Some advice would be much appreciated - DMP or not? Self-managed or not. Significant debt

auburnheart

Hello,

It's taken me a lot of guts to write here. I have been wanting to for so long and just feel like I couldn't, therefore, this is a big step for me.

I am currently in significant debt due to gambling of around £70k across loans, credit cards and PayPal negative balance across 11 creditors. Loans are with Zopa, Updraft, Admiral, Salary Finance and Community Castle Bank.
Credit cards are with Fluid, Monzo Flex, Zopa, HSBC, Sainsburys.
I won't excuse myself of how it happened, but it has and I'm so ashamed of myself and find myself in this on my own. My auntie knows as she was the only one I could turn too (at the time).

I know I've gone wrong with all of this based on some of the stuff I've read on this forum. (to quote I've read a lot of forums). I did read these forums after I panicked, which in turn I know wasn't the best thing to do, but in a fight or flight time, all you do is panic.

I am currently in a self-managed DMP paying £1.3k per month towards my debts. Based on this, and if I have no income change, that's a plan duration of 4.6 years (which sounds fair, to me anyway!). I did this using the NEDCAB after reading one of the forums on here. To note, all this started around June/July 2024 (last year). I have only started paying the £1.3k per since February 2025 as previous to this, all my payments were everywhere and I was in such a tizz with everything, but I did manage to pay something to each creditor each month. Some had payment plan, some didn't.

I did start a DMP with StepChange early on because I was petrified but then found this forum, only paid one payment under StepChange and then cancelled and went self-managed. I only did this as I felt a little bit more in control as I was the one talking directly with my creditors.

However, when I did this, I'd say none of my debts had defaulted. Now however, quite a few have but not all. Only the PayPal debt has been sold to Moorcroft. I've had a few say they are selling it, but I've received nothing from any DCA's. 

The biggest thing that terrifies me is a CCJ. In my financial profession, I cannot have a CCJ, therefore, I'm trying my hardest to be open with my creditors and have been managing the payment plans (I know, even though some aren't defaulted).

I do have a few questions which I feel I need to ask someone, so thought this forum would be best:

(1) Some of my debts have defaulted. Some of my debts haven't. Some of my debts have defaulted but have been removed from my credit report due to irresponsible lending claims.
My question is, what should I do? I understand that AP markers are against some of the debts due to the payment plan, but I feel that if I pay nothing, I'll feel worse. 

(2) One of my creditors is requesting bank statements as evidence alongside my self-managed DMP SOA. Is this normal and should I comply? I have no issues in doing so if this is the case, but what I've quoted is what I can afford. Also, none of my other creditors have asked this. To note, this creditor is one that is not showing on my credit report due to a successful irresponsible claim. Also, has no registered default against it.

(3) If I go on a DMP - is StepChange or PayPlan better? Or should I continue to do a self-managed one. 

(4) CCJ Question - Is a letter before action something to worry about? If I get one, I understand I need to reply before the deadline, but what is this exactly? Can they register a CCJ immediately from it or would I receive something else to say this?

I have been in a DMP before, nearly 10 years ago (not due to gambling). I immediately entered into a DMP with PayPlan and within 3 years and 4 months, the debt was all repaid. This is why I feel obliged to enter into one again. (the amount was significantly lower though, overall in total I mean). Never received a CCJ with this, but had to fight with numerous lenders for my credit report to be adjusted for default dates to be backdated, which took time, but won all my cases.

My anxiety is through the roof and I'm so scared of everything at the moment.

Thanks in advance!

Smudgeismydog

Well done for posting, I didn’t want to read and not leave a message.

I am sure some of the very knowledgeable posters will be along soon to offer some top tips to help you navigate this. You are in a safe place with lots of people who will offer support and cheer your progress.

RAS

Hi, I'd suggest the debt about which you need to be most concerned is the credit union, based on others experience. They tend not to act like other creditors and may go for a  CCJ earlier. So try to make an arrangement with them sooner. So start engaging with them pronto, if you haven't already.

