Stepchange recommends a DMP

razor1981

Hi,
I have just completed the assessment on Stepchange and it recommends a DMP.

I have a few questions please.

I have always made the minimum payment and not missed any and that's what i included in my submission, if i were to leave it for a couple of months so that i could save some money would that affect continuing the DMP path?

I have no money so thought it be wise to stop paying creditors, put that money aside for emergencies for a couple of months and then begin.

I asked them if i should wait until my debts default before starting and they said no, thoughts?

Any other advice would be greatly appreciated.

sammyjammy

Stepchange will want you to start your DMP ASAP, its generally advised here that you wait and stop payments, then contact Stepchange to start DMP after your creditors have defaulted you.  Firstly it gives you time to save for those emergencies but it also hastens the path to defaults.  If you start DMP straight away there is a risk that defaults come much later if at all!

You could use that time to read up about people self managing their DMPs in that time to see if this is a path you might want to take.  Makes you the boss!

Grumpelstiltskin

Stop paying all your unsecured debts and save as much as you can. Nothing is going to happen so don't worry.

Start by reading this thread.

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

Fill out a SOA format for MSE and copy and paste on here. Then when we can see your full situation we can advise you what to do next.

sourcrates

All good advice above, the only slight issue is that due to the cost of living crisis, FCA advice to lenders has been to be more tolerant with late payers, and this has led to a delay in some creditors defaulting accounts, good for those wishing to keep their accounts open, not so good for those wanting to enter debt management.

So don`t base your decisions solely on getting defaults, you can still withhold payments, save an emergency fund, the collection process will still run its course, some may default sooner than others, but you may have to re-start payments before all your debts have been closed, annoying, but not the end of the world.

fatbelly

razor1981 said:

Hi,
I have just completed the assessment on Stepchange and it recommends a DMP.

I have a few questions please.

I have always made the minimum payment and not missed any and that's what i included in my submission, if i were to leave it for a couple of months so that i could save some money would that affect continuing the DMP path?

I have no money so thought it be wise to stop paying creditors, put that money aside for emergencies for a couple of months and then begin.

I asked them if i should wait until my debts default before starting and they said no, thoughts?

Any other advice would be greatly appreciated.

You just did the robo-advice thing and it said DMP.

Did you ask a human about defaulting? Did they agree about the dmp strategy.

I think from our point of view, we would be best to ask you to take a step back and post a soa

https://www.lemonfool.co.uk/financecalculators/soa.php

If you format for mse we can probably help

razor1981

Thanks all.
I'll aim to get an SOA up this evening.

razor1981

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 2

Number of cars owned.................... 0[b]

Monthly Income Details[/b]

Monthly income after tax................ 3850

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 3850[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 694

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 179

Electricity............................. 60

Gas..................................... 60

Oil..................................... 0

Water rates............................. 54

Telephone (land line)................... 0

Mobile phone............................ 9

TV Licence.............................. 15

Satellite/Cable TV...................... 30

Internet Services....................... 30

Groceries etc. ......................... 150

Clothing................................ 50

Petrol/diesel........................... 160

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

Car parking............................. 0

Other travel............................ 280

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 33

Pet insurance/vet bills................. 0

Buildings insurance..................... 10

Contents insurance...................... 10

Life assurance ......................... 18.5

Other insurance......................... 0

Presents (birthday, christmas etc)...... 17

Haircuts................................ 0

Entertainment........................... 40

Holiday................................. 0

Emergency fund.......................... 21

HMRC tax payment........................ 100[b]

Total monthly expenses.................. 2020.5[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 325000

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0[b]

Total Assets............................ 325000[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 128231...(694)......4.58[b]

Total secured & HP debts...... 128231....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Loan...........................33879.....470.......15.1

Credit card - Virgin...........11027.....111.......0

Credit card - HSBC.............7448.8....187.......0

Lloyds overdraft...............200.......10........0

Halifax overdraft..............1475......60........0

HSBC overdraft.................4000......100.......0

Credit card - Lloyds...........3738.41...113.......26.8

CC - Barclaycard...............1949.59...61........20.45

Credit card - Halifax..........3145.4....97........27.85

Credit card - Tesco............4167.37...175.......26.82

Credit card - Tesco............5097.06...50........0

Credit card - MBNA.............8857.47...89........0[b]

Total unsecured debts..........84985.1...1523......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 3,850

Expenses (including HP & secured debts). 2,020.5

Available for debt repayments........... 1,829.5

Monthly UNsecured debt repayments....... 1,523[b]

Amount left after debt repayments....... 306.5[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 325,000

Total HP & Secured debt................. -128,231

Total Unsecured debt.................... -84,985.1[b]

Net Assets.............................. 111,783.9[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

razor1981

SOA is produced above.
All debt is my own.
I pay all mortgage but my partner is down as joint.
She has a part time role but not included her here as it will be just me paying.
I contribute to her petrol but she runs the rest of the car.
The loan was for £25k and has a settlement fee of around £24k currently.

I'm really nervous, scared and ashamed. I've also had the worst thoughts!

Any advice will be greatly appreciated, as already mentioned the self serve on SC recommended DMP now.

Grumpelstiltskin

A few quick questions.
Partner no income?
Children no child benefit, no child expenses?
You feed 4 people on £150 monthly?
Interest rates on over draughts and other credit cards?

razor1981

She does yes but not included it here as the debts are nothing to do with her.
Her money funds her car except i pay the petrol, kids etc.
Child benefit goes to her.
Sorry food is £150 a week, not monthly.
Credit cards are 0% but all ending this year, entered overdrafts rates not sure why not pulled through.
I'll go through again and update food payment as well.

Grumpelstiltskin

OP Looking at your previous threads you were advised 4 years ago to come onto this board for advice.

So none of the debt was for anything to do with the household?

If so do you mind me asking how you accumulated such a large amount?