Anyone on DMP and had to reduce a payment one month due to unexpected expense?

Pink-Angel

Hi,

I've been on a DMP with CCCS (now StepChange) since the start of 2011. I've had to battle hard with my one of my creditors (Lloyds) to get interest frozen, which I realise they don't have to do.

All had been going ok with the DMP, apart from depression at being single and having no money for a social life so no chance of meeting someone.

But now I've got a problem because my washing machine blew and I had to replace it. I used the council tax money (we pay 10 months out of 12) but needed more so I borrowed money from my brother. He has a family and needs it back.

I contacted StepChange because I thought I could reduce the DMP payment for that month to get me back on track. Well, the person I spoke to at StepChange was very unpleasant, going on about me 'breaking terms of contract' if I reduce a payment, and how i shouldn't borrow extra money. That's all very well, but the DMP doesn't leave much each much and this was an emergency. It's left me feeling upset and frightened. So I don't know what to do. I've found StepChange helpful in the past, but perhaps their change isn't just in their name.

Has anyone had to reduce a DMP payment one month and if so what were the consequences? Were creditors ok or did it cause more problems? It would be really helpful to know.

Thanks for reading.

michael1983l

You can do it with an IVA which is much more formal and legally binding, so I do not see why you cannot do it with a DMP. Just do not give them the option, tell them you are paying less one month due to emergency primary expenses and that is the end of it. They are not likely to cancel the DMP as they would lose out on commission. What is more likely is that they just didn't want the hassel of having to write to all of your creditors.

HappyMJ

Stepchange are right you should never borrow any more money for any purpose...but you can reduce the payment to your DMP. You can renegotiate the payment down so that you have more each month.

You should be putting the highest figures possible for housekeeping so that you have some money aside for emergencies such as this and if an emergency does not happen you have the money in the future for a possible full and final settlement offer.

This technically is debt free wannabe and everyone here advises to spend much less than £100 per person per month on housekeeping/groceries but you can put down £200 per person per month....but in reality spend £100 a month keeping the rest aside for emergencies such as this.

Heffi1

I had an unexpected HMRC bill drop through the door and they reduced my next payment to creditors so I could pay it. I found them to be helpful, but I imagine if I had to do it again, they may ask me how I am budgeting, the problem as you say is that there is not much left over to put away for emergencies, so I find it difficult to save anything and just hope and pray nothing else breaks.

fermi

Try ringing again on Monday. Odds are you will speak to someone who is more helpful.

You can also send the StepChange advisors here a PM.

---> Send a private message to StepChange Private Messages

Pink-Angel

HappyMJ wrote: »

Stepchange are right you should never borrow any more money for any purpose...but you can reduce the payment to your DMP. You can renegotiate the payment down so that you have more each month.

You should be putting the highest figures possible for housekeeping so that you have some money aside for emergencies such as this and if an emergency does not happen you have the money in the future for a possible full and final settlement offer.

This technically is debt free wannabe and everyone here advises to spend much less than £100 per person per month on housekeeping/groceries but you can put down £200 per person per month....but in reality spend £100 a month keeping the rest aside for emergencies such as this.

Thanks for your help and very sensible suggestion. As I've discovered, being on a tight budget is fine until there is an unexpected expense.

In this case not borrowing money meant no washing machine, and I needed one, so felt I had option

Pink-Angel

fermi wrote: »

Try ringing again on Monday. Odds are you will speak to someone who is more helpful.

You can also send the StepChange advisors here a PM.



Thanks for your help, I'll do that

michael1983l

It is fair to explain to them that in order to pay them the maximum amount possible, you do not have any spare cash for emergencies. Therefore it is not being unreasonable to ask for a temporary adjustment to your payment to pay for such said emergencies. Explain that if they are unwilling to adjust the payment for you that they will have to adjust the whole SOA to include an emergency fund monthly payment or an increase in it if you already have one. You will find that they will soon enough adjust your payment rather than have you do that.

HappyMJ

Pink-Angel wrote: »

Thanks for your help and very sensible suggestion. As I've discovered, being on a tight budget is fine until there is an unexpected expense.

In this case not borrowing money meant no washing machine, and I needed one, so felt I had option

I know what you mean but a washing machine technically is not an essential. You can hand wash....although very time consuming until you save the money. Washing machines also can be picked up for next to nothing from charity shops or second hand places such as Ebay. If all else fails you can rent one then put the rental expense on your SOA to stepchange and reduce your DMP payment.

michael1983l

HappyMJ wrote: »

I know what you mean but a washing machine technically is not an essential. You can hand wash....although very time consuming until you save the money. Washing machines also can be picked up for next to nothing from charity shops or second hand places such as Ebay. If all else fails you can rent one then put the rental expense on your SOA to stepchange and reduce your DMP payment.

I think Washing Machines are classed as an essential these days, hence the reason a Bailiff cannot cease one.

HappyMJ

michael1983l wrote: »

I think Washing Machines are classed as an essential these days, hence the reason a Bailiff cannot cease one.

I meant essential to living life. Anyone can live without a washing machine. If borrowing money breaks the T's and C's of the DMP then I really wouldn't do it and find an alternative....even just going next door to a friendly neighbour or a family member's house for a few weeks whilst saving the money for a repair.