DMP review - don't want to tell them about pay rise!

foxymd

Frankly, I wouldn't tell them. I told stepchange about a significant salry increase that I recieved (~£500 pcm) and all that happened was that halifax added back in all of the interest & late payment charges that they had originally ceased. They are still charging interest now. you'd be better off saving the money for emergencies, and if you save enough try making f&f settlements.

Monkeyballs

Hi,

I have just started my DMP with StepChange and appreciate all the help and guidance they have offered so if it was me and I got a pay rise then I'd rather tell them but try to be a little more liberal in some areas like food and groceries for example...

I'm of the opinion that it is better to try to throw as much into the pot as I can to get the term down.

If life has got more expensive tell them, and alter your outgoings accordingly - it also means that you won't be sitting around dreading if they ever ask for proof of income (no idea if this is what they do?).

MB

sickasachip13

Hey,
I totally get where you're coming from. I agree with most of the other posters, that if it's only a small payrise then I wouldn't tell them. Or maybe wouldn't tell them until the next review. The other thing you might want to think about, if you're really struggling, is adding some extra couple of quid here and there to increase your household outgoings. We claim £10 pm for newspapers and magazines, and get neither, and I go about a tenner more on elec than we spend, and a £1 here and there on a couple of other bits and bobs. All told this gives up about £40 more p.m. which helps a lot.
The thing is that you are being responsible in managing your debt - you're paying it, not running away from it - and being on a DMP is supposed to be difficult, but not to the point of being unmanageable.
SAAC

The_Boss

Loo44 wrote: »

I know, but fed up with life at moment. My children are growing so fast - teenagers now, bras and clothing not cheap - and always something crops up that is needed that we can't afford. Sorry to moan, but feeling low at the moment x

Can sympathise with you, but the reason for a DMP was to manage debts that were run up and not repaid so you're still doing rather well out of things.

simeyb

The_Boss wrote: »

Can sympathise with you, but the reason for a DMP was to manage debts that were run up and not repaid so you're still doing rather well out of things.

That's right in its purest sense @TheBoss, but after years of being screwed down and not being able to do or have anything, I totally sympathise with the OP.

debtfreewannabe321

I wouldn't tell them. I told them last year about dh's promotion (and payrise) and every spare penny went towards the debt (i.e all of the promotion) and then as someone said before, because we had increased the payments some of the creditors decided to reinstate interest & charges!

I've lowered payments since then as we had new outgoings/bills went up etc but the interest once put back on is hard to get off again! I think dh is due a pay rise in this pay packet (end of month) and i've no intention of telling them. It's less than £50 i think, and i'm planning on putting it in the emergency funds!

Good luck you sound like you deserve some good luck soon xxx

The_Boss

simeyb wrote: »

That's right in its purest sense @TheBoss, but after years of being screwed down and not being able to do or have anything, I totally sympathise with the OP.

I agree. I lost out on about £25k due to a relationship breakup that included us 'jointly owning' a flat which I was never on the mortgage for, leaving me with debts of £22k when we broke up after things deteriorated completely. I've learned my lesson and repaired the damage since 2006, starting on a salary of £18k back then. It took time, but sacrifices were made (including not so many nights out, no holidays, cutting back on treats, football season ticket etc). I got pay rises (I'm still just short of £30k now) but that was used to repay rather than treats. I stayed mostly single, didn't have kids etc as they were not a priority. I'd have loved to default, not want to repay the lot and pay back a peppercorn amount over time. So opposite to you I find it a bit trickier to sympathise when people clearly have the means but try to get out. I have no quarrel with those who simply have no option and no money whatsoever. But the OP has received a nice pay rise (something I've not had for 3 years) and can clearly afford to pay more.

eyeopener2

That was your choice. The OP is under no compulsion whatsoever to increase payments.

I've raised my payment twice and had my interest rate raised three times by Barclaycard.

If the creditors play fair, then I would advise the OP to up the payment, as they don't I say keep the extra and just carry on paying your regular amount.

The_Boss

eyeopener2 wrote: »

That was your choice. The OP is under no compulsion whatsoever to increase payments.

Maybe, but it would appear that there is an obligation to inform the DMP company that their salary is greater in the annual review. What the DMP do when they are advised of the new salary is a different matter. They might change the payment details. Or they may not. But deliberately witholding this information in those circumstances and declaring a different salary is both lying and fraudulent.

crispycornflake

After what you've been through recently I would say you should keep the extra £'s for yourself and your kids, take yourself on a nice holiday and don't worry about it . You are paying them all back on the dmp and you won't get any prizes from the creditor's for giving them an extra couple of quid a month but it will make all the difference to you and your family to have that little bit extra. I speak from experience, yes we are in debt but we haven't declared ourselves bankrupt & we are paying it back, you have to have a life .