We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
How Long Before I hear back from StepChange?
Options
Comments
-
Do I need to contact the creditors first? Or do I just stop direct debits and not contact them at all? Is there a master guide on how to do this? I am really scared of repercussions at the moment. I imagine someone is going to send me to prison if I do not inform my creditors about my plan of entering a DMP or if I don't tell them about my situation. Sorry I'm just a bit unsure about what I should do. I truly appreciate the support!Grumpelstiltskin said:OK Do not panic and set up a DMP before your debts have defaulted.
Stepchange won't tell you to wait for defaults but it is the best thing to do.
If you just stop paying your unsecured debts nothing terrible is going to happen and it will give you time to build up an emergency fund something you will need as something will break down and need replacing and you won't have access to credit.0 -
Is there a master guide I can read which explains why defaulting before starting the DMP is better? I am currently on breathing space until March. I haven't done anything to contact my creditors yet. I have opened a new bank account and set that for my salary.Rob5342 said:iceandfire1 said:
I hope my application with StepChange will be approved with no hassles so I can move on in peace.Grumpelstiltskin said:OK Do not panic and set up a DMP before your debts have defaulted.
Stepchange won't tell you to wait for defaults but it is the best thing to do.
If you just stop paying your unsecured debts nothing terrible is going to happen and it will give you time to build up an emergency fund something you will need as something will break down and need replacing and you won't have access to credit.DMPs are informal arrangements with no approval from anyone required, its really just a case of making whatever payments you are able to afford. Stepchange can make those payments on your behalf which some people find helpful, but equally you can simply just set up standing orders yourself so don't worry about approvals as they are irrelevant.I woud urge you to default before starting the DMP as this is much better for your credit record in the long term, and can cost less overall.
I need to cancel my direct debits to the unsecured debts. No money in those accounts too. Those accounts are empty at the minute.
Do I just not do anything and save my money in the meantime until they default, and while waiting, I just ignore calls and texts etc?0 -
Thank you, I will do the SOA now. And will follow your advice!EssexHebridean said:Definitely adding to the calls not to now add a further poor decision by rushing into a DMP. If Stepchange come back to you at this stage the best thing to do is to tell them that actually you have decided you want more time to think through what to do, and that you will get back to them in the future if needed.
The board here can support you through the process of waiting for defaults. As for contacts, you are quite within your rights to tell all creditors that they may only contact you by post, or email, or whatever suits you best. Just bear in mind that if you choose email that does exclude any official documentation which has to be sent by post legally. In your shoes my approach to phone calls would be to initially answer - tell the caller that "I'm not willing to engage with you on the telephone, you can only contact me by hard copy letter through the post" then ask them to acknowledge what you have said, say thank you and goodbye, and hang up. Make a note of who you have heard from and given that information to on each occasion. Block the number each time you do this. If creditors call subsequently from a different number remind them of your previous instruction, and tell them that any further calls will be seen as harassment. Then block subsequent numbers too.
First priority - cancel the payments to your unsecured debts.
Second priority - get your SOA (Statement of Affairs) sorted out so that you have a firm idea of how your finances are set right at the moment. You can do this via the link in my signature which takes you to one of our recommended calculators. If you feel comfortable to do so you can then use the "format for MSE" option, and copy and paste that into this thread - we might then be able to help you spot savings you have missed to date.0 -
Thank you for this! I am currently on breathing space so I am peaceful at the moment. How long can I save for my emergency fund before I need to start the DMP? Is three months or six months ok? Or is that too long?sourcrates said:It really pays to do your research when entering any new phase in your life, so here`s a little tip for you.
The debt collection process is something few folk know much about, they have seen things on the telly, and heard stories from others, most peoples actual knowledge is 75% rumour, and 25% guesswork, and they always steer towards the worst case scenario option first.
Well I can tell you with almost 100% accuracy, nothing is going to happen quickly, it`ll likely all be a bit underwhelming if anything, the first couple of months will be quiet, a reminder about a missed payment perhaps, when you get to 3/4 months down the line, you might get a letter or two, the best thing you can do is before you stop paying any of your debts, go and update your phone number on all your credit accounts, to a number that isn`t yours, any random number or a company or business somewhere, the speaking clock used to be a good choice back in the day lol.
