DMP mutual support thread part 13 !!

April22

April22 said:

Please can I ask for some advice. I’ve been in my DMP for 5 months, but I’ve started travelling to the office so my fuel bill has increased by £100 a month. I currently pay £900 to my DMP each month. I did a budget review online with Stepchange but it said it’s not agreed and I need to call them. I’m worried now that my DMP could be cancelled or stopped if they don’t agree to a reduced payment. If I don’t call will my payments stay as normal? Please let me know if you’ve experienced this 
thank you 

Just wanted to update to say I spoke to SC and they said it’s never automatically approved online to make budget changes IF the change increases the DMP by more than 12 months as they are FCA regulated and need to provide advice when you adapt the budget by this much. But all sorted today and budget agreed 

April22

natlie said:

rachy185 said:

Hi everyone, just looking for advice really! As far as I've read i understand you need to let your accounts default before arranging a dmp to shorten the time the info is on the credit file. I have currently around 43k debt (5 credit cards and 1 loan) I currently pay around £840 a month on all these accounts. Currently they are 0% on the credit cards apart from a recent transaction i did, so I will be charged on £2900 I think roughly its 28% apr a year. I've done a soa in the past, it shows I have around £350 towards debt. 


I'm worried about stopping the payments to build up the emergency fund, I know it takes time for accounts to default and for the debt to be sold on. I'm worried about the in-between time, the letters and debt collectors turning up. I do want to pay this debt but its unmanageable and will spiral out of control once the 0% ends as early as feb 22. I would just like some of people's experiences and how they dealt with waiting to default. Will the debt collectors take belongings? Or will there enough time whilst waiting for defaults for arrangement plans to be set up?


How did you allocate money to the accounts, I'm thinking across the 6 accounts £50 towards each but I can't see it being enough and with the high debt its going to take forever to pay.

Also whilst waiting for the defaults am I right in thinking that there will added charges for no payments and with my debt being 0% will they start adding interest as I've broken the contract? So essentially I could end up owing a hell of alot more by the time the accounts default?!

Do ccjs happen with regards to credit cards or is that council tax etc? I'm up to date with all the priority debt and will ensure they are always.

I have a million questions but I just can't think straight at the min, I have had a good read but I just need that push to start. I've never missed a payment and its really scary thinking about it.


Thankyou in advance 

Hi

I went straight into my DMP without saving or waiting for defaults. No debt collectors have ever called and I only had a few letters, no phone calls. I signed up with Step Change. I had some charges added to my account in the early days but these were refunded to my account once the default was issued. Most of the accounts defaulted within one year, MBN* actually closed my account, cleared over £4000 of debt and removed the default. 

I know my route isn't advised but I don't think it has hindered my credit file too much 

I also didn’t stop payments and went straight into a DMP with SC. 

A few letters at the start but in general the creditors all said they appreciated the contact I was making with them and they all stopped interest immediately, letters stopped after the first month. All working well so far. I was really nervous entering into a DMP but it’s the best thing I ever did. Just seeing my balance reduce by £4500 over the past 5 months is such a great achievement for me 

rachy185

natlie said:

rachy185 said:

Hi everyone, just looking for advice really! As far as I've read i understand you need to let your accounts default before arranging a dmp to shorten the time the info is on the credit file. I have currently around 43k debt (5 credit cards and 1 loan) I currently pay around £840 a month on all these accounts. Currently they are 0% on the credit cards apart from a recent transaction i did, so I will be charged on £2900 I think roughly its 28% apr a year. I've done a soa in the past, it shows I have around £350 towards debt. 


I'm worried about stopping the payments to build up the emergency fund, I know it takes time for accounts to default and for the debt to be sold on. I'm worried about the in-between time, the letters and debt collectors turning up. I do want to pay this debt but its unmanageable and will spiral out of control once the 0% ends as early as feb 22. I would just like some of people's experiences and how they dealt with waiting to default. Will the debt collectors take belongings? Or will there enough time whilst waiting for defaults for arrangement plans to be set up?


How did you allocate money to the accounts, I'm thinking across the 6 accounts £50 towards each but I can't see it being enough and with the high debt its going to take forever to pay.

Also whilst waiting for the defaults am I right in thinking that there will added charges for no payments and with my debt being 0% will they start adding interest as I've broken the contract? So essentially I could end up owing a hell of alot more by the time the accounts default?!

Do ccjs happen with regards to credit cards or is that council tax etc? I'm up to date with all the priority debt and will ensure they are always.

I have a million questions but I just can't think straight at the min, I have had a good read but I just need that push to start. I've never missed a payment and its really scary thinking about it.


Thankyou in advance 

Hi

I went straight into my DMP without saving or waiting for defaults. No debt collectors have ever called and I only had a few letters, no phone calls. I signed up with Step Change. I had some charges added to my account in the early days but these were refunded to my account once the default was issued. Most of the accounts defaulted within one year, MBN* actually closed my account, cleared over £4000 of debt and removed the default. 

