Pre-Stepchange DMP questions

Mikuhar

Thanks I’ll do that ^ and just keep a look out for default letters / check my credit report to confirm when they’ve been added

I’m planning to stop payment of the debts from 15/02/25 when they next start going out so will keep you updated!

I usually get a pay increase in April and some sort of bonus, so hopefully I may be able to increase on what stepchange has accepted and have extra in my emergency fund for when they default.

I’m feeling a little better already so thanks everyone.

ManyWays

With the bamboo loan which was originally £6500, I have made payments for around 2 years at £260 per month however the balance remaining showing is £9750, 
Many bad credit lenders do this, as soon as you default the whole amount is due, not the settlement amount. I suggest you look at an affordability complaint, winning that will get your balance reduced to about £500. 

Brie

Is a DMP the only thing you have considered?  Would a debt relief order be more appropriate instead?  Something you could discuss with StepChange or just have a read about if you don't know much about it.  I don't think anyone here would suggest you go for an IVA or bankruptcy.

Debt solutions - what is your best option?

Mikuhar

I’ll have a look into affordability complaints thankyou, I’m guessing stepchange don’t file these? It would be up to me?

Stepchange didn’t recommend a DRO, IVA or bankruptcy due to my line of work so DMP seems the best option I think 

Rob5342

Mikuhar said:

Would I be right in thinking I would enter the debts with stepchange for the people the debts are passed on to? Or the original lenders?

Yes, give them the details of whoever is asking for payment at the point you start.

Rob5342

Mikuhar said:

I usually get a pay increase in April and some sort of bonus, so hopefully I may be able to increase on what stepchange has accepted and have extra in my emergency fund for when they default..

The important thing to remember with a DMP is that there is no acceptance involved at all. You simply pay what you can afford and adjust that if circumstances change, anyone you owe money to gets what they are given.

Mikuhar

So as long as I start payments with the debtors once they default I should be ok until I set up with stepchange?

Just send affordable payments via bank transfer to the details provided on the letters but don’t actually speak with them?

I’m struggling to find the account details for the monzo loan but I suppose that won’t matter once the debt is passed on as payment details will change.

sourcrates

You are the debtor, they are your creditors.

You will be written to by whoever picks up your debts, you don`t need old account numbers as they will assign their own reference number to each debt.

If you go self managed, you simply make your payment as per the details in the letters you are sent.

If you go with Stepchange, they make payment on your behalf, any letters you pass on to Stepchange.

These debt charities deal with many 1000`s of clients, so if you have questions or one of your debts changes hands, they can take a while to respond, so self management is maybe a better choice, but its up to you in the end.

Mikuhar

Thanks everyone for the answers and support.

I’m feeling a lot better about it having spoken with you, I’ll do as planned and cancel the DD’s for the February payment and wait for the default letters / start my emergency fund.

Ill keep you all updated as I go on!

BuzzyBees101

Hi I am also thinking of doing the same thing…can I just ask, when your waiting for everything to default and some will quicker than others for the ones that defaulted earlier is there a chance of them sending bailiffs out whilst your waiting for others to default? 

Sorry I didn’t mean to crash the post but my question may also be helpful to you.

Thank you