DMP and Additional Debt

Poodle34

Hi all, new to this forum.

I'm not the best person for this so thought I would ask here as I've used other forums for myself. One of my good friends is in a DMP with stepchange. However, she has some new loans that she has taken out to help with unforseen expenses such as car repairs etc. These loans are very high interest and she can't manage the monthly payment. I've told her to declare them to stepchange and ask if they can be included in her DMP. She is frightened of doing this in case stepchange cancel her DMP as she has taken out additional finance. She has only taken this out as she had nobody to ask for help. Does anyone have any idea of what is likely to happen to her? I'm trying to talk her into phoning them and confessing all as I've had money problems myself in the past and know how worrying it can be.

Thanks in advance.

sourcrates

Hi,
Yes, ring stepchange and tell them, they are not judgemental, and will of seen this 1000 times before.

It's the only way for her to deal with the matter.

Tell her not to do it again though !!

rising_from_the_ashes

She really does need to inform them of the additional debt


I have heard of a few people have their DMP cancelled (not sure if it was by Stepchange or not) for doing this as, taking on additional debt, is against the terms of a DMP

How much is it - if not a lot I'm sure it wouldn't come to that and, if it did happen, she could always go to Payplan

She also needs to address her budgeting and needs to discuss this with Stepchange to ensure her SOA is realistic and allows for everyday living

Car repairs etc (what are the etc items!) are not unforeseen expenses - they need to be budgeted for as, they will happen!

Poodle34

Car and house repairs, plus a reduction in hours led to her borrowing from Peter to pay Paul. She knows it wasn't the best idea. Hopefully she will get some support from Stepchange if she rings.

rising_from_the_ashes

Poodle34 wrote: »

Car and house repairs, plus a reduction in hours led to her borrowing from Peter to pay Paul.

Ahhhh - please get her to ring Stepchange AND if anything affects her income again, she must let them know ASAP

If she'd told them her income had dropped, they would probably have been able to lower her repayments ......