DMP and the consequences

matthewwallis

Hi all, I think I will be shortly entering into a DMP with stepchange. I’m just cautious as I’m currently renting a flat which isn’t the biggest space, I would be looking to move to another rented property in the not too far future but I’m just wondering if this would even be possible if I’m on a DMP? 

I’m also worried about things like my car, I got it at the start of the year on HP and my DMP would last 10 years. If my car was to break down and needed replacing, would a new finance agreement 1) be possible and 2) be allowed?

StepChange_Aidan

Hi Matthew,

Being on a DMP won’t stop you from being able to move to another rented property, but please be aware that if the new landlord requires a full credit check they will be able to see that you’re making reduced payments to your debts, which may affect their decision.

You could also start a new car finance agreement while on a DMP if you needed to, and your budget can be updated to make sure that the HP payments are being prioritised.

There’s more information on how DMPs can affect you here.

I hope this helps, but if you have any other questions about DMPs or want to discuss your options in more detail, please get in touch with us.

Regards,

Aidan

sourcrates

matthewwallis said:

I’m also worried about things like my car, I got it at the start of the year on HP and my DMP would last 10 years. If my car was to break down and needed replacing, would a new finance agreement 1) be possible and 2) be allowed?

This is why you are advised to save an emergency fund, for life`s little emergencies.

You should be looking to finance these things through savings, not credit.

Stopping all non essential creditor payments for 6 months or so, prior to debt management, helps start you off, then aim to save a regular monthly amount from your disposable income, the rest goes towards your debts.

Further down the line, this can also be used to take advantage of settlement offers which will reduce the amount you pay, and the time you are in your DMP.

That`s your way forward.

NE2023

Hi, i am new here and just have a few questions. I have decided to get a dmp as i have been struggling recently and feel it is the best thing for me and my family. I have done some research and seen peoples advice to stop paying and wait for defaults. I have stopped paying this month and have been receiving a number of phone calls and texts etc. 

do I need to contact all my creditors to tell them I will be entering a dmp? I am just terrified of them taking court action, any info would be a great help, thanks 

RAS

First things.

Probably good to start your own thread but meantime....

Creditors can't take legal action until they have defaulted the debt. You want them to do that so that interest gets frozen.

So you wait for the default and then set up a payment you can afford. At that point they know you are paying and if they take legal action, they'll end up with the same or even less money.

Why waste £xxx going to court just to get less money from you?

So, learn to live within your budget, remembering to include all those annual costs etc, whilst saving what would be your DMP payment to cover emergencies in the future. 

Grumpelstiltskin

Don't tell them at the moment you are thinking of a DMP.

There is little chance of them going for a CCJ but if they do then they have to go through the correct procedures the first being writing to you by snail mail.

Why don't you start your own thread, the first thing you will be asked for is a SOA and have you asked for CCAs to check the debts are enforceable?

stu12345_2

the CAB connected me to use stepchange and . within days  I was using stepchangr.it was as if a huge weight was off my shoulders.BUT stepchange never ever offered me the opportunity to stop payments .I was in debt trouble and turned to them  they reduced my payments to my creditors. however they suggested a £50 a month emergency budget.( which has mostly went on large car repairs)

I recently told them my car was old becoming  unreliable and  will soon be needing replacing.i need About £4000 to get a half decent reliable car.i can't get hp cos credit status is ruined. don't want anymore debt anyway.
the solution is to stop my £350 DMP payments or reduce them to around £100 a month max for about one year..maybe more.( I can prob afford to pay them £350 monthly if I wasnt saving for a car though)
this would give me about _£4000 saved up.
however stepchange don't want that.as they say I can afford more to creditors( £350) my usual amount.and creditors will reject the  new much lower DMP as I'm deliberately saving up for a replacement car and stopping or seriously reducing monthly payments for a lengthy time.
almost all my debts have defaulted now.so stopping payments  or seriously reducing them by a lot and saving up for a car leaves me a lose lose situation.as creditors can now seek much further action.
what action cam happen now if I only pay £100 n monthly to creditors.
if they seek court action.would I still be allowed to save up for car .what if I get a ccj.will the ccj give me an allowance to save up say £250 a month for replacement car. and pay a ccj of £100.

