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rwp150

Hi all,

I have made the decision and on Wednesday I received a text from StepChange that my DMP has been set up!

I'm a bit scared and a bit relieved as I know that come pay day next week I will be able to do a food shop without worrying where the money is coming from. Things are going to be tight for a good few years at least, but I'm looking forward to spending cash rather than plastic!

Since I have received the text from StepChange on Wednesday, nothing has happended! I know it's only been a couple of days, does anyone know what happens next? I believe I get a welcome pack from StepChange that will give me log in details for the website - is that right? How will I know if my creditors accept the DMP or not - or if they frezze interest? I assume they will all be writing to me/phoning etc when the direct debtis don't go through next month?

Any advice would be very welcome! These forums are great, and its really useful to see all the other posts and how everyone supports each other.

Many thanks

StepChange_James

rwp150 wrote: »

Hi all,

I have made the decision and on Wednesday I received a text from StepChange that my DMP has been set up!

I'm a bit scared and a bit relieved as I know that come pay day next week I will be able to do a food shop without worrying where the money is coming from. Things are going to be tight for a good few years at least, but I'm looking forward to spending cash rather than plastic!

Since I have received the text from StepChange on Wednesday, nothing has happended! I know it's only been a couple of days, does anyone know what happens next? I believe I get a welcome pack from StepChange that will give me log in details for the website - is that right? How will I know if my creditors accept the DMP or not - or if they frezze interest? I assume they will all be writing to me/phoning etc when the direct debtis don't go through next month?

Any advice would be very welcome! These forums are great, and its really useful to see all the other posts and how everyone supports each other.

Many thanks

This sounds like great news.

It can be a scary prospect to start on a DMP but it's the first step towards becoming debt free!

As you suspect, you'll get a welcome pack in the next few days with more information about your plan. We'll be sending your payment offers through to your creditors at the same time, so I'd expect you might be hearing from them fairly soon.

How your creditors react to payment offers can vary quite a bit. Hopefully you'll start to get them writing to your to say they've accepted your offers and have frozen interest.

If any creditors reject the offer and try to make you pay more just tell them to speak to us. Some people don't get any hassle off their creditors but don't be too worried about it if you do get some contact from them.

You're right about MSE, the members here can be a great sense of support. I'm sure you'll have spotted it but the DMP Support Thread is really good. While we can give advice about debt, sometimes it's nice to speak to someone who's going through the same thing.

All the best with your plan and feel free to get in touch if you've any more questions.

Kind regards

James

Timetosortitout

Hi all,
I heard about this forum a few years back (Martin on Jeremy Vine) and just looking through it seems very helpful.
At that time i didn't think i would ever need debt help, but now i do!!

Since 2002 i ran a small business which was reasonably successful. However, around 2006/7 things started to go wrong.

I have since been diagnosed with severe depression (in early 2012), and that i had been depressed for years,
this becoming more pronounced around 2006/7. At the time i started to give up on most things, didn't care much
about my life or those around me, and had little focus or will to do anything about it. To onlookers i was carrying
on with my life as normal, however looking back, i know this was all a charade, even conning myself!

I carried on my business as usual for a few years, but by 2010 things had started to slide and it was getting
too much for me. I kept day to day things going as part of the ongoing charade, however behind the scenes
bills weren't getting paid, invoices weren't collected, even failling to file my accounts at the end of the
year and things started to spiral out of control. The thing that might seem strange to some, is not that i was
denying it to myself, but that i didn't care!!

I finished the business in late 2011. By now it had become apparent to all that something was wrong,
even though i was denying it, and my parents arranged for me to see the doctor. It was then that i was diagnosed.
Around that time i closed my bank accounts, and paid any immediate debts off, and for a couple of years that
was that. I currently have no assets, little cash and i'm living with my parents.

