Experiences So Far

timeforchange2014

Hi all

Well back in May I posted on here saying that myself and my wife had had the light bulb moment. That moment where your gut is in knots as the reality of your debt hits you.

I read endless posts from people in the same situation and people that felt the same as us. Simply terrified!

I made my first call to Step Change in May to talk to them about the problems we were in and I have to be honest they were brilliant. I went through our income and expenditure and what got us into such a mess. They didn't judge at any point and were really helpful.

I estimated that we were approximately in £32000 worth of debt and at the time I was resigned to the fact we were going bankrupt. Within 20 minutes Step Change had convinced me that bankruptcy really wasn't necessary and with our salaries we could pay this debt off in a reasonable amount of time.

I decided after reading forum after forum on the internet that maybe Step Change wasn't for everyone. I am quite an independent and strong character and my wife is to. Yes we felt disgusted with ourselves for the mess that WE had caused but on the same note WE felt that WE should lead ourselves out of it. Neither of us are afraid of speaking to people in difficult situations and we never let people get the better of us.

Anyway a month ago we set about contacting our creditors witht he aim of having all interesticon and charges stopped and us paying the full remaining balances back in full.

I have read endless posts from people who have gone with Step Change and others and that only a few of the creditors have agreed to stop the interest and charges.

After a few weeks we have received 6 responses in total and all 6 have agreed to stop the charges and interest and allow us to repay at the rate we offered. Some of these creditors are also ones that have refused this to Step Change clients!!

I will keep updating this but please EVERYONE, sometimes it pays to take control yourself.

Your creditors are not all bad people. Be honest and be reasonable.

I should also point out, that on detailing all of out debt it was actually closer to £40000!!!

Sazzie23

Hi Timeforchange


Congratulation on your successes, I admire your abilities and am pleased you've felt able to share. I'm with SC, and I really wouldn't have been in a position to contact anyone (I used to sob on the phone to SC) at first, and SC have been a real help to me. Admittedly not all my interest is frozen, but it depends where you are and with what debt and what creditor, however I moved away from not being able to pay to not only making the arranged payment but occasionally more and I couldn't have done it on my own.


One day I may go self managed but its a step too far at the moment for me. Sounds like you have it under control & I think you've been over to the DMP support thread, but remember we are still there if you did need to vent.

midlander81

Great to hear that you have got things under control. Your debt level is very similar to mine and I can totally relate to that awful feeling when you realise the full extent of what you owe!!!


I haven't spoken to Stepchange and I feel fairly confident that we can pay back what we owe on our salaries. We earn around the 64K mark between us. Does this sound reasonable based on what Stepchange told you?

Suseka

Congratulations on your success with going self-managed - as you know there are a growing number of folks doing so, and doing well with it.

I'm much like Sazzie23. I was in complete shock when the reality of our debt situation came out - so at the time, whilst normally very able to handle difficult situations, felt completely out of my depth and needed the mediation of Stepchange.

A year on we only have 2 accounts where interest is being charged on and off (both Barclaycard) and I'm dealing with that. With the remaining playing ball I'm less inclined to go down the self-manage route -but I'm not adverse to it should the need arise.

Its therefore helpful to read posts that continue to prove it is manageable and I wish you well in your debt free journey.

midlander81

Suseka wrote: »

Congratulations on your success with going self-managed - as you know there are a growing number of folks doing so, and doing well with it.

I'm much like Sazzie23. I was in complete shock when the reality of our debt situation came out - so at the time, whilst normally very able to handle difficult situations, felt completely out of my depth and needed the mediation of Stepchange.

A year on we only have 2 accounts where interest is being charged on and off (both Barclaycard) and I'm dealing with that. With the remaining playing ball I'm less inclined to go down the self-manage route -but I'm not adverse to it should the need arise.

Its therefore helpful to read posts that continue to prove it is manageable and I wish you well in your debt free journey.

Well done Suseka on paying off such a large amount in just a year!! It gives me reassurance that we can clear our debts quickly. It must feel great to see your debt going down as such a rate!

Historybuff

I'm with you TFC. I'm so pleased I decided to contact creditors myself. The relief to be finally dealing with the debt mountain is immense.
Good luck.

Sazzie23

Historybuff wrote: »

I'm with you TFC. I'm so pleased I decided to contact creditors myself. The relief to be finally dealing with the debt mountain is immense.
Good luck.

I think some of it is about retaking control, if you go self managed obviously you have all the control, if using a charity like SC the control is handing back to you more gradually. The outcome is positive whichever way we do it.

jodles16

Just wanted to congratulate you on taking your first steps to debt freedom!! Sounds like your doing a great job and Im glad you are able to manage this independently! I dont think it matters how you do it ultimately, whether its step change or by yourself I think its just brilliant your able to take these positive steps!

Keep up the great work, consider starting a diary!

Jodles

sourcrates

Hi OP,
I`m really glad you have posted this, as there seems to be a great myth floating around that companies like stepchange, payplan, etc or any debt management company, fee paying or not, have mystical powers or something, they don't.
All they do is write letters, or more probably, emails, on your behalf.
I am trying to make two points here, the first one is you don't need to pay anyone for this service, if you feel you cant contact creditors yourself, that's why the debt charities exist.
Secondly, people get themselves into debt, why cant they get themselves out of it ?
I`m a big believer in taking control of situations that directly affect me, and applaud your attitude to this, I wish more people would follow your example.
I believe the reason you have succeeded in having interest stopped, where stepchange have not, is partly due to the number of clients they are servicing at any one time, there must be time constraints, and personally I think you stand a better chance of success going it alone, well done again.

timeforchange2014

Hi guys

Just a quick update.

Firstly thank you for all the replies to my post. It's great knowing others are in the same situation (I don't mean that in a negative way). I think the more people are open about their situation and speak to people in the same situation the easier things are.

Anyway as of today out of 12 creditors I have had 10 responses and all 10 have frozen interest and charges and accepted the monthly repayment offer.

I have not had any real hassle either in achieving this and I want to point out they have been really friendly and professional.

All I have done is be personal, honest and realistic. I have asked them to meet me half way. Stop the interest and charges and in return I promise and guarantee to pay them back every penny and keep them updated with my financial situation.

I think this has worked better as I am assuming the debt charities send them a blanket letter template and that's it. I'm not saying this is wrong as they are doing all they can with the workload and resources, I do honestly feel though that showing I am taking control and accepting responsibility makes them more accommodating.

Anyway I will keep you posted on the remaining creditors and our progress.

I can only say again if your thinking of going it alone I can only speak from current experiences and it's a total success. I will pay every penny of this back and I will never put myself in this situation again.