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  • FIRST POST
    • sourcrates
    • By sourcrates 18th Sep 18, 9:40 PM
    • 17,006Posts
    • 16,023Thanks
    sourcrates
    DMP mutual support thread part 13 !!
    • #1
    • 18th Sep 18, 9:40 PM
    DMP mutual support thread part 13 !! 18th Sep 18 at 9:40 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 8:03 AM.
    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.
Page 70
    • sourcrates
    • By sourcrates 15th Apr 19, 2:18 PM
    • 17,006 Posts
    • 16,023 Thanks
    sourcrates
    Hi all,


    New here today after finally admitting I can't cope with my debts (」37k) and burying my head in the sand. I have a couple of quick questions:


    1) I hear people talking about an Emergency Fund but how do you do this? Is it as simple as just stopping the payment D/D's and building up the funds in an account?


    2) I intend to go down the DMP route, most likely SC, but in terms of building an EF as above, do I need to let creditors know my intentions first before stopping paying? I have a number of D/D's going out in about a week and would ideally not pay the full amount (or any of it at the moment) if possible


    3) What is the general guidance on when to start a DMP after stropping paying to build up an EF?


    I'm sure these questions have already been asked and answered but I did a search and couldn't find anything clear. Thanks guys.
    Originally posted by masteront

    Hi,


    Asked and answered 1000 times in the past, but don`t worry.


    If you know your going to default, then pre-empt the situation by taking control of it, you should stop all non priority payments yes, write to all your creditors about your intention to go into debt mangement, and that you are taking advice currently from stepchange.

    The money that would have formed your creditor payments, now goes into your EF. This can continue as long as it needs to, when your happy, get in touch with stepchange and get the DMP ball rolling.

    Stepchange are good at what they do, but there modus operandi is to get you repaying your debts ASAP, they will not sanction time out for gathering an emergency fund, which is why you have to take matters into your own hands.
    Last edited by sourcrates; 15-04-2019 at 3:06 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.
    • smiff_50
    • By smiff_50 15th Apr 19, 11:21 PM
    • 7 Posts
    • 15 Thanks
    smiff_50
    Moving from SC to self managed DMP
    Back again....this thread is amazing.

    I was thinking 3 months break in payments before resuming payments when moving from step change to self managed. However I would really like a solid emergency fund to fall back on. Would I be taking the p**s saying 5-6 months? Has anyone done this before?

    Thanks
    • Suseka97
    • By Suseka97 16th Apr 19, 8:26 AM
    • 629 Posts
    • 750 Thanks
    Suseka97
    Back again....this thread is amazing.
    I was thinking 3 months break in payments before resuming payments when moving from step change to self managed. However I would really like a solid emergency fund to fall back on. Would I be taking the p**s saying 5-6 months? Has anyone done this before?
    Thanks
    Originally posted by smiff_50
    Some have, with success, and others get hassled by the creditor or DCA to get the payment plan back up and running as quickly as possible. So there's no real way of knowing how successful you would be delaying by 5 - 6 months. That said, there's no harm in trying (you've nothing to lose). If your concern is whether a creditor/DCA will start formal (court) proceedings if they were not happy with the delay - well that's highly unlikely.

    When you write you don't necessarily have to indicate a timeframe when payments will recommence. You can be a little vague and simply say you are planning to manage your own DMP and in doing so will be re-evaluating your financial position and that you will be in touch with regards to a formal offer of payment in due course. You could say that you have a number of urgent bills to settle (car, boiler, other) if you want to offer a reason for a delay, but I don't think they care that much really. The main thing is to stay in touch and keep them updated.

    What you should always remember is you are just an account (number) to a large organisation and most of the letters you'll receive are computer generated. The wheels turn very slowly and several weeks/months can pass by quite easily before they take notice.

    When I went SM (after 4 years on a managed DMP) I sent off CCA requests and it took the DCAs close to 6 months to respond. During that time I didn't pay them anything. So it also depends on where you are in the process.
    • smiff_50
    • By smiff_50 16th Apr 19, 10:27 AM
    • 7 Posts
    • 15 Thanks
    smiff_50
    Hi Suseka97, thanks for such a detailed reply. That's very helpful. I guess I've just got used to being on auto pilot with stepchange. But every since I've started looking into self managing I've realised I should have taken control far sooner. I just want to use this opportunity to rebuild an emergency fund.

