24k credit card debt - help, sanity check

BlackPeony

Hello, I'm in dire need of a sanity check with regard to my debts, please ... I stupidly built up just under 24k in credit card debts over the last 7 years, and last year following a nasty divorce and the death of my parent I started struggling with making minimum payments. I was in denial for a while and I kept transferring balances and juggling what I could, but I probably ended causing more harm than good. The final nail in the coffin was having to relocate with a 5-year-old child and starting a new job which while more secure/permanent, pays less than my previous agency work (I'm a nurse).
In January I ended up reaching out to StepChange and after filling out all the necessary details, they suggested a DMP, which I set up asap, before any of my accounts fell into arrears.
I was advised by some of my work colleagues that I could lose my license to practise as a registered nurse (i'm in England) if I went for IVA/DRO/Bankruptcy, so DMP seemed the best way forward. 
Setting up the DMP took a huge load off of my shoulders, as I went from around £700 monthly repayments to a £110 affordable payment split between my 9 creditors, but today I received one default notice (from Pulse, previously Amazon) and Paypal and Argos handed my debts over to Moorcroft. I'm ever so afraid that they will now take legal action against me. Is that expected of them to do, even though the reduced DMP payments appear as accepted on my bank statements? 
Also, I now live with my boyfriend (in his house, I pay him rent, a share of bills/CT, etc.), but he does not know the full scale of my debts, he only knows of some, and he believes I am managing them well as we are not sharing finances. I can't even imagine what would happen to me and my daughter if he found out, got upset with me and told us to leave, we'd be homeless... 
I cringe at the idea that debt collectors will show up at the doorstep, I'm also ever so worried about the long-term as my DMP states it will take me 19 years to fully pay off my debts at this rate ... do you guys think I made the wrong decision in managing my debt? Or was it maybe the most sensible plan? Unfortunately, I have no experience, don't really know the system - none of my close friends seem to have any debt problems, so I'm trying to constantly educate myself but sometimes end up more confused than ever ... Thank you in advance for any input x  

Grumpelstiltskin

 Welcome to the board Don't panic, I think you did what many people have done before you. You panicked and jumped into a DMP too quickly without fully understanding the process.

If you had come on here before you started your DMP we would have advised you to stop paying your debts and do nothing until they had defaulted.

Default is what you want, it just means the creditor will be selling your debt to someone else. You can forget court orders, bailiffs etc. It just doesn't happen.

I think you should tell your boyfriend, if you are living together honesty is the best policy whilst ever he doesn't know I think you will be on edge in case he finds out another way.

2021rdsunshine

Hi! First things first: try and relax a bit about the all situation. The majority of people on here are going through the same or similar situations as you are and the important thing is you are dealing with your debts now. Going with step change was your option and that’s ok although that meant that you went straight to do a DMP without your debts defaulted , meaning that you didn’t have time to save an emergency fund . However, defaults are a normal occurrence when you stop paying at least the minimum payment as per your contract with a creditor and the sooner they happen the better, they will disappear from your credit file after 6 years after the default date even if you still haven’t finished paying the debt. I understand that going with step change was helpful due to your circumstances and maybe when you gather more knowledge about the all process, you will feel strong enough to manage the debts yourself. It sounds that DMP was the right option for you but I believe that the advice that you were given by your colleagues was wrong. As a nurse, choosing any debt repayment option has no bearing on keeping your right to practice unless you are dealing directly with the financial department on your Trust or if that is a requirement on your contract with your particular employer. Regarding debt collectors on your doorstep is not going to happen. You have a DMP in place and the creditors are happy with that. You have to familiarise yourself with the process of the debt collection industry and this forum is definitely the right place, a lot of knowledgeable people will advise you further and I promise that you will feel better soon. As for your boyfriend only you know where you are at in your relationship and if the time is right to open up a bit more about your debts but even if you don’t I can’t see why that would be a problem if as you say you are not linked financially with him and you maintain your financial obligations in the household , not affecting him in any way. 

RAS

In the past, I've actually advised people training as health care professionals to go BR. No point wrecking your future career chances because you were loaded with a lot of debt after a financially abusive relationship.

