Advised to lie to DMP for lower payments

loz1223

Hello, 

I contacted stepchange about debt help. They advised me to state my income is lower than it actually is to make smaller payments. Will I get in trouble with the DMP company if I do this or do people commonly do this? 

Thanks! 

adamp87

Nope, citizens advice do something similar not so much lie but give some leeway for outgoings so you aren’t skint each month. You can offer £1 a month to be honest and say that’s all you can afford..

Are these debts that have already defaulted and now being chased by agencies/debt buyers?

Be wary of using DMP companies that may charge a fee/percentage, I thought Step Change would just contact each company on your behalf and make an offer.

If they don’t Citizens advice will and do this for free and do the legwork for you.

Basically they’ll sit down with you and ask your income outgoings. There’s a certain amount they’ll expect for extra things like hobbies/treats and such too, they aren’t inhumane. Then say well I think you should be offering £X amount and make offers to that.

Nearly all creditors would rather take something than nothing, others will cut their losses sell your debt for someone else to try and chase but again if all you can afford is £X, provided you are paying most if not all will say yes.

born_again

I would not lie about income. If any asked for proof, you are stuck.
But you can be very generous with essentials outgoing such as food etc.

stu12345_2

I don't think stepchange will ask you to lie and I've been with them.for 2 yrs.but now doing my own dmp.a DMP is there so you pay back all your debts in a timeframe that isn't hugely excessive. it is based on what you can afford.it is designed so you don't live in luxury or like a pauper.
 stepchange wouldn't ask you to lie about your wages .but they would probably ask you not to underestimate your expenses as that is where many go wrong.i expect to them to create a budget that doesn't leave you living on beans on toast.
so they probably advise upping you emergency savings or  making sure your food gas and electricity budget is set at a healthy amount.
and similar such as car repairs mot.
cos that is where I went wrong .I hugely underestimated the cost of running my car.and an old car.stepchsnged advised maximising the budget for my car.

stu12345_2

loz1223 said:

Hello, 

I contacted stepchange about debt help. They advised me to state my income is lower than it actually is to make smaller payments. Will I get in trouble with the DMP company if I do this or do people commonly do this? 

Thanks! 

imo somethings are not adding up in this post.either a lot of info is missing about the full conversation with stepchange or the OP has summarised their findings in a confused way.

I think they really need to go into more detail exactly what was discussed with stepchange.cos no way would the first call to stepchange say, tell you what madam,  let's lie, does that sound like a good debt solution. to you madam,? 

the OP needs to do a follow up post cos the original post is far far  too short to explain things correctly.i expect a lot of information is still to be explained.

Rob5342

You should have a budget for your own purposes that is completely accurate and sustainable, with allowances for every expsense you'll have, and then what you tell your creditors is another matter. I'd just manage it yourself, tell the creditors what you'll be paying but nothing else, and don't waste your time creating budgets to keep other people happy.

Grumpelstiltskin

Are you sure you are ready to start a DMP at this point in time?

Have your debts defaulted?

Have you requested CCA'S?

Have you built up an emergency fund of at least £1000?

It can be a big mistake to panic and think you must jump straight into a DMP.

It was the genuine Stepchange you spoke to, not one of the pretend websites?

IMPORTANT - Where to seek professional impartial advice about your debts. — MoneySavingExpert Forum

sourcrates

loz1223 said:

Hello, 

I contacted stepchange about debt help. They advised me to state my income is lower than it actually is to make smaller payments. Will I get in trouble with the DMP company if I do this or do people commonly do this? 

Thanks! 

Who are the "DMP company" you mention?

Do you mean debt collector?

Debt collectors lie and cheat and would sell their own mother to get the last few quid out of you, you should never engage with a debt collector over and above telling them what you will be paying them.

Nothing needs to be proved, no one will be in trouble, lie all you want to them.

sparks_2023

Personally I wouldn't lie about income or any debts detailed on the credit report.

Generous estimates for anything else though seems fair enough. +£10 here, +£20 there, a bit more petrol etc. all adds up.

stu12345_2

sparks_2023 said:

Personally I wouldn't lie about income or any debts detailed on the credit report.

Generous estimates for anything else though seems fair enough. +£10 here, +£20 there, a bit more petrol etc. all adds up.

your credit report does not have your income. and you can't lie about your debts on it anyway. the credit referencing places your creditors names on it you don't place them on it