Reducing StepChange payment.

littlesprinkles

Hi there,

I just wanted some general advice. I started my DMP last month, and the first payment went out for £147. Which was fine, until I realised that on the details my husbands income was £25 more than what we receive (which is a lot when on a single income), and that we are struggling to stick to our £200 a month food and fuel budget, and realistically spending £250 a month. So I've gone on and it's estimated my monthly payments at £74 a month with the new details on. What are the chances of them halving my monthly payment? I am desperately seeking employment and sure I will be employed soon. I know I can always call them, just wanted to know peoples general feelings before feeling measly when calling them :-(

sourcrates

Hi,
A DMP is not a regulated agreement, there are no penalties, or rules to break, if that's your budget, that's your budget, simply ring SC and tell them there was an error, and give them the correct details, that's it, job done !!!!!

littlesprinkles

Sourcrates.

Thank you so much for your kind words. We will struggle to eat for the last week and a half this month, and I feel like I deserve that, but I feel like I'm constantly depriving my wonderful husband of a life he deserves because we were so silly. I just want to pay my debts off, and not be forced in to an IVA or bankruptcy because we are both so young. I worry that they will say our £74 is too low and that we need an IVA. Which there is nothing wrong with, but it would mean telling our parents.

xHannahx

They can recommend an IVA but you are under no obligation to do that. Insist on carrying on your dmp with a realistic amount, the creditors might get stroppy over such a quick reduction though.

littlesprinkles

Hannah, that is my main concern. I did tell them twice that my husbands income was slightly incorrect, but I guess they have so much to do! Maybe I just need to suck it up and try make even more savings elsewhere. I sometimes wonder where else I can possibly make cuts lol! :-)

xHannahx

What can the creditors do, if you can't pay them, you can't pay them.
Even If they went for CCJ as long as forms are completed correctly then the court will order the same pro rata payment anyway that they will get from the dmp so wont really impact you.
Although a lot on here seem worried about the impact of CCJ to credit ratings, if payments are reduced to other unsecured creditors the credit rating will be likely to be negatively impacted anyway a CCJ chucked on isn't going to make much difference.
We're making a lot of cuts but so we can better our living standards in other areas, getting rid of sky and going freeview with now tv bid for the occasions we want a movie or sport made massive savings, as did moving to plusnet at £2a month for unlimited broadband.

mum2one

Just ring sc there brilliant, have had to reduce my payments over time, at first I thought I could be superwoman and the car runs on fresh air...

then I had to get another car.... missed payment and reduction

dd's first yr at secondary (school uniform) missed month...

reduction a money changed, curretly paying less than 25% of what i first paid,

xx

Sazzie23

Me too, the NHS cutbacks saw my income drop by £400 a month then other circs dropped them again and now I'm down to paying less than 25% of the original. As its so soon from the start, I think fessing up that there was a mistake is the best way, just accepting the error will just run you into troubles.

Regards making extra savings, have you looked at the challenges section of the board, great ideas to be had on meal planning, cutting grocery costs etc. My top tip is to look at what is wasted, then you know you can save that without cutting anything back, you just have to concentrate more on using leftovers.

Do you know about the DMP Mutual support thread heres the link
https://forums.moneysavingexpert.com/discussion/4988866

You'd be in good company, lots of SC DMPers as well as self managed and other DMP managed.