DMP & Mutual Support Thread - Part 10

dad2one

Yes, basically what Sazzie23 says.
Don't hold back, talk to Stepchange now. You'll find yourself not having to struggle anymore.
Bailiffs can only be used with a court judgement - play honestly and nicely, that will never happen.
Do not panic.
With geniune problems the law is on your side and people you owe money to have to be amenable, once on a plan, whatever that plan is, you'll be able to live again, without worry.

Good luck

Kate_fixing_it

Excellent advice from Sazzie and Dad2one. Just having that first conversation with SC was fantastic. Part of my call with them involved the advisor calmly and clearly telling me what creditors can and can't do. It was a huge relief!

My insanely busy week is going well. Exams are booked (I start on 17th November and finish 3 days before Christmas) DS1's birthday is all sorted, work is relatively calm and organised and I'm all set for a 3.30pm finish today for parent evening, BFF 4th present buying and interview prep. Even the sun has made an appearance today!

Still no debt clearing action but the PPI payout is sitting pretty in my bank waiting for an acceptable offer.

Kate x

twiggy86

Hi


Been lurking for a while but today I am determined to get things under control - so this is my fourth step!
Here's my background info! I half inherited a house last year so have finally moved out of the parents and in to the real world of responsibility! The key reason for my debt is that the house needed extensive work doing (completely re-wired, replumbed, plastering, flooring etc etc!) Whilst I had some savings for the work, this quickly ran out and so resorted to putting it on my credit card to get the house into a habitable state. There's still lots more work that needs doing and so I need to get back on track money wise otherwise this will continue to spiral.


First was to calculate my total debt:-
Credit card - £6,652.48
Next - £436.48
Overdraft - £480.52 (interest free)
TOTAL - £7,569.68 (eek)


So my second step was to apply for an interest free credit card to transfer some of my current balance. However unfortunately I got refused.
So my first question is - I know Martin says to space out applications but how long should I leave in between? I've made an appointment to speak to someone at the bank next weekend but worried this isn't enough time between applications but also really want to get some debt shifted.


I've also started working on a budget so that I know exactly where I stand! My second question is - if I budget £20 for X and £50 for Y etc - where do you keep your money? (No I'm not a burglar!) Do you keep it in your bank and just note how much is in each pot or do you draw it out the bank and keep it in separate envelopes? I have got a couple of accounts with my bank so all my household DD come out of one so that is separate from my everyday money. I know I would feel more in control if I had it in separate envelopes but then what if I do online shopping?!


I hope this is the right post for this - any help would be greatly appreciated!

Puzzcat

twiggy86 wrote: »

Hi


Been lurking for a while but today I am determined to get things under control - so this is my fourth step!
Here's my background info! I half inherited a house last year so have finally moved out of the parents and in to the real world of responsibility! The key reason for my debt is that the house needed extensive work doing (completely re-wired, replumbed, plastering, flooring etc etc!) Whilst I had some savings for the work, this quickly ran out and so resorted to putting it on my credit card to get the house into a habitable state. There's still lots more work that needs doing and so I need to get back on track money wise otherwise this will continue to spiral.


First was to calculate my total debt:-
Credit card - £6,652.48
Next - £436.48
Overdraft - £480.52 (interest free)
TOTAL - £7,569.68 (eek)


So my second step was to apply for an interest free credit card to transfer some of my current balance. However unfortunately I got refused.
So my first question is - I know Martin says to space out applications but how long should I leave in between? I've made an appointment to speak to someone at the bank next weekend but worried this isn't enough time between applications but also really want to get some debt shifted.


I've also started working on a budget so that I know exactly where I stand! My second question is - if I budget £20 for X and £50 for Y etc - where do you keep your money? (No I'm not a burglar!) Do you keep it in your bank and just note how much is in each pot or do you draw it out the bank and keep it in separate envelopes? I have got a couple of accounts with my bank so all my household DD come out of one so that is separate from my everyday money. I know I would feel more in control if I had it in separate envelopes but then what if I do online shopping?!


I hope this is the right post for this - any help would be greatly appreciated!

