About to start DMP

gorskiii

Rob5342 said:

I agree, please don't use Money Wellness, use Stepchange or Payplan if you must but ideally just do it yourself.

I used Stepchange originally but then switched to doing it myself. Stepchange seemed like a good idea initially but I quickly found them to more of a hindrance than a help. The problem with Stepchange is that they have a very rigid approach of treating creditors fairly and splitting any money equally. Running it yourself means you have the flexibility to pay creditors different amounts, if you wanted to make a settlement offer to one, or make higher payments to another. They also advise that you start paying straight away without waiting for defaults, which can harm your credit record for longer and make your total repayment higher than it needs to be. It's easy to do it yourself, just set up a standing order to make them payment and tell the creditor what you'll be paying them, and you don't have Stepchange obstructing what you want to do.

Yep I agree with that. MW did advise not to cancel any direct debits until the DMP is in place. I’ve read that that means it’ll be on your file longer than if you waited for the default to appear?

Floss

The sooner they stop getting any money, the sooner the defaults will be sent. It will take months and you need patience, but remember that not every penny you pay to Money Wellness will go towards your debts. If you self-manage, you can split your payments however you want.

Rob5342

gorskiii said:

Rob5342 said:

I agree, please don't use Money Wellness, use Stepchange or Payplan if you must but ideally just do it yourself.

I used Stepchange originally but then switched to doing it myself. Stepchange seemed like a good idea initially but I quickly found them to more of a hindrance than a help. The problem with Stepchange is that they have a very rigid approach of treating creditors fairly and splitting any money equally. Running it yourself means you have the flexibility to pay creditors different amounts, if you wanted to make a settlement offer to one, or make higher payments to another. They also advise that you start paying straight away without waiting for defaults, which can harm your credit record for longer and make your total repayment higher than it needs to be. It's easy to do it yourself, just set up a standing order to make them payment and tell the creditor what you'll be paying them, and you don't have Stepchange obstructing what you want to do.

Yep I agree with that. MW did advise not to cancel any direct debits until the DMP is in place. I’ve read that that means it’ll be on your file longer than if you waited for the default to appear?

There are two adverse markers about each debt that can appear on your credit report. There are defaults which disappear 6 years after they were added, and payment arrangement markers which disappear 6 years after the debt was paid off, which is potentially far longer.

Ideally you want defaults for every debt as soon as possible so they drop off earlier. If you speak to the creditors they are likely to put you on a payment arrangement and they may default some time later. If you ignore the debt initially then they are likely to default earlier which is better in the long run.

backinbusiness

Ditch MoneyWellness - today!  BiB x 

fatbelly

Some good advice here guys.

Remember you can always start a thread in the diaries section for ongoing support

And there are a lot of resources on nedcab

https://nedcab.cabmoney.org.uk/dmp.asp

gorskiii

fatbelly said:

Some good advice here guys.

Remember you can always start a thread in the diaries section for ongoing support

And there are a lot of resources on nedcab

Many thanks is for the link. I’ll check out the Diaries section.

Wimbledonwomble

After 4+ years with stepchange I started to find them quite rigid as others have said. I was very nervous about self managing but support on here encouraged me and its been fine . 

At start of my DMP I was so anxious at owing £29000 + . I was going to take a big drop in income due to increased disability. Wasn't sleeping but still spending ! 

After a couple of months going it alone I found that a debt to a clothing company was not in fact a debt ( mix up with account numbers meant I had 2 accounts with slightly different address details) I had made a return which had not been taken off balance so I was in credit -) only £14 but good .

This encouraged me to take my head out of the sand and become organised . I used to look at the diaries of people who made frequent small payments to their debts and think it was a drop in the ocean and would not help me. I was so wrong . After all ,what is the ocean if not drops of water.

I would not pay for debt advice . I found stepchange a good support at first and I'm very grateful .But I wish I hadn't rushed into setting up my DMP and had built up an emergency fund at the start. 

Now  I find meal planning a great help ,also setting goals . I've sold stuff,( was too lazy before and lacked confidence) ive decluttered and my debt will be gone completely by March . I have an emergency fund for the first time ever. I find I no longer waste, not just money,but anything. Spending used to be ( in my eyes anyway) a reward . Now seeing the totals fall is my reward.I know I tended to be over the top with buying presents and giving to collections etc. That stopped . I still buy ,but what I can afford and is budgeted for.

You really can do this . The  first time i politely but firmly told a company that "no you are not having a SOA ,this is what i am able to pay " i was so nervous but they just accepted. All the very best . Lots of support on here. 

gorskiii

Wimbledonwomble said:

After 4+ years with stepchange I started to find them quite rigid as others have said. I was very nervous about self managing but support on here encouraged me and its been fine . 

At start of my DMP I was so anxious at owing £29000 + . I was going to take a big drop in income due to increased disability. Wasn't sleeping but still spending ! 

After a couple of months going it alone I found that a debt to a clothing company was not in fact a debt ( mix up with account numbers meant I had 2 accounts with slightly different address details) I had made a return which had not been taken off balance so I was in credit -) only £14 but good .

This encouraged me to take my head out of the sand and become organised . I used to look at the diaries of people who made frequent small payments to their debts and think it was a drop in the ocean and would not help me. I was so wrong . After all ,what is the ocean if not drops of water.

I would not pay for debt advice . I found stepchange a good support at first and I'm very grateful .But I wish I hadn't rushed into setting up my DMP and had built up an emergency fund at the start. 

Now  I find meal planning a great help ,also setting goals . I've sold stuff,( was too lazy before and lacked confidence) ive decluttered and my debt will be gone completely by March . I have an emergency fund for the first time ever. I find I no longer waste, not just money,but anything. Spending used to be ( in my eyes anyway) a reward . Now seeing the totals fall is my reward.I know I tended to be over the top with buying presents and giving to collections etc. That stopped . I still buy ,but what I can afford and is budgeted for.

You really can do this . The  first time i politely but firmly told a company that "no you are not having a SOA ,this is what i am able to pay " i was so nervous but they just accepted. All the very best . Lots of support on here. 

Thanks for this. Another useful and interesting read.

gorskiii

Sorry for another question. I’ve set up a new bank account due to one of my debts being owed to who I currently bank with. My wage will now go into my new account along with my various direct debits. 

The question I have is that my mortgage is with the bank as well. I take it I don’t have to change my mortgage as well? I can keep the same mortgage provider and carry on making my monthly payments.

fatbelly

gorskiii said:

Sorry for another question. I’ve set up a new bank account due to one of my debts being owed to who I currently bank with. My wage will now go into my new account along with my various direct debits. 

The question I have is that my mortgage is with the bank as well. I take it I don’t have to change my mortgage as well? I can keep the same mortgage provider and carry on making my monthly payments.

No that's fine. The mortgage is just another debt, but a secured one and so high priority