The start of a long journey.........

Billy12345

Hello and welcome to my diary….:wave:

I’ve finally got around to writing this, despite having my DMP lightbulb moment in July 2016 and contacting Stepchange for help. I’ll probably waffle a lot so sorry if you get bored but I like to talk and quite a lot has happened during my journey…..

So, like others on here, this is my diary (probably more like a mind dump tbh) to help me remember my progress, hopefully offer assistance to others and, with a bit of luck, see that golden DFD some point way in the future (hopefully before I retire lol)

Anyway in July 2016 I realised that despite shuffling money around for years, robbing Peter to pay Paul, consolidating debts and living just above our means meant something had to change. Our being me, my LW and 3 kids. So after a few sleepless nights worrying as the debt was nearly £60k (which I have to say I’ve never worried about money ever…) I filled in the online assist from Stepchange, signed on the dotted line, and started my DMP journey.

SC advised me to change my bank account as one of my creditors was my current bank. This was really hard as I had been with them for years and felt a bit like I was betraying them, but I did as they advised and before my credit score was trashed. To be fair it wasn’t great as I was at the end of what I could borrow so this dropped the score meaning I couldn’t consolidate anymore which meant I now had to face my debt head on and take control.

I couldn’t bring myself to contact any of my creditors, which is unusual for me as I’m always up for a challenge but I felt ashamed
:embarasse:, so I let SC contact them. I started my DMP payment the next month and completely made a hash out of the calculations, totally overpaying to the DMP which left me with almost nothing, no emergency fund or anything. Six months I did this for and then found this forum.

At that point I dropped the payments to token payments to start an EF (which grows then gets used then grows again) and after 3 months I reviewed my calculations and gave a more reasonable figure (which was almost half of the original amount) but gave me a DFD at 2035, 19 years in the future :eek:. I wasn’t worried here as I knew that the debts would be defaulted, probably sold and hoped I could settle for reduced sums later.

I spent the money I borrowed I admit that, and had good holidays and life out of it too… but they made a fortune off me over the years in interest so it was my turn to take charge. As yet, 2 years in, no F&F offers have been made but time will tell.

I made the CCA requests which sadly all turned out to be enforceable and have been defaulted by all but one of my creditors so I’m chugging along with my DMP and actually like it. The money worry stress has gone, I’m living within my means and by budgeting can still go on holidays, have nice Christmases and my LW and kids are happy.

With all journeys there are ups and downs, I have had a few ups when loans were re-calculated after they were defaulted which knocked almost £4k from my total and downs……..but I’d rather not elaborate on that……let’s just say I had a holiday planned and paid for before I entered the DMP and needed a credit card to swipe (no payments taken) for car hire. I had to keep a credit card back from the DMP when I started it, so I kept the one with the smallest balance, just so it was valid for the swipe. I’m self managing this one now and all ticking along nicely at the minute….

I couldn’t add this onto the DMP, what would I say to SC “…oh by the way sorry I didn’t add this card when I took out the DMP as I had a holiday already planned and paid for and needed a card to swipe for car hire…” I don’t think they would have liked that and couldn’t risk them saying they couldn’t help as I wasn’t, and still not, ready to self manage. No, better to leave the DMP with SC and self manage this one creditor.

One thing I found in a DMP is that it’s now not impossible to get a mortgage. I have a mortgage, prior to the DMP, and we were considering selling and moving to a cheaper property to pay off some of the debts.

I found a mortgage broker who deals with people in DMP’s but uses the statements from SC rather than self managed. I couldn't port my mortgage over using my existing provider as it would be a new mortgage and they wouldn’t allow it as the mortgage amount I was considering was less. Yes, the payments through the new mortgage company were higher but I was accepted in principal for a mortgage even with a DMP. Long story short, we decided to stay where we are for now but it’s nice to know the option is still there for a mortgage even with a DMP as long as you are showing regular payments to the creditors you may still be accepted. Obviously this is on a case by case basis, like any mortgage, but shows companies out there know people can get in difficulty but need to live and are managing their payments responsibly.