With respect to the other debts, those that have defaulted should have let you know if they are keeping collection in-house, have out sourced collection or sold the debt. You just need to set up affordable payments online fir the defaulted debt.

Archergirl

Congratulations on taking the first step.
I understand you want to be in control but it may be better to do this though a plan as then you know that you debts are being paid, do you really need to be able to talk to them direct?
It seems Stepchange is a charity thing so do not charge, that is something to think about, and you would have peace of mind knowing it's looked after.
 

fatbelly

Most people posting here find a self managed plan (using NEDCAB resources) better than stepchange/payplan as they stay in control

AP markers are not the end of the world - it just means the entry will stay on your file longer

Even though you have 11 creditors I would be surprised if any of them went for court action as there would be no point. They are getting repayment over 4/5 years and a court would not order anything different.

Having said that if you were to receive a letter before claim you would need to respond along Debt Camel lines and there would still be a couple of stages before a ccj was registered.

The only thing that I am not sure about is whether you are building a fund alongside your dmp. That would be useful. I  wouldn't want to send bank statements to a creditor as that feels too intrusive.

I've subscribed to the thread as I suspect you will have further questions

Rob5342

The trouble with Stepchange is thst they act in the creditors best interests rather than yours and have a very fixed approach of splitting the payments proportionally between creditors. If you want to make payments that way then they can save you a bit of administration, but if want to take a different approach later they won't agree and you'll have to manage it yourself. You might as well just manage it yourself from the beginning so you can run it how you like. Say for example you make a cca request and want to stop payments until they respond With Stepchange you would hsve to phone them uo, explain what you are doing, then they may or may not agree and if they do it will take effect from your next direct debit date. If you are managing it yourself then it's just 10 seconds in your banking app to cancel the standing order. 

ManyWays

Some of my debts have defaulted but have been removed from my credit report due to irresponsible lending claims
That sounds good, do you have other claims underway at the Ombudsman?

One of my creditors is requesting bank statements as evidence alongside my self-managed DMP SOA. Is this normal and should I comply?
You dont have to, but if your bank statement will support the offer that you have made as being fair, there isn't a problem with doing this. 

If I go on a DMP - is StepChange or PayPlan better? Or should I continue to do a self-managed one. 
It all sounds as though it is going pretty well to me! 
Your creditors are getting a decent amount each month and I wouldn't have thought many of them will seriously think about legal action. 

Have you managed to stop gambling? 

middlingditch

Hello! I don't have any practical advice on the debts, as I'm nowhere near as qualified as the rest of this good board, but I wanted to send a note of encouragement as I know it was really difficult for you to post and to face up to all of this. 

I also had a big amount of debt due to gambling and know how the debts and the gambling all get tangled up together in one big horrific nest in your mind. When I was in debt I felt as if I couldn't afford therapy to help me finally escape the gambling nightmare (well, I actually *couldn't* afford it, but I spent and re-spent far more on gambling than therapy would have cost *facepalm*) but looking back, I do wish I'd got in-depth help for the gambling and my general money issues long before I actually did, even if I'd had to de-prioritise paying off some debt to get it. (If that makes sense.)

What I'm basically saying is, I know you have your auntie who knows, but it might be a good idea to try and get some more support, beyond her, something professional if possible (Gamcare do offer a limited number of free counselling sessions which is better than nothing). 

I get that this may not be the time to go delving super in-depth into your "issues" around money as you are firefighting on a practical level, but perhaps you could put a pin in it and commit to yourself to come back to it when things feel a bit more stable (but soon!). I say this out of a deep sympathy and recognition for the situation you're in! 

Maybe for now you can simply try and start forgiving yourself and letting go of the shame/regrets. "Start where you are."

