DMP & Mutual Support Thread - Part 9

Still_skint

Hi all

I have read your posts with interest and have thought about entering into a DMP but am a little worried.

I have managed to pay my credit cards so far and have not defaulted on any payments but my disposable income is becoming less and less as time goes by.

With a DMP I would be far better off each month and would actually be able to pay off my debts within 5 years and would not need to live on credit.

My only real concern is that I have quite a bit of equity in my house and I am worried that my creditors will ask the courts to put a charge on my property. Has anyone else experienced this or am I worrying unduly ?

Julie67

Morning all,

stillskint we were in a very similar position to you. Just about managing to pay everything, just but having no kind of life and living on credit. Then hubby's business took a dip, I had to leave work due to ill health and the whole thing came tumbling down.
We have some equity in our house but its never been mentioned by anyone and to be honest I think it's quite rare for people on dmp's
People with more knowledge than me will come along to answer your question. Have you done the debt remedy on Step Change website? What does it advise.
Dizzydi it takes a while for the letters to stop and in some cases they don't, when I've rung they tell me to ignore them. The interst is a different matter and many of us spend months battling to get it frozen. Again someone else with more knowledge than me may be able to help.
HH well done that's absolutely awe inspiring

We are still plodding on. Have made three payments now. Not paying a lot but once the mortgage arrears are gone am hoping to up the SC payments and start making some real headway.
Posts like HH really inspire me to throw every penny we can at the debt.
Hope your all having a good weekend. mossop how's it going ?

Still_skint

Hi Julie

Thanks for your reply.
I completed the questionnaire on the step change website and they suggest a DMP. Deep down, I know this is the right thing to do. I'm just fighting it as I don't want to end up with CCJ's as this would be damaging to my employment.

Growurown

Hi Still Skint

I think it pretty rare for creditors to go to court if you set a DMP with a recognised debt management charity such as SC. I rent my house so can't comment on how that must feel but I have never regretted going into the DMP. I have enough to live on and comfortably, the debts are going down and no more credit. We have been on the DMP for two years, our credit rating isn't good but we've never even had a whiff of a CCJ. As long as you keep paying regularly you should be fine.

Make sure when you are setting up your budget to claim for everything even if you don't use/need it. I claim money each month for smoking even though neither of us smoke, but it doesn't half come in handy for those unexpected emergencies. This morning I had to get two new tyres for the car so the smoking fund has covered that cost! Yes ultimately it will take me longer to pay off the debt but as most of my creditors have stopped charging interest it isn't going to cost me any more to pay the debt back whether it takes two years or three or more. If you find you can afford to live on less then it is really easy to alter your payments at a later date, but I suggest you try living on it for a while to make sure it works for you first.

Dizzydi - the letters you are getting are probably automated, the computer knows you haven't paid so it generates a letter. Don't worry as Julie says it takes a few months to sort out and for the computer system to be updated with all the new info.

Time_to_face_the_music

Dizzydi wrote: »

My first post so here goes...i've just entered a DMP with Stepchange and my first payment is due out on the 1st June. Everything seems to have gone quiet so I am a bit nervous. Can anyone help me - i wrote to Wonga on the 7th May to two addresses to make sure they were received telling them I was entering the DMP i've also emailed them but tonight in the post comes a letter requesting payment from me dated 22nd May and added interest even though Stepchange have contacted them as well as them receiving letters and e-mails. What can I do - why are they ignoring my letters and Stepchanges communication?

Still_skint wrote: »

Hi all

I have read your posts with interest and have thought about entering into a DMP but am a little worried.

I have managed to pay my credit cards so far and have not defaulted on any payments but my disposable income is becoming less and less as time goes by.

With a DMP I would be far better off each month and would actually be able to pay off my debts within 5 years and would not need to live on credit.

My only real concern is that I have quite a bit of equity in my house and I am worried that my creditors will ask the courts to put a charge on my property. Has anyone else experienced this or am I worrying unduly ?

Hello and welcome to Dizzydi and Still skint :hello:

Dizzydi - In the first few weeks of a DMP, creditors often send nothing or send confusing mixed messages because I don't think their internal departments communicate with each other. It does all settle down relatively quickly and I hope this is the case for you.

Still skint - that story of just about managing but getting deeper in debt each month is a very familiar one to lots of us here. I wish we had recognised how bad it was sooner but I didn't even know there was such a thing as a DMP, until I came to MDE in desperation in January 2012.

We started off with over £82,000 of debt and there hasn't been even a suggestion of a CCJ or charging order. If you go into the DMP with a good payment offer and stick to it, the majority of creditors seem to be happy. There are no 100% guarantees and some creditors seem to go for court action more than others but my feelings are that the DMP has got to be better than struggling to survive each month and praying nothing goes wrong.

This thread was a real life saver for me and I will be eternally grateful for the help, advice and support I have received here. I hope you both stick around and benefit from the experience of people who are in/or have been in exactly the same situation as you.

chareverett

After reading some of your posts I'm a little worried about setting up a DMP. I went through the debt plan with Step Change yesterday as I'm struggling paying things monthly. I have about £10,000 of debt (which isn't a lot I know) and my surplus is £325 a month after all my priority bills but the amount I'm actually paying now is £365 so would it be worth writing to my creditors first to see if they would accept a smaller payment/freeze interest etc or not?

Any advice would be great. Thanks

nextyeartina

Hi. I've just received my new tax credits award notice for this year. My payments have been reduced as well as my housing & council tax benefit. Do you think stepchange will reduce my payments? I'm only paying £154 per month now as it is. Feeling really stressed out. Feel like I'm taking one step forward and two steps back.

Tina x

catandy

Hi all

quick question from me - has anyone had experience of Aqua on a DMP? they've refused my payment offer and countered that they want me to pay double what I can afford plus they wont freeze or reduce interest and its a massive 41%pa - so debt going up at the rate of about £50 per month. I will never be free of them at this rate.

thanks in advance

lilysmummy

catandy wrote: »

Hi all

quick question from me - has anyone had experience of Aqua on a DMP? they've refused my payment offer and countered that they want me to pay double what I can afford plus they wont freeze or reduce interest and its a massive 41%pa - so debt going up at the rate of about £50 per month. I will never be free of them at this rate.

thanks in advance

Aqua has refused offer from StepChange too, from what I can gather from other posts they play hardball. Stepchange said they will carry on paying them the token amount regardless!!

catandy

thank you - thats what i thought they get what i can afford and not a penny more