Dmp 22 September 2022 at 11:44AM in Debt-free wannabe 2 replies 195 views

smith100

Hello All

I am so nervous as I begin to type this message. I’ve have been so foolish in the past with money and have had a Dmp with step change and managed to pay back £13 800 with another £20 000 left to pay. I left my dmp as I couldn’t keep up the £350 payments as I had never set up any emergency funds and I was starting to get car issues etc and everything started to go wrong. 

My debts had been sold to PRA x2, INTRUM and WESCOT. I set up smaller payments to them (£70, £36, £60 and £10 respectively). Since I have stupidly used new credit cards over the last 1/2 years and have made more debt of £5000. With my payments stated above and my minimum payments for my new debt I’m struggling again. 

I really want to get a grip on everything and wanted to know would it be possible to go to step change again and start a new dmp for my old £20 000 debt and new £5000 -£25000. I know how ridiculous this sounds that I have let this happen again and would be grateful for any advice. I would be able to pay £250 a month on a dmp.

many thanks

Rob5342

You can manage a debt management plan yourself if you want to, I do and it's very easy. The important thing is that you make sure the repayments you are making are sustainable and change the plan if they are not. My petrol and energy costs went up quite a lot recently and I revised my debt management plan and made lower payments.

RAS

Re-do your SOA: SOA Calculator (lemonfool.co.uk)

Then stop paying everyone whilst you build up some emergency funds. It's a lot cheaper not to pay debts that have been defaulted, than to take out new credit @ 30%. That includes your recent credit cards.

Build up an emergency fund before you talk to Stepchange again or Payplan. Be aware that if you take yet out more credit both may terminate the arrangement. And that if you have an emergency, both will let you suspend payments for a month or two, so you don't need credit.

Work out how much surplus you really have if you live sensibly within your budget. It takes a bit of time to settle down. And if you have "unexpected" spends, work out why they have not been included in your budget and adjust it.

Hope that works for you.