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DMP & Mutual Support Thread - Part 9

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  • Growurown
    Growurown Posts: 5,498 Forumite
    Debt-free and Proud!
    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 :o

    Basically what you are suggesting is a DMP. You can ask them to accept smaller payments but it will still affect your credit rating. Some may freeze interest and some may not, but if you are asking them to take less money then why not just do the DMP anyway? Creditors recognise Step Change and you may have more luck getting interest stopped by going down the tried and tested route.
    DMP Mutual Support Thread No. 421

    Debt free date 25/11/2015 - Made It!
  • Growurown
    Growurown Posts: 5,498 Forumite
    Debt-free and Proud!
    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

    Hi Tina,
    I'm not surprised you are feeling stressed! Yes I'm sure you will be able to reduce your payments, after all you have to live and that's what being on a DMP is all about. Contact Step Change as soon as you can and talk it over with one of the advisers.
    DMP Mutual Support Thread No. 421

    Debt free date 25/11/2015 - Made It!
  • Hi, it's been a while since I came on here so I'm sorry if this goes in the wrong place. :)

    I finally gave in and went to CCCS (now Stepchange) in Jan '12 and I'm so glad I did! As soon as I went to them I hardly heard from creditors at all - I very rarely receive letters. Everyone stopped interest (bank credit cards, capital one card, catalogue, overdrafts etc) except Aqua - but they charge me only £7 per month interest (not the £50 they did before I took control of my finances). I'm saving a few hundred a month just in the interest I was paying.

    I just came on to say that if you're feeling lost, worried and ill about debt then contact Stepchange. They're so good. Honest. When my income dropped I printed off a new budget sheet and posted it - no stress and no hassle. They're on your side.

    I pay £50 per month for £5000 of debt. Fair enough it's gonna take a while but final settlement offers have already started coming through the post and to be honest I feel like I'm living again. I'll never accept credit EVER again. For those of you worried about property equity don't be, this has never been mentioned by any of my creditors or Stepchange.

    Get help, don't carry the worry on your own, it's not worth it.
  • Twit_Head wrote: »
    Woohoo - and here I am! :)
    Had a lovely Easter with the family (hope you all had a good one too) but I am a total saddo! :(
    Was on the world wide webby thingy and got to wondering how me old muckers were doing.
    Tooth Fairy me dear - you've worked miracles - keep your chin up chuck and keep going. (I've got the champagne on ice for you)
    And greetings to you all old and new :wave:
    One has an ISA now you know (respect due please!)
    'Twitty' xxx

    That's brilliant news, Twitty, well done you!:T Hope everyone is well!

    TTF x
    :j:hello::hello::jDMP mutual support thread member 348
  • bmma
    bmma Posts: 607 Forumite
    Hi - creditors received first payment on may 20th-I am with Stepchange, I didn't realise how stressed out I was, not only in mind but body also, realised this when a letter arrived from one creditor, before opening the envelope, felt whole body go tense- it was from my previous bank - accepting reduced payment .Like other people - feel like I am living again, good luck all
    :hello::coffee:Penny Pincher in training
    Keep Calm Keep Vegan:):staradmin
    year's food budget £1,920
  • keepingcalm
    keepingcalm Posts: 10 Forumite
    Hi everyone, I'm new and starting my joint DMP with dh with Stepchange on the 1st of June. Still not sure how everything is going to work out and totally disgusted with myself for getting into this mess...we could afford our debt until dh was made redundant 2years ago and now we are getting deeper into debt each month :(

    We are up to date with everything, but next payments are due at the beginning of June, but it seems that the stepchange money won't arrive until later in the month, do we send them a token amount to tide them over?

    I'm majorly stressing about everything and picturing bailiffs and court cases, but I know it was better to act now whilst essentials like mortgage etc are in good shape.

    Anyway, I'm hoping to get to know you all on this (hopefully) not too rocky journey.

    kc
  • Still_skint
    Still_skint Posts: 12 Forumite
    Grow ur own and time to face the music

    Thanks for putting my mind at rest. A court order is the last thing I need.

    Keepincalm I'm wondering the same thing. I'm getting conflicting advice from Payplan. The person on the phone told me to stop all payments to my creditors , however the literature I received states that is important that I keep payments up so that they don't default my account. Confused :(
  • Growurown
    Growurown Posts: 5,498 Forumite
    Debt-free and Proud!
    I'm majorly stressing about everything and picturing bailiffs and court cases, but I know it was better to act now whilst essentials like mortgage etc are in good shape.

    Anyway, I'm hoping to get to know you all on this (hopefully) not too rocky journey.

    kc

    Bailiffs and court cases won't happen as long as you keep to your payments. If you enter into a DMP with Step Change there will be no point in your creditors taking you to court. If you go to court the judge looks at your soa and makes a decision on how much you can pay. This is exactly what the DMP does so creditors don't achieve anything by taking you to court if you are paying what you can afford already. If you look through this thread you will see that it is very rare to go to court.
    Grow ur own and time to face the music

    Thanks for putting my mind at rest. A court order is the last thing I need.

    Keepincalm I'm wondering the same thing. I'm getting conflicting advice from Payplan. The person on the phone told me to stop all payments to my creditors , however the literature I received states that is important that I keep payments up so that they don't default my account. Confused :(

    Scare tactics. Of course they don't want you to stop paying it will be less money for them. Yes your account will be defaulted making it harder for you to get credit in the future but be honest do you want more credit? If you are going to do this DMP then go with what Payplan advise.
    DMP Mutual Support Thread No. 421

    Debt free date 25/11/2015 - Made It!
  • keepingcalm
    keepingcalm Posts: 10 Forumite
    Thanks Growurown, that's certainly what I'm hoping will be the case. The whole thing just make me want to run away, particularly in the morning when I wake up in a panic!
  • antonic
    antonic Posts: 1,978 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    In my case I first spoke to Payplan Aug/Sep 2005 and tried to make some sort of payment to them until my DMP started on 2 Dec 2005.

    As GUO says, and its quite logical, if you maintain your agreed payments then your creditors would look foolish if they tried to get a CCJ/ start bailiff action against you, because you have kept to the arrangement.

    Good luck to you !
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