In recent weeks that i have been feeling somewhat 'better', but to get my life back on track i need to sort
out my debt problems. It seems all debts were paid off that were evident to close my accounts, however i never
sorted out HMRC. I have been burying my head in the sand for the last few months/years over this, ignoring
letters, phonecalls etc. I thought by now they would have knocked on the door, but they haven't??
I have a poor memory of the last few years and looking back it seems like on long blur.
I honestly don't know how much i owe them, i last filed back in 2008. The most troubling thing is that i don't
know how i go about solving this ongoing burden, and what the repercussions might be. Should i call HMRC and
try explain all? (I'm not sure i can) What will i have to pay back? Will i be sent to prison if i can't? Can i
declare myself bankrupt?

If anyone has any ideas, knowledge or advice on this matter i'm all ears and would be eternally grateful.
Yours hopefully
N

MarieC5575

Hi

I am looking for advice on entering a debt arrangement scheme. Part of our debt is overdrafts with the Halifax where we also have our mortgage. I have accepted that we definitely need to sort this out and can no longer maintain these debts and a DAS seems to be the most appropriate solution. My only concern is losing my home. My mortgage is currently at £71000 (value approx £85000) however my current mortgage deal runs out in October after 5 years and I'm worried that due to bad credit rating, DAS and overdrafts we will be unable to renew our deal and that the bank would force a sale. Not sure how realistic this is as I'm not too clued up on money (no kidding, lol!) but would welcome any advice. My house is considered non-standard construction so there are very few places I could approach for another mortgage. When the current deal comes to an end do they just offer you a new one at various rates or do they go through the whole application process again? And if they don't do this if a DAS includes the overdrafts will this affect renewing the mortgage? Thanks for any help you can provide.

deemul

Hi. Can someone please advise me.. (PLEASE) Im currently on a DMP plan now just under 3 years and have reduce my debt from £27,000 to £14,700 and paying £380 per month. However my question is. Is it possible to secure a loan while on a DPM as paying the rest off on a consolidation loan over 5 years would be much more affordable as the repayments will be approx 250 - 300 depending on APR and the £80 - £130 saving would really help as the costs of everyting seem to be getting much more expensive these days.

ramomalis

My debt exceeds my annual salary of £26,500 (pre tax) which consists of two loans, collectively around £19K, three credit cards, collectively approx £4.5-5K, owing money to a terminally ill uncle, approx £800, catalogue, which isnt really a cause for concern as it's only about £100-200.

One of the two loans is finishing this year (october i think) which means i'll have an extra £75 to spare but still leaves the beast of £18.5K. I can accept that this will probably stay with me for a while.

My main concern is the credit cards as the APR is soooo high the minimum payments are killing me. If i just had the loan and my uncle to pay back every month, i could be ok.

December was a bad month as it got so bad, i had to turn to one of those payday loans to tide me over. something i vowed never to do but was impossible to survive without it. i;m paying this back next week when i get paid but obviously with no intention of using them again.

i've just opened a new bank account with no overdraft facility and leaving my old one OPEN but just not using it. Thankfully my overdraft on the account i'm "leaving" is interest free which means there's not going to be too many people breathing down my neck about additional charges to pay so i can "take my time." Oh yeah! Let's add that to the total - an extra £300. ding!

Whilst I can pay my bills on time every month doesn't leave me with much else. As we all know debt completely stunts your life in terms of being able to do anything and move forward. It even broke up my previous relationship (or at least one of the factors for the break up!).

I'm approaching 30 in less than a couple of months and really want to try and get debt free for good after many failed attempts and a billion consolidations later.
If anyone out there (professionals, fellow debtees) has any suggestions on how i can tackle this, i'd really appreciate it.

by the way, i can't even think about getting any more cards or loans as my credit report (as i just discovered on noddle) is rock bottom so i have no chance.

I have nothing of high value to sell so as far as assets go. nothing.

HELP HELP HELP!!!!

Thanks x

StepChange_James

Timetosortitout wrote: »

Hi all,
I heard about this forum a few years back (Martin on Jeremy Vine) and just looking through it seems very helpful.
At that time i didn't think i would ever need debt help, but now i do!!

Since 2002 i ran a small business which was reasonably successful. However, around 2006/7 things started to go wrong.

