DMP -have I done the right thing?

Fireflyaway

I did exactly the same! Used to lie awake at night listening for noises outside that could be bailiffs coming to take the car! I used to hide post, unplug the phone and internalize the stress trying to appear that all was ok!
Having been where you have been, in my opinion you have absolutely done the right thing. You have identified the mistakes and dealt with the problem.
People put too much emphasis on credit scores. That's not a measure of wealth or success. You can manage ok without one!

Onebrokelady

Yes you have done the right thing my best decision of the year was to sign up to a DMP with SC,my next best decison was to start some savings pots for emergencies and things like Xmas,I chopped up my cards and have not used a credit card for 10 months,I will never use one again

Onebrokelady

MandyT1970 wrote: »

I'm just feeling my way around this forum so apologies if this comes up at the wrong place.
To the OP I just wanted to say I'm in a very similar boat and I wanted to congratulate you for facing up to everything! I need to follow in your footsteps.
To misterbarlow I just wanted to ask you a question about Stepchange. Did creditors still contact you? My husband does not know of the mess I'm in, it would kill him. I have to do this without him.
Thanks for your help.

I live with my daughter and she doesn't know about my debt,I removed my phone number from my creditors reocrds and told them I only gave them permission to contact me in writing,they sent me letters when the DMP first started but they were just letters agreeing to the plan and then default letters,they looked like bank statements or junk mail so not easily indentifiable ,I've been on my plan for 9 months and my daughter still doesn't know, I suppose it depends on how likely it is that he might read your mail
Having said this it's quite hard keeping such a big secret and I have nearly dropped myself in it a couple of times so you nee to think very carefully about whether you would find it easy to keep this a secret

IndyScot2020

TommyTBFC wrote: »

A few Saturdays ago I stumbled on StepChange. I rang 4 times and put the phone down every time. The 5th time I spoke to someone after 10 minutes I was in floods of tears because the Penney has dropped for me. They recommend a DMP and they said in 3 years I could become debt free and I have to pay £200 per month to them and then to all my creditors. I’m paid £1500pm so it’s easily affordable leaving me with actual money for the month (for the first time in a long time)

Yeah, sure you have done the right thing, especially that you have chosen Stepchange. From what I've read they are one of the better DMPs as their fees are low/nil. Read some others who are paying enormous fees for commercial (rip off) DMP programmes.

trust me 3 years will probably fly by! I've been on my DMP (or Debt Arrangement Scheme in Scotland) for over 3 years - and is scheduled to end in 2029

Good luck!

cado1

You have absolutely done the right thing ! I was int he same boat I didn't deal with anything for years. I earn well above the national average and have nothing to show for it no house, no car etc and I work in finance!!
I went through step change and I can now just about make it through the month to pay day which is actually quite a feat in itself. What I would say is being on a DMP does make it much harder to get mainstream credit and obviously if you use pay day lenders continually while on a DMP step change can cancel your arrangement so it is a big reason not to.

What I will say is though is that a lot of lenders are now realising that most people have been in the S**t at one time or another financially so most people do not have a clean credit record which you always previously needed to get credit / mortgages etc. There are some lenders now that offer specific mortgages for people currently on or who have been on DMP's , yes the rates are higher but a mortgage is the only good debt to have and as long as it's affordable, as time passes things drop of your credit record and you return to main stream rates.

I am single, I haven't told my family but I have confided in a friend who is going through the same thing but managing it herself and talking about it does help you deal with it