recently,stepchange have bent the rules for a couple of months and let me go down to £100 a month.but they want a normal proper budget sent to them in 4 weeks time showing I can properly pay the £350 which them and I know I can  honestly pay..
if that happens my car will never last the length of my DMP. tbh I think it will need scrapped in 2 months time.mot time.
plus at the moment I'm incredibly close to getting a new better paying job.but it is much further away and remote.so employer insists that I can get to work reliably in a  decent car.no buses are available to job.

( the most annoying thing was 30% of my overall debts  was  a car on hp.so I sold it back to a dealer soon after starting dmp.. thought I was being smart by getting rid of even more debt. so got some small  equity back  and bought an old run about.which I was expecting  only to last about 24 months, so I could concentrate really attacking  my credit card debts DMP  via stepchange.now 22 months has passed and my car is dying. if I had kept the hp payments up   combined with a  very low DMP amount monthly I would have a very decent car all paid for and at the same time had made tiny monthly payments to stepchange for my credit card DMP debts,then upped it higher as soon as the hp was finished..now it has turned out complete mess selling newer car just so I could make decent payments to my dmp credit card plan )

I honestly don't know who on this forum has the answer that doesn't involve some serious bending of the rules and  of  the standard debt repayment ideas to come up with a solution. 

ps CCA letters have been written.expect replies soon. but of the 6 debts only two debts ever been sold on.and the biggest is to  PRA who I read are nasty and not great at CCA( they tend to show the CCA and say prove it is faulty and  terrible at full and final offers.)
 the other creditor that got sold on is of low value

Rob5342

Ther aren't any rules, just pay the £100 to your creditors yourself each month if that's all you can afford.

PRA couldn't produce the CCA on one.of my debts. They write to me every two weeks and phone every two days but their letters all say the debts are unenforceable.

DjangoUnchained

Rob5342 said:

Ther aren't any rules, just pay the £100 to your creditors yourself each month if that's all you can afford.

PRA couldn't produce the CCA on one.of my debts. They write to me every two weeks and phone every two days but their letters all say the debts are unenforceable.

same here. PRA couldn't produce a CCA, i don't get letters, just a statement with a discount every few months, but they phone me every day but their number is blocked. It is now statute barred but i havnt got the heart to tell them yet. I will let them keep ringing and build up maybe put in a claim for harassment of a statute barred unenforceable debt.  

stu12345_2

Rob5342 said:

Ther aren't any rules, just pay the £100 to your creditors yourself each month if that's all you can afford.

PRA couldn't produce the CCA on one.of my debts. They write to me every two weeks and phone every two days but their letters all say the debts are unenforceable.

but I can afford £350 .but if I want to save up for a half decent replacement car within 12 months.i can only pay £100 and that is my concern. not paying the full amount I should really be paying 
the only way of doing this is refusing an income and expenditure sheet to everyone.
but if creditors get nasty and do ccj I don't see any ccj that will allow saving up £4000 in 12 months for replacement car 
I think ccjs expect you to drive a car that needs to be scrapped.

plus I read a horror story on legal beagles about a CCA request to PRA and they never replied.excrpt for taking the person to court and producing a 100% complete CCA and charging court fees etc to the person.
basically they jumped the CCA request. to their own end game.i think that is how the story went or I got a little confused.

but anyway my main part of my reply is I was wrong to sell my newer car on HP..it leaves me with an old banger and no proper way of being allowed to save £250 to £300 a month in savings on any DMP that ever existed for another decent fairly modern reliable car ,as fast as I can without going into debt( which I can't or don't want)

Grumpelstiltskin

Stu  You were told weeks ago to stop over thinking everything.

You have been told over and  over again that you are in charge, you pay what you want.

Please stop butting in on other people's threads and go back to your own thread if you want the same advice again