I have since been diagnosed with severe depression (in early 2012), and that i had been depressed for years,
this becoming more pronounced around 2006/7. At the time i started to give up on most things, didn't care much
about my life or those around me, and had little focus or will to do anything about it. To onlookers i was carrying
on with my life as normal, however looking back, i know this was all a charade, even conning myself!

I carried on my business as usual for a few years, but by 2010 things had started to slide and it was getting
too much for me. I kept day to day things going as part of the ongoing charade, however behind the scenes
bills weren't getting paid, invoices weren't collected, even failling to file my accounts at the end of the
year and things started to spiral out of control. The thing that might seem strange to some, is not that i was
denying it to myself, but that i didn't care!!

I finished the business in late 2011. By now it had become apparent to all that something was wrong,
even though i was denying it, and my parents arranged for me to see the doctor. It was then that i was diagnosed.
Around that time i closed my bank accounts, and paid any immediate debts off, and for a couple of years that
was that. I currently have no assets, little cash and i'm living with my parents.

In recent weeks that i have been feeling somewhat 'better', but to get my life back on track i need to sort
out my debt problems. It seems all debts were paid off that were evident to close my accounts, however i never
sorted out HMRC. I have been burying my head in the sand for the last few months/years over this, ignoring
letters, phonecalls etc. I thought by now they would have knocked on the door, but they haven't??
I have a poor memory of the last few years and looking back it seems like on long blur.
I honestly don't know how much i owe them, i last filed back in 2008. The most troubling thing is that i don't
know how i go about solving this ongoing burden, and what the repercussions might be. Should i call HMRC and
try explain all? (I'm not sure i can) What will i have to pay back? Will i be sent to prison if i can't? Can i
declare myself bankrupt?

If anyone has any ideas, knowledge or advice on this matter i'm all ears and would be eternally grateful.
Yours hopefully
N

Hi N,

Welcome to the forum. It sounds like you've had a really tough few years but it's good news that you're starting to feel a bit better.

I think the best thing to do would be to speak to an advice organisation called Tax Aid. They can give advice about how much you're likely to owe, how HMRC are like to view your case and advise you on the next steps.

You can read more about how they can help on this page of their website: http://taxaid.org.uk/guides/undeclared-income.

People often do go bankrupt due to tax debts, but I'd say that it's better to look into these sort of options later on. The first job is to look into how much the tax bill is going to be and how HMRC are likely to approach the situation.

All the best.

James

StepChange_James

MarieC5575 wrote: »

Hi

I am looking for advice on entering a debt arrangement scheme. Part of our debt is overdrafts with the Halifax where we also have our mortgage. I have accepted that we definitely need to sort this out and can no longer maintain these debts and a DAS seems to be the most appropriate solution. My only concern is losing my home. My mortgage is currently at £71000 (value approx £85000) however my current mortgage deal runs out in October after 5 years and I'm worried that due to bad credit rating, DAS and overdrafts we will be unable to renew our deal and that the bank would force a sale. Not sure how realistic this is as I'm not too clued up on money (no kidding, lol!) but would welcome any advice. My house is considered non-standard construction so there are very few places I could approach for another mortgage. When the current deal comes to an end do they just offer you a new one at various rates or do they go through the whole application process again? And if they don't do this if a DAS includes the overdrafts will this affect renewing the mortgage? Thanks for any help you can provide.

Hi Marie,

Often mortgage companies will move you onto their standard variable rate when your current deal runs out. It'd be best to give your mortgage company a call and they'll be able to tell you what options you'll have.

It's fair to say that being on a DAS would make your credit history worse, so getting a mortgage elsewhere might be tricky but there would be nothing stopping you from trying to get a mortgage elsewhere.

Your mortgage company should see your overdraft and mortgage as separate accounts - I'd be surprised if paying the overdraft back through a DAS would effect the way your mortgage was dealt with.

I'd recommend that you get some advice from us before going ahead with a DAS. You can get this online using our advice tool Debt Remedy (http://www.stepchange.org/msehelp) or by giving us a call (http://www.stepchange.org/Contactus.aspx).

