Dmp and court action ?

Grumpelstiltskin

Lostsoul13 said:

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

No it will not, it's an informal way of dealing with your debts so no problem.

Grumpelstiltskin

Right start by reading this thread.

In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions. — MoneySavingExpert Forum

Fill out a honest SOA and format for MSE and copy and paste on this thread and then we will be  able to guide you to the best way forward.

Whatever you do don't speak to your creditors and don't worry about any empty threats you get by text or E Mail

Rob5342

Lostsoul13 said:

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

A dmp is an informal arrangement, its really just a group of payments so you are free to make and change those whenever you want and the companies just get what they are givem. Stepchange can make those payments for you but really they just create am extra layer of complication you can well do without and it its much better to do it yourself. 

Lostsoul13

How much are you allowed to save on dmp? Will they terminate the plan if I don’t always use what I budgeted my expenses for? Because I’m wondering if it would be better for me to go self service- if I can save as much as I want ? 

Grumpelstiltskin

Rob has told you a DMP is an informal solution, you can save as much as you want, no one looks at your bank accounts.

It is better to do it yourself then you are 100% in charge, remember you will be in charge not your creditors.

sourcrates

Lostsoul13 said:

How much are you allowed to save on dmp? Will they terminate the plan if I don’t always use what I budgeted my expenses for? Because I’m wondering if it would be better for me to go self service- if I can save as much as I want ? 

You are way overthinking this OP, debt management is very informal, and something you choose to do, there is no acceptance or decline, no limit on what you can or cannot save, no termination, there are no rules to a self managed DMP, you simply pay your debts as you normally would, but at a rate you can afford, to whoever writes to you asking for the money.

If any creditor is unhappy with what they are getting, they will just sell the debt to someone else, most will use debt collectors anyway, you pay what your budget allows, and if they ask to see a copy of that budget, you provide one that shows the figures you want them to see, your debts may change hands numerous times during the DMP.

There is no rush here, the collection process is long and tedious, and takes many months, even years to run its course, nothing happens fast, so pre-planning makes a lot of sense.

Rob5342

It can take a while to change your mindset at first. I used to pull every trick I could think of to meet the mimmum payment, payday loans, taking cash out on cards then paying it back in to pay off the same card. After doing that for years it was hard to accept that I could simply just pay what I wanted. It really is that simple though, work out a budget with debt repayments that work for you, pay those each month and leave the creditors to do what they want with the debts.