I know my route isn't advised but I don't think it has hindered my credit file too much 

Thankyou I was going to try this way the only thing that was stopping me was not getting the defaults, how much did you pay overall monthly? Thankyou 

rachy185

April22 said:

natlie said:

rachy185 said:

Hi everyone, just looking for advice really! As far as I've read i understand you need to let your accounts default before arranging a dmp to shorten the time the info is on the credit file. I have currently around 43k debt (5 credit cards and 1 loan) I currently pay around £840 a month on all these accounts. Currently they are 0% on the credit cards apart from a recent transaction i did, so I will be charged on £2900 I think roughly its 28% apr a year. I've done a soa in the past, it shows I have around £350 towards debt. 


I'm worried about stopping the payments to build up the emergency fund, I know it takes time for accounts to default and for the debt to be sold on. I'm worried about the in-between time, the letters and debt collectors turning up. I do want to pay this debt but its unmanageable and will spiral out of control once the 0% ends as early as feb 22. I would just like some of people's experiences and how they dealt with waiting to default. Will the debt collectors take belongings? Or will there enough time whilst waiting for defaults for arrangement plans to be set up?


How did you allocate money to the accounts, I'm thinking across the 6 accounts £50 towards each but I can't see it being enough and with the high debt its going to take forever to pay.

Also whilst waiting for the defaults am I right in thinking that there will added charges for no payments and with my debt being 0% will they start adding interest as I've broken the contract? So essentially I could end up owing a hell of alot more by the time the accounts default?!

Do ccjs happen with regards to credit cards or is that council tax etc? I'm up to date with all the priority debt and will ensure they are always.

I have a million questions but I just can't think straight at the min, I have had a good read but I just need that push to start. I've never missed a payment and its really scary thinking about it.


Thankyou in advance 

Hi

I went straight into my DMP without saving or waiting for defaults. No debt collectors have ever called and I only had a few letters, no phone calls. I signed up with Step Change. I had some charges added to my account in the early days but these were refunded to my account once the default was issued. Most of the accounts defaulted within one year, MBN* actually closed my account, cleared over £4000 of debt and removed the default. 

I know my route isn't advised but I don't think it has hindered my credit file too much 

I also didn’t stop payments and went straight into a DMP with SC. 

A few letters at the start but in general the creditors all said they appreciated the contact I was making with them and they all stopped interest immediately, letters stopped after the first month. All working well so far. I was really nervous entering into a DMP but it’s the best thing I ever did. Just seeing my balance reduce by £4500 over the past 5 months is such a great achievement for me 

Hi have you received any defaults yet? Thankyou

rachy185

sourcrates said:

rachy185 said:

I'm worried about stopping the payments to build up the emergency fund, I know it takes time for accounts to default and for the debt to be sold on. I'm worried about the in-between time, the letters and debt collectors turning up..

Will the debt collectors take belongings? Or will there enough time whilst waiting for defaults for arrangement plans to be set up?




Thankyou in advance 

I just had to come back to comment on this one, it's so far removed from reality, I just have to put your mind at rest about how this process works.

Debt collectors do not turn up at your door, with the exception of a very small number of companies.

Debt collectors are just ordinary folk. like you and I, they have no special powers, or rights of access, they cannot enter your home, unless invited, they do not take goods, the average debt collector is a 17-year-old, fresh out of school, working in a call centre.

You are confusing them with bailiffs, who operate under a court order.

All you will get are standard collection letters, and a few phone calls, calls can be barred, and letters can be binned, please, please try and glean as much information on this as you can, as there is a lot of misinformation out there.

Thankyou so much this helps alot

April22

rachy185 said:

April22 said:

natlie said:

rachy185 said:

Hi everyone, just looking for advice really! As far as I've read i understand you need to let your accounts default before arranging a dmp to shorten the time the info is on the credit file. I have currently around 43k debt (5 credit cards and 1 loan) I currently pay around £840 a month on all these accounts. Currently they are 0% on the credit cards apart from a recent transaction i did, so I will be charged on £2900 I think roughly its 28% apr a year. I've done a soa in the past, it shows I have around £350 towards debt. 


I'm worried about stopping the payments to build up the emergency fund, I know it takes time for accounts to default and for the debt to be sold on. I'm worried about the in-between time, the letters and debt collectors turning up. I do want to pay this debt but its unmanageable and will spiral out of control once the 0% ends as early as feb 22. I would just like some of people's experiences and how they dealt with waiting to default. Will the debt collectors take belongings? Or will there enough time whilst waiting for defaults for arrangement plans to be set up?


How did you allocate money to the accounts, I'm thinking across the 6 accounts £50 towards each but I can't see it being enough and with the high debt its going to take forever to pay.

Also whilst waiting for the defaults am I right in thinking that there will added charges for no payments and with my debt being 0% will they start adding interest as I've broken the contract? So essentially I could end up owing a hell of alot more by the time the accounts default?!

Do ccjs happen with regards to credit cards or is that council tax etc? I'm up to date with all the priority debt and will ensure they are always.

I have a million questions but I just can't think straight at the min, I have had a good read but I just need that push to start. I've never missed a payment and its really scary thinking about it.


