New and terrified!

keepingcalm

Hi everyone,

Due to changes in income over the last couple of years my dh and I are no longer able to keep up with our debt repayments and are having to use more credit to survive.

I finally had a meltdown about this last week so we've been in touch with stepchange and have a start date on our dmp for the 1st of june:eek:

Initially I felt relieved, but being an anxiety sufferer for the last couple of years I'm now imagining everything that could go wrong, though in my calm moments I know that we have done the right thing and are in a good position with no mortgage/utility arrears etc

I'd love to hear from people on this journey for some reassurance.

Thanks
Kc

wannabee_in_credit

Hi,
You'll find lots of people here in a very similar situation - or who have been in a similar situation and are now through the other side and debt free.
I tried to ignore my debt problems for a good year or two before finally taking the plunge and contacting Stepchange 3 years ago. I'm on a dmp with them and am just over half way through paying my debts off. My youngest child is due to start school September, so I'm hoping to throw even more money at the debt and get debt free even more quickly.
I did suffer terrible anxiety and doubt about the decisions I'd made for the first few months of my dmp, but I feel fine about it all now. I've learned to live within my means, and my outlook has completely changed towards money. I'm even starting to think about times I could save up for a holiday, or some serious home improvements - which are things I couldn't have considered a few years ago. But there is light at the end of the tunnel for me now.
There is a DMP support thread as well on here, where you'll get loads of support and advice.
Good luck!

datlex

I had a dip in my income in previous years due to redundancy. I found communicating with companies had debts with really helped. Keeping them in the picture meant they were understanding, were able to reduce my payments without any markers on my credit file.

eyeopener2

You have done the right thing. It is daunting at first but you soon get into the swing of things.

What could go wrong? Plenty.

What will go wrong? Probably nothing and I do do tend to say this over and over but......don't worry about things that may happen, only deal with them if they do.

Also, remember that creditors are evil and don't give a t*** about you, your a number, that is all. Your years of loyalty to these organisations count for nothing.

Work with those two things at the forefront of your mind throughout your DMP and you will be fine.
Oh one other thing, budget, budget, budget. It's very hard at first but you will get stable.

I'm nearly finished on my dmp, it's been quite straightforward really (a few annoying moments) and I've learned a lot about myself, about money and just how horrible credit firms really are.

There are a couple of great threads, one on the main board and one in the diaries, supporting dmp people and we have all been where you are. Any questions just pop in and ask.


E2

antonic

Well done on taking the plunge !

You wanted to hear from someone who has been through this, will I do ???.

I had my LBM back in Aug 2005.

HBOS referred me to Payplan, and I made my first payment to Payplan on 2/12/2005.

Fast forward to 2 June 2013 and I will have made my last payment and will be DF by about 20th June 2013 when my final payment has been split amongst my 4 creditors.

Has it been easy ? No
How have I coped ? - with the support of my family
Best move ? - facing up & dealing with my debts
Best tip ? - if you smoke or drink (I used to drink) try to give it up, because it will make a HUGE difference to your budget ! - I used to spend about £80.mth on beer - I went AF in Oct 2011 and have not regretted it at all !.

Best motivational tool ? - plan for something you REALLY want to do - for me it was to do a battlefield tour in Normandy with my Dad, that will be booked this week.

Take heart in that you have realised that there is a problem and your dealing with it - if you want support come here because you will get it in spades !.

Good luck & here is to the future !

Malky

eyeopener2 wrote: »

Also, remember that creditors are evil

That's a bit of a sweeping statement. I don't hear anyone calling creditors evil when they have spent the loan they borrowed, racked up a credit card bill or bought a new car etc etc

eyeopener2

You carry on supporting those fine upstanding creditors who given half the chance would go for a ccj, and then a charging order ( racking up court fees as well) even when you have agreed a payment plan.

That's your choice.

Or those fine creditors who wack up the interest on your credit card, or who reinstate it after saying they won't.

That's your choice.

Me, I stick with what I know and have experienced, the same as many people who post on this board on a daily basis suffer from.

Creditors are evil.

Suseka

Hi KC,

I/we are in a similar situation. OH's income has been cut by a third over the last 18mths or so, which meant over the last 12 months at least he has been robbing peter to pay paul.

Our LBM came when I opened one of his bank letters and got the biggest shock of my life :eek: he was over £1000 into an overdraft and being charged £25 per day in interest (or something similar), but only because it had spiralled, he hadn't told me and he had his head stuck firmly in the sand.

Fast forward a few months, we've contacted step change and all creditors, have sent token payments and are waiting to make our first DMP payment in July.

I went through several days at the outset feeling euphoric (because we were dealing with our debt problem), scared (of what might happen -court orders, door step collectors), ashamed (credit file trashed) and depressed (about the years ahead). I felt I was in a complete tailspin.

But that's when this forum has helped me the most. So many good stories of people battling through and becoming debt free. Lots of good advice on how to deal with creditors who are not playing ball. Some laughs and some tears - but always, always lots of support.

So - well done for taking these first early steps and try to remain as positive as you can in the days ahead. Pop over and join the DMP mutual support thread - and if you have time, have a look through the thread because it contains a wealth of good advice and inspirational stories.

Good luck