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  • FIRST POST
    • sourcrates
    • By sourcrates 18th Sep 18, 9:40 PM
    • 17,177Posts
    • 16,195Thanks
    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 76
    • ditty1234
    • By ditty1234 15th May 19, 7:56 PM
    • 128 Posts
    • 827 Thanks
    ditty1234
    Just a few questions - so I stopped all payments on my debt on April 1st and am now beginning to get 'default and arrears' letters; I have written holding letters to all creditors in April to which I ahve had no direct replies. I have a DMP set up with Step Change starting in June, time will show if it is accepted by creditors.
    Do I need to respond the letters from creditors, as they have all been given my case number with SC and also SC should be contacting them on my behalf?
    Should I be checking my credit report while this is going on - it was sort of 'perfect' but will not be a pretty sight for the next long while.
    Thanks for this forum and threads. My life is beginning to feel slightly normal.
    Groceries 260 in May
    Debt Free Wannabe LBM Jan 2019 -25.928 (DMP w SC 125 a month from June))
    EF 0 March 2019 /EF 300 in May 2019
    • Willing2Learn
    • By Willing2Learn 15th May 19, 8:07 PM
    • 2,934 Posts
    • 2,471 Thanks
    Willing2Learn
    Just a few questions - so I stopped all payments on my debt on April 1st and am now beginning to get 'default and arrears' letters; I have written holding letters to all creditors in April to which I ahve had no direct replies. I have a DMP set up with Step Change starting in June, time will show if it is accepted by creditors.
    Do I need to respond the letters from creditors, as they have all been given my case number with SC and also SC should be contacting them on my behalf?
    Should I be checking my credit report while this is going on - it was sort of 'perfect' but will not be a pretty sight for the next long while.
    Originally posted by ditty1234
    Hi,

    All the letters you are currently receiving are likely to be automatically generated and can be safely filed away. There should be no need to contact your creditors. If any of the letters cause you particular concern, then liaise with SC, as they will correspond with your creditors on your behalf. Your creditors will have no choice but to accept the DMP. Try not to worry.

    There is no harm in regularly checking your three credit reports for accuracy. Try not to be downhearted by all the toxic negative data/markers.

    I just wanted to check something with you though. Have you got an Emergency Fund (EF) saved up to cover you against the unknown financial costs that will crop up every now and then? Things like emergency car repairs, emergency household maintenance etc etc.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • bunnymtg
    • By bunnymtg 15th May 19, 9:52 PM
    • 53 Posts
    • 16 Thanks
    bunnymtg
    Confused!
    So I am considering entering into a DMP with 6 of my creditors.
    Total debt owing is around 32,000.
    I have never missed a payment and have no defaults or CCjs.

    I am due a divorce settlement hopefully by September time all being well. This will clear all my debt. But in the meantime I am living beyond my means (and not becuase I am lavish!)and this month have had to pay my rent with my credit card.

    I have around 40 to last me the whole month. I cant do this another month.

    But my worries are, will I get defaults/late payments added to my accounts if I do a DMP?

    I want to buy a house next year with my partner so its also really important that my credit file remains squeaky clean.

    Please no judgment, just advice on the above?

    Thank you so much
    • ditty1234
    • By ditty1234 16th May 19, 7:23 AM
    • 128 Posts
    • 827 Thanks
    ditty1234
    I just wanted to check something with you though. Have you got an Emergency Fund (EF) saved up to cover you against the unknown financial costs that will crop up every now and then? Things like emergency car repairs, emergency household maintenance etc etc.
    Hi
    Thanks for checking, I have a very small EF, I have put a break on all extra activities and have already had a month break. At the moment my budget looks reasonable and I will be able to squirrel away a little bit every month, so I will rather get started and then break it if I hit a snag.
    Thanks,
    Groceries 260 in May
    Debt Free Wannabe LBM Jan 2019 -25.928 (DMP w SC 125 a month from June))
    EF 0 March 2019 /EF 300 in May 2019
    • Willing2Learn
    • By Willing2Learn 16th May 19, 8:33 AM
    • 2,934 Posts
    • 2,471 Thanks
    Willing2Learn
    will I get defaults/late payments added to my accounts if I do a DMP?
    Originally posted by bunnymtg
    Hi,

    As soon as you start any sort of payment plan (including a DMP), you will be breaking the terms of your original credit agreement. At that point your creditors should correctly mark the accounts as defaulted. That is a good thing though, as it means the interest and charges will be frozen.