It might be a good idea to do a Statement of Affairs and share it. Based on all the SOAs I've seen, it's more likely that you have failed to include vital elements than are padding it out, so you are more at risk of making unrealistic payments. 

You do need to tell BF, not least as you can't afford expensive holidays, presents nor have the back up needed for a large deposit for housing. He needs to before you are forced to disclose.

BlackPeony

Thank you so much all, you're all so kind and supportive! x
We live and we learn, I wish I would've found the forum before panicking a few months back, but regardless I'm ever so grateful for all the help and support. 
If SOA is the same as the income vs expenditure form completed with StepChange, then I'd be happy to share it of course. 

Overview Amount (£)

Total income 2,004.00

Total outgoings 1,895.00

Savings contribution 0.00

Debt admin fee (if applicable): 0.00

Total available for priority creditors 0.00

Total available for non-priority creditors 109.00

Monthly Income

Earnings 1,900.00

Benefits and tax credits 104.00

Pensions 0.00

Other Income 0.00

Total income 2,004.00
Monthly Outgoings: Fixed Costs

Rent 500.00

Mortgage 0.00

Other secured loans 0.00

Council tax / rates 100.00

Other home and contents 0.00

Gas 150.00

Electric 0.00

Other utility costs (e.g. coal, oil, calor gas) 0.00

Water 30.00

Care and health costs 0.00

Transport and travel 225.00

School costs 30.00

Pensions and insurances 0.00

Professional costs 21.00

Other essential costs 0.00

Total fixed costs 1,056.00

Monthly Outgoings: Flexible Costs

Communications and leisure 80.00

Food and housekeeping 717.00

Personal costs 42.00

Total flexible costs 839.00
Total monthly outgoings (fixed and flexible) 1,895.00

sourcrates

A read through of the process can be found here -

In Debt and Wannabe Debt Free? First Steps! — MoneySavingExpert Forum

Lenders don`t tend to take legal action, this is why we have a debt collection industry, they assign them to collectors to manage, collectors don`t own the debts, so cannot take legal action to recover them, only a debts owner can do that.

Usually only when a debt has been sold, and the new owner gets ignored, yet they think you can pay, its only then you might get legal action taken.

Lots to learn and take in I know, a better SOA can be found in the link in my signature.

BlackPeony

And just to clarify, my childcare costs are included with the food and housekeeping for some reason (gets a bit confusing), but £200 out of that £700 is in fact breakfast club and afterschool club which I pay directly to the school through the tax free childcare account. 

fatbelly

That's a 20-year dmp when you have no assets to protect. 

I very much doubt that DRO/bankruptcy would affect your career. Is there a proper authority like a union that you could run this past?

You are £35 adrift from making the criteria for a DRO. Get some contents insurance, pay a bit more into you pension and have a look at a DRO.

RAS

An MSE SOA would help but if you add contents insurance, emergency fund, holiday, medical and dental, possibly pension, you'd be in DRO territory.

Are you in the RCN or Unison? See if they've got a debt advisor. DROs didn't exist when I was advising, although one was way over the current value limit.

The advantage is that it's one year, no contribution and takes the same time to clear your credit record. I'd wait until the new rules come in, though. And cancel the DMP meanwhile, once you've taken advice from the union.

BlackPeony

fatbelly said:

That's a 20-year dmp when you have no assets to protect. 

I very much doubt that DRO/bankruptcy would affect your career. Is there a proper authority like a union that you could run this past?

You are £35 adrift from making the criteria for a DRO. Get some contents insurance, pay a bit more into you pension and have a look at a DRO.

Thank you for the suggestion, I just read into it on the Gov website and it appears my car would prevent me from qualifying for it if I read it right. 
My car's market value is around 6-7k now and I would not be able to sell it as I am a community nurse, I can't do my job without my car, and I am fortunate enough not to have a lease on it as it was gifted to me by my late father 10 years ago. 
The DRO says no car valued at more than 2k would be accepted .. so they'd probably make me trade my car in and give the assets to my lenders as settlement, am I right or am I missing something please? 

2021rdsunshine

Someone will correct me soon if I’m wrong but I think the new rules coming up for DRO is the car value allowed is to increase as well