DMP & Mutual Support Thread - Part 11

motivated

Hi mica2
It looks like you are at the same point as me. So far I have had some great advice and support. Someone with more knowledge will be along soon I'm sure
M

mica2

Thanks Motivated! Nice to know I'm not alone

motivated

Mica2 It's a scary thought isn't it?

I am taking inspiration from the lovely people on here who are or have been in the same boat.

I have got myself a repayment holiday on 2 loans to give us a bit of breathing space. For a month at least .

Good luck with it all and I hope we both survive journey
M

sourcrates

mica2 wrote: »

I'm planning to start a DMP with SC in the next few days but I'm wondering whether to stop my direct debit to Barclaycard this month to give myself some extra money saved. Would this be a bad idea? What will happen?

Hi mica,

Absolutely nothing will happen, except you'll have a little extra cash in your pocket.
You should stop payments to ALL unsecured debts, for at least 3/4 months, so you can save up an emergency fund.

A simple letter to each creditor explaining your financial position, that you are taking advice from stepchange, and that you/they will be in touch again in a few months with offers of payment, and until then, please put your account on hold.

That's it, simple really, creditors are well used to these situations, and have to treat you fairly, lots of good advice on here, anything you need to know, just ask.

motivated

Hi all (again):o

Well OH has now gone to bed ( he works nights) a little less stressed as before. After a long talk and a little convincing I think he has come around to the idea of a DMP with SC.

We finally managed to talk like adults after him initially saying well if it goes tits up I blame you. Anyway I explained about the excellent advice and reassurance I have had on here and he has agreed to do some much needed reading.

He seems to think that SC are going to take all of our wages and leave us with £50 a month to live on.

If I am honest I am a little anxious about it all but keep telling myself
it will be ok. I hope it doesn't take too long to sort out. I am going to ring SC as soon as I get home from work tomorrow :eek: Wish me luck
M

January2015

Hi mica2 :wave:

As Sourcrates says - now you've decided on a DMP there's no point in making any further contractual payments to your creditors. Just stop paying now. Let the creditors know you are working with SC to set up a DMP. If you phone the creditors they may ask for your SC reference number. Just tell them you haven't got it yet (unless of course you have it already).

Creditors will be absolutely fine. They will not talk down to you, they will not think you a bad person. They have to implement 30 days no fees, charges, interest, and no contact as soon as you say you are in financial difficulty and setting up a DMP. Nice bit of breathing space. Don't panic at the end of 30 days if things are not set up - I hope they are not and you are not starting your DMP after just 30 days because you need to build up an emergency fund and save what you can for a good few months. Creditors can, and will, wait. We are all here to confirm that nothing bad happens if you don't pay them anything for several months.

Looking forward to getting to know you

mica2

Aw thank you all of you who replied to me. That's really helped ease my anxiety. I think I will take action now to move forward. I will be back on here soon I'm sure!

sourcrates

motivated wrote: »

Hi all (again):o

Well OH has now gone to bed ( he works nights) a little less stressed as before. After a long talk and a little convincing I think he has come around to the idea of a DMP with SC.

We finally managed to talk like adults after him initially saying well if it goes tits up I blame you. Anyway I explained about the excellent advice and reassurance I have had on here and he has agreed to do some much needed reading.

He seems to think that SC are going to take all of our wages and leave us with £50 a month to live on.

If I am honest I am a little anxious about it all but keep telling myself
it will be ok. I hope it doesn't take too long to sort out. I am going to ring SC as soon as I get home from work tomorrow :eek: Wish me luck
M

Just make sure you budget correctly for everything before you contact stepchange.
Use your allowances for everything, even if you don't use them.

If your not happy with something, say so, they are there to help, not to hinder or judge you, remember that !!!

Myself I've been where you are now, £57,000 in debt and all credit lines dryed up, it's easier now, as the banks regulator (FSA) have decreed that affordability is now the key to everything, including debt repayment, things are much easier now because of this, a few years ago, you would of been hassled like crazy, that doesn't happen now, so don't worry.

BeingDebtFreeStartsHere

motivated wrote: »

Hi all (again):o

Well OH has now gone to bed ( he works nights) a little less stressed as before. After a long talk and a little convincing I think he has come around to the idea of a DMP with SC.

We finally managed to talk like adults after him initially saying well if it goes tits up I blame you. Anyway I explained about the excellent advice and reassurance I have had on here and he has agreed to do some much needed reading.

He seems to think that SC are going to take all of our wages and leave us with £50 a month to live on.

If I am honest I am a little anxious about it all but keep telling myself
it will be ok. I hope it doesn't take too long to sort out. I am going to ring SC as soon as I get home from work tomorrow :eek: Wish me luck
M

So glad OH is coming round to the idea - much easier if you are in this together and can support each other

Good luck with the call to SC - let us know how you get on.

Take care,

BDFSH x

January2015

sourcrates wrote: »

Just make sure you budget correctly for everything before you contact stepchange.
Use your allowances for everything, even if you don't use them.

Hi motivated

Take this advice from Sourcrates on board. If there is a category on the income and expenditure calculator that you think doesn't apply to you - make sure you include a figure. This is something I didn't do at the beginning and whilst we managed I do regret not taking this essential piece of advice on board straight away. As soon as we went self managed we adjusted our budget to include costs in all expenditure categories that we could.

I'm so glad you OH is coming round. Perhaps he might like to join and post questions himself.

Have a good night's sleep and just think tomorrow is the beginning of your joint road to becoming debt free :j