Been very stupid which I know but need help

messeduptotally

Myself and my husband have had a dmp with Payplan for 13 years and it is still ongoing but in 2015 we both got made redundant within a few months. This started a new spiral of debt that along with many other things like being self employed during covid and not finding work has meant that we took on more debt over the years. It is now at a point where it is out of control and we cannot afford the payments. Have spoken to business debtline about all this and have a call with them next week to discuss solutions. My ideal would be another dmp incorporating the old and new debts of which we would hopefully be able to work towards clearing  much quicker than the current dmp. I haven't gone back to payplan as I am pretty sure they will just stop the plan we have now and say they can't deal with us anymore. I am also thinking that step change will also not take us on due to us getting much more debt. So I am thinking of self managing a new plan ourselves. Does anyone have any advice on this?

Stateofart

Hello. Are you both working now?  You say you've got old AND new debts now and state you've had a DMP before.  Sounds like you need a total re-think and you need to re-programme your approach to finances.  Please complete an SOA, which will help.  https://www.lemonfool.co.uk/financecalculators/soa.php

messeduptotally

I am employed, husband self employed.  Yes totally, we just want to literally throw as much money as we can at getting all this cleared as quick as we can and I think self managing will be the way forward. We haven't defaulted yet so just waiting for all those to come through and then can take from there. We do have a SOA that we did with business debtline last week. It has actually been a massive wake up call to get all this resolved once and for all but it is going to take a number of years. 

EssexHebridean

I'm sure Payplan would be happy for you to combine into a new DMP, and I'm also sure that Stepchange wouldn't level any judgement either - but equally, self managing definitely gives you more control. 

I imagine the first thing you are going to want to do is to allow the newer debts to default so you minimise the damage to your credit file and get the interest stopped?

Do you now have a functional working household budget that you are living to, and have you stopped using credit? 

If you complete the SOA linked to above (also in my signature) and post that in here people can run an eye over your current budget and make suggestions, if that would be helpful? 

fatbelly

I presume you're homeowners, which is why you've got caught up in a very long dmp. I've subscribed so I can have a look at your soa when you post it.

messeduptotally

I am looking at the older debts in the dmp with payplan that are 13 years old. I am writing to the debt collection agencies to ask for our credit agreements as these debts have been sold over and over again and I am thinking there is a high chance they won't have them therefore no longer enforceable 

fatbelly

That' not a bad idea provided they are Consumer Credit Act debts.

Make the request formally under the CCA and enclose £1.

Sample letter here

https://www.nationaldebtline.org/sample-letters/information-about-your-agreement-under-consumer-credit-act/

messeduptotally

I emailed them with the sample letter, do I still need to write with the £1? Yes they should all be covered by the consumer act, some of the original companies don't even exist now. Companies like Intelligent Finance and Northern Rock credit card.

fatbelly

Is that the sample letter that says 'I enclose payment of £1'?

If you read s77-79 of the act you will see that it's part of the requirement on your side. I think the fee was set in 1974 and has never changed. Theirs is to supply a true copy of the agreement. If they can' t do that it is unenforceable until they do

You'll find some will accept your request as a s77-79 request without payment

Some will suggest you make a formal request

Some will ignore you.

messeduptotally

No I didn't send it saying I enclose a pound as I thought if I emailed them I might just get a reply. Will see what they say, if they insist on the pound or ignore me I will write with the postal order. 

messeduptotally

I still sent them the rest of the email just eliminated the pound bit