Self manage v SC

Scarlet_to_Black

I’d be grateful for advice please 🙏 

I started my DMP with StepChange with first payment this month of just under £300. I stopped paying all my debts in February. I have struggled a bit this month, whilst I’ve stuck to my general budget I had a pre DMP booked long weekend away that I hadn’t saved for as my usual plan would have been don’t worry and throw it on the credit card! I didn’t want to cancel for my daughter’s sake and would have lost money anyway. I have not had chance to build up anything from my entertainment/holiday fund. I also had to buy a mattress topper because of issues I was having with my back as the old one was so worn out, so I’ve felt like it’s been stressful this month. 

I’ve gone completely alcohol free (previously I’d drink a bottle of red wine most nights!) so expected to have a bit of spare cash but it’s not felt like I have. 

I’ve contacted SC to request I pause DMP in May (seems bad being just the second month DD) but it’s got me thinking that I need to possibly pay a bit less on my debts and get these pots of emergency funds looking healthier but I think the only way I could do this is to self-manage? 

Questions that come to my mind are can you do flexible payment amounts depending on what’s happening that month that I need to cover or do you have to agree a set payment with the creditors and have to stick to this? 

Secondly, is it stressful dealing with creditors yourself? One of the reasons I went with SC is I get really anxious and catastrophise, although my sober self is feeling this less, a month in to my sober life. 

NatWest have passed my two loans to Moorcroft and I’m not sure about the credit cards x2 yet. Then I have a Lloyds cc and a Sainsbury’s loan and a very small Next debt of £200 (they’ve been the most persistent in harassing texts and phone calls!). 

I’ve not spoken to any of my creditors since I stopped paying and don’t particularly want to. Can I do it all via email? 

Finally, I have an affordability complaint in re NatWest that has now been taken on by the Financial Ombudsman for the 4 accounts. Is it okay to pay nothing to these whilst that is ongoing? SC froze these when I advised that I had submitted a complaint so I’m not sure 🤔 

fatbelly

In reverse order...

Perfectly fine to pay nothing till you know the result of an affordability complaint

No need to talk to creditors. Email is fine. The one situation where a conversation can be useful is when you are negotiating a settlement deal but you are not there yet

No problem in going self-managed if that is what you want to do

It sounds like your dmp payment has been set too high. Rather than paying variable amounts it is better to fix a low affordable payment and save on the side for settlement offers. Which takes me back to what I said earlier

Scarlet_to_Black

Thank you 🙏 The issue I think I may have is that SC have only just shared my budget with them all, which says I have £279 for debt repayments. And this month has just been a particularly expensive one!  Would I have issues if I then go in offering a lower monthly payment and trying to save as much as possible in my emergency fund or for F&Fs?

And one more question I’ve just thought of, sorry!  Do creditors treat you any less favourably when you self-manage as compared to being with someone like StepChange? 

Grumpelstiltskin

1  No 

2 ) No   With a DMP  you are in charge, you pay what you can afford not what any creditors want.

ManyWays

Why dont you post a Statement of Affairs here https://www.stoozing.com/soa.php using the amounts that are in your StepChange budget? It may be that some of these need to be higher.
You do need to be able to pay the same every month (unless you are self-employed, so your income is very erratic). This applies in a DMP or if you make payment arrangements yourself.