Hi twiggy,
You will get more response to your situation if you post this on the main debt free wannabe board rather than this thread which is about debt management plans.
Good luck

till32

hello everyone,


I have finally decided to turn to a dmp as a way of ending my sleepless nights and constant worry. I am going through a divorce and had to rehome myself and kids and ran up debts that I am struggling to repay, I haven't defaulted or missed any payments yet but I am living hand to mouth and using constant payday loans to survive each month.


Once my divorce is settled I will have a disposable amount to pay for 60% of my debts with so there is light at the end of the tunnel but I don' think that will be for about 12 months, hence my decision to go down the dmp route with step change who have been very helpful I must add.


I will be sending back the application pack with all the documents required tomorrow and intend to start cancelling direct debits. I feel like a massive weight has been lifted already. Step change say I will have £99 spare each month to repay debts and I have to split this between 7 creditors.


So what can I expect to start happening? Will I start receiving nasty letters? are there any particular companies that are worse than others?

GrinC

Please can I ask catalogue DMP advice? The catalogues have accepted the payplan arrangements but based on 28 days rather than monthly. Should I try to make an extra payment to them so I'm always in advance? What will happen if the payments default because they'll be a few days late every month?

I read somewhere that it's better sometimes for people to default with creditors so the debt gets passed on quicker. Does this sound right?

igaveupnowimback

Started DMP couple months ago, first payment out. Ok but confusion and extra expenses inc deposit for house move meant I got behind with council tax, thought I could make it up and now have a demand in to pay over £600 within 7 days. I feel so bad to have to explain myself to Stepchange again, so stupid.:(

Puzzcat

igaveupnowimback wrote: »

Started DMP couple months ago, first payment out. Ok but confusion and extra expenses inc deposit for house move meant I got behind with council tax, thought I could make it up and now have a demand in to pay over £600 within 7 days. I feel so bad to have to explain myself to Stepchange again, so stupid.:(

Things happen, that's life.. Its a priority debt so will need to be dealt with at the expense of the pesky creditors. I'm sure Stepchange will get you sorted, give them a ring today.
Puzz. x

Puzzcat

GrinC wrote: »

Please can I ask catalogue DMP advice? The catalogues have accepted the payplan arrangements but based on 28 days rather than monthly. Should I try to make an extra payment to them so I'm always in advance? What will happen if the payments default because they'll be a few days late every month?

I read somewhere that it's better sometimes for people to default with creditors so the debt gets passed on quicker. Does this sound right?

Hi GrinC,


Sorry I don't have any catalogue experience, the only creditor I had who wanted a different pay date to SC, I just rang and advised they paid monthly on the 25th and they changed the pay date to that. Have you tried to call the catalogues? Although I have heard some can be less than pleasant. maybe give SC/PP a call and ask them, you don't want to be plagued with calls each month as your payment is late. Defaults are good and generally happen anyway as you are not keeping up with your minimum contractural payments.


Puzz.x

Puzzcat

till32 wrote: »

hello everyone,


I have finally decided to turn to a dmp as a way of ending my sleepless nights and constant worry. I am going through a divorce and had to rehome myself and kids and ran up debts that I am struggling to repay, I haven't defaulted or missed any payments yet but I am living hand to mouth and using constant payday loans to survive each month.


Once my divorce is settled I will have a disposable amount to pay for 60% of my debts with so there is light at the end of the tunnel but I don' think that will be for about 12 months, hence my decision to go down the dmp route with step change who have been very helpful I must add.


I will be sending back the application pack with all the documents required tomorrow and intend to start cancelling direct debits. I feel like a massive weight has been lifted already. Step change say I will have £99 spare each month to repay debts and I have to split this between 7 creditors.


So what can I expect to start happening? Will I start receiving nasty letters? are there any particular companies that are worse than others?

Hi,


Yep lots of letters, some nasty, some won't make any sense but just file them away or speak to SC or pop on here if your unsure if you need to action anything. The creditors are all very different and seem to treat us all differently, but none of mine were nasty.. Anyone in particular you are concerned about?


Puzz.x