DMP Mutual Support Thread - Part 12

DMP_Tiger

TopsyMum wrote: »

Thank you!
I don't have enough credit on my credit card to do that unfortunately...although I do have an unused one with just enough money on (it's 2.2k) but will this not look bad when I use it then say i can't actually pay??

And bank account I have a basic,no overdraft account that was opened up with my partner last year but not really used - few maintence payments in but no d/ds, etc. Could I just start using this account and transferring everything to it??

One of the more knowledgeable people will be along soon to answer that better than I can. I've picked up lots of knowledge over the last couple of months but I'm not an expert and I don't want to give you incorrect information.

KID77

DMP Tiger

As much as things will feel awful now, this is the start of being debt free for you and it will all be so much better now you have a plan.

IMO, I would use the credit card to pay the sofa etc, I had to do it with one if mine in order to survive one month knowing fine well I was about to stop paying but was in that much of a mess.

Read back on this thread and as many others as you can as you will find so much useful and relevant information that will make this process alot easier. I would do that before contacting SC so you can decide how you want to play it. Some people plan to get debt free as soon as possible by still paying a fair amount but for me, you are treated as a bad debt customer once defaulted whether you pay them £10 or £100 per month.

Good luck xx

KID77

Sorry that post was for TopsyMum :-)

sourcrates

TopsyMum wrote: »

Thank you!
I don't have enough credit on my credit card to do that unfortunately...although I do have an unused one with just enough money on (it's 2.2k) but will this not look bad when I use it then say i can't actually pay??

And bank account I have a basic,no overdraft account that was opened up with my partner last year but not really used - few maintence payments in but no d/ds, etc. Could I just start using this account and transferring everything to it??

Yes, never bank where you have debt if your entering debt management.

sourcrates

TopsyMum wrote: »

I did all the questions on stepchange and it advised bankruptcy!
However I really don't want to do that. An Iva is an alternative but again I'm reluctant.
A DMP seems to be the most appealing to me but having had a quick look on here before posting I'm thinking there are more pros to doing it yourself?

My first question really is where/how the hell do I start?? I want to be fairly quick with this as my direct debits mainly go around the 1st of the month and I am understanding I need to cancel them? But then how do I let them know? How do I make a nominal payment?
And am I right in thinking I can just pay £1 a month for a few months whilst I work out exactly what's what then write again explaining how much I have and what I can pay?

I owe about 23k with my main creditors being a Tesco loan, barclaycard and a Tesco credit card then a few smaller ones, although I am due to start paying for sofa and carpets I got last November on one of those first year free etc deals -how do I go about this?

Also this debt was pretty much mostly built up in the last 16 months with the full intention of being able to pay back which is why I morally prefer a DMP, but personal circumstances changed massively and it's just now where I've realised I've run a lot of it up using one to pay other etc (so no missed payments)and it's a never ending vicious circle- but does it make a difference that it's all recent??

I'm fairly organised and more than able to communicate ( letter is best?) but really do need and would appreciate an idiots guide on exactly how to start this.

And also as one of my debts is barclaycard and my bank account is Barclays am I best using a different bank account and using that for my direct debits for utilities/rent etc?

Thank you x

Hi,

See this thread, same advice applies to you too :

https://forums.moneysavingexpert.com/showpost.php?p=74553979&postcount=3

bewildered1

I've used the Stepchange online tool and it recommends bankruptcy but after finding this forum (and lurking, reading the many posts) I wonder if a DMP could be set up instead.

I have two questions...

1) Can Stepchange refuse to set up a DMP if they recommend bankruptcy?

2) I am around £24k in debt. I can afford to pay around £150 per month towards my debts at a push. Is there a minimum amount that will be accepted by Stepchange and in turn my creditors?

I just want to say that the help and support I have seen given on this forum is amazing. Like others I have had feelings of complete and utter dread and hopelessness. But by coming here and reading all your comments you have helped me summon up the strength to stop burying my head in the sand and do something to finally get my life back on track, whether it be via a DMP or bankruptcy. And for that I cannot thank you all enough.

sourcrates

bewildered1 wrote: »

I've used the Stepchange online tool and it recommends bankruptcy but after finding this forum (and lurking, reading the many posts) I wonder if a DMP could be set up instead.

I have two questions...

1) Can Stepchange refuse to set up a DMP if they recommend bankruptcy?

2) I am around £24k in debt. I can afford to pay around £150 per month towards my debts at a push. Is there a minimum amount that will be accepted by Stepchange and in turn my creditors?

I just want to say that the help and support I have seen given on this forum is amazing. Like others I have had feelings of complete and utter dread and hopelessness. But by coming here and reading all your comments you have helped me summon up the strength to stop burying my head in the sand and do something to finally get my life back on track, whether it be via a DMP or bankruptcy. And for that I cannot thank you all enough.

Hi,

Any debt solution you choose has to be viable, so if a DMP is going to take forever, or as in your case, 25 plus years, then that is not viable.

It may be ok as a stopgap, but do you really want this situation to go on for that length of time ?

It’s just not feasible to be honest.

What is it about Bankruptcy that puts you off ?

bewildered1

sourcrates wrote: »

Hi,

Any debt solution you choose has to be viable, so if a DMP is going to take forever, or as in your case, 25 plus years, then that is not viable.

It may be ok as a stopgap, but do you really want this situation to go on for that length of time ?

It’s just not feasible to be honest.

What is it about Bankruptcy that puts you off ?

At £150 per month it would take just over 13 years to pay.
I am due a pay rise this year of £3k per annum so more can be paid towards it and a family members insurance product will mature towards the end of next year and they are offering to gift me £8k. That money will drastically reduce the amount of time it will take to pay off the debt.

I've considered bankruptcy and after reading the forums the difficulties that will arise for years afterwards, despite being debt free, I have decided not to explore that option further.

sourcrates

bewildered1 wrote: »

At £150 per month it would take just over 13 years to pay.
I am due a pay rise this year of £3k per annum so more can be paid towards it and a family members insurance product will mature towards the end of next year and they are offering to gift me £8k. That money will drastically reduce the amount of time it will take to pay off the debt.

I've considered bankruptcy and after reading the forums the difficulties that will arise for years afterwards, despite being debt free, I have decided not to explore that option further.

If you can get them all to stop interest and charges, then use that money for settlement offers, that could work yes.

bewildered1

Barclaycard is is my biggest creditor at £12k and haven't defaulted and reading here could be the most difficult to persuade to stop interest payments. All other creditors have defaulted my accounts and passed on their debts to DCA's who are not charging interest.

If I can't get Barclaycard to freeze interest then bankruptcy may be my only option, especially as they are charging 39% interest,