    Thanks
    • Suseka97
    • By Suseka97 16th Apr 19, 12:00 PM
    • 629 Posts
    • 750 Thanks
    Suseka97
    Hi Suseka97, thanks for such a detailed reply. That's very helpful. I guess I've just got used to being on auto pilot with stepchange. But every since I've started looking into self managing I've realised I should have taken control far sooner. I just want to use this opportunity to rebuild an emergency fund.
    Thanks
    Originally posted by smiff_50
    I felt much the same when I finally decided to go self-managed although I was grateful for the help from SC at the outset. Once you get your head around the whole process, you'll find it much more flexible. For example, Barclaycard reinstated interest charges when the monthly DMP payment rose as a result of annual reviews and as each creditor was paid off. When I spoke with SC they wouldn't reduce the BC payments to ensure I kept under their threshold and that's what finally prompted me to take control.

    For you it makes sense to build up an EF, especially if (like me) you didn't from the outset and I think a 6 month grace period should do the trick. I hope it works out - but don't be hassled by creditors if they get a bit pushy
    • Dandytf
    • By Dandytf 16th Apr 19, 8:12 PM
    • 2,023 Posts
    • 494 Thanks
    Dandytf
    Since had quick scan of SC dmp status since r.b.s. Text confirming 10 pounds has been added to payments from early May.
    From Noodle it seems my last default could drop off from Jan 2021 which honestly would be amazing.
    With some considerable effort and a bit of luck, I intended to find a way to reduce one more year from dmp to almost match early 2021
    Though I'll allow a few months to establish if I can either make more considerable savings or extra shifts maybe during 2019/2020.
    Recent small VM savings went yesterday after my shower failed.
    Though grateful I got short notice Monday electricians to supply and install a new shower.
    And great to know I had enough in VM savings account to cover cost.
    It seem as I thought during 2018VM has become a deposit what I can when I can which is maybe upto two or three times per year, which acts as an emergency fund for home/maybe car.
    Mser's-continue with dmp's be it new or existing- it's starting to feel nice when it becomes part of essential budget re payments as important as other costs etc.
    sc dmp 2012 13k Jan 2019 9880paid. 75%approx.
    Mid 2018 Help2save 50 uk pounds per month
    Mid 2018-Virgin Money E-saver V11 -t.b.c.
    • emmajaynewithay
    • By emmajaynewithay 16th Apr 19, 9:37 PM
    • 3 Posts
    • 0 Thanks
    emmajaynewithay
    Change in circumstances - so feeling stressed again
    Unfortunately my partner and I broke up a month ago. I now have to let a flat on my own and will be about 」300 less when off. I知 going to contact payplan to get a SA budget produced and ask them to contact the creditors to see if they accept around 1/3 less of the current 」800 I知 paying off a month.

    Does anyone else have experience of having reduce payments? How did the creditors react? I致e only been on the plan for 5 months so I知 gutted to have to go back and ask for it to be changed.
    • Suseka97
    • By Suseka97 17th Apr 19, 10:34 AM
    • 629 Posts
    • 750 Thanks
    Suseka97
    ....... I now have to let a flat on my own and will be about 」300 less when off. I知 going to contact payplan to get a SA budget produced and ask them to contact the creditors to see if they accept around 1/3 less of the current 」800 I知 paying off a month. Does anyone else have experience of having reduce payments? How did the creditors react? I致e only been on the plan for 5 months so I知 gutted to have to go back and ask for it to be changed.
    Originally posted by emmajaynewithay
    Try not to stress about this, life happens and a DMP journey isn't always a straightforward one. Your financial circumstances have changed and so it warrants a review of your I&E, which will subsequently mean you'll have to reduce your payments. Whether creditors accept that or not is neither here nor there. You can only pay what you can reasonably afford - it's as simple as that.
    • Eugh
    • By Eugh 17th Apr 19, 12:30 PM
    • 20 Posts
    • 59 Thanks
    Eugh
    Hi,

    I received a letter today from Very after missing one payment (have sent holding letters, but have yet to hear from any creditors yet) that talks about default in a way that suggests they are defaulting me already - which I realise is the aim at the beginning...

    But I'm concerned the letter is actually not defaulting me and it just worded 'scarily' to make people pay. I'm thinking this as I've only not paid one payment and the wording is a bit odd.

    It's says it's a'notice of default sums under the consumer credit act 1974'

    It also states they are 'not entitled to charge for interest for the first 28 days after giving notice, but if outstanding amounts aren't paid by xx it will be charged at 39.9%'

    Is this just a very puffed up late payment letter??