That way non of them can phone you, only email and letters, so try and do that if you can.
Debt management is all about regaining control of a situation you have let slip, and one little triumph can pave the way for more.
What will happen if I truly just ignore everything and not even enter the DMP at all?0 -
[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 2Number of children in household......... 2Number of cars owned.................... [b]Monthly Income Details[/b]Monthly income after tax................ 3500Partners monthly income after tax....... 2500Benefits................................ 0Other income............................ 0[b]Total monthly income.................... 6000[/b][b]Monthly Expense Details[/b]Mortgage................................ 0Secured/HP loan repayments.............. 0Rent.................................... 2214Management charge (leasehold property).. 0Council tax............................. 18.5Electricity............................. 27Gas..................................... 0Oil..................................... 110Water rates............................. 67Telephone (land line)................... 260Mobile phone............................ 0TV Licence.............................. 15Satellite/Cable TV...................... 0Internet Services....................... 0Groceries etc. ......................... 700Clothing................................ 0Petrol/diesel........................... 0Road tax................................ 0Car Insurance........................... 0Car maintenance (including MOT)......... 0Car parking............................. 0Other travel............................ 104Childcare/nursery....................... 0Other child related expenses............ 380Medical (prescriptions, dentist etc).... 175Pet insurance/vet bills................. 0Buildings insurance..................... 0Contents insurance...................... 28Life assurance ......................... 136.5Other insurance......................... 8Presents (birthday, christmas etc)...... 0Haircuts................................ 0Entertainment........................... 0Holiday................................. 0Emergency fund.......................... 0school trip............................. 250paypal.................................. 32.95professional sub 2...................... 10boiler service ......................... 15dentist................................. 20study................................... 50motor................................... 50leisure................................. 40school meals............................ 150union................................... 17.5professional subscription............... 10.5family.................................. 45toilettries............................. 100[b]Total monthly expenses.................. 5033.95[/b][b]Assets[/b]Cash.................................... 0House value (Gross)..................... 0Shares and bonds........................ 0Car(s).................................. 0Other assets............................ 0[b]Total Assets............................ 0[/b][b]No Secured nor Hire Purchase Debts[/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRhsbc od........................1450......20.17.....39.9hsbc cc........................5500......154.......25.9hsbc 2 od......................3000......37.75.....17.9hsbc loan......................8184......314.7.....9.9moonzo.........................1000......24........39amex...........................5500......207.9.....32conister.......................6075......225.......7hsbc 2 cc......................6500......156.......19.9[b]Total unsecured debts..........37209.....1139.52...- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 6,000Expenses (including HP & secured debts). 5,033.95Available for debt repayments........... 966.05Monthly UNsecured debt repayments....... 1,139.52[b]Amount short for making debt repayments. -173.47[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 0Total HP & Secured debt................. -0Total Unsecured debt.................... -37,209[b]Net Assets.............................. -37,209[/b][i]Created using the SOA calculator at www.LemonFool.co.uk.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]0
-
CORRECT AND UPDATED SOA - SORRY I COULDN'T EDIT THE FIRST ONE I POSTED BECAUSE I AM A NEWBIE.
