DMP mutual support thread part 13 !!

ForQP

Hi

I have been self managing my own DMP for the last 4 years. I have 3 debts that are no longer on my credit file after they defaulted back in 2017.

PRA - £9000

Wescot (on behalf of HSBC) - £2100

Wescot (on behalf of HSBC) - £900

I have been paying £25 to each account but I may have to significantly reduce these payments due to a change in my circumstances. I was wondering if anyone has any experience of having to reduce their payments during a DMP and how creditors tend to react?

Thank you

Makingabobor2

https://forums.moneysavingexpert.com/discussion/comment/81887478#Comment_81887478

We found both of those to be very accomodating with any changes. As long as you keep them informed of your intentions. At the end of the day, they can't have what you don't have.

gerrard88

i am still going well on my run dmp

Pay 4 creditors. £100 in total between them

i have still not had anything from my Tesco one. Been over a year since was defaulted

AgentBigBoss

Hello. Lendable defaulted my account and stopped adding interest. Should I wait for them to sell this debt to collection company or just write to them and agree payment plan ,in the house’?

Regards.

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/81907728#Comment_81907728

Wait and see what they do with the debt first, whatever they decide, you will be written too.

tksnota

Is cooperative’s personal loan can be classified as unsecured loan like consumer credit card debt?

QuantumBadger7

I'm 29, based in London, earning £2,290 a month. I've just had a DMP set up through StepChange yesterday and they've confirmed they've received my paperwork. But before I fully commit I wanted to get some views on whether I've done the right thing, specifically around the defaulting first debate.

My debts

Total non-priority debt: £6,727.95

• Santander overdraft: £593.93
• Nationwide overdraft: £1,024.00
• Nationwide overdraft: £100.88
• Nationwide personal loan: £733.11
• Zilch: £73.84
• Steadypay: £620.00
• Zable credit card: £500.00
• Capital One credit card: £1,000.00
• Klarna: £442.19
• Creditspring: £720.00

I also owe money to three friends/family (listed as priority debts by StepChange) totalling £920.

I have to pay off £100 a month to one of them, until £600 is paid off, this is not negotiable. I'm also not in a position to borrow any more money off friends and family.

The DMP

Monthly payment: £333.67

Timeline: 18 months

Budget as approved by StepChange

Income: £2,290.24

• Rent: £860
• Transport: £110
• Electricity: £40
• Prescriptions/dentist: £26.57
• Groceries: £200
• Meals at work: £25
• Alcohol: £100
• Laundry: £20
• Other bills: £140
• Clothing: £21.67
• Toiletries: £20
• Hairdressing: £40
• Internet/TV: £60
• Mobile: £45
• Hobbies/leisure: £60
• Gifts: £41.67
• Savings: £30
• DMP payment: £333.67

Currently 404 - already in very poor territory before the DMP started.

I've been reading about the strategy of letting all accounts default first before entering a DMP, so that all 6-year clocks start simultaneously and drop off your credit file at the same time, rather than getting AP markers that last 6 years from settlement.

Given my DMP is only 18 months, is the credit file difference meaningful enough to have been worth defaulting first? And given my creditor mix what's the realistic CCJ risk if I had gone down that route? Obviously concerned about being chased by so many creditors for up to 6 months as well, is there a way to limit it to only letters etc?

Is it too late to pause the DMP and reconsider, or should I just crack on?

My slowly deteriorating financial situation is something I've avoided looking in the eye for too long, but desperate to get it sorted now.

sourcrates

@QuantumBadger7

I would carry on as you are, your debt is very small in comparison to many, I`m not sure waiting for defaults on 6k of debt would be of any benefit whatsoever, given the 18 month duration of your arrangement.

If your happy with the proposal, I`d just go ahead and do it.

Obtaining defaults prior to debt management is only beneficial if your DMP is going to last 6 years or more, yours isn't.

QuantumBadger7

Appreciate the debt is small compared to others, but is getting increasingly out of control. Thanks for your advice, leaving it to them takes a far amount of anxiety away from it.

jaxsmar

@QuantumBadger7

I'm currently on a dmp with stepchange I'm not sure if gifts will be allowed as they don't have a section for that you will have to tweak that into other bits or alcohol at £100 and make sure you add a little bit for an evening out otherwise it can be difficult well done for getting on top of your debt after I tackled my own debt I slept well for the first time in many months.