Saving an emergency fund prior to commencement of a DMP

Everest_12

Hi all,

I have received advice from StepChange regarding my unsecured debt (circa £60k) and have been advised a DMP is the way to go.

StepChange are keen for this to start ASAP, I am keen to start as week although I am conscious I will no longer have access to crest and therefore feel I need a substantial Emergency Fund.

I would need 4 months to realistically save a sufficient Emergency Fund, this is not possible with StepChange.

If I were to write to my creditors stating I am ‘discussing options’ with StepChange would it be possible to hold off making payment until October? Am I likely to get a CCJ?

Once I saved the EF I would then start with StepChange and get into the DMP.

Is this pie in the sky or realistic?

sourcrates

Hi,


No pie in the sky, this is exactly what we recomend you do on our dedicated "DMP Support Thread".


It can be found here :


https://forums.moneysavingexpert.com/discussion/5897083/dmp-mutual-support-thread-part-13&page=88


Thats the best place to ask your DMP questions.

Everest_12

Thanks Sourcrates.

How would I go about this?

I assume I simply write holding letters to each creditor stating I am taking advice from a debt charity and that I will revert in due course once I have a plan in place.

I understand that I will get 30 days grace, given I need around 120 days what can I expect to happen?


Should I state in my letter I anticipate starting payments in November or leave this off?

Thanks.

Willing2Learn

Everest_12 wrote: »

Should I state in my letter I anticipate starting payments in November or leave this off?

I always advise people to clearly state a start date for your DMP payment plan. So, in your case, I would write in your holding letters that the DMP payment plan will be starting on xx November. That way, you are keeping them 'in the loop'.

sourcrates

Everest_12 wrote: »

I understand that I will get 30 days grace, given I need around 120 days what can I expect to happen?

Truthfully, not a lot to be honest, if you make it clear in your letter when you intend to start, then all you will get are computer generated letters and calls, people tend to panic over debt collection, the reallity is, most of the time, it can take months or even years, it really is a very slow process.


Youll be fine for a few months.