Paranoid about debt

NeverendingDMP

Yes you can pay extra at any time but honestly that will just complicate things and make them think you are richer than the budget you sent. You can review your budget with step change at any time so dont worry. Again i would keep any bonus or additional money to one side.
The letters were arrears letters, letters to say they might default us then actual default letters. We were already making payments by that point so the letters then turned to ones about we accept your payment for x amount of time. Then as long as you communicate and keep in touch when your review is due the letters will stop and just be catch up/annual review type letters.

NeverendingDMP

They will all have heard of stepchange so dont worry. If they havent they have not been trained properly x
All the letters i got referred to seeking advice from stepchange debtline etc if in need. Take a deep breath and go for it.

bigd58

Thank you so much for all of this. I am so ashamed of myself with all of this and hopefully everything can work out.

I did speak to one of the companies yesterday before talking to Stepchange about working out a payment plan and they did mention Stepchange

Shadow14uk

I'm just starting a DMP with Stepchange and I wish I had of done it years ago. They have been great, the afternoon I finally rang t took me 4 attempts as I hung up 3 times. The could not have been more supportive.



When I rang my creditors they were equally nice. I said to them I've been worried about ringing and every single one said we have a duty of care to you and its far better to ring and be honest than miss payment etc. They have placed holds on all my account until the DMP has been fully set up and each one said we are pleased you have contacted Stepchange, it’s a huge step but well done for doing it. These are all big names too, Barclayloan, Barclaycard, Halifax CC etc.



I took myself to my bedroom, made sure I had all info I needed like CC totals etc and spoke with a lovely advisor called Tracey for nearly an hour.



Best thing I have done. Yes my “excellent” credit rating and score will be shot (despite £23k debt I hadn’t missed one payment ever) but I actually slept properly for the first time in months and not worrying how I was going to afford the coming month. My diesel is budgeted and a reasonable budget too, clothes, everything. I will probably be able to increase the payments in the coming months but like people on here and even Stepchange said, try and get an emergency fund built up and get used to budgeting
like CC totals etc and spoke tiwh

bigdavecox90

bigd58 wrote: »

Thank you so much for all of this. I am so ashamed of myself with all of this and hopefully everything can work out.

I did speak to one of the companies yesterday before talking to Stepchange about working out a payment plan and they did mention Stepchange

I don't think you need to be ashamed. Everyone is embarrassed to speak the truth when it comes to debt, so well done for coming on here and requesting help when you needed it the most.



Just perhaps view it as a learning curve?

NeverendingDMP

I dont think you need to be ashamed either. Theres plenty of us in this situation for one reason or another and as the saying goes in the debt forums......Onwards and downwards (as in the debt will only go down not up once things get sorted for you)

bigd58

I have just had the worst nights sleep, more sit up and think than sleep.

I have had a rejig with figures and believe that i can make everything work out as long as i don't get any unexpected bills in the first few months

My biggest worry is that because of HP my payment will only be £101 for the first 33 months on a £48k debt which is recommended by stepchange recommends and then after 33 months will go up to around £600.

due to the fact that £101 will be a tiny fraction of my debt for the first 33 months i cannot help but worry that the DMP wont be agreed and that i will get CCJ's or something due to the equity on my house.

I may be able to increase this to £200 in the next few months, if i was to speak to stepchange and say this would they be able to use it as leverage with my debtors? do they also let my debtors know that the payment will go up in 33 months time?

As i say stepchange recommend a DMP.

i am in constant worry about this at the moment, and i do not want to tell my family if i do not have to unless i really have to if this happens.

reading back over yesterdays messages i know I'm probably overreacting but at the moment with everything going round my head i cannot help it.

NeverendingDMP

Dont panic. I was you three years ago, putting every penny to the debts and panicking it wouldnt be enough for everyone. My two pound cash back from the bank was even included in my income i was that panicked...
Ours started at 35000 plus with 156 pounds spread between them. Now i pay 118 spread between six debts at just under 30000 still owed as i cant afford anymore. No one has ever complained, as long as i pay something and do an annual review they are fine. One creditor recently wrote back to me saying was i sure i wanted to pay that much as my food budget looked too low. The people i owe always ask am i sure i can afford it, just ring write etc if your circumstances change. Pay as little as you can at first as living without credit for the first time is an experience in itself. You need practise to live in a budget first-no offense.
You can ask for contact to be only in writing/email if you want so you dont feel like you have to explain yourself. Stepchange is well known and they need to accept the advice stepchange are giving you.
Hope u catch up.on your sleep soon

bigd58

Thank you so so much for everything.

I have finally called all three of my debtors. Two of which I had two accounts with so I was able to do both with one call.

All direct debits have been cancelled at both ends.

Now I just need to sort my budget and payment plan with StepChange and I can send it off to be dealt with.

I will still have a few worrying nights until I get something back in writing but hopefully that will be the end of it and I can then stick to my budgeting

You are right with the budget comment.

I have for too long lived without any budget, I don’t want to be one of those people who say I can’t afford something I was alway too proud to do this and therefore I would forever be using credit to catch up with everything.

I believe my budget can work (well it’s going to have to for at least a year) as long as I don’t get any out of the blue costs.

Again thank you for your reply, I have been on here since 6.15 and didn’t post until just after seven. I have been back and forward on my phone all morning to see if anyone had replied.

Maybe a good cry and an early night for me tonight.

Fireflyaway

You have taken action to sort your situation which is great. Hopefully soon there will be no letter or calls, you just make your payment and know that each month you are closer to being debt free. Don't feel ashamed. I really think society should take a bit of the blame for debt. It's so easy to borrow and everything is available on credit with some companies actively encouraging us to borrow. You know I did a lot of stupid debt stuff. Behind on all bills, credit cards, payday loans, borrowed from family, sold stuff I now regret selling ( jewellery) and even called in work sick ( real reason I couldn't afford petrol) and shamefully took loo roll from work as I had no money left on one occasion to get any..... I never told my family as I knew they would worry / lecture me and it would just cause me stress. You don't have to tell anyone if you don't want.
Also don't worry about credit scores. It's not a sign of wealth or success and you can manage fine even with a rubbish score. I don't even check mine anymore.