DMP Strategy?

Meatloaf1981

Hello all, I am new to these forums so apologise in advance if this question has been answered so obviously before. I am in a fairly bad place financially, with unsecured debts topping £33k. I earn £32k before tax and my debt payments each month total about £700. I pay £360 a month into my pension which is non-negotiable so my after deductions take home pay is actually only £1772. I pay rent of £675 plus household bills, £200 on petrol, £200 on food. You do the math but basically, I am consistently overspending each month.

I took this bull by the horns a week and a half ago and contacted Workplaceoptions, to whom my employer is affiliated for issues such as these and they are hoping to implement a Debt Management Plan for me with each of my creditors. The odd thing, and the thing I am seeking reassurance about is that they have told me to cancel my direct debits to my creditors, switch my bank account and then wait to default on the payments before informing Workplaceoptions once the default notices start coming through the post, forwarding them on to Workplaceoptions so that they can then contact the companies on my behalf to begin negotiations.

Something about it doesn’t sit right with me, I guess. I have never missed a payment or defaulted previously and yet clearly I need the help to manage the debt because the monthly costs are so vast. Is it right that I should default and allow Workplaceoptions to negotiate that way, or should they really be negotiating for me before defaulting? I’m not really sure.

On Monday, I will have officially defaulted my first creditor. What do you think?

Puzzcat

No idea who that company is but none of what they are saying sounds right. I would suggest going on the stepchange website and trying the debt remedy tool or contacting payplan, both free services who will be able to help.

Meatloaf1981

I've spoken with StepChange and it sounds like my debt manager is doing things similarly but I guess it all depends on your situation. I feel a bit more reassured as I have given WorkplaceOptions permission to act on my behalf so as soon as I start getting letter through and charges being applied, I'll be straight on the phone to them etc!

Hate that sick feeling of missing payments though, as I've never missed one in my life. Wish I'd sought help sooner, in all honesty.

Growurown

Meatloaf1981 wrote: »

I've spoken with StepChange and it sounds like my debt manager is doing things similarly but I guess it all depends on your situation. I feel a bit more reassured as I have given WorkplaceOptions permission to act on my behalf so as soon as I start getting letter through and charges being applied, I'll be straight on the phone to them etc!

Hate that sick feeling of missing payments though, as I've never missed one in my life. Wish I'd sought help sooner, in all honesty.

Don't go with this company. There are free providers out there where all your payment will go towards your debt. If you are paying charges then this isn't a good option. Step Change are very good, I have been with them for two and a half years now and am very happy with their service and they are free. It doesn't matter what company you are with though regarding defaults. As soon as you pay less than you should have you will have defaulted on your account and no debt management company can stop this.