Starting a DMP, im incredibly anxious!

[Deleted User]

Hi everyone.

Me and my partner owe around £17k spread over credit cards, store cards & two overdrafts.

We had always managed to find a way to pay the bills, be it a little late or via payday loans, I always thought that I would slowly be able to break the borrowing cycle but it never seemed to happen, in fact it got worse.

Last week I decided to go through the step change website to see what sort of advice I could get, after filling in the income/expenditure forms it showed the extent of the problem. After paying the bills we had about £50 to feed a family of 4! :doh: They recommended a DMP of £55 a month.

I have began the process, we now have a new bank account and the agreement is sighed and going in the post tomorrow but I am really starting to panic about what's going to happen, I wake up in the night and immediately start panicking about phone calls and bailiffs knocking on the door, I dread to think of them phoning work and chasing me.

Im not really sure why I am posting this I guess im just looking for advice and information from people who have been on DMP's, is it the 4 calls a day 7 days a week hell im expecting or is it not as bad as that? will the banks look at the fact ive never missed a payment and question why I am on a DMP? Is it normal to feel slightly guilty to be doing this to my creditors?


Thanks for reading and sorry for the long winded post!

Nargleblast

I think what you are feeling is quite normal, it's a big change for you! On the Debt Free Wannabe forum is a thread somewhere called the DMP support thread or something like that, you might find it useful. Once the DMP is up and running all you have to do if you get a call from creditors is to refer them to Stepchange - they will have been informed of your DMP arrangement already but some will still try it on. Pass any letters onto Stepchange and don't enter into any discussions on the phone. After a while they will get the message and things will calm down. Stick to your budget, learn how to stretch each pound, and celebrate in January when you realise that Christmas was paid for up front and there are no nasty bills coming in the post! Good luck.

[Deleted User]

Thanks! I already feel better.

Just thinking about being able to enjoy life instead of just existing makes me feel like the stress will be worth it!

Archie911

My DMP starts May 1st and I'm feeling exactly the same as you are. Really hope things work out for you

sourcrates

Ok, first off, you are not the only ones in this situation, thousands of people suffer financial problems every day, although it may be new to you, it's nothing the creditors have not seen before.

Under guidance from the FSA (financial conduct authority) when you get help from debt charities such as stepchange, lenders are now obliged to treat customers in financial difficulties fairly, unlike in the past.

So once your DMP is up and running, all your creditors will of been informed of this, you may still get letters and phone calls, that is because these companies operate a computerised system which generates the letters, and the phone calls, the computer will not know you are on a DMP so they will be treating you as though you had not made any payment arrangements.
Your response to this would be to refer them to stepchange, that's all you need say.

Do not get into long and protracted phone conversations with your creditors, it's best to keep everything in writing, so there are no errors or mis-information.

I too was like you once, never missed a payment, excellent credit record, then life gets in the way, and BANG, it was a big shock to me too, but I learned a lot from this site, and quickly learned what creditors can and can't do, I suggest you do a quick google yourself, the more information you have, the less scarey it will seem to you.

[Deleted User]

Thanks! im cerainly feeling better now.

Good luck Archie911

Ellieseleven

Ditto everything that Sourcrates has said.

We have been on a DMP for coming up to 5 years and it has been the best thing for us. We never missed a payment and felt much as you do now. I felt so dis-loyal to a bank that I had been with for 25 years plus and imagined all manner of things but after the first few weeks everything settled down and we have learnt how to budget properly and we no longer worry and fret long into the night about paying bills.

It's a fantastic feeling not to have to rely on a credit card and it's great to see the debt coming down (instead of increasing) every month. With an original debt of just short of £46k I have set milestones along the way to keep myself motivated and the help of this forum has been priceless.

This year, we will see the first two of our debts being paid off and next year will see several more. This is a fantastic achievement for me as I have had credit cards for nearly 30 years and I am excited to finally be rid of them.

I wish you well on your journey and I'm sure you will look back and know that you have done the right thing.

Take care
Ellie xx

Sazzie23

Thought I'd say hi on your thread, ditto the others, I may be having a tough time it it would be a lot harder if I wasn't already on a DMP.

Stepchange saved my life.

lewpster

Another one saying hi. I am 6 months in and nearly paid off £1,000. Not a lot but to me it is and it means my debts are going down albeit slowly.
It's hard I won't lie, but also something I wish I'd done months before then I wouldn't be in this mess for as long but hey ho!

Wishing you all the best and we are all here to help each other x

Daydreambeliever

Good luck with your DMP. Honestly, please do not worry, I am in mine now a couple of months and the relief of finally being able to get paid each month and not have to be robbing Peter to pay Paul. I just made token payments until it was set up and wrote to each creditor, and to be honest apart from Very/Shop Direct, I have had very little hassle. Anyone calls, just give your Step Change reference number.

This website and the forum has been a blessing to me as it spurred me on to take control of my situation. Also the advice and the information from all the people on here is great, no one knows about my financial situation, so to know there are so many people in the same situation helps a lot.

Please don't panic or worry about the creditors.

Good luck.

parsniphead

Good luck with your DMP creams.

I have just completed one after seven years and dread to think where I would have been without it.

One bit of advice. Do all you can to save an emergency fund while on DMP as you won't have the credit cards. Its the one area I failed at but have started to save now.

It may be a few years of being on a DMP but imagine being debt free at the end of it.:)