Stepchange annual review

nana2four

Hi we are on a DMP with stepchange and we are due our yearly review , but our circumstances are going to change we have sold our home and we will have about 50k equity ,we will be private renting. We wont be able to claim any help with housing costs as we will have the equity , we could pay alot of the debt off with the money, but as we are on a reduced income at the moment i dont feel that will be a good idea ,my plan is to move stay with the DMP and focus on improving our income.The issue is that the rent is higher than our mortgage so on paper we wont be able to afford the DMP and im scared they will take us off it all our debts are unsecured they are 3 cc and 3 bank loans all ours.So my question is do we have to do a review if i ignore it will they stop the DMP ?

National_Debtline

Hi

I’m not sure of the terms and conditions on a Stepchange DMP so you’ll have to check your agreement as to whether they’ll cancel it if you refuse the review.

You could just say you’ll draw a certain amount of income from your lump sum each month to make up the difference in your income. The other option is to make full and final settlement offers on your debts and potentially clear them all in one go.

James
@natdebtline

sourcrates

James has a good idea there of offering full and final settlements to your creditors, but if that isn't possible, as a DMP is an informal agreement, you can just carry on paying it yourself, remove Stepchange from the equation completely.

They follow a script were repaying debt is concerned, which doesn't always fit everyone's situation, may be better if you went self managed.