DMP

azmilligan71

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

fatbelly

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

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

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..

Wimbledonwomble

Just popped in to echo what sourcrates says about overthinking. I am nearly at the end of a DMP with  stepchange which I changed to self managed for last few months ( after advice on here) 
There were many problems along the way . Bailiffs,homelessness,hunger, None of which actually happened as they only existed in my imagination. 

In the course of my DMP I noticed,with hindsight that my attitude to money has changed. I thought I was born " bad with money" I wasn't.  Budgeting is a skill that can be learned like any other. I thought that there was no point in looking after the pennies ,when what I really needed was a huge lottery win . Wrong again. I actually enjoy saving pennies. I thought I needed to buy takeaways and  convenience foods as I couldn't cook . Again wrong ,I can! 

I was so afraid to self manage. The first time I spoke to a creditor I felt like a naughty child and that I would be " told off" To my surprise they accepted my offer,were very casual as if it was all in a days work - which of course it is for them .

Don't listen to horror stories. Stay on here. Ask questions as knowledge is power. You have had problems and are sorting them out . Well done and good luck. 

EmergencyNurse

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%. 

bootneckshuffle

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

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.