DMP mutual support thread part 13 !!

GibbsRule_No3.

jasebroke4abit, try typing "Default, DMP starting" into the Search area and lots of different threads will come up.  Main reason for wanting a Default is it will drop off sooner than going direct to a DMP where it might not drop off as quickly as you are paying back. Also waiting for the Default gives you time to amass an Emergency Fund.  Might be worth doing a search for that as well.

Debt Management plan - Page 2 — MoneySavingExpert Forum

Here is one thread that came up when I typed in the search.  Good luck 16 years seems a long time.

Jasebroke4abit

GibbsRule_No3. said:

jasebroke4abit, try typing "Default, DMP starting" into the Search area and lots of different threads will come up.  Main reason for wanting a Default is it will drop off sooner than going direct to a DMP where it might not drop off as quickly as you are paying back. Also waiting for the Default gives you time to amass an Emergency Fund.  Might be worth doing a search for that as well.

Debt Management plan - Page 2 — MoneySavingExpert Forum

Here is one thread that came up when I typed in the search.  Good luck 16 years seems a long time.

Thank you! I’m an idiot, that’s why I’m in this mess. Much appreciated 

Marcio45

Hi all, have been reading all your posts with much interest and somewhat prepared to deal with this mess.
My story: 48k debt in credit cards and loans and hardly anything to show for it, built over the last 20 years.
I have been thinking about dealing with this for years. I was sick with worry every month and the problem just keeps getting worse and worse. 2024 needs to be the year.
Started my process with StepChange who recommended a DMP, i have just under £700 left after my essential bills/expenses, to be spread over 11 creditors.
So cancelled all DDs late last year and started missing payments in January. Did not wait for defaults - only read this advise after setting up the plan, but credit is not something i want to go back to any time soon. I need to live within my means. Have no plans for a mortgage as i will be over 50 when this is all paid out. So started payments to the DMP in february.
Three of my biggest debts (worth 31k) have sent me default notices after a single missed payment. I believe they also did this in response to the letters received from StepChange. Which should be good news, i guess. Feels very scary - never missed a payment in 20 years - but it is needed to move on with my life.
So yep, staying strong... And thankful to all your helpful advise 

tigergambit

Marcio45 said:

Hi all, have been reading all your posts with much interest and somewhat prepared to deal with this mess.
My story: 48k debt in credit cards and loans and hardly anything to show for it, built over the last 20 years.
I have been thinking about dealing with this for years. I was sick with worry every month and the problem just keeps getting worse and worse. 2024 needs to be the year.
Started my process with StepChange who recommended a DMP, i have just under £700 left after my essential bills/expenses, to be spread over 11 creditors.
So cancelled all DDs late last year and started missing payments in January. Did not wait for defaults - only read this advise after setting up the plan, but credit is not something i want to go back to any time soon. I need to live within my means. Have no plans for a mortgage as i will be over 50 when this is all paid out. So started payments to the DMP in february.
Three of my biggest debts (worth 31k) have sent me default notices after a single missed payment. I believe they also did this in response to the letters received from StepChange. Which should be good news, i guess. Feels very scary - never missed a payment in 20 years - but it is needed to move on with my life.
So yep, staying strong... And thankful to all your helpful advise 

@Marcio45
I didn't wait for defaults either with PayPlan, but it has worked out fine. Only real drawback is the lack of an emergency fund but you can always miss a month or two payment if necessary.

In some ways I think dealing through Stepchange/PayPlan from the start has it's advantages - interest and charges stop immediately (which is a relief) and the defaults come through pretty quickly. I suspect that as creditors know that PP/SC havd been through your SoA they give it more credence.

It's horses for courses - I wish I'd waited for defaults but tbh I don't think my mental health could have stood up to it, so life goes on.

lillypoo

Morning all. A quickie from me this morning.

Just waiting to start my dmp. Two defaults about to come in but I'll wait and see what the CC company does with the debt before I start paying. EF goes up and down like a yoyo as I've had car issues as well as essential maintenance on house.

