planning to self manage DMP-advice needed

[mamex]

Hello everyone,I am new here

I have 18k debt with 5 creditors I have been paying only minimum without any missed payments.

After taking full covid payment break, decided to go DMP as I can no longer catch up. I have about 180/month left after expenses.

 

I sent holding letters to creditors while I prepare a budget sheet.

They all agreed to give me 30 days before contacting.

 

Meanwhile, I had to have expensive and unexpected dental treatment.

I will have to put some £1500 more for upcoming treatment, I will need some time if I want to put that money aside instead of using it for DMP payment.

 

I will have to contact them and let them know my plan in 2 weeks.

 

What should I do?

Maybe offering token payment?

Explaining the situation with treatment fee with a budget sheet, suggesting I will increase the amount after the treatment is over?

 

Or..better ideas?

 

Also, am I correct to think that as long as I keep in touch with them, showing my willingness (eg.paying 1 pound token payment) to pay, I can reasonably expect them to cooperate?

 

Thank you in advance, 

[dx100uk]

can you list your debts please and note any that might be sold or paying to any DCA's...

 

dx

 

[mamex]

Thank you

 

barclaycard 7100

barclays,overdraft 1500

barclays loan 700

ratesetter 2300

hsbc credit card 5800

 

all with original creditors...

 

[dx100uk]

have you got any income you have going into a parachute account that no-one you owe money too can simply take it ?

 

when you took out any of the above, was your credit file shot with defaults and late payments?

particularly the ratesetter loan?

 

sorry i forgot to answer you Q about £1PCM etc, yes do as you indicate

if you look in our debt collection section of our library , theres a few pro rata letters , if you've not already done that...

 

whatever you do, take control of YOUR money, get it out of the hands of people that can swallow it without your intervention...

[mamex]

Hi, yes I opened a new basic account for the purpose.

 

That reminds me, another question.

Are they able to take money for payments from agreed overdraft?(the account is in debit)

I have cancelled all DD except mortgage from usual account.

 

I'm not sure about default..I've been struggling to access to my account for credit report to check.

Ratesetter mentioned when they replied me about holding action,that they will have to issue a default letter if required.I haven't received anything yet.

[dx100uk]

9 minutes ago, mamex said:

Are they able to take money for payments from agreed overdraft?(the account is in debit)

 

who are THEY and payments for what?

 

dx

 

[mamex]

I meant the bank you hold an account with,where you took your debt from-in my case, I have a current account with barclays and I took a loan,overdraft from them.(DD cancelled.)

Sorry my explanation may not be always clear.

[dx100uk]

they possibly might but if you've cancelled the relevant DD's, i doubt they would use the offset rule no.

 

so time for a few of our Pro rata letters i detailed earlier.

 

dx

 

 

[mamex]

Thank you dx,

 

I have another question.

I understand it's important to make

pro-rata offer to treat all the creditors fairly.

 

About 2 months before I decided to send holding letters to creditors, I contacted HSBC as covid payment break was ending then.

Also I wanted to keep one credit card which I can use to buy some medical items I need from my country.

They agreed to freeze interest and charges for a year and let me keep the credit card, as long as I keep minimum payments.

 

So...when I make pro rata offer to the other creditors, do I simply exclude

HSBC from the list?

(If I include HSBC for pro rata, it would be about 62/month. the actual amount I'm paying as minimum is about 140.)

 

 

[dx100uk]

your dmp you can choose what you like to do with whom.

 

dx

[mamex]

I need to learn to be in charge and take control.

It's great to get support from knowledgeable people..

Thank you.

 

mamex

[mamex]

Hello again,

 

Some updates and a little question...

 

Ratesetter replied to say they are currently not in a position to review a token payment plan,

and extended breathing period of 30 days, to be reviewed every 30 days.

It says there is no minimum payment...I understand that I may stay on the breathing periods

for sometimes, before making alternative arrangement.

 

On the other hand, barclay(loan) sent me 2 missed payment letters,

without responding either to my holding letter or token payment offer letter.

They tried to call me on numerous occations, which I ignored as I am not 

interested in communicating by telephone.

 

What should I do...send the same letter-again? or start sending token payment anyway? 

complain by online chat? 

I don't like very much  getting "missed payment" letters together with

a copy of arrears info sheet of FCA...

Thank you in advance for help,

 

 

 

 

 

 

[dx100uk]

pay what you said when you said

arrears notices are mandatory for creditors to send under FCA rules so don't worry. if they don't send them they can't charge interest.

[mamex]

Oh ok.I didn't know they are only mandatory.

Does that mean I should expect to receive more of them 

and are to be just ignored?

 

In my last letter I proposed 1 pound token payment/month

together with my budget sheet.

No one has replied yet except Ratesetter.

Maybe I wait a little bit more for replies before start paying

-as I sent letters only a week ago, and didn't mention about

when I would start paying.

 

By the way Barclays has so many contact addresses

that I feel a bit unsure whether I'm using the correct address,

especially when you don't get any reply from them.

Only Ratesetter allows you to communicate by email,

which is a lot easier and quicker.

 

[dx100uk]

Should not be ever using email

 

barclays head office