    You will need to contact a good mortgage broker for advice and guidance with regard to your plans.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Marble030509
    • By Marble030509 16th May 19, 12:19 PM
    • 29 Posts
    • 5 Thanks
    Marble030509
    Hi guys.

    Thank you for all the advice so far.

    All of our NewDay debts have now been passed to Moorcroft, I assume we send them future correspondence from now on?

    In terms of correspondence, we last sent letters out at the beginning of April stating our intention to start the DMP in September. Do you think we should write again before this time, maybe next month just to reconfirm our intentions? Or is it best just to leave it now? My only reason for asking is that some of the letters seem to be getting quite intense.

    Many thanks
    • Suseka97
    • By Suseka97 16th May 19, 1:54 PM
    • 666 Posts
    • 795 Thanks
    Suseka97
    So I am considering entering into a DMP with 6 of my creditors..............
    I am due a divorce settlement hopefully by September time all being well. This will clear all my debt. But in the meantime I am living beyond my means (and not becuase I am lavish!)and this month have had to pay my rent with my credit card.
    I have around 40 to last me the whole month. I cant do this another month.
    But my worries are, will I get defaults/late payments added to my accounts if I do a DMP?
    I want to buy a house next year with my partner so its also really important that my credit file remains squeaky clean. Please no judgment, just advice on the above?
    Thank you so much
    Originally posted by bunnymtg
    People don't tend to 'judge' on this thread... so don't worry and if anyone is less than helpful we have great admins who deal with that sort of behaviour

    Now to the question.
    The fact of the matter is you can no longer service your debts and having to use a credit card to pay your rent is rather alarming, to say the least. Are you at all eligible for any housing support? It's a long time to wait from now until September and you also say 'all being well', so I assume that means it could be longer. So, the reality is you are going to have to come up with some sort of interim solution and as soon as you stop making your contractual payments to your creditors, it will negatively impact your credit file/s. There's really no way around that I'm afraid, unless you have someone who can help you out financially in the meantime.

    Now, it isn't all that bad - if you start working on setting up a DMP you could effectively stop making any payments for the time being, or at least for a few months. We ordinarily advice newbies to look to save up for an emergency fund by making no payments for around 3 - 6 months (which also helps to push creditors towards a default). Assuming your divorce settlment comes through, it doesn't sound as if you'll need an EF because you plan to clear your debts - not that you have to do that, if you are already in a DMP.

    I realise your concern is getting a mortgage with your partner - but all you'd need to do is find a mortgage broker who could help you find the best deal to suit your situation, such things do exist.

    We all approach these things differently - but if it were me I'd just go with the DMP, give myself at least 6 months breathing space and then consider my options as and when the divorce settlement came through.
    • Willing2Learn
    • By Willing2Learn 16th May 19, 4:40 PM
    • 2,934 Posts
    • 2,471 Thanks
    Willing2Learn
    All of our NewDay debts have now been passed to Moorcroft, I assume we send them future correspondence from now on?
    Originally posted by Marble030509
    Correct

    In terms of correspondence, we last sent letters out at the beginning of April stating our intention to start the DMP in September. Do you think we should write again before this time, maybe next month just to reconfirm our intentions? Or is it best just to leave it now? My only reason for asking is that some of the letters seem to be getting quite intense.
    Originally posted by Marble030509
    You can write, if you want to reiterate that your payments will commence on xx September. But there is no need. The letters you are getting are likely to be ones that are automatically generated. They can be safely filed away. There shouldn't be anything there to worry about.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Cem13009879
    • By Cem13009879 16th May 19, 5:53 PM
    • 4 Posts
    • 0 Thanks
    Cem13009879
    Does anyone have experience of moving/renting when in a DMP? I am currently renting and have been in the same place since before my DMP started, but I am looking to move and i am nervous about failing the credit check now I am in the DMP. I can ask my dad to be a guarantor (I'm 24) and hopefully he won't ask too many questions but I'm sooo nervous about being judged by the letting agent
    • Southampton12
    • By Southampton12 16th May 19, 9:55 PM
    • 1 Posts
    • 0 Thanks
    Southampton12
    Baby steps
    Hi all,

    I have read several pages of this thread and realise I need to take control of my debt.

