DMP StepChange Problem (currently abroad)

wobbleybob66

I've been on StepChange and have put in all my debts (£18k) and budget and as l've only around £450 a month to put towards payments, I'm now at the stage where I can can't afford to pay even the minimum payment and so have no hope of ever paying the debt off as it's all very high interest (ave 35%). I defaulted on a couple already but then paid them but l'm yet again behind on some payments. A payment holiday won’t be enough. Stepchange advised me online to get a DMP.

However I’ve now spoken to stepchange on the phone and because I’m currently in Australia working they say it’s a problem as I need to get paid from a job into my UK bank account for them to do it (I explained I can transfer immediately to it with almost no fee but they said it has to be direct from an employer) and be back permanently in the UK within a year or I don’t meet their criteria - they actually said it I can’t meet the criteria my best option would be to contact an Australian debt charity (all of my debt is from the UK and I’m only on a temporary VISA), I don’t know what to do as I feel this was my only option. Does anyone have any advice on how I can proceed or alternatives? PayPlan perhaps? I’m also aware of how ridiculous it was to get into this position and I feel deep shame and regret and now a ridiculous amount of stress.

RAS

There is nothing to stop you doing a DMP personally, rather than through a debt charity. It's a purely informal arrangement.

Do you have a UK address to which your creditors can write, even if it is your old address? Not necessary but useful.

Check your credit records to find out which credits have actually issued a default, and stop paying the rest.  You can get all three of your credit records free.

The main aim of non-payment is to generate defaults. Once the default is issued, interest is halted as are fees. The side effect is that you can put the money you aren't paying into an emergency fund, so you can get back on your feet if you return to Blighty. And your credit record improves in 6 years time.

When you get back to the UK, you need to get a new basic bank account not associated with any of the banking groups with whom you have debt. Or go for something like Starling or Monzo.

If you knew you were going to be in Aus permanently, you could just stop paying the lot. 

sourcrates

Nothing you can do from abroad, you have to be in the UK to get help from a debt charity.

When are you returning to the UK?

Do you plan to return?

I suggest you read other threads from UK and non UK nationals who have returned abroad, and left debts here, not much will happen if you default.

fatbelly

Stop paying.

Review the situation when you get back