DMP mutual support thread part 13 !!

Willing2Learn

cat_79 wrote: »

I am looking at starting my own DMP as step change don't seem to leave enough money to actually live on. My question is should i wait till my accounts default before I start making offers of payment ?

Yes. It is better not to start your DMP payments to your creditors until they have defaulted the accounts. That way the accounts are removed from your credit files sooner, plus interest and fees are frozen too. It also gives you a little breathing space to build an Emergency Fund (EF).

User_060921

I think I will go it alone in a few months. I too wasn’t confident enough to do this on my own so I have used step change. But, I do now feel I can do this myself. I did rush into the dmp (for the right reasons) as I was scared to default without trying to remedy things first. Three of my right debts have defaulted.

Changingtimes

Hope you all had a good Christmas and all the best for 2020 and becoming debt free. I know 2020 I will become debt free.....
Ok so I just completed a budget review with SC. I have received the confirmation email which quotes the following:
You'll need to make your new DMP payment by TransCash before your chosen payment date of February 2020.

Ok so my regular payment date is the 17th of every month. Does this mean I am not due to pay until February now? Or am i misreading.
Thanks all

Willing2Learn

I would 'assume' that you would still have to make your January payment in accordance with your old budget. The new budget would then 'kick in' in February.

But I cannot be certain. I recommend you phone SC to confirm.

And happy new year!

Changingtimes

Thanks Willing. The have my DMP ending Dec 20 so another 12 months. If I pay the new amount i will have overpaid un Dec 20. If i pay Jan old amount and 11 months new amount i will have overpaid also.....that's what also made me think Feb . I will ask them but thanks for your view.
All the best for 2020.

antzlck

I've been on a DMP with StepChange for a 9 months now. £16,0000 remaining with an estimated debt free debt of March 2021.

One category that has always puzzled me is 'entertainment/social' ... they recommend £40 ... for a whole month. There is no way I could do this. I live in a relatively expensive part of London. Not living extravagantly (anymore!), given my situation but £40 would make me a hermit. And that £40 is supposed to include gym membership. Granted not an essential to some, but I sit at a desk all day, it's essential to me and my health. I don't go to to the gym for cardio, I go to lift weights. The gym I go to is the cheapest in my area at £43/month (Pure Gym) but due to the area it's much more expensive than other Pure Gyms but still my cheapest option.

Sorry, just a bit of a rant really. I've found the other suggested budget amounts to be reasonable but this one is absolutely not sensible. ONE night out in London is easily more than £40 (dinner then a bar/club after say). I also see the entertainment budget as a 'catch all', for things like dental expenses i.e. if things comes up I need to pay for then I'll stay in that week.

I've reduced my payments by £150 which has only delayed by debt free date by a month and means I can live just a little bit more next year.

The DMP has been GREAT though. It's really taught me how to be much better (I want to say good but can only only say that after I'm debt free!) with money. It's all about budgeting. At 30, I never ever budgeted before this and that was my downfall.

TheWickerMan

I stopped payments to all my creditors in December, and notified them all that I am looking to start DMP with expected start date of May 2020. All have responded, most have given me a 30 day 'grace period', none have defaulted yet but I understand that takes time.

Once my 'grace periods' are approaching (which will generally be mid-January), which of the following is the best course of action?:

a) proactively contact them and inform them that I am still working on DMP
b) wait for them to contact me, and then inform them that I am still working on DMP
c) wait for them to contact me, but then just ignore them and not reply at all

The last one is against my nature, but I will just follow the advice of the experienced DMPers on here. I am trying to delay until May in order to build up my EF.

Any advice much appreciated

Willing2Learn

Hi TheWickerMan,

Personally, in mid-January, I would write to your creditors again, to reinforce the message that your DMP start date will be in May 2020. You could instead not bother with the new letters and just simply ignore the auto-generated letters that you will receive. Your accounts should be defaulted once they are 3-6 months in arrears, so hang in there

You will probably receive a lot of auto-generated letters, regardless of which option you choose.

Willing2Learn

antzlck wrote: »

I also see the entertainment budget as a 'catch all', for things like dental expenses i.e. if things comes up I need to pay for then I'll stay in that week.

In my opinion, the entertainment budget is NOT a 'catch all' budget category. It should only be for drinks, dinner, cinema etc. It definitely would not include things such a dentistry expenses (unless you are the type of person who has a root canal for kicks)

[Deleted User]

Hi everyone i was in a DMP with Stepchange. I decided to stop my payments a few months ago in the hope that my creditors will default my accounts with them

The debt status I have with PayPal will change from Active to In arrears in next month's credit report. I could be wrong but I think this is a good thing. And hopefully they will soon default my account

The account I'm worried about is lending stream who use CRS , a debt collection agency. They haven't defaulted my account yet. It's still listed as being in arrears since July. They are starting to chase for the outstanding balance I have. They sent text messages last week and I just got a missed call from them.

Is this worth getting worried about? I really want them to default my account as I'm not in a good financial position and once they do I hope to make f&f settlement offers once I have more money saved up . I'm just starting to worry that if I avoid their messages and phone calls, they may knock on my door

Thanks a lot for any replies