DMP & Mutual Support Thread - Part 11

[Deleted User]

Perpetual_Miser wrote: »

Hello,

I'm coming up to my first annual review with StepChange next month.

For those who've been through this, what will be involved? Will they contact me or should I resubmit my budget?

I'm not yet in a position to increase my monthly payment by a significant amount but I would like to make a nominal increase to show progress.

Thanks

In my experience, I've always contacted them. Very simple and quick process, nothing to be alarmed about:). They want to help you make sure the DMP is working for you.

Don't worry at this early stage of your DMP (although I have no idea what the expected duration of yours is) about upping your payments to creditors. If your income is only very slightly more than last time it might be best to raise one of your budget catagories by a few pounds, such as 'Emergencies' and then leave the outgoing payment to creditors the same. That way it gives you a bit of extra cash. I don't think SC expect us to increase our payments to them year on year. Plus, a very tiny amount of extra money overall won't hasten your DFD very much at all.

The first time I did a budget review I left all my regular payments to utilities etc the same as the previous year and SC were surprised. They said that as utility prices, council tax and insurance costs generally had gone up was I sure I was claiming enough? They wanted to make sure the budget was working for me and that I wasn't over-committing on payments to creditors.

You can do it all over the phone, you don't have to send any paperwork to SC. Have all your figures to hand though so you can update anything that needs it. I think you can also do it completely online.

Sazzie23

carbootcrazy wrote: »

In my experience, I've always contacted them. Very simple and quick process, nothing to be alarmed about:). They want to help you make sure the DMP is working for you.

Don't worry at this early stage of your DMP (although I have no idea what the expected duration of yours is) about upping your payments to creditors. If your income is only very slightly more than last time it might be best to raise one of your budget catagories by a few pounds, such as 'Emergencies' and then leave the outgoing payment to creditors the same. That way it gives you a bit of extra cash. I don't think SC expect us to increase our payments to them year on year. Plus, a very tiny amount of extra money overall won't hasten your DFD very much at all.

The first time I did a budget review I left all my regular payments to utilities etc the same as the previous year and SC were surprised. They said that as utility prices, council tax and insurance costs generally had gone up was I sure I was claiming enough? They wanted to make sure the budget was working for me and that I wasn't over-committing on payments to creditors.

You can do it all over the phone, you don't have to send any paperwork to SC. Have all your figures to hand though so you can update anything that needs it. I think you can also do it completely online.

Excellent advice from CBC, I do my. SC review on line but they always have to talk to me as my DFD is very long, but they are happy as I pay my mortgage off in less than 4 years and can up the payments then (hopefully). And you can review anytime, you don't have to wait til a year is up if something has changed a lot.

Saz

Haha I signed one of my work email Saz the other day....:o

Sazzie23

Tiggerlou wrote: »

Hi all.... first payment went out to stepchange at the start of the month to be hit yesterday with an overpayment of tax credits of nearly £8000! Does anyone know if you can add this to the dmp as some threads I have read say you can and some say otherwise.... I am still waiting for stepchange to answer me x

Ooer £8k that's a wacking bill, have you taken advice to make sure the calculation is correct? I'm no help I no nothing about them sorry, but I'm sure someone will.

It'll either be added to the DMP or classed as an essential bill which will reduce your available amount to other creditors, but still get it checked.

Saz

heavenlyharry01

Sorry to keep asking questions.

Is there a minimum amount step change will accept to distribute between your creditors?
I'm trying to work on my budget which is really hard, when your used to putting everything on cards!! At the moment it's only leaving us around £70, which would have to be split between 10 creditors!
Do I need to try and get that figure up, by cutting back more on shopping and clothes etc.?

abby1234519

heavenlyharry01 wrote: »

Sorry to keep asking questions.

Is there a minimum amount step change will accept to distribute between your creditors?
I'm trying to work on my budget which is really hard, when your used to putting everything on cards!! At the moment it's only leaving us around £70, which would have to be split between 10 creditors!
Do I need to try and get that figure up, by cutting back more on shopping and clothes etc.?

Payplan say £100 or to just make token payments of £1

Perpetual_Miser

heavenlyharry01 wrote: »

Sorry to keep asking questions.

Is there a minimum amount step change will accept to distribute between your creditors?
I'm trying to work on my budget which is really hard, when your used to putting everything on cards!! At the moment it's only leaving us around £70, which would have to be split between 10 creditors!
Do I need to try and get that figure up, by cutting back more on shopping and clothes etc.?

I've heard that you should be aiming for at least 1% of the overall debt. However, my payment is very slightly below this currently so it's only a guide.

At the end of the day, you can only pay what you can afford - that's the whole point of a DMP. Although, if you're significantly below 1% then you might be better looking at other options (e.g. bankruptcy).

Sazzie23

heavenlyharry01 wrote: »

Sorry to keep asking questions.

Is there a minimum amount step change will accept to distribute between your creditors?
I'm trying to work on my budget which is really hard, when your used to putting everything on cards!! At the moment it's only leaving us around £70, which would have to be split between 10 creditors!
Do I need to try and get that figure up, by cutting back more on shopping and clothes etc.?

Hi Hh

I believe SC have a minimum of £5 per creditor, however I'm not sure if there are other criteria such as an % per creditor. If it helps you, I'm paying £130 between 6 creditors over £35k initial debt.

I perhaps haven't seen all your posts, but have you considered other options if things are so tight, DRO , IVA etc.

Saz

sourcrates

Tiggerlou wrote: »

Hi all.... first payment went out to stepchange at the start of the month to be hit yesterday with an overpayment of tax credits of nearly £8000! Does anyone know if you can add this to the dmp as some threads I have read say you can and some say otherwise.... I am still waiting for stepchange to answer me x

HMRC are a law unto themselves, they have specific guidelines on repayment times for these kind of debts, so I don't know the answer to be honest.


What I do know is any benefit overpayment can be included in a debt relief order, would you qualify for one of those at all ?

sourcrates

heavenlyharry01 wrote: »

Sorry to keep asking questions.

Is there a minimum amount step change will accept to distribute between your creditors?
I'm trying to work on my budget which is really hard, when your used to putting everything on cards!! At the moment it's only leaving us around £70, which would have to be split between 10 creditors!
Do I need to try and get that figure up, by cutting back more on shopping and clothes etc.?

Harry are you a homeowner, or do you rent ?


How much do you owe in total ?

Little_Miss_Sunshine

heavenlyharry01 wrote: »

Sorry to keep asking questions.

Is there a minimum amount step change will accept to distribute between your creditors?
I'm trying to work on my budget which is really hard, when your used to putting everything on cards!! At the moment it's only leaving us around £70, which would have to be split between 10 creditors!
Do I need to try and get that figure up, by cutting back more on shopping and clothes etc.?

If you choose self managed - nedcab budget is a little more generous than step change. It also allows you to play around with your figures but alerts you if something is too high. It also suggests an amount for food, clothes etc.
We pay £52 over 5 creditors ( another 3 are unenforceable at present). Our aim is to save and offer F & F offers in about 2 years. Take your time and work out a plan which best suits your circumstances and explore all your options. Nothing will happen other than letters and phone calls ( which you can block. )