Hope this helps.

James

StepChange_James

deemul wrote: »

Hi. Can someone please advise me.. (PLEASE) Im currently on a DMP plan now just under 3 years and have reduce my debt from £27,000 to £14,700 and paying £380 per month. However my question is. Is it possible to secure a loan while on a DPM as paying the rest off on a consolidation loan over 5 years would be much more affordable as the repayments will be approx 250 - 300 depending on APR and the £80 - £130 saving would really help as the costs of everyting seem to be getting much more expensive these days.

Hello,

Firstly congratulations on making so much progress with your debts.

We generally advise against taking out secured loans to pay off unsecured debts. Not only does it put your property at greater risk if you struggle with payments in the future, it also tends to lead to paying far more back over the course of the loan.

If you're finding your current DMP payments too much then it's probably worth contacting us (presuming your on a StepChange DMP) and we'll review your budget. Obviously lowering the payments will mean it'll take longer to pay back the debts but it's important to make sure your budget is realistic.

You can also ask about secured loans when you call up. Whichever advisor you speak to will have more details about your situation, so will be able to give a more conclusive answers about whether its a good thing to do.

Hope this helps.

James

StepChange_James

ramomalis wrote: »

My debt exceeds my annual salary of £26,500 (pre tax) which consists of two loans, collectively around £19K, three credit cards, collectively approx £4.5-5K, owing money to a terminally ill uncle, approx £800, catalogue, which isnt really a cause for concern as it's only about £100-200.

One of the two loans is finishing this year (october i think) which means i'll have an extra £75 to spare but still leaves the beast of £18.5K. I can accept that this will probably stay with me for a while.

My main concern is the credit cards as the APR is soooo high the minimum payments are killing me. If i just had the loan and my uncle to pay back every month, i could be ok.

December was a bad month as it got so bad, i had to turn to one of those payday loans to tide me over. something i vowed never to do but was impossible to survive without it. i;m paying this back next week when i get paid but obviously with no intention of using them again.

i've just opened a new bank account with no overdraft facility and leaving my old one OPEN but just not using it. Thankfully my overdraft on the account i'm "leaving" is interest free which means there's not going to be too many people breathing down my neck about additional charges to pay so i can "take my time." Oh yeah! Let's add that to the total - an extra £300. ding!

Whilst I can pay my bills on time every month doesn't leave me with much else. As we all know debt completely stunts your life in terms of being able to do anything and move forward. It even broke up my previous relationship (or at least one of the factors for the break up!).

I'm approaching 30 in less than a couple of months and really want to try and get debt free for good after many failed attempts and a billion consolidations later.
If anyone out there (professionals, fellow debtees) has any suggestions on how i can tackle this, i'd really appreciate it.

by the way, i can't even think about getting any more cards or loans as my credit report (as i just discovered on noddle) is rock bottom so i have no chance.

I have nothing of high value to sell so as far as assets go. nothing.

HELP HELP HELP!!!!

Thanks x

Hello,

To answer the question in the title of your post, no - I don't think your doomed. I know it can feel that way sometimes but I've never spoken to someone who didn't have options to deal with their debts.

Firstly, if you're worried that you might not be able to pay your payday loan we've a blogpost that talks you through how to deal with them here: http://moneyaware.co.uk/2013/01/payday-loan-debt-help-what-to-do-if-you-cant-afford-the-payment/.

It's hard to say exactly what would be your best option with your finances, but from what you've said it does sound like you could do with some help.

We can help you plan out a realistic income and expenditure budget, look at your circumstances and help you work out what solutions suits you best.

Some people find that living to a budget is enough to get back on top of their finances. Often that's not enough and negotiating reduced payments is needed. Then there are other options which deal with debts in other ways. We can look at every available option and give you an impartial opinion on what will suit you.

You can get our help by either using our online advice tool Debt Remedy (http://www.stepchange.org/msehelp) or by giving us a call (http://www.stepchange.org/Contactus.aspx).

I hope this helps.

James