DMP & Mutual Support Thread - Part 9

TimeToDoIt

I never never want to live like this again. My boyfriend and I counting down the days to each pay day and scrabbling around for enough change at the end of the week to put enough credit on our Oyster cards to be able to get to work....

Kate_fixing_it

igaveupnowimback wrote: »

Hi, been reading with interest for ages and posted SOA on general DFW board, had suggestion that I come over here and try. Am fascinated at how you are all managing, but am still afraid to take the (literal) Stepchange. They advised DMP couple months back and I held back and continued to struggle on. I am fearful of even opening basic account, don't know how to change this with my employers, feel massive guilt at leaving a bank with whom I have CC at £5k, am afraid of calls, afraid of 'failure' as it were, in being unable to pay my own way. At moment I am paying debts, but not living, just working and existing. No money for treats, hair, dentist, clothes, home repairs, insurances, holidays etc. It's gruelling and miserable bloody sackcloth and ashes stuff but I still don't know whether to continue or DMP. At some point in next year or two I would like to rent a different flat and don't know if DMP will affect this. Thanks for reading.

I could have written this myself two months ago. Life happened and forced my hand and whilst it was terrible at the time I've come out the other side stronger, wiser and happier. I have a life now. I don't exist to pay bills and wish away my days until I have money available again. I don't spend hours trying to balance what's coming in with what I want to pay out and I'm happy. I don't plan how to juggle money now, I plan how to spend my time and how to get the most from what I have.

As for moving, is it essential and will it be cheaper? If not I'd be inclined to stay put until one of those is true or debts are gone so you can have a fresh start to your debt-free life. There's a thread about Homelet on the main board. Generally they look at formal records of debt (IVA, CCJ and bankruptcy) and affordability based on income. A DMP is unlikely to flag up to them but I would (and did) inform the agent of our financial situation prior to the checks being done verbally. If something comes up when they check that they weren't expecting that's going to go against you, these checks are simply for the agent to advise the landlord whether to accept you, ultimately it's the landlord's choice who moves in.

Keep posting and reading, no one here bites and as you can see from the last few days we're all about helping to support each other.

Kate x

Kate_fixing_it

TimetoDoIt wrote: »

I never never want to live like this again. My boyfriend and I counting down the days to each pay day and scrabbling around for enough change at the end of the week to put enough credit on our Oyster cards to be able to get to work....

God I remember that feeling life isn't all "skipping through meadows" now (for example I've sat through the other three twilight movies today ) but it's so much better. I do feel a bit down occasionally when I have to say no to things or walk away from buying but it's far better than the scrabbling around for ANYTHING in the week/fortnight before payday or the buyer's remorse.

And TBH sticking to budget is habit now, I don't really think about the ways I almost unconsciously spent before, there's nothing quite like seeing my bank account constantly in credit and not being afraid of the phone and post.

Kate x

TimeToDoIt

Oh I can't wait for those things to happen!!

igaveupnowimback

Description....................Debt......Monthly.. .APR Current min payment
credit card....................5100......0.........16.9 £105
credit card 2..................170.......0.........34.9 £9
credit card 3..................180.......0.........34.9 £9
overdraft 2....................440.......0.........1.4 £20
overdraft 1....................500.......0.........1.4 £13
catalogue 4....................55........0.........0 bal now £5
catalogue 3....................50........0.........0 £5
catalogue 2....................440.......0.........39.9 £23
catalogue 1....................1600......0.........39.9 £103
Total unsecured debts..........8535......0.........-



Thanks so much for replies, sorry taken me a while am not too well at moment. Thanks all.!

Time_to_face_the_music

igaveupnowimback wrote: »

Description....................Debt......Monthly.. .APR Current min payment
credit card....................5100......0.........16.9 £105
credit card 2..................170.......0.........34.9 £9
credit card 3..................180.......0.........34.9 £9
overdraft 2....................440.......0.........1.4 £20
overdraft 1....................500.......0.........1.4 £13
catalogue 4....................55........0.........0 bal now £5
catalogue 3....................50........0.........0 £5
catalogue 2....................440.......0.........39.9 £23
catalogue 1....................1600......0.........39.9 £103
Total unsecured debts..........8535......0.........-



Thanks so much for replies, sorry taken me a while am not too well at moment. Thanks all.!

It's just about doable on a snowball but some of those interest rates are absolute killers. My honest opinion is that a DMP would be better but I would be tempted to self manage it and pick off smaller debts one at a time, it's a good psychological boost to see the total number of debts go down. You could start with token payments to all creditors of £1 a month and go for early defaults but it's not a path I would recommend unless you are prepared to put up with some hassle and fight your corner. If you feel like you need some back up, Stepchange could be the best route but have a look at the self managed CAB DMP and see what you think:


https://nedcab.cabmoney.org.uk/dmp.asp

maganan

Kate_fixing_it wrote: »

Bless you (you've got me welling up now - I'm such a softie!) I think it's safe to say you are completely normal, whatever that is. I was/am exactly the same.