Thankyou in advance 

Hi

I went straight into my DMP without saving or waiting for defaults. No debt collectors have ever called and I only had a few letters, no phone calls. I signed up with Step Change. I had some charges added to my account in the early days but these were refunded to my account once the default was issued. Most of the accounts defaulted within one year, MBN* actually closed my account, cleared over £4000 of debt and removed the default. 

I know my route isn't advised but I don't think it has hindered my credit file too much 

I also didn’t stop payments and went straight into a DMP with SC. 

A few letters at the start but in general the creditors all said they appreciated the contact I was making with them and they all stopped interest immediately, letters stopped after the first month. All working well so far. I was really nervous entering into a DMP but it’s the best thing I ever did. Just seeing my balance reduce by £4500 over the past 5 months is such a great achievement for me 

Hi have you received any defaults yet? Thankyou

Yes - In total I had 7 creditors. Amex and Tesco defaulted in the first month before I’d actually missed any payments - just telling them I was entering a DMP appeared to be enough(!)… Amex passed it to AIC straight away and they have been brilliant, just accepted the proposed payment and haven’t heard from them since. Nationwide and Virgin have marked my file as Arrangement to Pay. Shawbrook and MBNA have done nothing and my file says up to date as they are happy with what they are getting.
hope this helps…
I was a nervous wreck entering into a DMP but honestly I think I’d scared myself silly reading other negative posts. Maybe more people write about negative experiences… but it’s all working great for me. I think as long as you stick to the plan further action is exceptionally unlikely, stay positive x 

Newmum92

Hi everyone 

I wondered if anyone know of a particular template I could use to ask creditors to default (even better if they will backdate). Some of my creditors haven’t had any payments since March or have had token payments, but they still are just being marked as arrears or AP. Some creditors like Very keep putting me on 3 month holds which isn’t helpful. Ideally the remaining creditors I have I would have liked them to default back in March. 

Thanks everyone 😊

natlie

@rachy185

Thankyou I was going to try this way the only thing that was stopping me was not getting the defaults, how much did you pay overall monthly? Thankyou 

I have varied my payments dependent on my budget my original debt was just over £30k I started paying around £600 but this was during lockdown so our spending was reduced as not travelling for work etc I pay £465 now. 

natlie

DaisyDMP said:

Hello everyone!

After being in a very dark place with our financial situation and feeling like we have no options, I found stepchange and they recommended a DMP. Searching for more info on DMPs brought me here and I have spent the past week reading through the DMP threads and diaries. A very quick thank you to everyone that posts here- it really does make such a difference to know you’re not the only one in this position and there is hope!

We have a huge amount of debt (£70k between us) due to a number of reasons. With prices rising, a very high interest loan and 0% promotions ending, we have just ran out of other options and credit. I think something has hit me this week and we just can’t live like this so we need to do something.

I have tried to take in all the experiences and advice from this thread but have some questions and wondered if anyone can help/advise? For information, we own our house with a mortgage and stepchange’s budget said we would have £1,090 per month to pay to our creditors.

1.      The high interest loan we have is in OH’s name with a high street bank, currently around £28k (our first attempt at consolidating out debt- clearly didn’t work very well!). Is it best not to annoy them by missing payments prior to entering a DMP? I think I read that with big loans sometimes like the security of a CCJ? The creditor is in the same banking group that our mortgage is with if that makes a difference too. 

2.      We have considered self-managing, but would feel more confident to start out with stepchange to get us going. Particularly because we’re concerned over the loan and how quickly they may act. Am I right in saying that stepchange equally distributes your payment between all creditors? So if I pay £1,000, they will give our £29k debt and our £1k debt the same amount? This seems like it will be an issue and won't go down well with our loan creditor.

As with others, the thought of doorstep collectors, bailiffs and legal action are constantly on my mind despite lots of reassurance from these threads! It’s hard not to assume the worst!! 

Hi

Well done on your lightbulb moment! 

I know it's scary but from experience, this is mostly overthinking and too many TV bayliff programmes, no one has ever phoned me about my debts let alone called at the house. 

Also don't assume that your creditors will be difficult. 

The allocation of payments made by step change is a % based on your interest/balance/current repayments so your highest debt will receive the most money e.g. my biggest debt was £12k paying £212 off that, my smallest debt is a loan £850 paying £85 off that my credit cards both around £1k paying £30 ish 

Nat 

vix4288

Hi All.

My first post in this group….

I have taken the first step of signing up for a DMP with Step Change as I am in way over my head with debt and need to positively find a way out of my situation. I am just waiting for everything to be set up.

I have gotten into a bad situation of borrowing to cover existing borrowing and got in an awful mess.

I did a separate post about worrying about acceptances/rejections from creditors and got some amazing advice about paying what I can afford.

I had another worry that I hope someone may be able to advise on or share their experience of. 2 of my debts are fairly large personal loans which were taken out fairly recently and I have only made a few payments on. I am really worried that it will look like I took the loans out knowing I wouldn’t pay them back and that they may think I took them out knowing this. I had full intention of meeting the repayments but it’s all just got too much.

Has anyone else had this experience with a new loan and DMP and the responses from a creditor?

Thanks in advance for your advice.