DMP - can someone help?

gettingbackontrack

LMJ10 wrote: »

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!?

The amount I pay varies, to be honest. That's the advantage of managing your own payments - you can alter them to suit.

I started out not even knowing what a DMP was (I hadn't come to this site though i wish I had!). I wrote to my creditors and all the cards agreed to freeze interest. The worst at the time was Next, who slapped interest back on after a few months and wanted a fair bit more than I offered. M&S persuaded me to change my card debt into a personal loan and I'm still not sure if that was right things to do. The others were fine, generally.

The first year was really hard. I lived on a lot less than I had been doing but I paid off Next and a personal loan I had with my bank, which eased things. Then I paid off one credit card. Two more credit cards plus that M&S loan will all be paid off this year leaving me with two cards to target in 2015.

I suppose I've taken the scenic route to paying off my debt in the sense that I pay less a month now than I did. My payments dropped after I was made redundant but generally my creditors have been OK and my payments went back up accordingly when I was back in work. Barclaycard started adding interest a year or so ago but at a low rate.

Honestly, it felt like an impossible task when I started. I think my focus was on keeping my head above water. Suddenly I realised I'd paid off half and now I'm down to the final 20%. By Christmas I'll have two debts and be down to the final 10%. I think I was paying nearly £800 a month when I started, I'm now paying £400 but the debt is decreasing and I've had a couple of holidays along the way (not lavish ones, but decent ones).

The most important thing for me is that I've lived without credit for I think it's about six years. I could have paid it off quicker by living like a hermit but what I feel I've been doing is living a normal life on what I earn while chipping away at the debt. My habits have changed and I save for anything I need - car tax, MOT, new winter boots, Christmas presents etc. I'm looking forward to the day I have no debts except my mortgage and I'm starting to imagine when that's going to be.... finally.

Phew, that turned into a mini essay! Will anyone be awake after all that?:D? I hopes it helps - you will get there even though it seems like a long road ahead right now.

harrys_dad

LMJ10 wrote: »

We never spoke off step change or payplan with Vincent bond, they sounded like they knew what they were doing - I just want it sorted really getting down in the dumps.

I'll give them a ring

If you want it sorted then go with a free provider like Stepchange or Payplan. If you go with Vincent Bond, or any other company that takes a huge slice of your payments for themselves, it will take you MUCH longer to clear your debts.

It also cannot be repeated often enough that Stepchange and Paypal DO NOT WORK FOR THE BANKS. The banks pay a levy to fund them , which is hugely different. If you want to pay people for doing something that other organisations will do for free that is your look out, but it is essential that other people in a similar situation to yours who read this thread know that YOU ARE WRONG!

Puzzcat

LMJ10 wrote: »

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!?

SC will keep paying them. As for freezing/reducing interest that is down to you to monitor and chase if necessary, don't rely on the estimate balances on your sc account when it is up and running, it is down to you to update and keep them correct. I have been in my dmp for 4 months, similar amount to you. 8 of my creditors have frozen interest, 1 has reduced a tiny bit and already have a complaint in with the fos for this one. They are my debts and down to me to manage.
Do pop over to the dmp mutual support thread and start reading, loads of questions you will be asking, will already have been asked and many you had not even thought about.
Many knowledgeable folk always ready to help.
Puzz.

LMJ10

Thanks Harry's dad for pointing out how wrong I am but if you look at my last post you will see I'm now going to go with stepchange

Gettingbackontrack that essay lol! Really did help

Other than accepting how much debt I'm in I have panicked a lot!!!!
I was very close to signing up to a IVA which really scared me I actually felt like I would be spyed on if I left my house and exposed like they expose benefit cheats!!

I'm still feeling the guilt now tho - but so pleased you said you even managed holidays and lived a normal life cuz i have been feeling guilty about even walking into McDonald's or buying my little girl a tshirt, feeling like I should be locked up in my house!

But thanks for the comments and well done on getting yourself to 8k.
I can't even imagine 6 years in the future I mean it's so far off.

LMJ10

Also when you said Next wanted more than I offered did you make settlement offers?

LMJ10

Thanks puzzcat I will look - got a feeling I'll be on here for the next 6 years!!

gettingbackontrack

LMJ10 wrote: »

I'm still feeling the guilt now tho - but so pleased you said you even managed holidays and lived a normal life cuz i have been feeling guilty about even walking into McDonald's or buying my little girl a tshirt, feeling like I should be locked up in my house!

But thanks for the comments and well done on getting yourself to 8k.
I can't even imagine 6 years in the future I mean it's so far off.

LMJ10, try not to worry. I found the first year tough but I probably agreed to payments that were a little too high for my income (my naivety, I'm afraid). The great thing about StepChange is that it sets your payment at something you can afford. It's unrealistic (and StepChange recognises this) for people to live without an entertainment or clothes budget.

The temptation when you go it alone is to keep things too tight which isn't sustainable in the long term. Yes, you have to adjust your expectations slightly, but once you get used to living without credit it becomes a way of life.

Have a look at the Diaries board. There are so many inspirational stories there and lots of people with young families who live a happy, fulfilled life while on a DMP. It's getting the balance right - a McDonald's once a fortnight instead of twice a week, a holiday at a UK caravan park rather than a hotel in the Med... Your daughter will still have a happy childhood and think what you can do when the debts are history!

All the best.:)

eyeopener2

You'll be surprised how quick it goes. Mine went in 3 n a half years, down from 4 originally, and it flew.

Life does fly by, you just have to make the most of what you have (and you will be in a much better position for your little one in 5 or 6 years time).

Well done, you've made a huge step on the way to getting debt free.

runforlife

LMJ10 wrote: »

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!?

That's pleasing news and good luck. As for paying an extra 150 then just console yourself that each month that is £150 a month faster to paying of your debt. Result!

Puzzcat

LMJ10 wrote: »

Thanks puzzcat I will look - got a feeling I'll be on here for the next 6 years!!

You'll be in good company mine's due to run for 8 years...but I hope to knock a few off as I go along. Welcome aboard and good luck with your journey.
I also did 3 months of token payments before I started.