DMP Mutual Support Thread - Part 12

Suseka97

Ethel_and_Ernest wrote: »

Good morning all. I hope this is in the right place ...
Ok, deep breaths! ...............

We have a young child, 47k of unsecured debt across 8 creditors and we live in a property worth about 130,000 with approx 69,000 left to pay on the mortgage. Our combined current income is approx 35k but we expect this to increase by 10k early next year, when I return to work full time. We have two personal loans and an array of credit cards, all on 0% interest. However D-day is looming for these over the next few months.

We are keen to protect our home and are determined to pay back every penny we have spent. We are under no illusion that we are in this for the long haul and that sacrifices will have to be made.

How likely is it that a DMP is an option for us? Does anybody have any idea of what other options might be available please? I am feeling sick at the thought of calling them.

Thanks,
Ethel xx

Hello and welcome - you're definitely in the right place.

The options are generally bankruptcy, IVA or DMP -so that's probably why they want to chat. Sometimes bankruptcy is the best option, but more often than not it'll be a DMP and based on what you've described I see no reason why that wouldn't be an option for you.

Regardless of what options are laid out for you - it's totally your choice and your house will be perfectly safe if you do go down the DMP route. We owed circa £85k and had at that time probably a good £50k equity in the house. I never gave bankruptcy a thought and 5 years down the line I pretty much debt free. Would be totally debt free but am playing a game of cat and mouse with the last few remaining debts

So go grab a brew, get all your paperwork together, and give them a call - they are good folk

sourcrates

Ethel_and_Ernest wrote: »

How likely is it that a DMP is an option for us? Does anybody have any idea of what other options might be available please? I am feeling sick at the thought of calling them.

Thanks,
Ethel xx

Hi,


As homeowners, you only have 2 choices, either a debt management plan, or an Individual voluntary arrangement.


You cannot go bankrupt as you would most likely lose the house.


With an IVA you are expected to re-mortgage in year 5, to release funds to your creditors, that would be bad news for you, with 60k equity.


To me its looking like a DMP, see what stepchange say, make sure you go through all the pro`s and con`s with them.

Ethel_and_Ernest

Thank you Suseka97 and Sourcrates, you've put my mind at ease a little.

I feel that a DMP is our best option in the long term but I am terrified that SC will refuse to help us with it. I have just tried to call them but the lines are busy and there is a recorded message to ring back tomorrow.

This is one very steep learning curve. Still, onwards and upwards ...

Thanks again,
Ethel x

Harveyhelp

Hello all

Wondered if anyone can offer me advice. Ive started a DMP with StepChange. The first payment is due to go to them on the 15th September.

IVe contacted all my creditors and felt ok until recently. as I realised I missed a creditor off my DMP. The creditor is PayPal Credit.

I want to ring and tell step change as I know you need to inform them if a creditor has been missed but Im worried it will mess up the offers that have already gone to all my other creditors (sent on friday) as that was the second offer letter that was sent out. The first one being incorrect as step change had made an error and offered them more than what was on my income and expenditure form (so the amount originally gone to the creditors have been lowered once already)

Im worried if they have to send a 3rd letter out lowering the payment offer before we begin the plan its just going to make my creditors angry

I can afford the minimum payments to PayPal but that could equally annoy the other creditors if/when they see it on my file

At a loss as to whats right. Cant believe I missed it off I could kick myself

Thanks

sourcrates

Ethel_and_Ernest wrote: »

Thank you Suseka97 and Sourcrates, you've put my mind at ease a little.

I feel that a DMP is our best option in the long term but I am terrified that SC will refuse to help us with it. I have just tried to call them but the lines are busy and there is a recorded message to ring back tomorrow.

This is one very steep learning curve. Still, onwards and upwards ...

Thanks again,
Ethel x

Self manage your DMP, that is always an option open to you.

sourcrates

Harveyhelp wrote: »

Hello all

Wondered if anyone can offer me advice. Ive started a DMP with StepChange. The first payment is due to go to them on the 15th September.

IVe contacted all my creditors and felt ok until recently. as I realised I missed a creditor off my DMP. The creditor is PayPal Credit.

I want to ring and tell step change as I know you need to inform them if a creditor has been missed but Im worried it will mess up the offers that have already gone to all my other creditors (sent on friday) as that was the second offer letter that was sent out. The first one being incorrect as step change had made an error and offered them more than what was on my income and expenditure form (so the amount originally gone to the creditors have been lowered once already)

Im worried if they have to send a 3rd letter out lowering the payment offer before we begin the plan its just going to make my creditors angry

I can afford the minimum payments to PayPal but that could equally annoy the other creditors if/when they see it on my file

At a loss as to whats right. Cant believe I missed it off I could kick myself

Thanks

Just ring them, add the creditor, job done.

