Not looking forward to DMP process

January2015

Hi melysion

We only started our DMP with Stepchange in the last couple of weeks. The first payment is being collected by them on 1st March.

We had never missed any payments on any credit cards or loans/overdrafts until this month. I contacted all creditors through the online secure message system on each of the accounts and told them we were working with StepChange to organise a DMP. I asked them to put all contact in writing. There were 2 creditors that didn't have an online message system (RBS & NatWest). I phoned them and explained and they were really nice and helpful and immediately put a 30 no contact rule in place and said no late fees/admin charges would be applied whilst this 30 day period was in place. This 30 days was to give StepChange the time to contact them with an offer.

Today we have had our first creditor letter confirming acceptance of the offer. So in total 2 phone calls, which I made to the creditors, and that's it.

Don't panic. As I said we are just starting out, but I can honestly say this is the best decision we have made regarding our finances (the previous decisions to borrow, transfer credit card debits, consolidate onto a secured loan) were all disastrous and made thinking we didn't have any other options.

I won't wish you luck with DMP - you don't need luck now you have decided to take control of your finances.

bargainbetty

melysion wrote: »

My work contract says no second job and no IVA/bankruptcy. I don't work in the financial sector but it appears that more other jobs are demanding these things

Speak to your employer, and say that you wish to find a second job in another industry to save towards house improvements or such like. My contract says no other jobs, but when I was approached to offer IT training to a few people they were very happy to approve it as there was no conflict with my role. If there is no conflict, it would be hard for your employer to refuse consent.

Do online surveys, competitions etc, make sure you use quidco/topcashback etc to make what you can that way - little bits add up over time.

Good luck

melysion

Thank you all for your help and support. Will keep you posted

melysion

So, I filled in a stepchange debt remedy form and they suggest a DMP which apparently (all assuming my creditors are nice to me and not charge interest) should take 4 years and 5 months to clear. We will see I guess.

My creditors are MBNA and Barclaycard (credit cards)
And Lloyds Bank (personal loan the size of a country)

I've already read nightmare stories regarding Barclaycard so am concerned.

Feeling slightly paralyzed by all the different steps that need to be taken (my stress threshold has been battered by other things recently) but it has to be done.

kendall17

You've done the right thing completing your budget on debt remedy. There isn't too much you need to do. It is simply put in your personal action plan.

Sign & return the DMP agreement.
Confirm the list of your creditors
Confirm your income
Complete the DD form.

Get that lot back to StepChange asap and they'll get your payment set up for the begining of April!

If you're banking with Lloyds/Barclays - get a new basic bank account (no overdraft) set up away from them 2. No credit checks needed on a basic bank account!

Also if you have any worries, there's a telephone number in the personal action plan - give them a call.

Well done on taking the first steps and regaining control of your finances!

KirstyO

Dont stress too much about lenders who have been named and shamed on here as 'difficult'. When I went into my DMP, I got good results from companies that had been criticised on here. Its a case by case thing and even though its not right, some people are just more fortunate than others.

spot3

Well done for taking those steps, it is scary and I think it took me 2 years to stop being ashamed of being on a DMP. There is nothing to be ashamed of, you are still paying your debts it's just that it makes it manageable.

My experience with Barclaycard hasn't been a nightmare, it's just that they can be harder to get to stop interest. I've had no hassle, letters or phone calls since I started my DMP with Stepchange.

Come and join us on the DMP support thread when you feel ready.

Siamese

Well done for starting to sort this out. I think when you complete the Stepchange forms you'll find there are categories for ALL your expenses, so you'll hopefully be able to have a modest amount left for entertainment (maybe a more generous food budget than you'll actually use, for example). I think you're allowed to budget for clothes.
A couple of thoughts
- are you buying a Tube season ticket, because a bus ticket would be cheaper if you could do it (I know this depends on where you live)
- you live in London so there are tons of things to do for free (especially as you have a season ticket). Ask your friends if they fancy a trip to the Science Museum followed by a picnic in Hyde Park, for example. Or invite them round to your place for a DVD and pizza. They can bring the wine.

All the best with the DMP.

melysion

I dont think my quality of life will improve at all if I'm honest. They recommended £10 for leisure and thats about it. But I no longer have any friends to worry about that side of things. People fall away if you keep saying no all the time. Traveling to work by bus just isn't practical sadly.

On the more positive side, I will be able to eventually pay back my debts so its a step in the right direction. Having a life again will have to wait until that's done

sourcrates

melysion wrote: »

I dont think my quality of life will improve at all if I'm honest. They recommended £10 for leisure and thats about it. But I no longer have any friends to worry about that side of things. People fall away if you keep saying no all the time. Traveling to work by bus just isn't practical sadly.

On the more positive side, I will be able to eventually pay back my debts so its a step in the right direction. Having a life again will have to wait until that's done

Hi,
I know you don't wish to elaborate on your debts etc, but heres some food for thought.
If any of your accounts date from before April 2007, you might want to try sending a CCA request to that particular creditor, that is a request for a copy of your original agreement, if it is a loan, credit-card, or a catalogue account.

If they are unable to provide the correct paperwork, they may not be able to enforce the debt in court.
Do some research, Google "CCA request" if nothing else its a nice little game to play with them, might make you feel better, and could have a positive outcome for you.