DMP mutual support thread part 13 !!

ferfichkin

I have applied to set up a DMP with SC - I did read a lot of these threads but if I am honest I am a bit of a coward so I couldn't face doing everything myself. I already feel pretty !!!!!! about the mismanagement of finances and stupidity of it all - I think I have an illness.

I have 30k debt across cards and loans and monthly payments recently jumped to 1.2k and it just crippled my ability to function. The DMP is suggesting a payment of 750 over 3 yr 7mo - which I think is quite high but a v short period in the grand scheme of things. It leaves me with just enough to live a relatively normal life (no big purchases or holidays for a while).

I should say that I went through Bankruptcy - 13 yrs ago- I lost my job which was quite highly paid and was suddenly in a no-man's land of income -  and although that felt like I was a part of the unwashed, it did mean that for six years I was v v careful with my money and I got back on track with work etc but not earning as well as I once did. I think that was the psychological effect of being financially demoted.

It also meant my name was removed from deeds of house (sold my share) and I was in the wilderness as far as credit was concerned. I think the fear of losing my job - I was also furloughed during pandemic - and the responsibility of appearing normal has made me blind to what 'credit' does to you. I think it is always a tomorrow problem until you are confronted with a situation where you need hard cash and just do not have any. 

I went down the DMP route because I would like to pay my debts and although Bankruptcy is a clean slate it really is a sentence. 

I am still overthinking everything around the whole process and I have not told my partner yet - I will have the discussion when it is approved as at least I will have a place of safety and not some cliff to jump off - considered that a few times or at least the sleepless nights and shame have ground me down.

I would very much appreciate a few answers for what happens next. With Bankruptcy I was in a robotic state and compartmentalized it all so once it happened it was like it was sliced out of my brain. How intrusive will this process be now? 

Also is there somewhere I can go for financial emotional therapy?

sourcrates

ferfichkin said:

I have applied to set up a DMP with SC - 

I am still overthinking everything around the whole process and I have not told my partner yet -

With Bankruptcy I was in a robotic state and compartmentalized it all so once it happened it was like it was sliced out of my brain. How intrusive will this process be now? 

Also is there somewhere I can go for financial emotional therapy?

You make one affordable monthly payment to stepchange, they then pass that on to your creditors as per what will have been agreed, this is not anywhere near as intrusive as bankruptcy.

Err.......that`s it, your accounts will likely default, and there will be correspondence to go with that, may take a while for them to realise stepchange are acting for you, they are creditor funded, so its all part of the same game.

Nothing more to add, your debts will reduce, as hopefully interest will have been stopped, we normally advise defaulting first, but that`s not a good approach for an overthinker, as it involves non payment for a period of time.

Its just the same as before, except you pay an affordable amount, with no interest added, as for financial emotional therapy, try the pub?

sourcrates

loopybec2002 said:

On a random side note April 2020 I have found a letter to say they were changing my credit limit from £3700 to £250 it looks like that never happened as my credit limit stayed at the £3700. I still owed £3700 (I paid it off completely December 2020 & by Feb 2021 I had spent it all again)

Have asked for this to be moved to the general forum where you will get more responses.

ferfichkin

Walking the dog and he really doesn’t care about anything but sniffing out things that dogs sniff. I am walking behind with the little plastic bags ready to pick up his !!!!. Can’t help feeling he is behaving a bit like me - got my first e-mail from creditor about 60 day breathing space. 

Do I really just stop paying while this plays out? 

I have transferred my remaining funds to an alternative account and contrary to previous behaviour I am terrified to even touch it. 

Do people have a well worn strategy or routine to ensure they don't just regress and think everything is normal without seeing the bigger picture. 

I know this forum is a step in that direction - and I am keen to reach out and find an accountability partner - personal details withdrawn etc. 

sourcrates

ferfichkin said:

Do I really just stop paying while this plays out? 

Do people have a well worn strategy or routine to ensure they don't just regress and think everything is normal without seeing the bigger picture. 

Contrary to popular belief, the world does not end if you stop paying your credit debts.

The thing is, everything is normal, all debt management requires is that you repay your borrowing, but at an affordable rate, according to your budget, rather than what your creditors originally demanded of you.

As with any undertaking, pre-preparation is vital, so ideally you want defaults, but that doesn't always happen straight away, but a period of non payment allows you to build up the emergency fund, lets lenders know your struggling, and in many cases gets the collection process roaring into gear.

This will ultimately lead to defaults/sale of debts etc, and set you on the path to debt management, where you re-start your DMP payments when you are ready, and all runs along smoothly after that.

missfliss76

Hello everyone -reading with interest. 

Monthly repayments on credit cards, PayPal credit and overdraft ( circa 40k) are way out of hand. Have just restructured to move as much as possible to 0% but I just keep borrowing from Peter to pay Paul.

seriously thinking about going down the self administration DMP route, lots of questions. What’s the best way to get the hive wisdom? A post on this thread with SOA and specific questions? Or is it better to start a brand new thread in the forum?

also  - when proposing payment amounts to creditors do you have to show them a monthly budget? And do you default first and then write to them proposing an amount? Do they sometimes refuse and go down the CCJ route? 

sourcrates

@missfliss76
This is a thread specifically for DMP support, you will be best served starting your own new thread in the DFW forum.

Most of your questions are standard ones which have been answered in other threads, you might want to give this thread a good read first.
thanks.

missfliss76

sourcrates said:

@missfliss76
This is a thread specifically for DMP support, you will be best served starting your own new thread in the DFW forum.

Most of your questions are standard ones which have been answered in other threads, you might want to give this thread a good read first.
thanks.

Ok Thankyou - I am hoping I’m welcome to post here after I start a DMP is that what you mean? Like many others I’m pretty scared right now and nervy.
i have been through quite a lot of the first 20 pages of this thread.

gerrard88

Got 4 credit cards with lots of debt

currently added breathing space to all for 60 days bur going past that now until they default so can then go with step change

anyone know from experience etc how long should go before they are defaulted?

thanks in advance

sourcrates

missfliss76 said:

sourcrates said:

@missfliss76
This is a thread specifically for DMP support, you will be best served starting your own new thread in the DFW forum.

Most of your questions are standard ones which have been answered in other threads, you might want to give this thread a good read first.
thanks.

Ok Thankyou - I am hoping I’m welcome to post here after I start a DMP is that what you mean? Like many others I’m pretty scared right now and nervy.
i have been through quite a lot of the first 20 pages of this thread.

Yes of course, its just that these questions get asked a lot, and I mean almost everyday, so the more info you can glean from historic posts the better, it just saves us all from repeating ourselves, which we are quite happy to do, but you get the gist.