Not looking forward to DMP process

JES_F1

Just wanted to wish you good luck.

When I faced up to my debts, I was terrified. I thought my debts were *only* about £25,000 but actually totalled nearer £50,000 - eeekkk!

I did a DMP with Step Change (then called CCCS). It was the best thing that I could've done. They were fantastic.

Admittedly it was daunting to start with. For example, I was scared about how I'd survive each month on what I considered such a small amount of money - in reality, I was actually better off because once I'd adapted to my new budget, my money lasted the month and it was great seeing my bank account in credit and card balances reducing!

Most companies accepted my DMP quickly so I didn't get lots of calls and letters chasing payment. The couple of slower-to-accept companies did call and write a lot but I refused to speak to them and replied to every letter saying something along the lines of, "You know about my financial problems, I've set up a DMP, and you'll get payment from Step Change on this date each month". I finally felt in control and no longer intimidated by creditors.

It took about five and a half years to be debt free - and wow, was that feeling amazing!

Good luck - you can do it!

Growurown

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.

Our quality of life improved a lot once we went onto the DMP. I claimed expenditure on things we didn't buy such as smoking, dry cleaning and meals at work. In fact I claimed the maximum amount I could for everything and was able to use that money for a bit of a social life and to put towards things like birthdays and Christmas.

Ultimately this means longer on the DMP but most of my creditors stop charging interest so it doesn't really matter if it takes me an extra year to pay it off as it won't cost me more. Yes I want to get the DMP finished asap but I want to have some quality of life too.

zuluwarrior31

Did you consider securing against the flat? The DMP is a good option but its not like you have been reckless and put yourself in this position. You have been exceptionally unfortunate. You dont need 'a lesson' in how to budget, you need something that will keep you going. Obviously I wont ask for figures but depending on the size of your DM payment you may be better paying 20/30 quid a month more and keep your credit situation in a far better place

melysion

Interesting thought but no. Absolutely not going down the route of risking my flat. It's my home and I'm not putting any kind of security on it whatsoever

Karen777

hi - I found that my quality of life improved no end once I started the dmp simply because I felt I was doing something about the hideous debt thing that had been stressing me out and making me ill. It's not easy but you get used to it and certainly knowing that you are working towards a day when you are debt free can be very cheering. It's a rollercoaster but people on here are very helpful so stick around.

melysion

It's the roller coaster element I want to avoid to be honest. Stress at the start - that's fine - but not 2-3 years down the line forever chasing things up. I don't see how that reduces ones stress levels regarding the debt at all.

As a wee update - at the moment I've gotten myself dome extra work which "might" mean I may be ok without the DMP for a few months at least. I figure the longer I avoid it the more debt I pay off in the meantime (I'm not going anywhere near more credit so no problems there).

We will see. I suspect I'll have to take the plunge eventually but if I can avoid it, I will (even if it means eating baked beans for a year)

Karen777

well good luck - sorry if I alarmed you - I was trying to be reassuring - the rollercoaster stuff really is at the beginning - my life is more levelled out financially than ever before and I am almost 2 years in.

fingers crossed you work it out in a way that feels ok.

melysion

Thanks. As I say it's very possible that a dmp will have to happen at some point but the more I can pay off at the proper rate the better I think just in terms of getting rid of the debt as soon as I can. At least I do now know there will always be a way forward and credit cards/loans are banned from my life forever.

Sazzie23

I can truly understand that you want to avoid going into DMP but the vast majority of people who did it, (including me) wish they had done it much sooner !! However its not a decision to take lightly.

What pushed me over the edge was when 2 of my CC put the interest up to 29.9% from about 18% as I was only managing minimum payments. However I would have ended up in trouble eventually anyway so they did me a favour really.

In truth it CAN be a bit of nightmare to start with, but some get through without issue & once the payments are set up and maintained I don't have any trouble. (On the DMP support thread you'll see I've had to cut payments but that's another issue, don't let it put you off)

samperry209

I lost my job in November, Same situation was comfortably paying the min payments every month then before I knew it was jobless. Stepchange have been incredible, I came down with depression and they have saved me from the brink, they put me on a TPP so I have been only paying a quid to all my creditors and its relieved me of so much stress! I seriously recommend stepchange to help you! The DMP process is not as horrible as it sounds. Yes it has a detriemental effect on your credit, but your doing a DMP pay off credit not get more so it seems logical. Arrange a DMP stepchange will put YOU first ensuring you can get to work, eat, drink, haircuts,medical expenses are covered then what ever is left goes to your debts until you either pay it all off or get a better job which then you can pay what you need to pay quicker. I myself face 2 years on DMP but i would rather have this then struggle month to month!

I hope your situation improves soon!