[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 2Number of children in household......... 2Number of cars owned.................... [b]Monthly Income Details[/b]Monthly income after tax................ 3500Partners monthly income after tax....... 2500Benefits................................ 0Other income............................ 0[b]Total monthly income.................... 6000[/b][b]Monthly Expense Details[/b]Mortgage................................ 0Secured/HP loan repayments.............. 0Rent.................................... 2214Management charge (leasehold property).. 0Council tax............................. 18.5Electricity............................. 27Gas..................................... 0Oil..................................... 110Water rates............................. 67Telephone (land line)................... 260Mobile phone............................ 0TV Licence.............................. 15Satellite/Cable TV...................... 0Internet Services....................... 0Groceries etc. ......................... 700Clothing................................ 60Petrol/diesel........................... 0Road tax................................ 0Car Insurance........................... 0Car maintenance (including MOT)......... 0Car parking............................. 0Other travel............................ 104Childcare/nursery....................... 0Other child related expenses............ 380Medical (prescriptions, dentist etc).... 175Pet insurance/vet bills................. 0Buildings insurance..................... 0Contents insurance...................... 28Life assurance ......................... 136.5Other insurance......................... 8Presents (birthday, christmas etc)...... 107Haircuts................................ 0Entertainment........................... 0Holiday................................. 0Emergency fund.......................... 0school trip............................. 250paypal.................................. 32.95professional sub 2...................... 10boiler service ......................... 15dentist................................. 20study................................... 50motor................................... 50leisure................................. 40school meals............................ 150union................................... 17.5professional subscription............... 10.5family.................................. 45toilettries............................. 100[b]Total monthly expenses.................. 5200.95[/b][b]Assets[/b]Cash.................................... 0House value (Gross)..................... 0Shares and bonds........................ 0Car(s).................................. 0Other assets............................ 0[b]Total Assets............................ 0[/b][b]No Secured nor Hire Purchase Debts[/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRhsbc od........................1450......20.17.....39.9hsbc cc........................5500......154.......25.9hsbc 2 od......................3000......37.75.....17.9hsbc loan......................8184......314.7.....9.9moonzo.........................1000......24........39amex...........................5500......207.9.....32conister.......................6075......225.......7hsbc 2 cc......................6500......156.......19.9[b]Total unsecured debts..........37209.....1139.52...- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 6,000Expenses (including HP & secured debts). 5,200.95Available for debt repayments........... 799.05Monthly UNsecured debt repayments....... 1,139.52[b]Amount short for making debt repayments. -340.47[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 0Total HP & Secured debt................. -0Total Unsecured debt.................... -37,209[b]Net Assets.............................. -37,209[/b][i]Created using the SOA calculator at www.LemonFool.co.uk.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
0 -
Okay, I have read the thread :
In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions.
From that thread, I understand that I just stop paying everything altogether and wait for the debts to default.
I am scared someone will come knocking on my door!0 -
I am reading more and more from different threads and I am learning more. And after everything I have read so far, I feel more confident about this decision about just allowing my accounts to default first. I am so scared about what is going to happen though. But I will continue reading more about this topic.0
-
It’s unlikely that they will, but if someone DOES come knocking at the door you can simply say “no thanks, please leave now” and shut the door again. At this point in time it honestly is as simple as that.Keep paying your priority bills - these are rent (or mortgage), council tax, the bills for your heating lighting and water, any necessary insurances, necessary travel, food and drink and essential clothing. Any secured debt also falls into this category. Nobody can send you to prison for not paying unsecured debt - you can wipe that as a concern right out of your mind!The SOA then - I’ll add comments in bold:
You are actually in an excellent position once you stop the unsecured debt payments and start managing your budget efficiently - that always comes as a relief when we see an SOA as that means you are well and truly able to sort this out, you will have a few tight years on a DMP but that’s good as you will learn the habits of budgeting, learn to live a lifestyle sustainable within your budget and emerge in a far better position financially. See it as very much a learning experience.iceandfire1 said:CORRECT AND UPDATED SOA - SORRY I COULDN'T EDIT THE FIRST ONE I POSTED BECAUSE I AM A NEWBIE.[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 2Number of children in household......... 2Number of cars owned.................... [b]Monthly Income Details[/b]Monthly income after tax................ 3500Partners monthly income after tax....... 2500Benefits................................ 0Other income............................ 0[b]Total monthly income.................... 6000[/b][b]Monthly Expense Details[/b]Mortgage................................ 0Secured/HP loan repayments.............. 0Rent.................................... 2214Management charge (leasehold property).. 0Council tax............................. 18.5 This seems incredibly low?Electricity............................. 