Dreaded DMP review time

lisa701

Some unbiased advice/support please.

I've been on a DMP through CCCS/Step Change for 10 years now. At the start we were filled with hope, we thought we would both find work quickly and get back to making "normal" repayments. However, its not worked out like that.

It started when we were both made redundant in the same year. Since then we have both been in and out of work and there has never been a time when we have been able to go back to making "normal" repayments.

Anyway, the dreaded DMP review is due soon and I'm so stressed. I cannot see anyway out of this. I'm never going to come into lots of money and its clear I'm never going to get a well paid job where I can afford to return to normal repayments. These debts will be hanging over me for the rest of my life and being told by the CCCS/Step Change that I should not be on a DMP for this long (which I have been told the past few years) and should look at selling my home only goes to make me even more distressed.

I've looked into selling our house, but its not an instant fix. We could clear our mortgage but by the time we have paid any fees there would be very little to repay our debts. We would therefore be homeless and still in debt - not a situation I want to be in.

Some advice / support would be greatly appreciated.

Thanks

gettingout

How much are your debts for if you don't mind me asking? Is there any way you could go on an interest only mortgage for a while to get the DMP paid off (maybe not an ideal long term solution but at least it gets the DMP finished with)? Have you got rid of all absolutely unnecessary monthly outgoings? It's amazing what you can cut back on.

Tixy

How long is your DMP currently expected to last (based on the current repayment rate obviously that may change if your repayment changes after the review).

Is it a joint DMP for you and your partner? or just yours?

lisa701

Thanks for your reply. The whole thing has been a complete nightmare.

Barclays Loan - £22k
Barclaycard - £2k
Barclays Bank Account - £1k
Career development loan £1.5k

DMP is in joint names

Mortgage is on a fixed rate so unable to swap to interest only until that comes to an end in 5 yrs time.

lisa701

It started when we moved house. Our bank discovered they had lost our mortgage & loan paperwork the day before we were due to move. We moved but were so fed up with our bank we didnt bother taking up the loan with them and went elsewhere.

When we both lost our jobs we couldnt afford to keep up the repayments hence the DMP. CCCS then lost our paperwork, and then Barclays had delays. In the meantime, Barclays kept taking the monthly repayments for the loan from our bank hence we then ran up more debt there.

Having no income I stupidly used my credit card to pay bills, pay for food hence the debt there.

I'd also taken out a CDL long before I was made redundant in order to retrain but it didnt pay all the fees. When I was then made redundant I could not afford to pay the rest of the fees so couldnt complete the course.

If only I could say I'd enjoyed nice clothes, holidays and fancy car but I've not - but thats the opinion I get from everyone when I say I'm in debt. They think I've been living the life of riley .... if only.

lisa701

Tixy wrote: »

How long is your DMP currently expected to last (based on the current repayment rate obviously that may change if your repayment changes after the review).

Is it a joint DMP for you and your partner? or just yours?

About another 30 years at the rate we are going!

gettingout

Even though mortgage is fixed rate you should be able to change to interest only-most providers will allow you to do that.

longtermplanner

Very few mortgage providers will allow you to switch to interest only any more unless you have significant equity - which you don't.

How much equity do you have? After such a long DMP you may be able to settle a lot of your debts with a low full & final settlement.

Suseka

What advice has SC given then? You mention that they already feel you should no longer be in a DMP. I'm no expert, but have they suggested an IVA? As far as I understand, based on what you say about your longer term earnings potential, that may be the best route for you.

It does put your house at some level of risk and I realise that's a bit scary -but again, from my understanding, it just means when you sell you have to hand over some of your equity to your creditors. But I hope someone else with much more experience in these matters will be along to help you further

Try to stay positive though, you've done well to stick at it for this long.

lisa701

Suseka wrote: »

What advice has SC given then? You mention that they already feel you should no longer be in a DMP. I'm no expert, but have they suggested an IVA? As far as I understand, based on what you say about your longer term earnings potential, that may be the best route for you.
QUOTE]

When I first contacted them they never offered me any other solution but a DMP. No mention was made of an IVA. Whilst I don't really "want" to be on a DMP, I'd rather be doing something than nothing. Its SC who have told me they only suggest a max of 10 years after that you have to find another solution - although they don't ever suggest anything but sell my house.

I've been through all the ins and outs of doing that but like I've already said, I would not have enough left after repaying my mortgage and all the necessary costs to completely repay my debts. To be homeless and still in debt is not a nice prospect.

There is some equity left in our house, but are unlikely to get full valuation for it due to its condition so you might as well say there isnt any equity. Even the perfect ones in our area are not selling so what chance do we have?

lisa701

longtermplanner wrote: »

Very few mortgage providers will allow you to switch to interest only any more unless you have significant equity - which you don't.

How much equity do you have? After such a long DMP you may be able to settle a lot of your debts with a low full & final settlement.

I've never asked but assume that it would be unlikely given we have a fixed rate mortgage. If we were able to switch how much realistically would we have extra each month to help pay more off our debts? How do I calculate that?

I'd like to contact them to see how much I still owe, but I don't know who to contact as the last time I did so they didnt have a clue and I was passed from department to department all to no avail.