DMP mutual support thread part 13 !!

mrsdann

Hi
Quick question - Just collecting evidence needed for Stepchange to start my DMP. Debt currently around £40,000 (Some of this is a joint debt with Ex). Anyway new concerns are now popping into my head. Can I be forced into bankruptcy whilst on a DMP? Has anyone had this happen? I am worried as I am aware that the payments made to my debtors will be a lot less than the payments required. Especially my loan which was 390 per month. (Payment suggested for all debts is just £96). Any advice gratefully received.

Moveslikeagger

Jwatson wrote: »

Hello all I was wondering if anyone had any advice or experience that they could share.
We have just entered the DMP and had a few months to make an emergency fund.
We have spoken to a mortgage broker as we want to move and said this would be possible if we can get our credit cards below their limit. I need to find out which cards we are over on, this was only caused by making an emergency fund. Some cards have defaulted us, can these be back dated to when we first informed them when we were entering a DMP? I'm trying to work out the quickest way to get the cards below their limit. Does anyone have any advice?

While you wait for someone much more knowledgeable than me to come along and reply to you, my understanding is if you have defaulted within the last 6 years that will be on your credit file and therefore extremely unlikely to be accepted for a mortgage by a mainstream lender, at a decent rate anyway! Also if your close to your limits on all your debts its my understanding that its difficult to obtain more credit especially if you have a lot of debt! Thats if you want to borrow more money of course! Not sure how it works if your downsizing etc

yoyo33

Hi all. I'm at the very start of a sorting out a debt management. Ive asked a few questions and had great advice. But today has been a rather stressful one.
Without going on too much... sorry if I do.
My husband earns commission every month on top of his basic. Today I was told by business debtline who will pass us on to step change once our budget plan is complete . They said they will only take my husband a basic into consideration and considering we would need at least 500 a month to pay to the plan. We won't have enough as they won't take ant part of the bonus into consideration, where I originally thought they would take an average as it's so regular . But They also said they would expect us to pay The whole bonus to the plan each month. So then said maybe an iva will be better. I'm really not wanting to do an iva. But after reading this forum tonight I'm thinking.. would a self managed dmp be better for us. And would I just give the creditors my husbands basic income.?
I'm only thinking that if we save what's left and make larger payments to creditors along the way we may be debt free sooner! I'm not trying to avoid my debt. Quite the opposite. Just want want the same as everyone else to clear the debt as soon as poss, while still being able to live.
Would this work the way I'm thinking?
Thanks in advance. Any advice would be much appreciated.

jubilee14

Hi Yoyo33 just wanted to check who are business debtline? are they a charity? just to make sure what ever arrangement you get in place if with stepchange/payplan or the likes that they dont take a fee off any plan put in place.
on the bonus front they dont tend to include that as a monthly income as its not guaranteed so your not committing to pay something that for some reason may not come in and leave you short.

yoyo33

Hi jubilee
I was referred to business debtline by stepchange. But it seems once I've gone through a budget info with them, they will pass me back to stepchange. They said I have to speak to bus debtline first just to clarify that I have no business debts which I don't.
When I mentioned to business debtline that if I have to use my husband's basic then there wouldn't be enough for the full 500 dmp payment. So i said I could use some of the extra bonus to live on then put the rest away for building up large payments to creditors . And they said no I have to give everything back that he gets each month . Which almost makes it sound impossible to use step change if they want it done this way. As they won't setup a plan if I can't clear it in 10 years on basic pay.
So confusing all this. I'm so stressed about it all. I'm currently reading upon going self managed. Originally scared me the thought of it But seems people do well clearing debts being self managed.
Thanks for your reply x

NowInspired

Hi yoyo, I'm self employed and have a joint DMP with my husband. We are doing a self managed one too. I did initially speak with Step Change but they also wanted me to speak with Business Debtline. I was also told by Step change a figure that was not practical for us. I did not find i had a positive experience with Step Change at all and decided that we would do it ourselves and be in control ourselves. We can then decide what we pay and when we pay it. We are in the very early stages still but I don't regret taking back control and doing it ourselves. Then no-one can tell you what to do, it is your decision and you are answerable to no-one and that's a good feeling. Hope this helps a bit.

Moveslikeagger

NowInspired,
How are you finding a self managed DMP? I’m just starting out! How have creditors been? Much harassment etc?

Red_Athena

Hi everyone,
I haven’t been here in a while! Am in the second month of my DMP with Srepchange, ticking along, in for the long haul!

Looking for a bit of advice around tenants credit checks. Does anyone have any concrete experience of what will pass or fail? We need to move and I’m completely stressed out. Seem to get different answers on different websites. My credit rating is trashed, I have multiple defaults but no CCJ or bankruptcy. Any ideas, anyone had similar worries?

Thanks!

NowInspired

Hi Moveslikeagger
I'd say overall the creditors haven't been too bad. I made sure that all our accounts where I had to give a phone number, all just had my mobile number (I didn't want them ringing the house phone) and then if any numbers came through that I didn't recognise, I blocked them. I also have only dealt with them all in writing, the old fashioned way and have said that I will not deal with them by phone, it must be in writing only. I've had a few calls and texts but, like I say, I've blocked them.

I've not felt harrassed as such by any of them, more frustrated with some (LLoyds) at their sheer ignorance and lack of proper communication.

Barclays have been amazing and so have Next.

I've found that a lot of communications the companies send are standard ones that have to be sent and that follow a process and I have read a lot on here and looked for reassurance at times and I now don't feel as scared as I was before it all started. I still sometimes have days when I'm nervous when I hear the post coming through the door (particularly if I'm having a bad day) but overall it's not been so bad at all. I wish I'd started it all so much sooner than I did but it seems that everyone tends to say that as we are all so frightened to start the DMP process off.

I don't think self managed is that scary, in fact it can be very empowering. I tend to like writing and wording stuff anyway when it comes to letters, which relates to my profession, so that has never been a problem. I did get through a lot of stamps though in the beginning.

I wish you all the best with it. Just remember we're all the stronger for being able to come here, read up, gain knowledge and help each other, I would have been lost without this forum and the people on it, they have been a lifeline and an inspiration.

yoyo33

Thanks nowinspired. I may ĺook into this some more. As I do like the idea that we can pay make more of our own decisions if we go self managed. But I haven't coped very well with the initial phone calls. I should have just written to them all in the first instance but I would if would be easier than it was. I spoke to step change today and they said or maybe an option to do an individual plan for my husband as most the debt is in his name. So I'm going to spend some time tomorrow. Working our what's best for us. Thankyou again for your reply x