However, stopping gambling fully is the number one thing you can do right now to help yourself and start moving into a happier phase of life. So if you haven't already, sign up with Gamstop for the maximum period, do MOSES if you go to bookies, get Gamban on all your devices (it doesn't cost much, is discreet, works brilliantly and doesn't mess up your internet), and anything else you can to do put barriers in place.

You deserve a happier life with less chaos, and you can get there. Well done again for facing it all and taking these first really hard steps.

Archergirl

middlingditch said:

Hello! I don't have any practical advice on the debts, as I'm nowhere near as qualified as the rest of this good board, but I wanted to send a note of encouragement as I know it was really difficult for you to post and to face up to all of this. 

I also had a big amount of debt due to gambling and know how the debts and the gambling all get tangled up together in one big horrific nest in your mind. When I was in debt I felt as if I couldn't afford therapy to help me finally escape the gambling nightmare (well, I actually *couldn't* afford it, but I spent and re-spent far more on gambling than therapy would have cost *facepalm*) but looking back, I do wish I'd got in-depth help for the gambling and my general money issues long before I actually did, even if I'd had to de-prioritise paying off some debt to get it. (If that makes sense.)

What I'm basically saying is, I know you have your auntie who knows, but it might be a good idea to try and get some more support, beyond her, something professional if possible (Gamcare do offer a limited number of free counselling sessions which is better than nothing). 

I get that this may not be the time to go delving super in-depth into your "issues" around money as you are firefighting on a practical level, but perhaps you could put a pin in it and commit to yourself to come back to it when things feel a bit more stable (but soon!). I say this out of a deep sympathy and recognition for the situation you're in! 

Maybe for now you can simply try and start forgiving yourself and letting go of the shame/regrets. "Start where you are."

However, stopping gambling fully is the number one thing you can do right now to help yourself and start moving into a happier phase of life. So if you haven't already, sign up with Gamstop for the maximum period, do MOSES if you go to bookies, get Gamban on all your devices (it doesn't cost much, is discreet, works brilliantly and doesn't mess up your internet), and anything else you can to do put barriers in place.

You deserve a happier life with less chaos, and you can get there. Well done again for facing it all and taking these first really hard steps.

What a wonderful, inspiring post. There is help out there, you have made the first and hardest step, but now you have to keep the faith and that will be hard. Glad to read that middlingditch is doing so well that's a good thing to know....keep up the good work auburnheart and let us know how you're doing.

auburnheart

Smudgeismydog said:

Well done for posting, I didn’t want to read and not leave a message.

I am sure some of the very knowledgeable posters will be along soon to offer some top tips to help you navigate this. You are in a safe place with lots of people who will offer support and cheer your progress.

Thank you very much for your kind words. It is appreciated.

auburnheart

RAS said:

Hi, I'd suggest the debt about which you need to be most concerned is the credit union, based on others experience. They tend not to act like other creditors and may go for a  CCJ earlier. So try to make an arrangement with them sooner. So start engaging with them pronto, if you haven't already.

With respect to the other debts, those that have defaulted should have let you know if they are keeping collection in-house, have out sourced collection or sold the debt. You just need to set up affordable payments online fir the defaulted debt.

Thanks for coming back to me with the advice.

I have been in contact with the credit union. I'm currently on a payment plan until the end of May 2025. Will look to get back in touch with them before my payment at the end of month to negotiate again.

I've been checking my credit report and it appears only 3 defaults are on there. I know one doesn't appeared on my credit report, but has been defaulted, so that's 4 creditors.

I've had notice of default from 3 other creditors meaning I have most probably 3 creditors + PayPal who hasn't defaulted. I don't recommend PayPal will as this is a negative balance which has been sold to Moorcroft. I've never received any correspondence from Moorcroft, just log into the portal and make my payments as per my own DMP offerings. 

Only 1 creditor who has mentioned that they will be forwarding the debt to CRS once defaulted, but heard nothing yet therefore, still making payments directly to this creditors via standing order until I hear otherwise. Can see the payments are being applied via my login on their portal so overall feel okay about this at the moment.