stepchange

Pickle29

Ringing stepchange is better than taking 2 paracetamol. They make your headache go away (for a while at least)
Can't recommend them enough.


Ps -they took our overdraft into account and treat it the same as other debts.
Good luck x

Sazzie23

cynicalgit wrote: »

The UE route may give you breathing space for you to save the money towards a F&F offer later on or indeed if unenforceable 6 years until the debt is statute barred.
My experience of DMP is not positive.
You'd be advised to seek further advice.
Both Payplan and Stepchange are sponsored by the Financial Industry and in my opinion are there to reimburse the banks.
!!!!!! 11 years on a DMP is that what you want?

Hi Cynicalgit, I think its good that there is a forum like this for other ideas. I am sorry DMP wasn't for you, its not for everybody, but there are plenty of people who have been happy.


I am on DMP (with SC) and have found it a positive way to deal with my debts, which is what I want to do. I know Payplan is sponsored by the financial industry, SC I think not so much, but you may know better. Yes they are there to get the banks their money back, but at least they do it for no additional cost to the payer - unlike fee paid DMP. There would be no way I could avoid paying anything for 6 months never mind 6 years, I couldn't stand the hassle and my partner in debt would have done something terrible to himself.


If I wasn't paying I could probably save for a f&F but it would likely take several years. There are other options to DMP but they are also not always suitable, for a variety of reasons, but like you say, best take plenty of advice before you decide what is right.

cynicalgit_2

Very fair observation.
But I would add that Paplan receive afaik 9-11% commission from the creditors as well as trying to flog you insurance of 5%.
My main argument is that interest and charges aren't always frozen thus leaving debtors with back end charges on the end of the DMP.
It is possible to self manage your DMP it isn't rocket science.
However there's nothing to stop somebody from starting a DMP and then changing direction later.
Good Luck.

shoemaker1948

im terrified when i have chat with advisor with budget plan from stepchange been waiting 5 days for this appointment causing me a lot of stress

shoemaker1948

just to say terrified of having talk tommorrow on budget plan had to wait 5 days for this meeting because of holidays causing a lot of stress

Larac

There are also alot of sharks out there who charge fees for arranging Dmp's and disappear into the sunset. IMHO best to start with one of the debt charities such as CAP SC OR Payplan Etc as they give vital support in the early stages. There is nothing stopping you move to a self arrangement once you have got more confidence.

dancingfairy

Have you filled out the online debt remedy tool? this might give you an idea of what might be suitable for you.
Basically they will want to go through your income and outgoings with you to help you and to come up with a plan. Try and gather together as many figures as you can but if you can't remember then a best guess will do. It might be wise to go through the online remedy so you can see what the various categories are and have a head start thinking about how much each category costs you (and you have time to fish out any bank statements etc if you need to look something up).
What I would say is make sure you give yourself a fair budget. Do be aware that you may be on this budget for 3 years (maybe more) so do make sure it is realistic and doesn't limit you to beans on toast for the next few years .
Obviously the budget is not set in stone and can be fine tuned along the way but it is better to have a bit of spare in the budget than to be struggling from the begining or have something go wrong and realise you should have had that emergency fund after all.
If it isn't working for you at any time (changes in income/expenses) then don't be afraid to go back to them to revise things.
Ask questions. Make sure you understand exactly what you are signing up for and what they will (or won't do). Will they push your creditors to freeze interest or will you need to keep hassling them?
Also do be aware that you don't need to sign up to anything on the phone. They will say what they suggest but I can't see anything wrong with having a few days to think things over and make sure that what they have suggested is best for your situation.
Dmps (if you are considering one) can be good but it is important to understand the limitations. It can be difficult to get creditors to suspend interest and charges - it can take many months. On the other hand some might agree straight away! Make sure you (and /or stepchange continually push for this). Most will eventually accept your plan but you can write a formal complaint if they don't and you can complain to the ombudsman if you don't think they are playing ball. It is an informal agreement and does not mean that they won't commence court action, although a judge may well agree with your budget and agree to you making your regular payment.
Your credit rating will suffer.
A dmp can be a good idea but if it will take longer than 4/5 years then other options such as an IVA or Bankruptcy may be better options.
Oh and don't panic, they are there to hep you and talk you through the options, not to judge you and you don't have to decide anything there and then.
You'll be fine and will feel much better when you can see a way forward
Come back on here tomorrow and let us know how it went. I'm sure it will go well.
df

CurlyTop

Monkeyballs wrote: »

Big congratulations to you! Well done on completing a MAMMOTH run of DMP payments

MB

Thanks MB for the kind words. Yes, it was a mammoth run but one I've done on my own. Originally scheduled to have repaid the debt in 5 years, I didn't foresee my health taking a knock that would result in me having to reduce my working hours, or my husband losing his business. Luckily I'm debt free now because chances are I will have to reduce my hours again as my condition is getting worse.

Whilst there are others who snort at 11 years to complete a dmp, I eventually paid what I owed. The discipline of budgeting that I've acquired whilst paying my debt, along with menu planning, etc, will ensure that I won't be in that position ever again.

At the end of the day, I agree with Sazzie that you can only make a decision when you're appraised with all the facts. Each to their own and all.

hummingbird

shoemaker1948 wrote: »

im terrified when i have chat with advisor with budget plan from stepchange been waiting 5 days for this appointment causing me a lot of stress

I've just registered with Stepchange and found them brilliant - I don't have enough at the moment for an official DMP (I lost my job) but they have sent me a full brochure and budget and advice for making token payments to creditors - I spoke to them on 9th Dec and then waited a week for my 45 min telephone apt (which ended up being an hour).


As others have said, they are non-judgmental and being able to talk with someone who is calm and objective about your situation really helps.


I have had agreement from one creditor already, and in some ways having to do this part myself is making me more focused on improving my situation.


They are also great at helping you get your priorities in order (I've spent years paying things in the wrong order).

shoemaker1948

myself and my wife had a 45 minute talk about aranging a buget plan i was told to contact my credit card company which i have done they were understanding about my position .they said they will be sending me a default letter which they have to do but they told not to respond to the letter.i told them the ref number stepchange gave me to give to them the person i talked to from the credit card company said again to ignore the letter its a thing/procedure they havto go through all this is causing me so much stress i have done what stepchange have asked me to do the credit card company said they will be in touch with stepchange