My DMP ticked along nicely until my LW, who knew about my DMP (we have no money secrets) had her own debts too which she was paying from her family allowance… (despite her not earning as she cares for her mam and does the school runs and stuff, she was still allowed credit, crazy in these days for this to happen but it did). The time came when she couldn’t manage these payments as Buy Now Pay Later dates expired and 0% rates expired and she found herself with unmanageable payments.

We talked about what to do as she worries a lot…these debts were in her name only so couldn’t be added onto my DMP which would have pushed the DFD about 100 years away so I researched this.

With the help of this forum and SC, I found that she could apply for a Debt Relief Order. She met all of the criteria, so we scrounged the £90 fee and submitted this to the Insolvency Service (again with the help of SC) and this was granted. Hopefully in a year after her moratorium period ends she will be debt free and never again get into the hole we did. She gets letters from her creditors chasing money and I’ve sent them a copy of the DRO so hopefully they should back off, if not I’m ready for a fight if necessary…

One of the debts was in joint names which we never realised so they contacted me to repay that which had to get added onto the DMP, again thanks to SC for their help there.

So 2 years in and I’ve had a few ups and downs but there is nothing else to add so it’s now a case of paying the mountain off but more importantly enjoying life rather than worrying about money.

Yes, some months are tight and payday is a relief but we have a good life and can save for holidays etc.

Is my story any different to a lot out there, I would hazard a guess as to not. Everyone will have some sort of money issues throughout their life…if not why are you even looking at this forum…:rotfl:

So that's where we are, 2 years in, chugging along with the DMP with SC, chasing one more default. Waiting for my wife’s moratorium period to end as her finances won’t change over the next 12 months and enjoying life again.

I know a DMP isn't for everyone, I know it will trash my credit record, but I don't want credit anymore. I want to live again.. (I stole this line from another diary as it really hits the nail on the head for me) and I don’t think its copyrighted.

I may take the leap as many others have done and self manage but with just sorting my LW’s DRO and adding another creditor to my DMP (which I didn’t even know was in my name) I’ll leave it where it is for now.

Phew…….I’m not perfect and have made mistakes along the way but I’m now in a place where I can repay all of my debts, have a good life and, hopefully, have no more money worries spring up…..

If this has helped anyone out there then awesome……I’m just like the majority of people here, hard working, not paid enough (who is lol) and managing with money in a society where credit is really easy to obtain and easy to get into difficulty with. This really is something which should be taught in schools as its only life lessons here that you learn by…..or maybe that’s the point.

Anywho that DFD day is a long way off but getting closer with each payment……… :beer:

[Deleted User]

Best of luck xx

backandevenmorebroke

I've just embarked on my DMP (well letters sent and given myself a 6 month break to save for an EF and get through birthdays/Christmas) and found your post really uplifting and motivating. At the start I felt a massive sense of shame but now, I feel so much calmer and I realize that money is not everything, infact it doesn't mean a lot! Hope you keep posting xx

jwil

Good luck It's a nice feeling being in control. If you ever decide to take the jump, self managing is really easy, especially if you use the NEDCAB site.

Billy12345

backandevenmorebroke wrote: »

I've just embarked on my DMP (well letters sent and given myself a 6 month break to save for an EF and get through birthdays/Christmas) and found your post really uplifting and motivating. At the start I felt a massive sense of shame but now, I feel so much calmer and I realize that money is not everything, infact it doesn't mean a lot! Hope you keep posting xx

Well done on starting your journey :T. There's loads of help and advice on these forums which helped me massively. Once you get through the masses of auto generated letters you will start to settle right in to your DMP....you are doing the best thing in waiting to get an EF before you start, it was one of the main things I didn't do until later. As long as you keep in contact with your creditors they should be fine. Good luck on your journey and hope your DFD is before mine :beer:

Billy12345

Happy Friday :beer: and happy payday.


