Dmp and court action ?

Lostsoul13

I’ve just signed up to step change dmp -3 years and one month- I sent my creditors a debt and mental health form but they didn’t really use discretion- at least one of them has replied and upped my interest rates and offered me one month zero interest..

19k my debts are.. 3 years 1 month paying 475 a month. 

I’m wondering how long it will take to set up?  will my creditors (aqua.capital etc) still take action or will the dmp be enough? What’s the likelihood they won’t accept the plan? Any experiences to share? 

agentblackcat

Hi. Have all your debts defaulted? The advice is generally to allow debts to default first as then you will get no further interest added. Also once defaulted a bedtime will fall off your credit file in 6 years. If they have not defaulted you could end up with arrangement to pay markers which will stay on your credit report longer as this debt would only fall off 6 years from when debt is settled. 
I suggest you look at the sticky posts there is loads of good advice in these at the start of the forum threads 

Grumpelstiltskin

My guess is you have panicked and set up a DMP too soon.

Have you let the debts default?

Are they still with original lenders or have they been passed on?

Have you saved an emergency fund in case things break down and you have no access to credit?

Nothing terrible will happen if you stop paying them so if you can cancel the DMP and start again.

Rob5342

As mentioned we normally advise that people default before starting a DMP. Unfortunately Stepchange advocate an approach that favours the creditors at great expense to you (in terms of how much you'll pay overall and how long your credit report will be harmed for).

There are no guarantees and legal action is always a possibility once you've defaulted, but in the vast majority of cases as long as you engage with the creditor and make some payment then it won't go any further.

Lostsoul13

I’ve applied for breathing space and yes I rushed and set up a dmp - I think I’ve got some things wrong in it and didn’t add some debts - so they might not confirm it- as my wages are off by a couple pounds with my proof of earnings and what I wrote down.. so it might be silver lining.. I’m starting a new job in two weeks and I put that amount down. 

Might be a good thing so I can default. How long until they will default the payments? I’m saving up slowly.. not quite there yet if I defaulted I would save a couple grand depending how long it takes.. I need to change the address from my mothers to my new address.. because can’t have notices going there.. 

do you think they it wint be successful if wage and proof of earnings is off by 30-40£??

Grumpelstiltskin

How long to get a default? How long is a piece of string.
It should start to happen after 3 months but some lenders are much slower.

You should make sure all your creditors have your current address.

Have you set up a basic bank account with a bank not connected with any of your debts?

If you run your own DMP, relatively easy, you are fully in charge, you tell your creditors what you will pay them, as long as you pay them their fair share no problems. How do you think your creditors will know details of your wages?

Rob5342

The important thing is that you have an accurate budget for yourself that is sustainable. What you tell your creditors doesn't matter too much,  it just needs to be something that supports what you are paying them so they can tick the "its affordable" box

Lostsoul13

I meant step change.. I put new wage down but proof was old wage.. will the dmp be successful if it’s wrong?? Might it not go through? Giving me an option to default?? 

Grumpelstiltskin

Why not cancel the Stepchange DMP now and then sort everything out yourself at the right time, after defaults etc.

Nothing terrible is going to happen if you pay nothing for months and you will have time to sort everything out.

Lostsoul13

I’ve got basic bank account that my wages go into I transfer money to account debit card that’s not in debt and pay debit card that way… I’ve got disability so my spending is pretty high.. I’m not over concerned about them putting marker as I don’t plan to get credit.. this was all because disassociated alters. 

Lostsoul13

Will it affect getting a dmp again? If I cancel?