This is just the release of stress. You have been on a knife edge for so long, undoubtedly living on adrenaline. That's not healthy and all the tension is coming out now. I wish I could give you a great big hug but I think that'd push us both over the edge! No shame in letting it out, pop DIY SOS on the TV and you'll clear it all out

The irony of it is I was almost completely devoid of outwardly apparent emotion pre-LBM, the week/month of my LBM the dam broke and now I'm an open book and I'm much nicer to be around.

Kate x

Oh god DIY SOS does it every time my children just look over and say "you're not crying are you mum" teenagers for you! Seriously though newbies Kate is absolutely right taking the steps to debt freeness is very liberating in many and starting to see the normality, bravery and hope of the world is fab and scary at the same time it's like stepping off one treadmill and on to another but with a clear debt free goal not just "robbing peter to pay Paul" ever month the early months can be fraught but the budgeting lessons learnt and the support here are great! I don't often post but read regularly and as I near the end of the journey I wonder why I was so so scared cos nothings happened, we still eat we still even have treats (just budgeted for) I'm still here just a better more frugal version making better use of what I do have, money and skills and maybe a little more sensibly cynical of advertising etc Good luck to us all nothing lasts forever not even debt

Kate x

FuzzyDF

Thanks to you lovely people I made my first steps to dealing with my problem. It was probably a good thing that Halifax sent me that letter a few weeks ago that they are withdrawing my O/D which I admittedly lived in. It has made me realise what a mess I'm in.

Sent all my documentation over to Step Change, plan should start on 1st July 2014.

Opened a new bank account and will start moving the nicer DD's over like exciting insurance etc.

I'm still feeling anxious though. £28,000 is a shocking amount and I'm worried that Halifax my biggest lender will give me a hard time. Keep thinking they will set bailiffs onto me where my only asset is a £5000 car. What are the chances? Can somebody ease my mind?

sunnyskies2

Hi Fuzzy

I understand your worries, I felt the same only a week ago!! I am still learning but from what I have gathered so far : it is unlikely - although there is no guarantee. From my basic understanding it seems creditors prefer not to go down that route - especially where SC are concerned - having trusted relationship with many creditors. Bailiffs can only come for cc and loans via a CCJ which you have to be informed of and then would have an opportunity - if that ever happened- to have your say in court etc. Saying that, I had a good look for bailiffs and dmps online and couldn't find anything worrying where the plan had run smoothly. So they will not be knocking on your door out of nowhere - you may get DCA but they have absolutely no rights.

Sorry I havn't been very eloquent - but try not to worry about them - it may never happen is my motto - and anyway there's enough to think about right now:)... I'm sure someone with more knowledge will be able to give a better picture soon.

P.s - I'm trying out software 'you need a budget' (ynab) which has great reviews, I can see that it is going to be really helpful to me - if of any interest:)

Best wishes

Sarah

Kate_fixing_it

FuzzyDF wrote: »

Thanks to you lovely people I made my first steps to dealing with my problem. It was probably a good thing that Halifax sent me that letter a few weeks ago that they are withdrawing my O/D which I admittedly lived in. It has made me realise what a mess I'm in.

Sent all my documentation over to Step Change, plan should start on 1st July 2014.

Opened a new bank account and will start moving the nicer DD's over like exciting insurance etc.

I'm still feeling anxious though. £28,000 is a shocking amount and I'm worried that Halifax my biggest lender will give me a hard time. Keep thinking they will set bailiffs onto me where my only asset is a £5000 car. What are the chances? Can somebody ease my mind?

The baliffs aren't coming. At least not any time soon. To get to the baliff taking things away you'd have been passed to collections (in house) then a debt collection agency, then it'd go in front of a judge who'd issue a CCJ (which is basically a formal repayment plan) AND you'd have to default on that. All that takes a long, long time.

NONE OF THIS IS GOING TO HAPPEN IF YOU KEEP MAKING PAYMENTS.

Ok, 28k is a lot. 10k is a lot too and that's what I owe. We have both asked a recognised charity to help us find a way to solve these problems. That says a lot. That says we admit there's a problem, we want to pay it back but our circumstances mean we can't pay as much as our creditors want but we are giving them as much as we can. What I'm saying here is the amount isn't as important as the fact that we're doing something about it. Either of us could have a windfall tomorrow and clear the lot but today we can't so this is the plan for now.

If it makes you feel any better I've seen debts much bigger than yours with very little income discussed on the board. There's a Debt Free Roll of honour, take a look and you'll see page after page of success.

As for giving you a hard time, send a letter with your token payments requesting all communications in writing only. They'll likely all call. You answer, tell them you're with SC, offer you reference and say goodbye. If they are at all abusive you tell them "put it in writing" and hang up. I highly doubt they'll get arsy once you have said the magic words - "step change". All my creditors have actually sent contact details for SC with their correspondence.

In a few weeks you're going to feel completely different. You'll be the one reassuring the next generation of DFWs. You've done the hardest part by taking the first step.

Kate x