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DMP 2 Debt free!
Loobylou07
Posts: 16 Forumite
Hi,
So I'm starting a diary....for my own accountability and to hopefully be able to help others along the way.
A week ago I had never heard of a DMP, and I am now at the early stages of self managing one! EEEEEEEEEK!
I have researched and obsessively googled everything I can get my eyes on for a week.
This site has been the best thing I have ever found, honestly, there are people on here who have literally given me the inspiration and knowledge that I need to sort this.
The background to my situation is that Hubby and I scrimped, saved, begged and borrowed until two years ago to buy our house. It's not a palace, it's a modest 3 bed end terrace, but it's perfect for us, close to kids school and we love it.
So in Nov 2016 we had a pretty good credit score, and a nice shiny new 22 year mortgage.
But in the run up to this, we had borrowed from family to help us with our deposit, and lived frugally for a good few years.
I honestly cannot say what happened after Nov 16, but I think I felt free, I bought lots of things for the house, and tried to repay family at a very high rate... (Actually, at this point I was going to try to list all the 'things' we have bought but the honest truth is, I don't know where the money has gone, but it has, so _______ line drawn).
So we now find ourselves with cc debts and a personal loan totalling £33k. We cannot afford the next minimum payments and my 'LBM' came when I attempted a budget for next month. "We can't go on like this" were the next words out of my mouth.
So after much research, we contacted Stepchange who advised the DMP route. After much more research, we have decided to self manage. The reason being that I am a bit of a control freak, and I feel I have the tools (knowledge) to do this.
We want to get everything paid off as quickly as possible, but I also do not want to not live. If we set ourselves targets that aren't acheivable, we'll fail, I don't know what fail will look like, but I don't want to find out.
I also don't want to not repay our debts. I want the cc and loans to stop charges and interest asap, so that we can make proper in-roads into clearing the debts. I hope they'll work with me on this.
The other thing I want to gain out of this is to learn the lessons of budgeting. For the last two years, we have bought willynilly. I need to get out of that mindset, now.
I've noticed that most of the spending is down to me, Hubby has a sensible side (I want to find mine!) I will not make excuses, but I know I have some deep-rooted childhood issues relating to 'belongings' (lack of) and feelings of abandonment, and maybe I link the two??
I know I have spoilt the kids the last few years, this also needs to stop and I need them on-board with this too. They are 13 and 11 so they are old enough to understand, and to learn lessons with us. This is the greatest gift we can give them, I know this.
So the current plan is:
1. Open a new 'clean' bank account
2. Cancel direct debits to cc's and loan (scary bit)
3. Send letters to the creditors (scarier bit)
4. Wait for the phone calls and letters to start (scariest bit!)
I have already opened the new bank account and my wages will go in on the 27th of this month, Hubbys will go in on the 15th but not sure if this will be to the new account or old one as he's waiting for confirmation of this.
Timing is crucial but also scary!
Thanks for reading this.
I will try to update regularly.
Loobylou07
So I'm starting a diary....for my own accountability and to hopefully be able to help others along the way.
A week ago I had never heard of a DMP, and I am now at the early stages of self managing one! EEEEEEEEEK!
I have researched and obsessively googled everything I can get my eyes on for a week.
This site has been the best thing I have ever found, honestly, there are people on here who have literally given me the inspiration and knowledge that I need to sort this.
The background to my situation is that Hubby and I scrimped, saved, begged and borrowed until two years ago to buy our house. It's not a palace, it's a modest 3 bed end terrace, but it's perfect for us, close to kids school and we love it.
So in Nov 2016 we had a pretty good credit score, and a nice shiny new 22 year mortgage.
But in the run up to this, we had borrowed from family to help us with our deposit, and lived frugally for a good few years.
I honestly cannot say what happened after Nov 16, but I think I felt free, I bought lots of things for the house, and tried to repay family at a very high rate... (Actually, at this point I was going to try to list all the 'things' we have bought but the honest truth is, I don't know where the money has gone, but it has, so _______ line drawn).
So we now find ourselves with cc debts and a personal loan totalling £33k. We cannot afford the next minimum payments and my 'LBM' came when I attempted a budget for next month. "We can't go on like this" were the next words out of my mouth.
So after much research, we contacted Stepchange who advised the DMP route. After much more research, we have decided to self manage. The reason being that I am a bit of a control freak, and I feel I have the tools (knowledge) to do this.
We want to get everything paid off as quickly as possible, but I also do not want to not live. If we set ourselves targets that aren't acheivable, we'll fail, I don't know what fail will look like, but I don't want to find out.
I also don't want to not repay our debts. I want the cc and loans to stop charges and interest asap, so that we can make proper in-roads into clearing the debts. I hope they'll work with me on this.
The other thing I want to gain out of this is to learn the lessons of budgeting. For the last two years, we have bought willynilly. I need to get out of that mindset, now.
I've noticed that most of the spending is down to me, Hubby has a sensible side (I want to find mine!) I will not make excuses, but I know I have some deep-rooted childhood issues relating to 'belongings' (lack of) and feelings of abandonment, and maybe I link the two??
I know I have spoilt the kids the last few years, this also needs to stop and I need them on-board with this too. They are 13 and 11 so they are old enough to understand, and to learn lessons with us. This is the greatest gift we can give them, I know this.
So the current plan is:
1. Open a new 'clean' bank account
2. Cancel direct debits to cc's and loan (scary bit)
3. Send letters to the creditors (scarier bit)
4. Wait for the phone calls and letters to start (scariest bit!)
I have already opened the new bank account and my wages will go in on the 27th of this month, Hubbys will go in on the 15th but not sure if this will be to the new account or old one as he's waiting for confirmation of this.
Timing is crucial but also scary!
Thanks for reading this.
I will try to update regularly.
Loobylou07
0
Comments
-
Hello and welcome :hello:
You seem pretty well organised
There is a section on forum for DMP support which if you haven't already I would recommend joining in with. I think it's into it's 13th re-generation... like the Doctor lol
Anyhoo, welcome to the diaries as you'll soon know we are a lovely bunch of folks who really do help and support each other on our journeys to becoming debt free no matter which way we travel. Some are on DMP's, some are living a frugal but happy life, some are recovering bankrupts, some are going thru them (myself included).
No judgement here only help, support, advice and encouragement.
Join in, visit folks (read their diaries) and have a chat.
Any questions or need any info / advice? Just post up and someone will pop along to help
BUGGRITMILLENIUMHANDANDSHRIMP I TOLD EM! - Foul Ole Ron
It is important that we know where we come from, because if you do not know where you come from, then you do not know where you are, and if you don't know where you are, then you don't know where you are going. If you don't know where you're going, you're probably going wrong.
R.I.P. T.P.0
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