Step Change Debt Management Plan

AnnThompson

Hi, this is just a question I'm asking more so out of curiosity, and also for some comfort knowing other people have gone through what I am now about to start.


I'm just about to enter into a Debt Management Plan with Step Change. I admit, I'd never heard of them until recently. When I spoke to them on the phone about what would happen once I'd entered the plan, and what to expect, it all sounded quite overwhelming... and quite terrifying, to be honest.


I've been told to expect letters from Collection agencies and phone calls etc, but that all I had to do was inform Step Change of any letters I receive, and they'd contact them for me.


I've never had to resort to this kind of thing before (a DMP), and I'm just wondering what experiences other people have had with one of these, and of Step Change themselves?


Ann

Tixy

Hi Ann and welcome to the forum

Step change are very well regarded on this forum and the very vast majority of experiences are very positive.

In terms of a DMP if you cannot afford your contractual debt repayments then they can be a very good option for people. If you are going for a DMP then certainly stepchange are better than using a company who will charge you a monthly fee.

Many people have posted how much better they feel after having entered a DMP and how much of a relief it is to be dealing with debts.

You will likely get quite a few letters from your creditors to start with, but these do generally die down after a month or 2. Then you typically may only get a letter from each creditor every 6 months or so.

You may find this the DMP mutual support thread useful to read through and post on - DMP & Mutual Support Thread - Part 9
The regulars on there have all been through a DMP and are a friendly bunch.

Suseka

Hi Ann and welcome,

I second everything Tixy has said It is daunting and, at times, a little terrifying, but so worth it in the end. I felt ill when I had to make that phone call almost exactly a year ago, but was so relieved when it was all set up. The letters from creditors dried up after a few months and now all I receive are statements -which I use to track my account and make sure everything is in order.

Do go and read the DMP and Mutual Support Thread... it was a godsend to me, just be ready to sit down with a nice cuppa... its a very long thread. You'll learn loads from it and read lots of individual stories and experiences. The value of that thread is beyond measure.

Good luck and I'll see you over there.

Puzzcat

I third it.. do come and visit us on the dmp mutual support thread.. we are all dmp'ers over there...!


Puzz. x

sexyshark

I too have ust posted my paperwork to them today do u know if i should expect a lot of phone calls

dubs57

It is defiinately a positive move tho scarey at first. When you explain that you are on a dmp and give them your ref number the phonecalls and letters will start to calm down.

runforlife

With regards to phone calls and contact I received none from my creditors when setting up a DMP with Stepchange.

My creditors are Natwest credit card x 2, Barclaycard, MBNA and Marks and Spencer. Also Lloyds bank overdraft.

You will receive standard warning default notices which are a little off putting at first. They have to send these out to you. Just ignore them or if you are really worried email step change with the information. SC will reply within about 5 days.

All the best.

National_Debtline

Hello there,

Do take time to check out the DMP mutural support thread, it's really brilliant. You'll see that there are loads of folks all going through DMPs just like you. We work with the folks at Stepchange very closely, in fact they administrate half of the DMPs we set up for our callers.

One important aspect of a DMP is that you have appointed a third-party organisation to help you deal with your debts. The Office of Fair Trading have made it clear within their 'Debt Collection Guidance' that it would be an unfair practice for a creditor to ignore your legitimate wishes to use a charity like Stepchange. That said, it is likely that you'll receive the odd letter or phone call. You should direct creditors that continue to contact you to Stepchange, you should inform them to stop contact you.

The majority of your creditors are likely to have a legal obligation to send you periodic statements, so that may continue.

Please try not to worry, you've got a whole world of support right here on the MSE forum and the guys at Stepchange are an awesome bunch too.

Best wishes,

David @ NDL.

mum2one

I'm with stepchange and have been for about 18mths, prior to that I spent 12 months trying to self manage a dmp, and as I was paying regular they all wanted more and more.

When I set mine up, I did get a couple of letters and a couple of calls, but once I mentioned stepchange and this is my reference number, it sounds daft but it was like winning the lottery, the relief was amazing, - not one then demanded money, it was no problem we'll await for stepchange...

I have 9 creditors, and soe have now gone to debt collection agencies so when that happens you get a letter you must pay £xx (usually amount left on debt) within 7 days - quick phonecall to stepchange (I use to be in a panic at the start) the I'll be calmed down by stepchange - forward the letter to them, I also use to ring to say with tepchange this is ref no - there be in touch, then again no problem.

I get statements evey 6/12mth from creditors still get the odd letter, but they have to be sent out by law.

It is scary at first, suddenly like going from swimming 10 metres to jumping off the top board overnight....... but once your up and running u go back to the 10 metre start.

I've been so ompressed with stepchange that I did 2 articles for their magazine, xx

Lara882

I'm 5 years into my DMP and have no hassel from creditors at all. 4 credits cards Halifax, MBNA (now Moorgate), Egg (now barclaycard), and Lloyds. Odd letter comes through but nothing very often. Have about 6 years left but am starting to get a little impatient as it does still feel like I;ve got a long way to go. Step Change make it so much easier to deal with though x