Stepchange & Increased PDL Debt

time-4-a-new-start

Thanks sourcrates

I actually spoke to Payplan today about the same thing and they suggested that I speak to the companies myself first. Are their any money saving expert templates to use or is it simply a letter showing my outgoings and incomings and what I can pay each month?

I have had issues with some of the PDL companies phoning my place of work looking to speak to me when a payment was 1 day late once before. Im dreading the calls to my work as if they find out I could be in risk of loosing my job.

I was only considering idebtplan as an option to try and keep SC out of this while I cleared these up.

The other issue I have is will the PDL companies accept my request of lower payments and freeze interest etc? I have already set one up with Wonga (which was £1.4k of the current debt). It took them a while to accept my plan, I also had to make a first payment for it to start. Until then they kept charging high levels of missed payment interest (the loan and interest was org £1,283 but since they have added and extra £134 for 3 days trying to set up the lower repayments. Im currently paying Wonga back £250 a month. This would limit what I would have to use as payments back to the others.

I did report my debit card as lost last month as was going to sort this then but stopped. Wonga weren't too slow in making sure they got the new details to process the lower repayments online. You had to make a payment online for the plan to be accepted - and the only way to do that was to give them my new card details. I think I will have to cancel my card again then just to be sure and then pay wonga via standing order.

Ideal would be adding these to my current DMP. It would be less hassle (phoning work etc), would allow me to actually increase my DMP payment (with the money I would have to pay the PDL separately with) and also allow me to save. However the key for me is keep SC onside and not rock the current DMP I have in place.

Suseka

I'm with MB on this one, your best bet is to come clean and speak to SC. This won't be the first time this has happened with one of their accounts and If you manage to add the PDL to your existing DMP you'll be better off in the long run.

If SC do cancel your agreement, don't panic, there are a number of people on here who self-manage their DMP and do pretty well with it. There is a wealth of information on the NEDCAB website that's worth reading about on self-managed DMPs.

time-4-a-new-start

thanks Suseka

Some really helpful advice so far and appreciate everyone's input.

As mentioned above, adding to my existing DMP would be my preferred option, but have always had that fear off loosing my DMP with SC. I wasn't aware people have successfully self managed their DMPs, so that's food for thought.

Its that fear which has seen me stay away from SC with this and wrongly keep in the PDL cycle

Monkeyballs

Hi,

It's a personal thing but myself I'd rather have one payment come out each month to a single DMP provider then once they have my payment it's for them to distribute the cash although some people do go the self managed route and the advice offered by Sourcrates is good too

As for the booting, that would be SC not the creditors who if having been happy for the last 3 years will be happy regardless of where the money is coming from and if your other creditors are all PDL's then I doubt that they will refuse to accept DMP payments UNLESS you have a guarantor such as Amigo who will obviously expect payment from your guarantor...

Be honest with SC, apologise and admit your mistakes and take it from there... Whatever you do, don't go through a paid for provider though

MB

RAS

time-4-a-new-start wrote: »

thanks Suseka

Some really helpful advice so far and appreciate everyone's input.

As mentioned above, adding to my existing DMP would be my preferred option, but have always had that fear off loosing my DMP with SC. I wasn't aware people have successfully self managed their DMPs, so that's food for thought.

Its that fear which has seen me stay away from SC with this and wrongly keep in the PDL cycle

SC may refuse to let you continue the DMp with them.

If you are in a DMP (with a provider or self managed) you must adjust the payments if you get seriously unexpected expenditures.

Your budget needs reviewing to ensure that you have something in each month for maintaining the car and you need to keep this money separate from your living costs. But if the car fund is not enough to cover a major blow-out it is essential to talk to your provider and adjust your payments that month.

They are used to doing this and will help you but if you take on PD loans and other unauthorised debts, they may well refuse to deal with you in future.

Have you considered joining a credit union, by the way?

time-4-a-new-start

Thanks RAS

That has been one of my issues. When I setup my DMP I was trying to repay as much as a I could to try and clear it off quickly. I have been living like a hermit since starting my DMP which doesn't leave me any room for unexpected bills like this.

I wasnt aware I could lower my payments for a few months to help cover bills as thought this would make the creditors walk away?

Yea we do have credit unions, however to obtain loans/credit you need 20-30% of the loan in your account. Also if you have a loan with a credit union is it sill generally not the same as a PDL - ie u took out more credit when SC said not to?

But as you said there is a chance SC could walk away and say sorry you took more money so bye bye. Thats the risk I am facing and why I have turned looking some advice. I either come clean and hope I can add it to my DMP with SC or I try to resolve the PDL debt myself outside SC not risking my DMP.

This afternoon I drafted a letter for SC, explaining the situation. But have not sent it yet as I'm still not sure what to do However most people are saying I should come clean and if SC pull out then either start with a new charity or self manage my DMP.

time-4-a-new-start

The other thing worth asking is that if i go to the PDL companies and ask for reduced payments, showing what I can afford including money being paid to my existing DMP, is there a chance SC will find out anyway? Especially as the PDL companies may contact SC or follow up to verify I am actually in one to verify my outgoings?

time-4-a-new-start

Well its done. I sent a secure email to SC explaining what's has happened.

Fingers crossed they can help

thanks for the input folks

c85

how did you get on with stepchange? i had a similar situation and they allowed me to add the debts to my plan but said it would be cancelled if this happened a second time.

time-4-a-new-start

no reply yet c85

Could I ask what you extra debt was? PDL etc? and also if the amount was similar to mine? £4.5k?

thanks