    Also, while I'm here... how long does it usually take for creditors to acknowledge holding letters? I realise business wheels don't turn quickly but I would feel happier if I get a reply before a month is up!

    Thanks
    • Suseka97
    • By Suseka97 18th Apr 19, 6:52 AM
    • 629 Posts
    • 750 Thanks
    Suseka97
    Hi,
    I received a letter today from Very after missing one payment (have sent holding letters, but have yet to hear from any creditors yet) that talks about default in a way that suggests they are defaulting me already - which I realise is the aim at the beginning...
    But I'm concerned the letter is actually not defaulting me and it just worded 'scarily' to make people pay. I'm thinking this as I've only not paid one payment and the wording is a bit odd.
    It's says it's a'notice of default sums under the consumer credit act 1974'
    It also states they are 'not entitled to charge for interest for the first 28 days after giving notice, but if outstanding amounts aren't paid by xx it will be charged at 39.9%'
    Is this just a very puffed up late payment letter??
    Also, while I'm here... how long does it usually take for creditors to acknowledge holding letters? I realise business wheels don't turn quickly but I would feel happier if I get a reply before a month is up!
    Thanks
    Originally posted by Eugh
    This is just standard blurb that creditors send out when you don't make your contractual payment - some send them quicker than others, but it doesn't mean they will actually follow through with a default in a timely way. And, I'm sorry to say, that Very is notorious for not defaulting people. If you search for Very on this thread you'll find quite a few posts about that particular issue. As for acknowledgements, again some will and some won't - it's just how it is. With that said, irrespective of whether you get acknowledgements or not - you just need to follow through with whatever the payment plan is.
    • SkintDad87
    • By SkintDad87 18th Apr 19, 7:28 AM
    • 7 Posts
    • 0 Thanks
    SkintDad87
    So with that in mind, how would you approach the situation, to get a default quicker? I've done a search for the word 'Very' and as you can imagine, every thread and post comes up, none with the info required
    • Minnie82
    • By Minnie82 18th Apr 19, 9:15 AM
    • 10 Posts
    • 1 Thanks
    Minnie82
    Hi folks,

    I've not been on in forever and have been far more of a lurker than poster.

    Firstly I wanted to say to people at the beginning of their journey, this can be a scary time and sometimes the amount of time you need to pay off debts seems forever but honestly, a structured, manageable plan is so much better than living in fear every time the phone goes. You can and will get through this.

    DH and I were 」40,000 in debt when we looked at the DAS scheme (Scotland), we got into this state with a sudden drop in his workload (trade) that lasted for ages and we had just had a 2nd baby. We had also had some cards that we used before this happened thinking we were invincible and we would easily pay it back. Lesson well and truly learned. We signed up for the DAS in December 2013 and at the end of this month, our debt will be around 」3800 with 5 payments left to go. It can be done and when the end is within touching, its an amazing feeling. It wasn't always easy and we had to have a couple of payment holidays along the way but I'm proud that we've been making payments between 」700-」800 a month and this will soon be ours to save.

    Our defualts are due to start falling off at the turn of the year as some defaulted us straight away, a couple I'm concerned about though, my DH Barclaycard, one RBS joint account and my Next account didn't default us for quite a while (my barclaycard defaulted me straight away which seems odd and another 3 RBS accounts also defaulted straight away but 1 didn't) I'm wondering if its worth getting in touch with them myself to see if they will backdate, should I do this at the end? Any thoughts appreciated.
    • Jo842002
    • By Jo842002 18th Apr 19, 9:59 AM
    • 1 Posts
    • 0 Thanks
    Jo842002
    LBM April 19
    Hi all,

    I have been lurking around these posts after having a lightbulb moment a couple of weeks ago. It seems ours is not an uncommon story - escalating cc debt and increasingly high repayments have resulted in 」60k of debt. We tried to increase our mortgage to cover the debt but was declined and as our repayments and other outgoings now exceed our incomings we have realised that a dmp is the way forward for us. I have been in touch with Payplan (who I have found quite persistent) and have done a budget on the SC website so will give them a call next week. Although there is masses of information on here, I would appreciate if someone could talk me through the process in baby steps!

    Our cc payments come out throughout the month - do I cancel them all and then send the holding letters once they are missed? Or send the letters once the dd's have been cancelled but before any missed payments?