Basically I have between £500 and £600 left over each month depending on which shifts I do, to go towards my dmp. But I would like to save part of that in an EF/ Future settlement offers pot. 

My debts are just under £25000.

So the question is, what amount should go to payments and what amount would I be advised to save? Probably no definite answer but would value opinions.

TIA

Floss

lillypoo said:

Morning all. A quickie from me this morning.

Just waiting to start my dmp. Two defaults about to come in but I'll wait and see what the CC company does with the debt before I start paying. EF goes up and down like a yoyo as I've had car issues as well as essential maintenance on house.

Basically I have between £500 and £600 left over each month depending on which shifts I do, to go towards my dmp. But I would like to save part of that in an EF/ Future settlement offers pot. 

My debts are just under £25000.

So the question is, what amount should go to payments and what amount would I be advised to save? Probably no definite answer but would value opinions.

TIA

Personally I would do 50/50. And also ensure you are saving in pots for both car & house repairs 😉

lillypoo

Thanks floss. That was what I'd been thinking too. 

freshstart2023

I’m hoping for defaults soon too so I can get started. Only barclaycard have defaulted me so far. I have missed 4 payments now with all other creditors so hopefully it won’t be too much longer. The amount of letters that virgin send in comparison to all other creditors is insane, they send 6 separate letters at a time 😳. I have 2 cards with them so can receive 12 from them at a time.. can’t wait to have a plan in place to stop the mountain of letters 

HillBilly14

Hi, I have a personal loan and credit card debt totalling £34k. I have put all my details into SC and at the point of selecting a solution. The best one is a DMP. I have been in a debt cycle of borrowing off credit card to pay loan - both with Tesco. The surplus available is approx £164 per month to pay off this debt under the DMP. I am not in arrears with them. I'm really worried that if I do the DMP, I will loose my home or have court action, it's mortgaged. I really don't know what to do, I want to pay my debts and not looking to get out of anything as it's my fault. But I'm worried that, by doing the DMP I will start a process that I will regret. I can't afford to pay the direct debit for these in 10 days time but I'm scared of what is going to happen to me. Appreciate your help

sourcrates

HillBilly14 said:

Hi, I have a personal loan and credit card debt totalling £34k. I have put all my details into SC and at the point of selecting a solution. The best one is a DMP. I have been in a debt cycle of borrowing off credit card to pay loan - both with Tesco. The surplus available is approx £164 per month to pay off this debt under the DMP. I am not in arrears with them. I'm really worried that if I do the DMP, I will loose my home or have court action, it's mortgaged. I really don't know what to do, I want to pay my debts and not looking to get out of anything as it's my fault. But I'm worried that, by doing the DMP I will start a process that I will regret. I can't afford to pay the direct debit for these in 10 days time but I'm scared of what is going to happen to me. Appreciate your help

Hi,
As per my PM, non of that is going to happen, as a homeowner, you only have two real choices when it comes to tackling unaffordable debt, a DMP, which is an informal debt solution, well recognised in financial circles, as a means to get out of debt, and an IVA, a formal debt solution, specifically designed for homeowners with an asset to protect, who cannot go bankrupt.

It`s important you make the right choice here, although an IVA will protect your house from legal action, it is a very strict budgeting regime, they will ask you to re-mortgage, and any bonus/overtime/windfall will have to be paid to your IVA, it can last 7 years, many of these arrangement are mis-sold, regulation is dire, the companies that offer IVA`s are not all that easy to deal with, on the whole I would not recommend one.

DMP`s are much more flexible, affordable, and you are under no obligation to pay more than the stated figures.

Yes it is theoretically possible for creditors to take action through the courts, on the whole, it won`t happen, accounts will just go to debt collectors instead, and as long as they are getting a regular payment, it will all run quite smoothly.

Debt remedies are very common these days, many, many people cannot afford there current borrowing, creditors have had to adapt in how they treat you, most will now go out of their way to agree affordable payment plans, rather than going to court, that is a very last resort, not a first response.