Tiger's DMP Journey

DMP_Tiger

Ok here goes with my diary:

I am in debt to the tune of £34,000 :eek:
I know why - because my wife and I have spent more than our incomings for the whole of the almost 26 years that we have been married. We have consolidated numerous times over the years and then got very excited about empty credit cards. This has led to further consolidations and so on and so forth.....

We were on top of things 3 years ago and the debt was less than £20k and going down nicely but then I got made redundant and had to take a salary cut. the debt has risen to it's current level since then.

Well enough is enough. We haven't missed a payment to our 5 creditors but only because when we run out of money we have the credit cards. So last week I called Stepchange and will soon be beginning a Debt Management Plan.

Our finances are joint - we have no money of our own. Marriage is a partnership, my wife has been a stay at home mum as we believed that this would be best for our children so it would be unfair of me to say that my salary is mine. The debts are all in my name so the DMP is mine only but my wife is fully on board with everything.

So far I have sent letters/secure messages to all of our creditors but haven't yet had any replies (but I only sent them yesterday). I have agreed with Stepchange 5 months of token payments so that I can build up an emergency fund.

I have cancelled all DD's so nobody will receive May's payment :eek:

I am slightly worried but not as worried as I was a week ago when I was looking at our ever increasing debt and lack of spare money to have a life.

To be continued.......

System

You have landed in the right place , good luck with everything. It may be scary to start with but you have done the right thing.

Carrot007

DMP_Tiger wrote: »

I have agreed with Stepchange 5 months of token payments so that I can build up an emergency fund.

Might help but (as someone who went though it) you would (might) have been better paying nothing until they default you.


It sounds scary at first but it starts the 6 year clock (of your credit wothyness) ticking (and some will try not to do it even though they should to punish you further).


Also don't be scared to leave stephchange and do it yourself. They insist upon equalness to who you are paying even if they are not equal to you (in defaulting or stopping interest).

beanielou

Good luck on your DFW journey

DMP_Tiger

Cumbria_lass wrote: »

You have landed in the right place , good luck with everything. It may be scary to start with but you have done the right thing.

Yep it sure is scary! :eek::eek:

Feels better than the constant worry of the debt though :beer:

DMP_Tiger

Carrot007 wrote: »

Might help but (as someone who went though it) you would (might) have been better paying nothing until they default you.


It sounds scary at first but it starts the 6 year clock (of your credit wothyness) ticking (and some will try not to do it even though they should to punish you further).


Also don't be scared to leave stephchange and do it yourself. They insist upon equalness to who you are paying even if they are not equal to you (in defaulting or stopping interest).

Thanks for that, I thought that paying £1 per month would lead to default but I may be wrong. I've paid £1 to the 3 credit cards but nothing to the 2 loans as yet.

Stepchange were great for initial advice and they've given me a reference number to use but by the time I'm ready to begin the proper DMP, I will have done the difficult bit so I may go self-managed.

Maverick87

Will be keeping an eye on this, good luck with it all.

I want to take a similar approach to you with regards the emergency fund. The template letter from stepchange advises sending a budget to the creditors as part of telling them payments will be reduced to £1. Is that correct? Then in 2 months time, send the pack back to them to get the ball rolling once the 3 months is up.

Do you have a letter template different from the above at all?

booksandbacon

Hi!

Good luck on you DF journey and thanks for posting on my diary subscribing to yours, its weirdly comforting to know we're at similar starting out points - race you to the finish? :rotfl: :beer:

enthusiasticsaver

Good luck on the DMP. How old are your children? Can your wife return to work now as presumably if you have been married 26 years they are older now?

DMP_Tiger

Good morning diary. Well I had completely forgotten that I had started a diary which is why it hadn't been updated....

Will update properly later but my daughter wants her breakfast and I have to hang out the washing...

Not sure how much creditor detail to put on here, I'm worried that one or all of my creditors will read my diary, identify me and demand more money.

DMP_Tiger

booksandbacon wrote: »

Hi!

Good luck on you DF journey and thanks for posting on my diary subscribing to yours, its weirdly comforting to know we're at similar starting out points - race you to the finish? :rotfl: :beer:

Thank you :beer:

It's going to be a long race - definitely a marathon and not a sprint :rotfl::