DMP - can someone help?

gettingbackontrack

You'd be bonkers to go with a fee-paying company. It's the equivalent of sitting and setting fire to £10 notes, one after another.

They're not working for you - they're working for themselves.

I am running my own DMP. I started out at £52,000 and now owe just under £8,000. If I'd known about StepChange at the time, I'd have gone with them. I'd rather slit my throat than pay a penny to one of these sharks who charge people for doing a DMP.

Re missing a month - talk to StepChange. You can make token payments while your DMP is being set up, building a small emergency fund in the process. And every penny goes towards your debts.

Grumpelstiltskin

LMJ Don't panic. Starting a DMP is a very big step, nothing will happen if you leave it 1 more month, well it's possible you will get letters, if so just hang on to them, and phone calls, just don't answer them.


You need to set out a SOA to see where your money is going now, the good people on here will suggest how to make the most of your money and see if you can make any savings.


Then you need to work out exactly what you can afford to pay on a DMP with a realistic budget to live on, if you don't do this you could easily end up needing more credit which you can't do if you are on a DMP.


Have you checked if you need to open a new bank account?

Sazzie23

Hi LMJ

Great sensible advice by Grumpelstiltskin

I'm 12 months into a DMP with SC. I am very happy and wouldnt have got this far without them. Have you tried their debt remedy, it can be done anonymously if you wish and is a helpful start to budgeting even if you dont decide to go with them. Alternatively the NEDCAB are very well liked by self managed DMPers. Downside to SC is mainly the inflexibility of payments, which can mean you end up paying more than the normal minimum payment to some creditors, and therefore get hot by interest charges. Also you cant change the payment balance to specific creditors if they charge interest so making it difficult to pay off certain problem creditors. SC treat all creditors the same.

Having said that - its very easy, they are well respected by the creditors and DMPers and if you want minimum hassle i'd reccommend them. It sounds like you have a pay-off plan which is great and so maybe for you the flexibility of self-managed guided by NEDCAB would be better.

The DMP support thread is full of information if you want help or advice.

eyeopener2

To your original point there is no problem in missing 1, 2 or even 6 months. You will be paying tokens, your credit rating will be shot anyway so it doesn't matter- as long as you pay something.

So plan of action if I was starting again, and I was just where you were 4 years ago, is to set out your realistic budget and then speak to stepchange/payplan or whoever. Miss the first months contractual debt payments, fend off the phone calls with "I'm speaking to stepchange here's a quid", and away you go.

Magic up a budget that works for you, you don't have to prove any outgoings just as long as they are reasonable (or I didn't when I set up my Palm). Ie your not paying £80 a month for sky.

If your commission comes in above budgeted amount, bank it for f & s like you plan.

Don't self yourself short, don't pay Vincent and his commission hungry telesales people, and get cracking on that debt.

antonic

Bella_Smythe wrote: »

agree. Payplan have been absolutely fantastic with me. always available by phone or email if there is a problem or change of circumstance also. can't fault them.

Agreed

Did my DMP with Payplan and I am now DF

loveka

You can manage your own DMP really easily. From what I have read here it is no more work than doing it through Step change. You just ring them, tell them you are in financial difficulties, explain the situation and see what they say. They may ask you for a financial statement incoming vs outgoings. You don't have to provide this, but it probably helps your case. Follow up any phone call with a letter. They do this anyway they confirm what they have said to you.

The advantage of self managing is that if one company offers to take a settlement figure you can do this if you have the money without having to go through the palaver of discussing it with a DMP provider.

Please don't pay for something you can do yourself or get for free.

As for falling behind, I have seen people on here saying they offer a £1 token payment for the first month, so it seems quite common.

its_maths_not_magic

I currently am doing my own DMP and its very easy. The thing you might be frightened of is contacting your debtors and setting up a payment plan. I can't speak for all of them, but so far the ones I am with (Bristow & Suttor, Capquest, Westcot) have been really good to deal with. I explained that I can only made token payments of £1 per week and they all agreed to this. They want to the debt paid off and so I've found them all polite, ready to help and easy to work with. I was surprised at how easy it actually was.

yamsteroo

Definitely don't go with a fee-charging company. Use a free one or do it yourself.


As for skipping a month? Sure, you can do that. Send them all a token payment with the template letter saying you're struggling and starting a DMP. Most people are in DMPs for years rather than months so paying token payments for a month or two while you get things in place is not unusual.


You'll get a lot of letters and phone calls the first month anyway whether you send them a pound or whatever your DMP figure is.


As for the free companies not allowing you retain so much of your wages, they are negotiable. I've got food allergies and my food budget was a lot higher than Stepchange thought it should be but because I had to have special bread etc then they just readjusted the figure and put a note in my budget as to why it was so high.

LMJ10

Firstly thanks to everyone who has commented on my post

You will all be happy to know I have now decided to go with stepchange - if it doesn't work will try myself.

They weren't as flexible as the other company my payments are £150 higher however at least I know all my money is going to my debt - lets just hope my creditors agree to do this

If they do not agree do stepchange keep asking until they do!? Or is that up to me!?

LMJ10

Gettingbackontrack - can I ask how long you have been doing your own and how much you pay a month did they all agree to freeze interest!?