DMP Mutual Support Thread - Part 12

Willing2Learn

RBS are part of the same banking group as Natwest. Do you owe any money to Natwest?

I would switch everything except the overdraft as that can be included in the DMP. I wouldn't use the switching service, as I wouldn't want direct debits from your creditors to be included. I would do the switch manually

January2015

Hello everyone - hope you are all keeping well.

No updates from me, but just to let you all know that I am going in with another round of F&Fs this week. I am seriously hoping to be debt free in the next few months..... well one can but dream

Takealeap

Hi everyone. I've just started the process of reading this thread from page 1, as advised to others in the last few pages.

Basically, I have personal debt of around £32k on 4 credit cards, and I am now at the stage where I am really struggling to find money to pay all my bills and cover costs every month. For quite a while now I have been paying just over the minimum to my credit card bills, but then I need to use the cards to get me through the rest of the month for food, or repairs or whatever. I have virtually no space left on the cards now, and have essentially backed myself into a corner. I'm panicking about Christmas now too, as I can't figure out how I can shift things about to find the money to buy Christmas presents for my son. On top of that, all 4 card providers have recently written telling me they are increasing my interest rates within the next couple of months.
My wife also has debt, but a lot less than mine. We are both aware of the other's situation, so I suppose it's good that we aren't hiding things from each other.
I was starting to feel a bit positive when I began reading the thread, bit I'm now getting confused with some of the talk of self-managed plans and defaulting on debts - is defaulting not a bad thing and to be avoided?
I know that now is the time I need to take action. I've never missed payments on any of my credit card or household bills, but I don't think I can sustain this any longer, and i need to make sure I don't lose our house.
I just want to be in a position where I can make payments to my debt, but not worry about how (or if!!) I am going to pay for essentials for my family.
I thought should start with using the StepChange debt remedy online tool to get an idea of the way forward.

I've just read back over this message and it just seems quite a muddle - sorry. My heart's actually racing now because I know that as soon as I press the "post" button on this message, it's all going to become more real!
I have a million more questions but I think I need to get through the rest of thread first. Thanks everyone

Time_To_Change

Takealeap wrote: »

Hi everyone. I've just started the process of reading this thread from page 1, as advised to others in the last few pages.

Basically, I have personal debt of around £32k on 4 credit cards, and I am now at the stage where I am really struggling to find money to pay all my bills and cover costs every month. For quite a while now I have been paying just over the minimum to my credit card bills, but then I need to use the cards to get me through the rest of the month for food, or repairs or whatever. I have virtually no space left on the cards now, and have essentially backed myself into a corner. I'm panicking about Christmas now too, as I can't figure out how I can shift things about to find the money to buy Christmas presents for my son. On top of that, all 4 card providers have recently written telling me they are increasing my interest rates within the next couple of months.
My wife also has debt, but a lot less than mine. We are both aware of the other's situation, so I suppose it's good that we aren't hiding things from each other.
I was starting to feel a bit positive when I began reading the thread, bit I'm now getting confused with some of the talk of self-managed plans and defaulting on debts - is defaulting not a bad thing and to be avoided?
I know that now is the time I need to take action. I've never missed payments on any of my credit card or household bills, but I don't think I can sustain this any longer, and i need to make sure I don't lose our house.
I just want to be in a position where I can make payments to my debt, but not worry about how (or if!!) I am going to pay for essentials for my family.
I thought should start with using the StepChange debt remedy online tool to get an idea of the way forward.

I've just read back over this message and it just seems quite a muddle - sorry. My heart's actually racing now because I know that as soon as I press the "post" button on this message, it's all going to become more real!
I have a million more questions but I think I need to get through the rest of thread first. Thanks everyone

Hi I too am in a similar situation to you and just now getting the ball rolling to start a self managed DMP. Although I am not really clued up enough to offer you any advice there are many people on here that have been there and done it and can offer great advice. It is just sometimes reassuring to know that others are in the same position as you and getting along just fine. I wish you the best of luck and I'm sure somebody will be along with some answers soon

Willing2Learn

Takealeap wrote: »

Basically, I have personal debt of around £32k on 4 credit cards, and I am now at the stage where I am really struggling to find money to pay all my bills and cover costs every month. For quite a while now I have been paying just over the minimum to my credit card bills, but then I need to use the cards to get me through the rest of the month for food, or repairs or whatever. I have virtually no space left on the cards now, and have essentially backed myself into a corner... ...On top of that, all 4 card providers have recently written telling me they are increasing my interest rates within the next couple of months.
My wife also has debt, but a lot less than mine. We are both aware of the other's situation, so I suppose it's good that we aren't hiding things from each other.
I was starting to feel a bit positive when I began reading the thread, bit I'm now getting confused with some of the talk of self-managed plans and defaulting on debts - is defaulting not a bad thing and to be avoided?