    The holding letter templates generally only ask for breathing space for a month - however in order to save up an EF plus the first payment to either SC or PP (my partner is paid weekly) we would ideally like to start a repayment plan in July/August. I am aware of people asking for CCA's - is this done further down the line?

    Once the holding letters have been sent - do we then follow up with a further request in a months time? Do we start the dmp once we have missed payments or before?

    Sorry for the long post and the questions - it is quite a lot to get our heads around as although we have a huge amount of debt, we have never missed any payments and our credit score is relatively okay.

    It has been a scary realisation but funnily we are both quite positive about the future - going on the figures from PP we will be repaying for 6-7 years, and I realise the journey may not be smooth but at least there may be some sort of end in sight!

    I appreciate any responses! Thanks
    • Willing2Learn
    • By Willing2Learn 18th Apr 19, 2:11 PM
    • 2,768 Posts
    • 2,334 Thanks
    Willing2Learn
    I received a letter today from Very after missing one payment (have sent holding letters, but have yet to hear from any creditors yet) that talks about default in a way that suggests they are defaulting me already - which I realise is the aim at the beginning...
    Originally posted by Eugh
    This is just standard blurb that creditors send out when you don't make your contractual payment - some send them quicker than others, but it doesn't mean they will actually follow through with a default in a timely way. And, I'm sorry to say, that Very is notorious for not defaulting people. If you search for Very on this thread you'll find quite a few posts about that particular issue...
    Originally posted by Suseka97
    So with that in mind, how would you approach the situation, to get a default quicker? I've done a search for the word 'Very' and as you can imagine, every thread and post comes up, none with the info required
    Originally posted by SkintDad87
    Just wanted add about Very not defaulting their customer accounts so that they can continue 39.9% APR interest. What we sometimes suggest on these boards, is for the debtor to totally withhold payments from Very, to force them into defaulting the account. Sadly, I am unsure of the success rate
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Willing2Learn
    • By Willing2Learn 18th Apr 19, 2:19 PM
    • 2,768 Posts
    • 2,334 Thanks
    Willing2Learn
    Our defualts are due to start falling off at the turn of the year as some defaulted us straight away, a couple I'm concerned about though, my DH Barclaycard, one RBS joint account and my Next account didn't default us for quite a while (my barclaycard defaulted me straight away which seems odd and another 3 RBS accounts also defaulted straight away but 1 didn't) I'm wondering if its worth getting in touch with them myself to see if they will backdate, should I do this at the end? Any thoughts appreciated.
    Originally posted by Minnie82
    Firstly, well done on making such good inroads into paying down your debts so quickly.

    Secondly, as far as the defaults are concerned. There is ICO guidelines that say that an account should be defaulted when it is 3-6 months in arrears. It is only guidance however, and creditors are not compelled to comply. They must however have due diligence to the guidance. So why not ask your troublesome creditors to comply with the guidance. The feedback regarding this is fairly positive, but success is not guaranteed. With that in mind, take a look at the thread linked below. Pay particular attention to post #4.
    https://forums.moneysavingexpert.com/showthread.php?t=5598629
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Willing2Learn
    • By Willing2Learn 18th Apr 19, 2:27 PM
    • 2,768 Posts
    • 2,334 Thanks
    Willing2Learn
    Our cc payments come out throughout the month - do I cancel them all and then send the holding letters once they are missed? Or send the letters once the dd's have been cancelled but before any missed payments?

    The holding letter templates generally only ask for breathing space for a month - however in order to save up an EF plus the first payment to either SC or PP (my partner is paid weekly) we would ideally like to start a repayment plan in July/August. I am aware of people asking for CCA's - is this done further down the line?

    Once the holding letters have been sent - do we then follow up with a further request in a months time? Do we start the dmp once we have missed payments or before?
    Originally posted by Jo842002
    Hi,

    Just simply cancel the DDs for the CCs and simultaneously send out the holding letters so that your CC creditors are kept appraised of the situation.

