DMP

I have contacted stepchange for my debt problems, totally 24,500, due to income drops over the last few years. I am completely up to date with everything but feel I won’t be able to continue that. Stepchange have recommended bankruptcy or dmp. I have opted for dmp as my car would be at risk as valued st around 6.5k. I really need a decent car for family reasons, job and living in rural area. I am just waiting for my application to be processed. I felt relieved after talking to them. But now I am getting so stressed as reading so many different stories re dmp and terrified the sheriff’s will come to my door and take everything away. I am now worried sick I have made the wrong choice. Has anyone had a smooth journey with a dmp and got to the end of it, debt free? 
Thanks for any advice

Comments

  • fatbelly
    fatbelly Posts: 20,178
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    My comments on your other thread still apply

    https://forums.moneysavingexpert.com/discussion/6492349/car-and-bankruptcy#latest

    And a statement of affairs would be useful.

    I still assume you are in England but Sheriffs is more commonly used in Scotland. If it is bailiffs you are worried about, don't be. They are most commonly used in England on Council Tax debt and Magistrate Court fines and you ha e given us no indication that you have those sorts of debts

  • azmilligan71
    azmilligan71 Posts: 24
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    hi fatbelly, thanks for replying. I live in scotland. My debts are all unsecured, loans and credit cards. With bank of scotland, halifax, tesco bank. My disposable income from soa is 163.55 after paying all essentials etc which is the amount suggested to pay dmp over 12yrs 8months. 
    I opted for dmp to keep my car and thought i would revisit options when car lower value.  The other option continue with dmp until 60 (8yrs) then I have access to 2 pension lump sums which I could pay off the remainder debt and still have funds left over. This is all assuming interest and charges are stopped. But read so many horror stories now that I am terrified of the sheriffs coming or going to court, more for my childrens sake and the debt just rising. 
    Thanks
  • sourcrates
    sourcrates Posts: 28,493
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    edited 1 February at 9:33PM
    Please try not to overthink things, non of what you suggest is going to happen, creditors are well used to clients in debt management, hundreds of thousands of customers choose this method to repay their debts.

    A DMP allows you to repay what you owe, at a reduced monthly rate, over a longer period of time, no big deal, no fuss, once set up, most run like clockwork, you will forget your in one, stepchange is funded by the big banks, that is why they are there, to help people just like you, so stop reading silly tale`s on the internet and arm yourself with the facts instead..
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • EmergencyNurse
    EmergencyNurse Posts: 85
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    edited 6 February at 8:53PM
    Setting up a DMP with StepChange in 2018 has been the best decision I could have made. I no longer count down the days until payday, I no longer work overtime and I have savings. With my DMP coming to an end in December I look forward to being able to save even more. The DMP didn't affect my ability to remortgage on another fixed rate product with the same provider half way through the DMP getting an excellent 7 year fixed rate of 2.09%. 
    Debt March 2018 £27,596:eek: DMP Start June 2018 Debt Free Date 2023:T:T:T Debt July 2020 £14,700 Debt July 2021 £9300
  • Whats the advantages or a self managed DMP over one operated by step change?

    I've got 50k+ credit card debt across 6 cards, missed 3-4 months payments but none defaulted (yet).

    Have a modest home and wife plus 2 young kids, don't want any of them hurt by any of this mess.
  • Rob5342
    Rob5342 Posts: 1,325
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    Stepchange have a very fixed approach to things. Their approach is to pay the debts off.fully, they always split payments proportionally.between your debts and if you have a lump sum to pay off they will.split it between your creditors..if you manage it yourself you are free to manage it in a way that suits you rather than suiting Stepchange or your creditors. You could pay more towards one debt to get rid of.it sooner, or make a settlement offer to clear.one.

    Stepchange have a place but you have to be careful as following their advice fully makes things much worse for you in the long term (in terms of harm to your credit report and the cost of clearing your debts). You should always stop paying all debts and build.up.an emergency fund before starting a DMP, ideally getting defaults first. After that you could use Stepchange to start a DMP if you don't feel.confident about doing it yourself. If you are like me you will get more confident about it and soon find Stepchange to be more.of.a.himdrance than a help. 
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