The very first thing I would suggest, is for you and your wife to focus your budgetary attention on your essential bills before your non-priority debts. In other words, your roof over your head (mortgage or rent) is number one, followed by food and essential utilities. Everything else can be put on hold. You can write to you and your wife's creditors asking for there to be a hold put on all of your accounts. To give you some breathing space while a plan is put together.

Then, if it were me, I would start a new thread on the DFW board, to address all the debt held by you and your wife. You could post a joint Statement of Affairs in the new thread so that the advice and support can be targeted to your need.

http://www.stoozing.com/calculator/soa.php

January2015

Hi Takealeap (great username by the way )

Definitely start with the Stepchange (SC) debt remedy tool, but do also post a Statement of Affairs (SOA) as suggested by Willing2Learn in the post above. Don't post it on this thread but start a new thread on the made DFW forum. You will get great advice. This is a fantastic, non-judgemental place to get advice from others who have been through, or like myself, are still going through the process to clear their debts.

If you have made the decision to enter some form of debt management, e.g. a DMP or insolvency option, then defaults are very much a good thing. I would stop paying your non priority debts immediately and contact each creditor to let them you are seek support to deal with your financial situation - they will all be fine, so don't worry about doing this.

Don't worry about muddled posts and asking loads of questions - we have all been there..... where our brains are racing with questions and making assumptions and then wondering if the roof will fall in over our head, if horrible men will knock at the door etc. etc....... I can assure you that if you follow the advice on this forum and from SC if you choose to use them, you will be fine and life will improve within a matter of weeks.

I started 3 and half years ago with approx £95,000 in debt and I couldn't see the wood for the trees. I was taking money out of one credit card to pay another and life was not good in general. Fast forward to today and we owe in the low £40k's now and I am making full and final settement offers to all my remaining creditors this month. They may not take them but at least I am in a position to make them.... oh yes and I was made redundant in April and I am still able to manage to live reasonably comfortaby and make offers to settle. I cannot imagine what life would be like if I hadn't found this forum.

Welcome to our little group and we look forward to getting to know you and support you along your journey to debt freedom.

Time_To_Change

Hi everyone. Just a quick question. When k enter my SOA on the stoozing website it says that a DMP with my creditors can only be used as a temporary offer due to the length of time it will take to pay it off. I know it's going to take a long time but I really don't want to enter k to a IVA. Is there a maximum term for a DMP? Thanks

SirLurkalot

Hi Everyone,
After being inspired by all of your stories me and my wife started a DMP with StepChange. we made our first payment this month.
All the creditors seem to have accepted and all interest and charges have been stopped which is great.

I do have a quick question though regarding some of the payments to my creditors if that’s okay?

Around 3 of my payments being made to creditors are higher than the minimum payments we were making before.

Am I right in thinking that due to this, our accounts won’t be defaulted as we’re making the contractual payments? In this case will these accounts never show as ‘bad’ on my credit file, or will the stay on my file for six years after they have been settled? I’m unsure wether or not to go self managed and pay token payments until these accounts are in arrears, or keep going through StepChange and see what happens.

Thanks for all your Help ��

sourcrates

Time_To_Change wrote: »

Hi everyone. Just a quick question. When k enter my SOA on the stoozing website it says that a DMP with my creditors can only be used as a temporary offer due to the length of time it will take to pay it off. I know it's going to take a long time but I really don't want to enter k to a IVA. Is there a maximum term for a DMP? Thanks

No as a DMP is an informal arrangement, but you don’t want to be paying it forever, as a rule of thumb, if it’s going to take longer than 6 years to pay off, you’d be better off with an insolvency option.

But you are free to Cary on as you wish.

Time_To_Change

sourcrates wrote: »

No as a DMP is an informal arrangement, but you don’t want to be paying it forever, as a rule of thumb, if it’s going to take longer than 6 years to pay off, you’d be better off with an insolvency option.

But you are free to Cary on as you wish.

Thank you. Mine will carry on for around 12 years if I stick to the same payment. I do see myself being able to settle it quicker though but maybe only by a few years