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

Archergirl

auburnheart said:

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.

Keep up the good work, you'll get there and it will be so worth it, a weight will be lifted.

auburnheart

Archergirl said:

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.
 

Thank you for your kind words.

I only felt like being in control as StepChange was really hard due to their payments being due on the 1st of each month, but I got paid around the 22/23rd of each month, therefore, felt leaving it a week for a gambler to have the money in the account was a little hard. I'd rather pay creditors as soon as I have been paid so I know that it has gone. I haven't contacted PayPlan as these might have different payment terms and might make it easier in terms of payments to creditors.

Do you reckon it's less likely for them to go for a CCJ if a proper DMP is set up via StepChange/PayPlan with the same repayments being offered, therefore, a plan which would end in 4.6 years.

auburnheart

fatbelly said:

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

Thank you so much for your advice.

The only thing I find with the NEDCAB is that when I send these to creditors, majority of them only set up plans for 3 or 6 months. What would you do then? Just re-send the offers each time?

Also, many want you to fill in their income and expenditure (even though it will state exactly the same as your SOA). This is what gets me in a tizz always as I then start panicking that something might happen.

Do you have the Debt Camel link for me just in case? I can save this then when it does happen. I've received nothing to date, only notice of arrears, formal demand (after a default) and default notices. None of my creditors have yet forward to a DCA except for PayPal. 

I've had 1 creditors mention they will but received no correspondence from the DCA yet.

I found that many creditors were much less threatening in their correspondence when I was with StepChange for that brief period of time. Many just accepted the StepChange offered and were happy. (even though my offers now with NEDCAB are more or less the same amount). This is why I'm a little panicking at the moment as to whether I should go back to StepChange or go with PayPlan. 

I have a little fund, not talking of much. If I didn't send the bank statements, how would you say no politely? I have no issue in sending them, it's just I'm not sure what they would gain in looking at them when I've already provided my SOA and also, they've put me on a 3 month payment plan before without it.

Thanks again.

auburnheart

Rob5342 said:

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. 

Thanks for this.

Based on them acting in the creditors best interest, would this be less likely for them to take court action for a CCJ if I was on a decent DMP?

Would you say be good for me to go with StepChange/PayPlan for a 1 year or so, until I feel less anxious and then try and go on my own afterwards?

I think I know what a CCA request is, but can you confirm what this means?

auburnheart

ManyWays said:

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? 

Thank you for coming back to me.

I currently have 2 claims with the Financial Ombudsman. 1 with Fluid, and 2 with Monzo (1 irresponsible lending or my Monzo Flex, and 1 for not doing enough to stop me spending £1000s on gambling).

Otherwise, I've won cases against Zopa Loan (no interest, no credit report referencing). 2 providers, Salary Finance and Updraft agreed to my complaints without the Ombudsman and removed interest straight away. Updraft isn't showing on my credit reference agencies but Salary Finance on TransUnion with a registered Default.

In terms of bank statements, I've not had to provide any to others before therefore to me it feels unusual, but if I need to provide them, then I'd be happy too.

Would you say it would be better for me to go with StepChange/PayPlan for the time being and in a year or so time, change to self-managed (when I feel a bit better about myself).

Gambling... I went cold turkey for a good while. Then slipped off last month (didn't do any deterimental effects, but swallowed any birthday money I had saved which isn't great (I know!). Kicking myself everyday. Periodically speak to GamCare about it, I just keep thinking, I need to get rid of this debt and that motivation is driving me at the moment.

auburnheart

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.

Thank you so so much for the kind words.

I've felt like I've gone from a person who was so financially aware to feeling so low. I've had a few low days and felt like there's no way out. But, kept saying, it's a selfish way to think, and the best thing to do is try my best to get them paid.

My auntie has been an absolute rock for me if I'm honest. I can't face telling my family as it's just too much of an embarrassment for me. I've spoken to GamCare on numerous occasions for emotional support with my gambling.
The gambling is such a vicious circle and I just feel like the passed year has been an absolute whirlwind.

I'm currently trying to study in order for me to aim higher and get myself a promotion in order for my debts to be cleared so much sooner than 4.6 years, and to be honest, this has been such a motivation for me, but also, it's been extremely difficult to concentrate and being awake until early hours (as I'm sure it's noticed on my post time).

Thank you so much for the support in this. I will definitely look at Gamban, as this sounds very efficient and maybe this is exactly which I need to get myself sorted fully. (no more falling off the wagon).

sourcrates

Firstly, Moorcroft no longer buy debts, they will only be managing the PayPal debt on PayPal`s behalf.

Next, lenders are under the cosh from the FCA to make sure any customer who gets into arrears has had free debt advice from one of the debt charities, as long as you state you have taken advice, that should tick that box.

A "CCA" request is a request for information about your credit agreements, its one of your statutory rights under sec 77 consumer credit act.

You are basically asking them to provide you with a copy of the paperwork for the credit agreement pertaining to the debt they are chasing you for, without which they cannot take legal action against you for non payment of that debt.

There is a specific template letter for that purpose and a statutory fee of £1 must be sent with each request, the fee was set in the 70`s and is a bit irrelevant nowadays, but to comply you must send it, even though most lenders will return the payment, usually a postal order is used.

National debtline have a series of template letters on their website, inc this one.

auburnheart

sourcrates said:

Firstly, Moorcroft no longer buy debts, they will only be managing the PayPal debt on PayPal`s behalf.

Next, lenders are under the cosh from the FCA to make sure any customer who gets into arrears has had free debt advice from one of the debt charities, as long as you state you have taken advice, that should tick that box.

A "CCA" request is a request for information about your credit agreements, its one of your statutory rights under sec 77 consumer credit act.

You are basically asking them to provide you with a copy of the paperwork for the credit agreement pertaining to the debt they are chasing you for, without which they cannot take legal action against you for non payment of that debt.

There is a specific template letter for that purpose and a statutory fee of £1 must be sent with each request, the fee was set in the 70`s and is a bit irrelevant nowadays, but to comply you must send it, even though most lenders will return the payment, usually a postal order is used.

National debtline have a series of template letters on their website, inc this one.

Oops, sorry that must of been the way I wrote that in my previous comment. Sorry about that.

Thank you for confirming this for me. I'll have some idea hopefully if I get a letter before action but would like to thank you for explaining.

ManyWays

Would you say it would be better for me to go with StepChange/PayPlan for the time being and in a year or so time, change to self-managed (when I feel a bit better about myself).
Personally I think that is a perfectly reasonable course of action. 
Stepchange will normally give you a choice of two dates for monthly payments.
You may feel so much more in control in a year. 
Gamban is very effective if online gambling is your problem.

Rob5342

Lots of people start out with Stepchange and then manage it themselves when they are more confident. If you just want to pay a proportionate amount to everyone then using Stepchange is fine and they take some of the admin away from you. If you decide to do things differently, pay non proportional amounts or make a settlement offer to one of them for example, then it would be better to move to managing it yourself as Stepchange could really mess things up for you. 

Stepchange do let you pay by Standing order if that helps, you just have to get the payment to them by the cut off date. 

Don't be too hard on yourself, lots of people have bad chapters in their life and mobeI used to be really on top of things financially with good savings, no debt and everything paid on time. 10 years, a baby and a new house later and I had £44k on credit cards and was using pay day loans all the time to cover things (I had over 50 listed on. My credit report and at ome point I had 6 lending stream loans open at the same time). In 2021 I started DMP, and now through a combination of DMP repayments, affordability complaint refunds and CCA requests I have got it down to £1700 of enforceable debt.