    We try and encourage folks to delay the official start date of their DMP payments for six months. This is so that you can put together a reasonable EF. An EF is such an important component of any successful budget. An EF is vital to stop you from being tempted to spend on credit for when the unexpected happens and things are going pear-shaped.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Dandytf
    • By Dandytf 18th Apr 19, 7:14 PM
    • 2,023 Posts
    • 494 Thanks
    Dandytf
    Come home to a cheque from Natwide today.
    That's my mortgage switch from 5 year fix to 2 year tracker 'cashback' 100 pounds cheque.
    With some luck I hope to pay this in and swipe into VM savings as a starting point for whatever emergancy's come my way during 2019.
    Though it's a slight struggle with buildings management fee's to be paid before April end.
    My two extras shifts per month keeps me going as best as possible.
    sc dmp 2012 13k Jan 2019 9880paid. 75%approx.
    Mid 2018 Help2save 50 uk pounds per month
    Mid 2018-Virgin Money E-saver V11 -t.b.c.
    • Marble030509
    • By Marble030509 19th Apr 19, 1:20 AM
    • 22 Posts
    • 3 Thanks
    Marble030509
    Hi guys.

    Happy Easter to you all.

    As you are aware i sent out the letters a couple of weeks back to all 24 of our creditors setting out our intention of not starting the DMP with SC until late September. Have heard back from roughly half of the creditors but most of them are completely bypassing what we outlined in the letter and asking for an income and expenditure form to be sent back to them so they can set up a payment plan. Not one has mentioned stopping interest or fees as we requested. I know they are well within their right not to do so but it is worrying me a little because if all 24 creditors follow suit our starting debt in September is going to be massively higher than the 」57,000 we currently owe now. So not sure what to do next as obviously can not keep sending letters as it seems they are not getting us anywhere at the moment. I appreciate its a slow process but its looking like we might have a tough time fending off these creditors until September, makes me just want to start the DMP now and forget the EF (stupid i know, but feeling very nervy) Any advice would be greatly appreciated guys. Sorry for all the questions over the past month.

    All the best.
    • Suseka97
    • By Suseka97 19th Apr 19, 7:13 AM
    • 629 Posts
    • 750 Thanks
    Suseka97
    So with that in mind, how would you approach the situation, to get a default quicker? I've done a search for the word 'Very' and as you can imagine, every thread and post comes up, none with the info required
    Originally posted by SkintDad87
    Sorry... was this post directed at me?

    I can see W2L has answered and agree that the advice given is to withhold any payment to creditors who refuse to default. What is known is that some have taken their complaint as far as the FOS who appear to stand on the side of the creditor. The problem is there is no legislative requirement that can force a default - just guidance (this is a useful resource: https://debtcamel.co.uk/debt-default-date/).

    The best advice I can give it to hold your ground and stop making payments with the hope that they'll sell your debt on to a debt collection agency who tend to be more amenable (oddly enough). But I've had no direct experience of 'Very' and any post I've come across about that particular company doesn't give much hope - appreciating that's not very helpful to those who are having to deal with them.
    • Suseka97
    • By Suseka97 19th Apr 19, 7:44 AM
    • 629 Posts
    • 750 Thanks
    Suseka97
    ..........
    As you are aware i sent out the letters a couple of weeks back to all 24 of our creditors setting out our intention of not starting the DMP with SC until late September. Have heard back from roughly half of the creditors but most of them are completely bypassing what we outlined in the letter and asking for an income and expenditure form to be sent back to them so they can set up a payment plan. Not one has mentioned stopping interest or fees as we requested. I know they are well within their right not to do so but it is worrying me a little because if all 24 creditors follow suit our starting debt in September is going to be massively higher than the 」57,000 we currently owe now. So not sure what to do next as obviously can not keep sending letters as it seems they are not getting us anywhere at the moment. I appreciate its a slow process but its looking like we might have a tough time fending off these creditors until September, makes me just want to start the DMP now and forget the EF (stupid i know, but feeling very nervy) Any advice would be greatly appreciated guys. Sorry for all the questions over the past month. All the best.
    Originally posted by Marble030509
    It's frustrating for sure - but you really do have to change your mindset. Creditors are unlikely to respond in the way you want them to, you are just a number in a process and what you are receiving is, most likely, just computer generated blurb that kicks in when you miss your contractual payments. Or, maybe someone is looking at your account/s - but you are still just getting a standard, set, response.

    The advice about an emergency fund is an important one because it's a fundamental part of budgeting (having a backstop should something unexpected occur). Of course your creditors won't really care about that - they just want to get you up and running on a repayment plan - as do SC and Payplan- as quickly as possible and then move on to the next.

    You are correct that if they do not hold off charging interest your overall starting debt will be higher - but what's the alternative? You need to hold your nerve and maybe accept that, or start sooner than you had planned. The choice is yours and I'm not meaning to be harsh here

    Go out and enjoy this lovely bank holiday weather and give yourself some breathing space.
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