Creditors do not get annoyed, its a simple business transaction.

Both your creditors and stepchange are well used to these things, you are not the first to miss a creditor off there list.

Dont overthink things.

Harveyhelp

sourcrates wrote: »

Just ring them, add the creditor, job done.

Creditors do not get annoyed, its a simple business transaction.

Both your creditors and stepchange are well used to these things, you are not the first to miss a creditor off there list.

Dont overthink things.

Thank you for your help. One last question. As I have not yet made my first payment to StepChange have I got the option of clearing this balance first. I could make payment on full balance on my emergency fund or would that just anger everyone?

Thank you for coming back to me

Suseka97

Ethel_and_Ernest wrote: »

Thank you Suseka97 and Sourcrates, you've put my mind at ease a little.
I feel that a DMP is our best option in the long term but I am terrified that SC will refuse to help us with it. I have just tried to call them but the lines are busy and there is a recorded message to ring back tomorrow.
This is one very steep learning curve. Still, onwards and upwards ...
Thanks again,
Ethel x

Ultimately all they do is give advice and I don't see why on earth they'd turn you down for a DMP. They are a debt charity and are simply there to help you manage your debt situation - but see what they say. Just stand firm on your intent to go down the DMP route.

Or, as Sourcrates has already said, go down the self-managed route. Go over and have a read of the North East Citizens Advice Bureau (NEDCAB) site and they have a whole section about DMPs with lots of template letters to get you up and started. Worth a read regardless of what you do and whilst you're waiting to get in touch with SC.

Suseka97

Harveyhelp wrote: »

Thank you for your help. One last question. As I have not yet made my first payment to StepChange have I got the option of clearing this balance first. I could make payment on full balance on my emergency fund or would that just anger everyone?
Thank you for coming back to me

Stop concerning yourself about what your creditors may or may not think. Just call SC and add it in - it's not that big of a deal, honestly. Personally I wouldn't sacrifice my emergency fund, you'll be setting off on the wrong foot!

I appreciate at the outset there will be a lot of worry and concern about this or that - but take advice from those of us who have been where you are now and have come out the other side

Creditors are now having to deal with hundreds if not thousands of people's financial woes, one way or another, and as harsh as it may sound you are just an (account) number to them. They don't have time to sit watching individual credit files to see whose paying what to whom.

[Deleted User]

Ethel_and_Ernest wrote: »

Thank you Suseka97 and Sourcrates, you've put my mind at ease a little.

I feel that a DMP is our best option in the long term but I am terrified that SC will refuse to help us with it. I have just tried to call them but the lines are busy and there is a recorded message to ring back tomorrow.

This is one very steep learning curve. Still, onwards and upwards ...

Thanks again,
Ethel x

Welcome to our supportive group, Ethel_and_Ernest:wave:. Please don't worry, we've all been in the seemingly scary place you are right now. With the great advice and help from people on here who have 'been there done that' you'll do just fine:beer:. Easy for me to say, I know, I used to be scared of my own shadow :owhen I was drowning in debt but currently life seems rosy:j


I was planning to reply to this post when I first saw it but real life issues (not debt related ones nowadays:j) got in the way. I just wanted to say that SC are often very busy indeed and it can take seemingly forever for your phonecall to be answered. Stick with it though and have a good chat through all your options. It is your debt, they are only facilitators to pay it back, they can't make you do anything you don't feel happy about. I was with SC for the first 4 and a half years of my debt and frankly, knowing me, I really needed that crutch in the early days. They were wonderful and I honestly would never have coped without them. Then, stronger and wiser about my debts (thanks totally to the wonderful people on here:A) I opted to self-manage and have never looked back. Lots of people feel confident enough to self-manage right from the start, as you've been told by Suseka, the NEDCAB website is a mine of information on doing that and I think most of us have used it at some time:j. It really is a piece of cake and apart from my personality issues I know I could have easily coped with self-managing much sooner. No need though as, like I said, SC were wonderful.

Incidentally, I can't see why SC would advise you against a DMP. I started off with just shy of £57K and I'm retired and paying it off totally on my own. You have less starting debt (although I know it seems huge to you at the moment) and 2 of you to help with payments. Just make sure you don't attempt to repay too much to clear it quicker, an easy pitfall and one that I fell into. I left no slack in my budget, didn't even claim for lots of things, I really struggled at the start. SC were wonderful though and a simple phonecall and a rejigging of my I&E did the trick. They don't like you doing that too often though once things are up and running so give everything a lot of thought before you commit to a repayment figure. Just mentioning it as it's not set in stone.

Let us know how you get on. We'd love to share your journey out of debtland:beer: