DMP mutual support thread part 13 !!

sourcrates

movingforward2022 said:

Afternoon

Having read lots on here, and feeling a bit overwhelmed, I’ve concluded a DMP is out only way forward.  I earn a decent salary and need to avoid more formal options to keep my job.  However, following my husbands loss of job last year and his age/health making alternative work difficult,  we simply can’t afford to live and meet minimum payments.  The last 12 months have been borrowing from Peter to pay Paul and have just made the situation worse.

My husband has attempted to go self-employed but work is now even more scarce as we head into winter.  I’m not sure how I deal with that in terms of “income”. All the debt is in my name (go figure) but he would be my dependent if it wasn’t a joint DMP. 

At the moment no accounts are in arrears, just most maxed out.  I can’t cut any more from the monthly budgets to improve the situation,  also can’t afford any sort of Christmas as it stands.  We are one emergency happening away from a significant crisis.

It goes against my inner being to just cancel all DD’s and go silent to creditors.  But it seems that is the best thing to do?  Rather than keep them in a written holding position with letter updates? 

I’m also wondering if it’s worth in the silent period continuing to pay some of the smaller accounts off as I have around £700 a month available after setting a sensible budget.  Thus reducing the amount of creditors ultimately I’m dealing with and avoiding more interest and charges on those accounts? 

Is there anywhere I can check my budget against to make sure it’s within acceptable levels btw?  The difference between CAB and other sites is quiet vast.  Also, are the CAB letter and templates reasonable to use or is there a better library? 

Sorry for the many questions.  I’m embarrassed by all of this but have worked out if I tackle this now it should all complete in around 7 years which is when our mortgage finishes.  It would be brilliant to be totally debt free by then with my own paid for roof over our heads.  Maybe we could even afford a holiday! 

Just manage the debt plan yourself, that way you set the rules, you are in control of the budget, you are in control of who gets what and when, then paying off the smaller creditors won`t be a problem, its a much better way of doing things.

You seem to be aware of the basics involved, all the debt charity does is make the payments on your behalf, something you can do yourself very easily.

I posted this earlier today in response to another question, probably relevant to your situation right now -


"Lenders are required to try and help customers who fall into arrears as much as they can, its an FCA requirement, meant to benefit the customer, however, those entering debt management want their accounts defaulted quickly, so the more letters and information you send your creditor, they more they may feel obliged to "help" you, by holding your account etc.

This fly`s in the face of what you want to achieve, which is a default, the best way to get that default is to do nothing, and to say nothing, just let the usual collection process take its natural course.

By writing to, and updating the creditor, your just prolonging the time it takes for the relationship between you to sour, and for them to issue the default notice you are wanting".

aquafish_2

Hi guys, hope you're all well.  I'm currently about 6 months into my DMP with stepchange paying £300 a month.  I'm currently living with parents due to covid issues. 

Found out today my father, who is self employed and his business slowed down during covid, is currently struggling to afford the family bills.  Would it be recommended to go self managed so I can use my £300 a month to help out?  All my debts are defaulted, they're in with my stepchange plan.  I just want to help him out, tbh.  It's been a bad few years.

debtfreeme2021

I was coming on here tonight as a bit of a sounding board after having a bit of a moment this week. I’m 2 months in terms not making any payments , sent 1 letter using national debt helpline template and advising creditors I’m in financial difficulty. Following the advice and tips I’m now awaiting defaults. I’ve not managed to start my emergency fund due to unforeseen maintenance bills last two months that have knocked me off plan so this month will be my first chunk into the pot . So far I’ve had calls , text messages and letters mostly some call every day others every few days , it’s difficult for me to pick up the calls anyway with work but I’ve still found it quite difficult to ignore . It’s out of my comfort zone to not pay so the calls and reminder texts have pulled on the guilt strings and kept me awake at night in the most I’m worried about any impact on my job . Reading your post @movingforward2022

aquafish_2

Debtfree..this was me last year.  Ignore the calls and messages.  Get your budget lined up and sent, they'll look into it and agree.  I've not had phonecalls/letters for at least 4 months.

debtfreeme2021

Sorry pressed send too soon. I’m in very similar situation to you @movingforward2022 and I have stuck  @sourcrates advice above awaiting default , I’ve not picked up calls or responded to letters or made contact. But I have found it hard so far maybe because of all the years of trying to ensure I meet a payment date and pay on time . I’m hopefully I can default soon and start to get a plan in place I think I might feel a bit more in control when I start to make payments again . 

debtfreeme2021

@aquafish_2 who did you send your budget to?? Did you wait for default first ? Finding it hard to ignore and keep coming back on here and reading the threads to remind myself what I’m trying to do , I want to control things myself so self managed seems the best way forward . 

aquafish_2

debtfreeme2021 said:

@aquafish_2 who did you send your budget to?? Did you wait for default first ? Finding it hard to ignore and keep coming back on here and reading the threads to remind myself what I’m trying to do , I want to control things myself so self managed seems the best way forward . 

I went through stepchange, worked it via that then held off for a few months to build up an EF.  I had phonecalls, letters etc..put them off and told them I was in communication with stepchange.  They'd hold off for 30 days then the game would start again..calls, messages etc.  Told them I was still waiting for stepchange.

Self managed is something i'm looking at and i'm sure someone with more knowledge will be along to help.

debtfreeme2021

@aquafish_2 I engaged with stepchange but at the time when I was about to set up a plan they had system issues and then I found this page and started looking at the comments and history and decided to go it alone , what I’m trying to figure out is how much allocate to each creditor , I know step change divide the disposable income equally I believe. 

aquafish_2

debtfreeme2021 said:

@aquafish_2 I engaged with stepchange but at the time when I was about to set up a plan they had system issues and then I found this page and started looking at the comments and history and decided to go it alone , what I’m trying to figure out is how much allocate to each creditor , I know step change divide the disposable income equally I believe. 

Guys in here recommend a token payment of £1 each for as long as you need that budget.

Moveslikeagger

Debtfreeme. Nothing to feel guilty about. You have done nothing wrong. Wait for the defaults. I have 7. Some came in 5/6 months. Tesco took over a year. The quicker the better so stay firm and ignore.