I do love payday it means I'm rich (well for the next 24 hours anyway lol). Paid into my little pots for Christmas, EF, petrol and living pots.


Found a bit of a querk with LW's DRO in that we had a statement from Very in her maiden name for an old account (which I thought had been paid yonks ago) for £375. Thought I could pay this off as I hadn't mentioned it in the DRO and made a payment but they wrote back and said no as it was a breach of the DRO terms . Even with this £375 its still under the £20k limit so waiting to see what happens next if they add it to the existing amount then write it off at the end of the DRO...tried paying something off it, they said no, not much else I can do really.


DMP.....ticking along nicely. The £495 from the joint Barclays account has been added which ups the total a bit but still under £50k. Christmas coming soon :eek: and always a pain with SC here. I pay by standing order on the 16th as I get paid from work on the 15th (unless its a weekend) but SC need the December payments by about the 9th. The last few years I've managed to get this but this year I'm just not sure I can.


This may be the push I need to self manage and drop to token payments to see how long I can go. I'm defaulted on most of my accounts and wonder if the creditors will accept token payments once the account has defaulted. Another question for the main DRO board I think.


Anywhoo nice weekend planned (and cheap too) :rotfl:

Billy12345

Ah well just had word that Barclays have rejected my DMP offer through Stepchange for the overdraft....ho hum... not much they can do about it really they're getting that amount and that's all there is to it. :beer:


First creditor to reject the DMP payment so that was a surprise. Fingers crossed they'll default quickly and sell the debt on.


Decided after Christmas I'm going self managed :eek:, going to take a few months out to rebuild the EF and pay token payments....see how long I can do that for before they start chasing. Want to get rid of the smaller ones so that may be the way to do it.

Billy12345

Barclays.......only one that's being awkward and it's the smallest joint account overdraft. :mad:

They've sent me a strange letter saying "further to your recent letter please telephone us to get in touch.". Odd, as I've never sent them a letter, must be SC's letter with the offer of payment. It relates to the account which I've recently added onto my DMP but as for calling them I think not.

Hopefully this will mean they will sell the debt on and as its the smallest I may be able to get rid of it quickly. Think I'll put this letter in my "file in the bin" category.

Nothing else happening DMP wise. Eldest child passed his driving test and insurance for a 17 year old is extortionate. I can see in a few years time after PPI there will be "were you mis-sold a black box" event in place. The terms and conditions, well I wouldn't want them as they are sooo strict.

Good news - loan which was taken out for me by a very nice friend so I could put a deposit down on my house, has the final payment this month so I can look to adding this into the F&F pot. Whoo hoo. Only the mortgage and DMP left, no list of loans and CC's and it feels great.

Still a massive amount of money in total but manageable and enjoying my DMP life.

[Deleted User]

Glad you're feeling good and congratulations to 17yo on passing their test

Billy12345

SSDD23 wrote: »

Glad you're feeling good and congratulations to 17yo on passing their test

Hi SSDD23 :wave:

Took him 3 months to pass and did everything on the first time but still cost over £600 in lessons, licence and test fees. Sure it wasn't that expensive when I passed all those years ago :yikes:

Insurance is over £2,200 and that's with the black box. On the bright side we're only paying his first year and after that he's going to have to pay himself (we'll probably still help out though as we're soft).

[Deleted User]

Yeah it's not cheap, I only passed in April starting in December I think and I'm sure I was spending at least £250 a month so your son did well to pass so cheaply

Insurance is funny, im 26 and paying over £3k for insurance, mainly because I needed to pay monthly and also because I stuffed up the day I wanted it to start from so that's my bad, that's with a black box too! It's actually looking to be a 1/3rd of that on renewal even with an accident, and without a black box :rotfl: so I'm sure your son's will be much cheaper too!

Have you thought about writing to Barclays to discuss as opposed to telephoning?