DMP & Mutual Support Thread - Part 11

Perpetual_Miser

I've just received an e-mail stating that one of my debts has now been transferred to 'United Kash Limited'.

Has anyone had any experience with this Company? I have updated my DMP via StepChange to reflect the change and this is currently showing as 'pending'.

I have to admit that I'm a bit worried that they will pursue the debt more aggressively.

abby1234519

May I ask a question please?

Why choose Stepchange over PayPlan

Also why choose self managed over managed.

OH's DMP is with Payplan but they don't have a clue as to the actual figure from creditors. I had thought of going self managed as I think it might be easier for me to deal with it.

Floopy2009

Right i am now going to start my dmp alone cancelled the direct debits today, should i let them know i cannot pay and leave them to default me overtime and just keep on reminding them on every letter i get i cant pay or just ignore. Also what happens about interest will they continue to pile it on. I think the banks have a protocol with regard people not paying but what about the likes of next and argos

Cheers

OrganisedNic

Hi all quick question from a newbie.

I'm waiting for my application pack from SC which has a £650 monthly payment for 6 creditors oweing around 46k. My question is as this has already been processed by SC would it be much trouble to ask that the first few payments are simply token payments for me to build up an emergency fund for work travel costs that I get back on expenses but often have to wait 3 weeks for reimbursement (I rent privately, no savings, no assets). If so, how do I explain to my creditors when my budget shows I have £650 to pay every month.

Sorry for the frantic post, I *was* feeling positive about making the first steps but now I'm doubting myself!

sourcrates

OrganisedNic wrote: »

I'm waiting for my application pack from SC which has a £650 monthly payment for 6 creditors oweing around 46k.(I rent privately, no savings, no assets).

Hi,

Simply delay starting the DMP, a quick letter to SC is best.

You could also send to your creditors as well, you are under no obligation to explain yourself, so don't panic.

Any reason why you chose a DMP over say Bankruptcy ?

As you have no assets, and such a high debt, wouldn't going bankrupt be better for you ?

OrganisedNic

sourcrates wrote: »

Hi,

Simply delay starting the DMP, a quick letter to SC is best.

You could also send to your creditors as well, you are under no obligation to explain yourself, so don't panic.

Any reason why you chose a DMP over say Bankruptcy ?

As you have no assets, and such a high debt, wouldn't going bankrupt be better for you ?

Thanks for the quick reply!

I was looking into an IVA but after doing the debt remedy online, SC recommended a DMP as my DFD is around 6 years which could come down soon when my hire purchase runs out. My job is rather secure and I have a reasonably good wage so when I get used to the budgeting aspect I'm determined to pay off as much as I can.

I will contact SC and ask for a delay. I have all the letters ready just wondered whether it's normal to try build up an emergency fund first.

sourcrates

OrganisedNic wrote: »

I will contact SC and ask for a delay. I have all the letters ready just wondered whether it's normal to try build up an emergency fund first.

Yes it's something stepchange won't tell you, but others in your position will tell you it's essential !!!!!

CP2016

Hi Nic and welcome - yes you need an emergency fund especially since you need a float for expenses. I didn't have one and I struggled to start with - it did get easier with time, pay rises and better budgeting skills but save yourself the pain and get that fund in place before you start out - token payments for a few months might also get you some early defaults.

[Deleted User]

OrganisedNic wrote: »

I will contact SC and ask for a delay. I have all the letters ready just wondered whether it's normal to try build up an emergency fund first.

Yes, as others have already advised, it is very important to build up an emergency cushion before diving in to your SC.


I hadn't discovered this thread prior to starting my DMP:o so missed out on the invaluable advice and experience of others who had been there and done it.


Like you I was keen to pay my debts off by a DMP. Bankruptcy and other solutions never figured in my plans. I soon came to realise that diving straight in (with a monthly payment of £730:eek:) with no savings or availability of credit was going to present huge problems. I merely existed rather than had a life for the first 3 years. As essential appliances 'died', I had big, unexpected Vet bills to pay and my ancient car was draining money I had to contact SC and ask for a few months of token payments. This paid for the emergencies and gave me a tiny emergency fund. They made it clear that this should be a 'one off' occurrence and that creditors don't like this happening. At the same time I rejigged my budget to give myself a bit of leeway. I was still paying £680 a month but it was slightly more comfortable for me.


I've now decided to go self-managed, starting next month but intend to pay my debt off at just short of the £680 as I can't wait to get rid of it. Being retired I want to relax a bit whilst I still have my health and strength and not have this huge millstone (still:() around my neck as I enter my dotage;).


Good Luck:beer:

Sazzie23

OrganisedNic wrote: »

Thanks for the quick reply!

I was looking into an IVA but after doing the debt remedy online, SC recommended a DMP as my DFD is around 6 years which could come down soon when my hire purchase runs out. My job is rather secure and I have a reasonably good wage so when I get used to the budgeting aspect I'm determined to pay off as much as I can.

I will contact SC and ask for a delay. I have all the letters ready just wondered whether it's normal to try build up an emergency fund first.

Hi Nic

Yes you need an emergency fund. I'd also recommend you reduce your payment to SC as the other thing you might not realise is that your DFD is based on all interest being stopped. At such a high repayment rate I'd expect some creditors to still apply (lower rate) interest.

I understand you want to get it all paid off, but sometimes there are better ways than jumping straight into the DMP. Put it in hold for a month or 2. Get your emergency fund - tell SC you've had big car expense or something if it worries you to pause it.

Have a good read through the threads and then decide after Chistmas if you still want to go ahead. Apart form a few letters and phone calls, nothing bad will happen while you research what to do.

Saz