    I have spoke with SC and confirmed all my unsecured debt (57k: 10k loan, 2k o/d and 45k on cards) We have agreed I have 650 a month to service these debts. SC have recommend I enter into a DMC projected to last 7y!

    As is stands all my cards are in BT deals and therefore I am able to make the payments, as soon as these run out (starting Dec 19) I will find things becoming increasingly difficult.

    Obviously I have stopped using all the cards!

    My questions:
    1. I anticipate being able to service the payments until December, should I start the DMC now or hold on until November/December?
    2. I work in finance and my credit is checked annually, is it inevitable that the cards will default? Has anyone in financial services had a similar situation?
    3. My introductory offer on my mortgage expires in Feb 2020, can the Building Society remove my mortgage or refuse to move me into the SVR?
    4. Do the card companies agree the SC plan as a matter of course? If I stick to the DMP will they stop the interest (Virgin, MBNA, Barclaycard, Tesco, HSBC and Nwide)?

    I have no experience of this so apologies for the lengthy post, would like to corroborate what I am hearing from SC, as this is a massive step.

    Any advice would be gratefully received.
    • Marble030509
    • By Marble030509 17th May 19, 11:37 AM
    • 29 Posts
    • 5 Thanks
    Marble030509
    Thank you so much.

    I was just slightly worried with the wording in a PayPal credit letter about court proceedings but it's only been 3 months of missed payments. I guess it's automated like you say.

    Thanks again
    • Willing2Learn
    • By Willing2Learn 17th May 19, 11:58 AM
    • 2,934 Posts
    • 2,471 Thanks
    Willing2Learn
    Thank you so much.

    I was just slightly worried with the wording in a PayPal credit letter about court proceedings but it's only been 3 months of missed payments.
    Originally posted by Marble030509
    Was it from Westcott? What did it say exactly?
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • sourcrates
    • By sourcrates 17th May 19, 3:55 PM
    • 17,177 Posts
    • 16,195 Thanks
    sourcrates
    Thank you so much.

    I was just slightly worried with the wording in a PayPal credit letter about court proceedings but it's only been 3 months of missed payments. I guess it's automated like you say.

    Thanks again
    Originally posted by Marble030509

    PayPal, american company, never litigate in the UK.


    I have written about this many times, but dosent hurt to repeat myself occasionally, Collections departments/Debt collectors, have a range of template letters which they work through, depending how you communicate with them.

    They are specifically worded to be unclear, mis-leading, provocotive, and to some people scary, but all basically asking you to call them or some great unknown catastrophic event MAY materilalise.

    They are the debt collectors first weapon of choice, they are sent for one purpose, and one purpose only, so you get in contact with them and pay whats owed, simple as that.

    They mean absolutly nothing, as do their fake timescales for responding, they are all cleverly designed to undermine your train of thought, read and bin is my advice.
    Last edited by sourcrates; 17-05-2019 at 4:00 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 17th May 19, 5:11 PM
    • 11 Posts
    • 24 Thanks
    smiff_50
    So after 4 years with SC I have closed the plan and gone self managed! Next step is sending a letter to creditors letting them know I'll be commencing a self managed DMP starting payments in September.

    Thanks to all for advice and help. I'll be back for more no doubt.
    • sweetnothing
    • By sweetnothing 17th May 19, 5:19 PM
    • 2 Posts
    • 3 Thanks
    sweetnothing
    Hi everyone, I'm in approx 13k worth of debt and I'm starting a DMP in june. Im just excited to start paying it off and not being skint and worrying about every letter that comes through my door.
    • biker_rob
    • By biker_rob 17th May 19, 10:53 PM
    • 23 Posts
    • 31 Thanks
    biker_rob
    So after 4 years with SC I have closed the plan and gone self managed! Next step is sending a letter to creditors letting them know I'll be commencing a self managed DMP starting payments in September.

    Thanks to all for advice and help. I'll be back for more no doubt.
    Originally posted by smiff_50
    Best thing I ever did! Went to SC initially but then used the NEDCAB website to get my DMP up and running. All self-managed.

    4 months on, after all 5 creditors accepted my proposals, the plan is ticking along nicely.

    I'll review it in July, send them all my updated SOA and adjust accordingly.

    This forum was my saviour. I feel so empowered controlling and managing my DMP and it's largely in thanks to the amazing people on this forum.
    LBM: August 2018
    Self-managed DMP started: Jan 2019
    Original Debt Jan 2019: 22,469
    • smiff_50
    • By smiff_50 17th May 19, 11:41 PM
    • 11 Posts
    • 24 Thanks
    smiff_50
    Best thing I ever did! Went to SC initially but then used the NEDCAB website to get my DMP up and running. All self-managed.

