Step change dmp questions

angela1976 · 19 December 2014 at 7:51AM

We are hoping to start our dmp with stepchange in February, just a quick question as we will no longer have credit cards to fall back in (thank god do never want to be in a mess like this again) are we allowed to save an emergency fund or does any savings have to go to the creditors ? Thanks for any help

Ellieseleven · 19 December 2014 at 8:25AM

Hi Angela, many people make token payments for the first couple of months to allow you to get an emergency fund behind you.

When we set up our DMP we made token payments for the first month but with hindsight we should have added an extra month so that we had a better cushion.

Ellie xx

angela1976 · 19 December 2014 at 8:38AM

Thanks Ellie, so many questions running round in my mind, if we are doing the tight thing or not, I know we are as we are getting further and further in debt in month. Did you get lots of harassing phone calls when you started your DMP ?

Ellieseleven · 19 December 2014 at 9:07AM

I know exactly what you mean about whether you are doing the right thing. We agonised for 12 months whether to go down the DMP route before we finally gave in and I wish that I had done it sooner.

At the beginning I had very mixed emotions, I felt dis-loyal to my bank of 25 years plus (that soon changed), I felt a failure and I was panic-stricken at the thought of missing any payments (never had before).

In the first few weeks we did get phone calls from our creditors but then this settled down and now we don't hear from them apart from their statements. It depends how strong you feel whether you answer the phone and speak to them or ask that they only contact you in writing. At first I was a mess and couldn't speak on the phone so requested everything in writing but eventually I did speak to a couple and it wasn't as bad as I thought.

Four years on and for us a DMP was the best thing that we could have done - we will be debt free in a little over two years. It is sometimes hard especially if unforeseen things happen e.g. Car repairs! but I am so glad that I have gone this route. I now sleep well and I am much happier even though I don't have any money;)

I don't know whether you have seen the DMP mutual thread but I find that it helps me enormously and there is tons of advice and everyone is so friendly.

I'm happy to try and help with any other questions that you have:)

Ellie xx

angela1976 · 19 December 2014 at 10:12AM

I think it's the right thing for us, just waiting for our new bank account to come through and the will get started. Looking at the budget they have set for us we should be in a better position re actual money as at the moment by the time I've made all our monthly payments there is no actual cash left. So I'm hoping with sensible choices and budgeting we should be ok. Thanks for your reply Ellie, makes me feel better knowing I'm not on my own.

Puzzcat · 19 December 2014 at 1:10PM

Hi Angela,

Your definately not on your own.. there are lots of us dmp'ers over on the dmp mutual support thread..

http://forums.moneysavingexpert.com/showthread.php?t=4988866

when you have time do pop over and see us...! Lots of people at different points of dmp's. Make yourself a cuppa, pull up a chair and start reading..! I read 3 of the previous threads during my pre/early dmp days...

good luck and merry christmas..

Puzz. x

angela1976 · 19 December 2014 at 1:37PM

Thanks will pop over and look. The thing that I'm most worried about is phone calls to myself or my husband while at work. If I write to all my creditors and ask them to contact by email or letter only, what are the chances of this?

ferry · 19 December 2014 at 2:50PM

angela1976 wrote: »

Thanks will pop over and look. The thing that I'm most worried about is phone calls to myself or my husband while at work. If I write to all my creditors and ask them to contact by email or letter only, what are the chances of this?

No expert, but I am sure if a creditor tries to contact you at work to discuss a debt issue it constitutes harrassment and you will have grounds to complain.

Tixy · 19 December 2014 at 2:58PM

angela1976 wrote: »

Thanks will pop over and look. The thing that I'm most worried about is phone calls to myself or my husband while at work. If I write to all my creditors and ask them to contact by email or letter only, what are the chances of this?

If you write a formal letter to them requiring (not asking) for all communication to be in writing the they should respect this and you are unlikely to get any phonecalls. Although it can take a month for such a letter to take affect.

Here is an example letter you could use Harassment by telephone - possible letter and citations

Even before then you may well find your creditors don't contact you by phone and will accept your DMP reasonably easily. The key is to keep them informed, so if you are going to miss payments before the DMP is up and running then sending a letter to say you are seeking advice is a good idea.

babybaby1 · 19 December 2014 at 10:09PM

some may still try, I have the bank still trying to contact me two months on dispite confirming details removed and agreement in writing, one other company carried on after the same and after two weeks it tailed off but I did write a letter of formal complaint (still being handled) but apart from that a lot of them have been really good.

cmcavon · 21 December 2014 at 3:00PM

I am 5 months into my DMP with Stepchange. I've not had any calls at all. Before we started I removed my phone numbers online where I could. We've received statements and demands for payment through the post but nothing too worrying. I was a quivering wreck when we were starting out but it has been plain sailing so far. It does worry me that our credit rating is trashed but we can at least afford to put food on the table without relying on credit now.

Good luck x

Step change dmp questions

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free