Help - Breathing Space requirements forcing me into DMP?

ChelseaWoody27

Hi everyone,

I have a bit or an urgent issue that I'm hoping someone would be able to help me with.

My debt had got to an unmanagable point and through lots of advice I reached out to StepChange. I've applied (succesfully) for Breathing Space for all of my debts and had submitted my information for a DMP through them yesterday. After seeing all my Breathing Space requests coming in I spent a while digging in a spreadsheet and realised that with those two months space I could clear enough of my horrible debts (payday loans) and then manage the remaining credit card debt myself - without having any defaults or serious black marks on my record for 6 years.

Delighted I've called StepChange to withdraw my DMP for the time being but I've been told that withdrawing COULD mean that my BreathingSpace only lasts 30 days, not the 60 that I would need to see through this plan.

I was so excited, motivated and ready to put debt behind me in a way that didn't stop me getting a mortgage anytime soon but this has thrown a real spanner in the works. If I can get the 60 day freeze I can get on top of this. Is what StepChange have said accurate, is there anyway around this? I feel really deflated and could really use some advice.

 I haven't bothered with any specifics of debt etc but have done all the workings out myself, happy to divulge anything that is relevant.

ChelseaWoody27

Hi, I also think this has ended up in the wrong forum but I'm unsure if I can move it!

flipflopflo

I have asked for it to be moved to the DFW board. If you press report there is an option and you can write a message. 

Rob5342

There's no contract with a dmp so you can pull out after 60 days if you want to. Having said that, are you absolutely sure that you would be able to manage the debts yourself, you don't want to have a small boost only to slip back to using payday loans. 

ChelseaWoody27

Rob5342 said:

There's no contract with a dmp so you can pull out after 60 days if you want to. Having said that, are you absolutely sure that you would be able to manage the debts yourself, you don't want to have a small boost only to slip back to using payday loans. 

I am totally sure, reasons for my slips have been addressed and systems put in place for it not to happen again. 

Your advice goes against what I've been told elsewhere here. If I leave the DMP in, am I going to get any defaults on my account within the first two months? That's really what I'm trying to avoid here. 

Basically I need the money that the DMP would take off me to pay my creditors equally to pay off all my payday loans within the first two months. I've budgeted for this and it's doable and realistic. Then when my credit card payments start again I can be on top of it and pay of more than minimum on one at a time. 

Given all of the above, should I cancel the DMP and just explain my situation individually to anyone that tries to start charging again?

ToxtethO'Grady

Part of the Breathing Space regulations state that your eligibility is dependent on regu;ation 24 (4)

(a)the debtor is unable, or is unlikely to be able, to repay some or all of their debt as it falls due, and

(b)a breathing space moratorium would be appropriate.

You are saying you can pay your debts as they fall due so that makes you ineligible for Breathing Space.

You can fill in the details for the DMP and cancel it once your Breathing Space ends.

It's unlikely a creditor would ask for a review of your Breathing Space and then it comes down to whether you cancel going into the DMP with Stepchange before your Breathing Space ends.

You can ask for an informal hold of 30-60 days from your creditors as they will give you that for accessing debt advice if your Breathing Space ends at the midpoint review from day 25 onwards.

fatbelly

Defaults should not be issued before three missed payments but it's going to be a difficult argument to remove them if they are applied.

Have you tried complaining about the payday loans?

*https://debtcamel.co.uk/payday-loan-refunds/