    Originally posted by sourcrates
    Thanks, I will check that out.
    • carbootcrazy
    • By carbootcrazy 13th Jan 19, 4:04 PM
    • 5,700 Posts
    • 33,985 Thanks
    carbootcrazy
    Ok, I understand. I will check out other banks. My debts are with Smile (Co-op bank), Halifax and Barclaycard. SC said in their action plan for me,
    that my bank may offer me a "clean" account, but maybe I had better open another one. Thank you all again, for this advice and support, I feel like cr*p, just want to curl up in a ball, but I have to pull myself together and get on with this, and reading this advice and positive comments is helping a lot!
    Originally posted by Queen of Swords
    I don't think Stepchange mention anything about having an emergency fund. The first I knew of it was through this thread but by then it was a bit late as I was already a couple of months into my DMP.


    A lot of banks are part of a bigger banking group so make sure you choose one that isn't under another bank's 'umbrella'. You'll be fine with Nationwide though, they are independent.
    Original Debt: £56804 (@02/13). Now: £3427..


    Make £2019 in 2019 (#68) £49.35/£2019
    • Queen of Swords
    • By Queen of Swords 13th Jan 19, 4:31 PM
    • 6 Posts
    • 3 Thanks
    Queen of Swords
    I have just checked Nationwide and it won't let me apply for the Flex Basic because I am not bankrupt and have another UK current account. The next one up is the Flex Account but that has an overdraft facility. So no good I guess? I will sort out what I can do for an emergency fund, meantime.I have stuff I could sell on eBay and hold balance in Paypal until I get bank account sorted out. Thank you all so much for your support and advice.
    • carbootcrazy
    • By carbootcrazy 13th Jan 19, 4:37 PM
    • 5,700 Posts
    • 33,985 Thanks
    carbootcrazy
    I have just checked Nationwide and it won't let me apply for the Flex Basic because I am not bankrupt and have another UK current account. The next one up is the Flex Account but that has an overdraft facility. So no good I guess? I will sort out what I can do for an emergency fund, meantime.I have stuff I could sell on eBay and hold balance in Paypal until I get bank account sorted out. Thank you all so much for your support and advice.
    Originally posted by Queen of Swords
    That's odd. I certainly wasn't bankrupt and they let me have one. Also, for some strange reason, unlike Santander who closed my current account as soon as I entered a DMP, probably because my overdraft was part of the DMP, Lloyds always kept my current account open and usable throughout my DMP. I never deposited any money in it though as I owed them lots on a credit card.
    Original Debt: £56804 (@02/13). Now: £3427..


    Make £2019 in 2019 (#68) £49.35/£2019
    • lulabelle01
    • By lulabelle01 13th Jan 19, 5:03 PM
    • 30 Posts
    • 6 Thanks
    lulabelle01
    Iíve not made any payments to my cards since September/October. I sent letters and offers for monthly payments which have been accepted and both companies Iím dealing with have said theyíll default me but it hasnít happened yet. Iím in a position now to start making payments but am I best to hold off until the defaults have been issued or should I start making payments now?
    Originally posted by lulabelle01
    Any advice anyone?
    • sourcrates
    • By sourcrates 13th Jan 19, 5:57 PM
    • 16,177 Posts
    • 15,295 Thanks
    sourcrates
    Any advice anyone?
    Originally posted by lulabelle01

    Hi,


    Apologies for the late response, certainly wait until they default you, otherwise its all been for nothing, save as much as you can in that emergency fund.

    If they don`t default you, interest and charges can still be applied, you don`t want that to happen.
    Once defaulted all interest and charges cease completely, that is your goal for now.
    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". I have extensive experience of debt, and itís solutions, as well as the collection industry in general.

    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.
    • Lifeisforliving19
    • By Lifeisforliving19 14th Jan 19, 7:19 AM
    • 100 Posts
    • 575 Thanks
    Lifeisforliving19
    I have just checked Nationwide and it won't let me apply for the Flex Basic because I am not bankrupt and have another UK current account. The next one up is the Flex Account but that has an overdraft facility. So no good I guess? I will sort out what I can do for an emergency fund, meantime.I have stuff I could sell on eBay and hold balance in Paypal until I get bank account sorted out. Thank you all so much for your support and advice.
    Originally posted by Queen of Swords

    That's very odd, OH and I both changed to NW when we started our DMP.
    DMP 2015 £57,549, now £42,955 (25% paid)
    EF £315 Mortgage OP's this year £20
    Christmas 2019 £30 SPC #110
    There's a Great Big Beautiful Tomorrow, Shining at the End of Every Day!

    • Suseka97
    • By Suseka97 14th Jan 19, 2:44 PM
    • 506 Posts
    • 630 Thanks
    Suseka97
    I have just checked Nationwide and it won't let me apply for the Flex Basic because I am not bankrupt and have another UK current account. The next one up is the Flex Account but that has an overdraft facility. So no good I guess? I will sort out what I can do for an emergency fund, meantime.I have stuff I could sell on eBay and hold balance in Paypal until I get bank account sorted out. Thank you all so much for your support and advice.
    Originally posted by Queen of Swords
    I know the general advice / view is to move to a basic account - but it's more important to move to a bank that has no financial relations with any of your debts. When we started most of our debts were with Barclays, who we banked with at the time, but we also held a standard current account with Norwich & Peterborough, which had OD facilities and a chequebook (something most, if not all, basic accounts don't offer). Anyway, we moved over to using that standard current account and closed the Barclays one. I've only recently (in the last 12 - 18mths) had to move over to a basic account because the N&P closed their banking arm and my credit record obviously only allowed me to open a basic one.

    I think in the main the reason to go for a basic at the outset is to not have access to credit in the form of an overdraft - and to instil good habits of living within your means. I have to admit that I did find the overdraft I had access to came in handy when we were really pinched for money - but that was mainly because our DMP payments were essentially too high.

    The reason I mention this is because its really up to you and if you think you can keep your spending in check and not rely on or use that overdraft - having a standard account is fine, in my humble opinion. Also maybe you could open the Flex account and just tell them you don't want any overdraft facility - just a thought.
    LBM April 2013 £85k /14 Creditors
    SC DMP May 2013 - July 2017 (£74k repaid)
    SM DMP July 2017 to date / £9k o/s
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

274Posts Today

2,232Users online

Martin's Twitter
  • As normal I am signing off twitter for the weekend - to spend time with mini and Mrs MSE. Hope you have a wonderfu? https://t.co/FG3sRfkIgA

  • RT @LauraFrancis9: Top crew! We may film in the freeeeeeeezing cold every week, but this bunch make it fun. (And huge thanks as always to @?

  • Turns out this is all Google served. We've been in touch and it's shutting it down which should cut it on many webs? https://t.co/8OYeMjEu4n

  • Follow Martin