    4 months on, after all 5 creditors accepted my proposals, the plan is ticking along nicely.

    I'll review it in July, send them all my updated SOA and adjust accordingly.

    This forum was my saviour. I feel so empowered controlling and managing my DMP and it's largely in thanks to the amazing people on this forum.
    Originally posted by biker_rob
    Looking forward to it! Thanks! Feel in control already.
    • Marble030509
    • By Marble030509 18th May 19, 12:15 AM
    • 29 Posts
    • 5 Thanks
    Marble030509
    Was it from Westcott? What did it say exactly?
    Originally posted by Willing2Learn
    Hi Willing2Learn

    Thank you ever so much for all your help.

    It was from PayPal Credit, Sourcrates has cleared it up with the above post. It was more or less just threatening me with court action if i didn't pay before the 28th of this month. I have filed it away safely as you suggested

    Thanks again!
    • Marble030509
    • By Marble030509 18th May 19, 12:16 AM
    • 29 Posts
    • 5 Thanks
    Marble030509
    PayPal, american company, never litigate in the UK.


    I have written about this many times, but dosent hurt to repeat myself occasionally, Collections departments/Debt collectors, have a range of template letters which they work through, depending how you communicate with them.

    They are specifically worded to be unclear, mis-leading, provocotive, and to some people scary, but all basically asking you to call them or some great unknown catastrophic event MAY materilalise.

    They are the debt collectors first weapon of choice, they are sent for one purpose, and one purpose only, so you get in contact with them and pay whats owed, simple as that.

    They mean absolutly nothing, as do their fake timescales for responding, they are all cleverly designed to undermine your train of thought, read and bin is my advice.
    Originally posted by sourcrates
    Thanks so much Sourcrates, this has eased my mind completely. I have filed the away the letter. Thanks again for the valuable information!
    • Suseka97
    • By Suseka97 18th May 19, 8:34 AM
    • 666 Posts
    • 795 Thanks
    Suseka97
    ...........SC have recommend I enter into a DMC projected to last 7y!
    As is stands all my cards are in BT deals and therefore I am able to make the payments, as soon as these run out (starting Dec 19) I will find things becoming increasingly difficult.
    1. I anticipate being able to service the payments until December, should I start the DMC now or hold on until November/December?
    Originally posted by Southampton12
    I'm assuming you mean a DMP, yes. I'm not sure what BT deals are but as you know that by December you will no longer be able to service the debts, you should start the ball rolling now. But I would look into the answer to Q2 first.

    2. I work in finance and my credit is checked annually, is it inevitable that the cards will default? Has anyone in financial services had a similar situation?
    Originally posted by Southampton12
    If you have annual credit checks, then somewhere in your organisations policies there should be an explanation of what that means, should your finances deteriorate. Or, can you speak confidentially with someone in your HR department? Whatever the outcome might be - it's not going to change the fact you won't be able to manage past December and will have no option other than to enter into some sort of arrangement to pay.

    3. My introductory offer on my mortgage expires in Feb 2020, can the Building Society remove my mortgage or refuse to move me into the SVR?
    Originally posted by Southampton12
    You'll be fine. As long as you continue making your mortgage payments, which of course you will, then you would simply move onto their SVR rate. You can also easily move onto another fixed term deal with your current provider as long as you don't intend to alter the term. I've done that twice whilst in my DMP.

    4. Do the card companies agree the SC plan as a matter of course? If I stick to the DMP will they stop the interest (Virgin, MBNA, Barclaycard, Tesco, HSBC and Nwide)?
    Originally posted by Southampton12
    Most do, yes - but not all and some might need a nudge. Depending on how you intend to go forward with this, we encourage new DMPers to give themselves around 6 months of making no payments to their creditors - in that time you could find that they'll default you (which is what you want and is the point interest and charges will be frozen) and probably sell your debt onto a debt collection agency (and note the word 'collection' which means just that, it does not mean 'bailiff' who could come knocking at your door if the matter had gone to court). I'm just adding that bit for clarification for other readers. The 6 months 'grace' period allows people to save the money they would have been making to their creditors to build up an emergency fund for the future 'unknowns'.
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