DMP's , Making the decision

meredith132

Hi all, I have been thinking seriously about DMP's for the last week. I have 35k debt that jointly accrued but was in my name and then OH left out of the blue. Have struggled but not defaulted for months. It is crippling me though. I am currently trying to build my business. My children are grown so I can concentrate on this without worrying about childcare.

I contacted StepChange who suggest token payment for 12 months till I am on my feet.
I just feel vey confused about it all. I think the relief will be immense and I am out of my depth now. I also think lets keep fighting this on my own. Is this normal? I just find in one day I change my mind so much about whether to DMP and its driving me mad.

Tixy

Hi

It it very normal to hesitate and wonder if you can carry on as you are. If you don't go for a DMP/token payments then how much of a shortfall will you have on your monthly budget - and have you worked out how long it will take to get debt free and can you carry on struggling on for that long?

Do phone up the debt charity again if you want some more reassurance or to talk through the other options for you, they are always happy to help and try to allay people's fears.

One of the posters on here wrote a short 2 part blog on his DMP experience a couple of years ago. You might find that a useful read http://moneyaware.co.uk/2011/09/my-debt-hell/

National_Debtline

Hello there,

Are you self-employed? If so you may wish to seek the opinion of our sister organisation, Business Debtline. A DMP could work well if your income is reasonably steady although it can also allow for some fluctuation. If Stepchange are suggesting token payments that would indicate to me that you may have insufficient spare money to use a DMP, would you be able to post up a statement of account for us to see here?

Very best wishes,

David @ National Debtline.

meredith132

Thanks for the comments and the link, I wish I came to these forums earlier!

I am self employed and my income is steady but the difference is I am now aiming to work full time. I am actively seeking new business, but obviously cannot, with any certainty, predict how quick this will happen.

Also the more I earn the less tax credits I will be eligable for so I actually need to up my monthly income significantly to account for this also.

Depth_Charge

Hi Meredith

Following on from others

Info from Citizens advice on DMPs, providers, self managing

https://nedcab.cabmoney.org.uk/remedy_4.asp

If you decide on a DMP and you are down to token offers you may find that you will be advised to self manage - Citizens Advice have a confidential free & unique online self managing DMP system now widely used that might also be worth a look

https://nedcab.cabmoney.org.uk/dmp.asp

You might have other options & always best to check them out including potential implications - Citizens Advice cabmoney debt remedy information / option resource & business debt line links below that also may be useful

https://nedcab.cabmoney.org.uk/debtremedy.asp

http://www.bdl.org.uk/ (England & wales)

Best Wishes


DC

meredith132

Thanks so much for the links, I will have a look at those. I am having a day today where I am going to write out each of my options on separate sheets of paper with pro's and cons . I need to unravel it all and thanks to the lovely people here I am already a lot wiser than I was a few days ago.

Growurown

Hi Meredith,

We started a DMP three years ago now. We had no choice really because credit card providers were demanding higher minimum payments and we were trying to live on £60 a week. It was an immense relief when the DMP started. I didn't have to worry about having enough money to buy food, or petrol to get to work, and we were putting money by for emergencies and car repairs. It hasn't been all plain sailing, but infinitely preferable to the situation we were in. Plus because we were only paying the absolute minimum on our credit cards it would have taken many, many years to pay them off at that rate. With the DMP I hope to be debt free in under 5 years.

Obviously you must do what is best for you and look at all your options of course. Hope you are able to make a decision soon.

meredith132

Thank you, I am glad it has worked out well for you and wish you the best. I think I am veering towards DMP. I just got paperwork through for my new bank account. I've worked out my outgoings will be halved. I think I have had this bothering me more than I realised since ex left me high and dry. Is it sad that its almost a bit exciting to be turning it all around? lol :think:

sourcrates

meredith132 wrote: »

Thank you, I am glad it has worked out well for you and wish you the best. I think I am veering towards DMP. I just got paperwork through for my new bank account. I've worked out my outgoings will be halved. I think I have had this bothering me more than I realised since ex left me high and dry. Is it sad that its almost a bit exciting to be turning it all around? lol :think:

This is the point I try to get over to people when they log on here asking for help to deal with there debts, its all about taking back control of the situation, where you call the shots, and not the people you owe money to.
Time and again you get people saying things like "they want full payment in 7 days" or "I must contact them today" that is there agenda, and not yours, you will find creditor/DCA attitude will change if you don't let them ride rough shod all over you, you dictate when, and how much you will pay them, not the other way around, im glad you are starting to sort your finances out, and I wish you luck with your debt free journey.:T

meredith132

Thank you and I think it is regaining control that is feeling good. I do feel like I have been panicing about what I am going to do but actually I just need to realise I am carrying 2 peoples debts on my own, on one wage so the creditors will have to accept it. I can't sustain it any longer. I need 2600 a month coming in every month to pay outgoings food and petrol. I just haven't got it.

FuzzyDF

Hi Meredith,

About 2 weeks ago I was in exactly the same situation as you. Panicking that I had no money left after paying the minimum fees and then robbing Peter to pay Paul which left me really anxious and it started to affect my health.

I plucked up the courage to phone Step Change who have literally changed my life (as well as posters on the DMP mutual support forum).

SC are currently finalising everything and my first DMP payment goes out on 1st July.

If I have a wobble like I did this morning someone always helps and explains things on here.

For the first time in July I will actually have money in my new bank account. This has taught me a valuable lesson which is to never bury my head in the sand ever again and to budget wisely.

My biggest worry was that one of my creditors would make me bankrupt but I have no assets so I've stopped worrying about that now.

Onwards and upwards!