dmp for my son

[Spent2much]

My son is with the Halifax and also has a credit card with £1400 on it and pays back £60 a month, his hours were cut at work and he can't manage paying this back and the Halifax has an overdraft of £300 on it, he wants transfer his direct debits over to his other bank which is his car insurance and his finance for his car, but want's to do a debt management plan for the overdraft and the credit card to reduce his payments.

Can someone show me how to do a self managed dmp for him ?

please and thank you

[Never-In-Doubt]

Re: dmp for my son

Undercover Elsa would be your best bet

[Spent2much]

Re: dmp for my son

thank you niddy

[Undercover Elsa]

Re: dmp for my son

You rang?

What's his credit rating like, S2M? Is he bothered about it?
The reason I ask is it's better to get both these accounts defaulted (by not paying) asap so that the defaults will drop off sooner rather than later.
When was the card taken out? Any prospect of UE? PPI? Unfair charges?

As far as the DIY DMP is concerned, the NEDCAB online one is brilliant:
North East Derbyshire Citizens Advice Bureau

Phone ringing, back in a bit...

[Spent2much]

Re: dmp for my son

You rang?

What's his credit rating like, S2M? Is he bothered about it?
The reason I ask is it's better to get both these accounts defaulted (by not paying) asap so that the defaults will drop off sooner rather than later.
When was the card taken out? Any prospect of UE? PPI? Unfair charges?

As far as the DIY DMP is concerned, the NEDCAB online one is brilliant:
North East Derbyshire Citizens Advice Bureau

Phone ringing, back in a bit...

Hi, he only got the card last year and i think he already got defaulted i will ask him, so if he has a default his credit rating will be affected won't it ?

It won't be ue , i can ask about unfair charges though.

thank for coming to the rescue Elsa x

[oscar]

Re: dmp for my son

Likely to have charges if he has defaulted, but £12 ones can be a little more difficult to get back - though not impossible, it has been done.

Credit rating will be affected, but from what you say with looking into a dmp - that was going to happen sooner or later anyway.

[Spent2much]

Re: dmp for my son

He has no assets , he lives with me so apart from his car finance would he be better to just stop paying the credit card and the overdraft account and let the debts get passed to dca ?

[Undercover Elsa]

Re: dmp for my son

Hi S2M,
Yes it will already be affected if he's defaulted. Have they stopped adding interest and charges?
The reason it's best to default the credit card is that the default drops off the credit file after 6 years whereas an Arrangement to Pay marker just goes on and on, staying on the credit file until up to four years after you finish paying.
Additionally if they haven't already stopped adding interest they should do once it's defaulted/terminated.

Re the overdraft - is it an arranged overdraft within it's limit? What fees does he pay per month?
Is it a standard account or a packaged account (ie with a monthly fee with insurance and other perks thrown in)

How much in total can he realistically afford each month without making himself short?

Sorry for all the questions but need to establish the best way for each account.

[Spent2much]

Re: dmp for my son

Hi S2M,
Yes it will already be affected if he's defaulted. Have they stopped adding interest and charges?
The reason it's best to default the credit card is that the default drops off the credit file after 6 years whereas an Arrangement to Pay marker just goes on and on, staying on the credit file until up to four years after you finish paying.
Additionally if they haven't already stopped adding interest they should do once it's defaulted/terminated.

Re the overdraft - is it an arranged overdraft within it's limit? What fees does he pay per month?
Is it a standard account or a packaged account (ie with a monthly fee with insurance and other perks thrown in)

How much in total can he realistically afford each month without making himself short?

Sorry for all the questions but need to establish the best way for each account.

morning thanks for the reply ,

He can't afford much right now as his wages are only £500 a month and he has his car finance and insurance to pay plus his lodge , i think he scared that the car will get taken off him , i don't know if this the case as its on finance . Also i think account is just a normal account with direct debits and also they charge him a £1 a day if he goes over his overdraft.

The credit card are still charging interest and late fee charges i think , i can ask him when he comes home as he is at work at them moment .
Hope this helps thanks

[Undercover Elsa]

Re: dmp for my son

Hi hun,
The car can be classed as essential for work so if he can afford to keep up the HP it would be better.

I'd do as you mentioned..let him open another account at a non connected bank, then once his wages start going in stop credit card payments until they default & terminate, then negotiate low payments.

The OD's a bit trickier as they'd drag that on for ages adding charges so when he's safely got his new account running I can help you with a letter to ask them to freeze it and accept monthly payments.

Elsa x

[Spent2much]

Re: dmp for my son

Hi hun,
The car can be classed as essential for work so if he can afford to keep up the HP it would be better.

I'd do as you mentioned..let him open another account at a non connected bank, then once his wages start going in stop credit card payments until they default & terminate, then negotiate low payments.

The OD's a bit trickier as they'd drag that on for ages adding charges so when he's safely got his new account running I can help you with a letter to ask them to freeze it and accept monthly payments.

Elsa x

thank you very much i will give him this advice and get back to you for that letter

Just spoke to my son and his credit card direct debit got returned yesterday as he never had enough money in his bank, that is going to cost him too from the Halifax , his credit card is strange to me , but i will explain it better when i see him properly

[Undercover Elsa]

Re: dmp for my son

Hi Hun,
He needs to go online and cancel the DD straight away, otherwise they'll keep trying and the charges will spiral.
Is the card with a bank other than Halifax?

[Spent2much]

Re: dmp for my son

Hi Hun,
He needs to go online and cancel the DD straight away, otherwise they'll keep trying and the charges will spiral.
Is the card with a bank other than Halifax?

the card is not with the halifax . he said really all he can afford to pay each month on each is £2.50 each until he can find another job .

[Spent2much]

Re: dmp for my son

Update, my son has cancelled the direct debit to the credit card and is looking for a new account so he can leave the Halifax.

Since cancelling the credit card direct debit he is getting over 15 calls from just these past few days.

What should he do now regarding offering them a lower payment, should he wait until they send him a letter ?

Also he says he is scared he will have his car taken off him and he does need this for work. It is still on finance and he is up to date with the payments and hasen't missed any .

[oscar]

Re: dmp for my son

Only the finance company can take the car back - no one else. As long as he keeps up the repayments with them, it is safe.

If a creditor kicks up a stink about the finance company being a "preferential creditor" then do as yopu have done above - point out that the car is required ofr work, the alternative is they (the other creditors) can have 1,2,5,10% (whichever) of £0 when he is unemployed due to lack of transport.