Multiple joint debts and banking query

stu12345_2

how long did step change say it will take to be debt free, did they sent you a huge pack in the post or online explaining their options and choices and reasons for the solution and why they rejected others.

they would have done that in a full application to them.

why did they reject a protected trust deed

are you doing the payment plan via step change, as if so all creditors will be informed and in general they stop interest and stop hassling you once they know you are on a plan with them.

even your own bank will say fine, we accept your payment via step change and( they  won't go for set off.)

I know cos I done a plan in the past.

cars were always my downfall, I realised a £700 car can do the same things as a £10000 car.

sourcrates

Trust deed (IVA equivalent) are too restrictive, and not very flexible, debt management is the best choice as you retain control over the running of it, and most end with settlement offers or some accounts may become unenforceable, rarely do they last the full term.

As all your debts are with well known high street lenders, they all follow similar debt collection procedures, your house won`t be at risk no matter what route you decide to take.

Cg1527

I have only just phoned today after filling in the online form and at the end of the form, it gave me ‘recommended’ options and non recommended and a DMP was recommended.  I will have to call back or go ahead online but I just wanted to ask here for some advice and info beforehand.  I do think, after reading so many success stories online here, that it’s the right path for us.  Reading some of the success stories brought happy tears to my eyes instead of worried ones and I want that to be me one day.  Well done for completing yours too!  It’s brilliant you are able to give advice from experience and I really appreciate it.  Did you come up with ten figure for the payment plan, or was that decided from your excess income once you entered your outgoings? Also, did whoever set up your plan deal with all that side or did you have to contact your lenders with proposed amounts?

You are right, it has made me think about what really matters and right now it’s clearing these debts so we can enjoy our family time without the worries niggling away in our minds.  We’ve taken up nature walks as our family hobby, replacing the usual soft play or play centre and it’s benefitting us all (on top of being free) so I’m hoping more small steps like this will all add up.  I am going to get my thinking cap on what else we can do - sky is on the list to go once the contract runs out in about 6 months.  

Thats such a relief to hear about our house.  We do work hard, and it’s all for our little one now - we have a nice school in our catchment, lovely neighbours and safe spaces to play so we really want to stay where we are.  Keeping our house safe is another thing that will make sure we stick to any plans!  

Thank you very much again,
C 

stu12345_2

if you go with step change they will do all the work for you for free, you need to give all the debt account numbers and approx balances.

then you give them your income and expenses, then they suggest a monthly repayment , they sent it to your creditors , and do a pro rata payment between them based on the obligatory normal repayment.

hence some debts will clear faster, then once they have gone, your payment stays the same, if wages and bills are the same, but then the remaining debts get more money.
and so on .

you can even take breaks from repayments if you get hit with an emergency, eg car repair etc. for a month or two.

even with the best plans in place, imo the biggest thing is keep your jobs for the period of the repayment plan

for some debt stories and advice log on to Dave Ramsey on YouTube and watch.
he always says if you can't pay for a car in  cash, then you can't afford it!

Cg1527

Thank you so much, that all makes sense.  And I think that’ll help to see some of the debts start to drop off over time.  It sounds like it should be straightforward once we make the call to Step Change which is good to hear.  I’ve never ever missed a payment on any of my accounts, so I’m finding it very nerve wracking to start… but I’m sure once we’ve made the call and got things rolling, the relief will outweigh the guilt.

I will certainly go and watch the video, thank you for the recommendation ☺️ C