27 This also seems low - have you checked that you are being billed on accurate readings not estimates?Gas..................................... 0Oil..................................... 110Water rates............................. 67 Is this metered? If not might be worth exploring that as a changeTelephone (land line)................... 260 Whoah - HOW much?! Why on Earth are you paying this much - even if it includes broadband that is still at LEAST 5 times the max it should normally be!Mobile phone............................ 0 Ok - so let me guess, the land line above is actually phone, tv, broadband and mobiles? Still too much though - more below.TV Licence.............................. 15Satellite/Cable TV...................... 0Internet Services....................... 0Groceries etc. ......................... 700 You can definitely make a saving here - especially allowing that in fact by the time the school meals are factored in this is actually £850 a month. An area to work on, but you can probably take £150 off thst cost relatively easily, and more with a little more effort.Clothing................................ 60Petrol/diesel........................... 0Road tax................................ 0Car Insurance........................... 0Car maintenance (including MOT)......... 0Car parking............................. 0Other travel............................ 104Childcare/nursery....................... 0Other child related expenses............ 380 This is a big chunk of your budget - what is it for, and can it be reduced at least a little?Medical (prescriptions, dentist etc).... 175 Is this all necessary Spends? Can any of it be reduced by getting items on prescription rather than paid for fully, then using prepay prescription certificates?Pet insurance/vet bills................. 0Buildings insurance..................... 0Contents insurance...................... 28 This is quite high. Use comparison sites on renewal and check you aren’t overpaying.Life assurance ......................... 136.5 This is quite high. Use comparison sites and check you aren’t overpayingOther insurance......................... 8Presents (birthday, christmas etc)...... 107 This is quite high - you need to make sure it covers the full cost of Christmas, at least - food,p etc as well as presents.Haircuts................................ 0 Nobody ever needs a haircut at all?Entertainment........................... 0 Probably not realistic, certainly with children. There’s never a cheeky burger grabbed when out and about? No stops for a quick coffee, a magazine bought, a day out where you buy lunch?Holiday................................. 0 Are you not budgeting for a family holiday because of that school trip? Will there definitely be no family travel at all. No visits to friends or family, that sort of thing?Emergency fund.......................... 0school trip............................. 250 Ouch. Ok - I assume this is one of those “trip of a lifetime” type things? I understand the pressure around stuff like this, but going forward you need to understand that this sort of trip is a sustainable thing to say yes to. It’s worse with 2 kids as well - when a similar trip comes up for the second one, you aren’t going to say no are you!paypal.................................. 32.95 Why is this not under your debts?professional sub 2...................... 10boiler service ......................... 15dentist................................. 20study................................... 50motor................................... 50 What is this? You don’t show any other car costs?leisure................................. 40 What is this?school meals............................ 150union................................... 17.5professional subscription............... 10.5family.................................. 45 Again - what is this for?toilettries............................. 100 Nope. Sorry but you are not in a position to be this high maintenance any more! Expectations need to be managed down, and basic brands bought once you have used up whatever you have been spending this money on! [b]Total monthly expenses.................. 5200.95[/b][b]Assets[/b]Cash.................................... 0House value (Gross)..................... 0Shares and bonds........................ 0Car(s).................................. 0Other assets............................ 0[b]Total Assets............................ 0[/b][b]No Secured nor Hire Purchase Debts[/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRhsbc od........................1450......20.17.....39.9hsbc cc........................5500......154.......25.9hsbc 2 od......................3000......37.75.....17.9hsbc loan......................8184......314.7.....9.9moonzo.........................1000......24........39amex...........................5500......207.9.....32conister.......................6075......225.......7hsbc 2 cc......................6500......156.......19.9[b]Total unsecured debts..........37209.....1139.52...- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 6,000Expenses (including HP & secured debts). 5,200.95Available for debt repayments........... 799.05Monthly UNsecured debt repayments....... 1,139.52[b]Amount short for making debt repayments. -340.47[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 0Total HP & Secured debt................. -0Total Unsecured debt.................... -37,209[b]Net Assets.............................. -37,209[/b][i]Created using the SOA calculator at www.LemonFool.co.uk.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]I don’t think you have said how old the children are but this is also going to be good experience for them for the future - and give you the chance to turn out a couple of young adults who will understand about living to income and being able to say no to pressure to spend above their means.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
A small quick one EH didn't pick up Boiler service £15? With such a huge rent surely the landlord should cover this?
I don't think you have gone through your last few bank statements to check exactly where your money is going.If you go down to the woods today you better not go alone.1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599K Mortgages, Homes & Bills
- 177K Life & Family
- 257.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards