Anxiety Over Self-Managed DMP

Scarlet_to_Black

I was asking advice here a few weeks back re self-managing my DMP. It’s newly set up with StepChange who took first direct debit in April.  I’ve asked them to pause May as I had an unexpectedly expensive April 🤦‍♀️ and I haven’t yet built up an emergency fund to any great degree, which SC have agreed to. 

I was on the verge of being brave and cancelling with SC this morning after all the advice here but I’ve had an anxious day after a knock at the door this morning (which I didn’t answer) and I’m just not sure I’m brave enough to do it now! 

What do doorstep collectors tend to do?  Would they visit this early in the process? This guy had a clipboard and was reading off a two page letter at my door while waiting for me to answer.  When I didn’t, he goes down the driveway and stared back at my house/car. He then knocks next door but one, (next door looked like nobody home) but no idea if they answered and I’m too ashamed to knock and ask.  He then walks down the road staring at my house and then literally crosses in front of a small Royal Mail van, signalling the postie to stop, which he did. He had a five minute chat through the car window, pointing at my house while he was talking! 

It’s freaked me out a bit!  I live on my own with my two youngest kids (14 & 16) so I was a bit shaken but I don’t know if I’m totally overreacting (they weren’t home at the time). I admit I do suffer with catastrophising! 

I have five creditors:
* NatWest for £30k ish (2 x cc and 2 x loans which have all been passed to Moorcroft) who I currently have an affordability complaint with the Financial Ombudsman and I’m not paying anything to them while this is ongoing

* Sainsbury’s loan for around £2.5k remaining, (who are moving to NatWest). They have phoned and texted me constantly because they don’t have me on their ‘DMP’ spreadsheet, although received a payment from StepChange last month 
* Lloyds cc for around £6.5k - have been no bother - first SC payment April 
* Next account for less than £250, who have also been a pain with constant texts and calls - first SC payment April
* PayPal credit approx £3k, again no bother - also first SC payment April. 

I can’t actually speak to anyone at SC in person as the phone waits are crazy but they do respond to emails a few days later, so it’s not been ideal. 

I know the best thing to do is self-manage but I’m wondering whether I’m brave enough…🫣

Brie

The knock on the door could have been anyone.  The fact that he went next door might mean he's doing a survey or trying to sell double glazing.  If he was a debt collector I would have expected him to drop off a letter or a card of some sort with his number asking you to call him.  

Should he return then you'll know he's specifically looking to talk to you.  Many people will say not to open the door.  If he is going to cause you to be anxious then maybe it is better to talk to him to find out exactly what he's doing.  Maybe through an open window - that way he knows he isn't being invited in.  Have your phone ready too and posed as if you are filming/recording the conversation as that should guarantee that he's polite and not pushy.  

As for the DIY DMP....do you have the discipline to do this?  That you have only made 1 payment and cancelled the second suggests there's still some things to work out with your budgeting.  Some people, however, get on great with these.  SC has done all the hard work so you know what's required of you - but you'll have to stick to it.  I would say set up standing orders for all the creditors and that way you are in control.  And if there money isn't money in the bank they don't get paid.     

Another alternative is to go to a different debt advice agency.  Community Money Advice (CMA) is more face to face and will organise a DMP but then leave it up to you to make the payments.  I think Christians Against Poverty do something similar.  

Scarlet_to_Black

Thanks Brie! I thought this and watched him and he hadn’t gone to anyone else apart from next door but one. He had parked his car next block down. I know I may be paranoid! 

I was in a DMP with SC 11 years ago, they even helped me when I applied for a mortgage and it was a weight off when I was debt free and everything off my credit file by 2020, and I managed to do F&Fs with the DCAs in 2018, which was stressful but such a relief when all sorted. So annoyed that I’m back where I am 10 years later! 

I will definitely be committed to paying monthly but I feel I may have been a bit strict with my budget in places. I will do an SOA asap.  I felt a bit pressured to keep figures lower along SC guidelines of appropriate amounts. 

sourcrates

Doorstep collectors are just ordinary people doing a job, they have zero statutory powers, and absolutely no authority whatsoever, think postman, door to door sellers, Jehovah's witness etc, you get the drift.

You do not have to speak to them, or engage with them in any way, shape or form, certainly do not invite them in, filming them makes them think twice in a lot of cases, telling them to go away works equally well.

The purpose of the visit, if it was indeed a debt collector, is to encourage you to contact your creditor, nothing more.

Try and change your thinking process so that you are the one calling the shots, not them, you tell them how things are going to be, not the other way around, that should be your position from now on.

Scarlet_to_Black

Amazing! Thanks for putting it across like that. Makes a lot of sense and is very comforting ❣️

Rob5342

It's very easy to manage a DMP yourself, then you can run it exactly how you want instead of trying to keep Stepchange happy all the time.

Have all of your debts defaulted? 

Scarlet_to_Black

Rob5342 said:

It's very easy to manage a DMP yourself, then you can run it exactly how you want instead of trying to keep Stepchange happy all the time.

Have all of your debts defaulted? 

No. I’ve had notices from NatWest but no defaults yet. This is why I was going to go self-managed so I could stop paying and encourage the defaults rather than my credit file being marked DMP. 

I’m just apprehensive after today but I need to get stronger about how I look at it as Sourcrates said. 

I just have quite a bit of equity in my house so worried about pushing creditors too far and risking legal action. 

fatbelly

Scarlet_to_Black said:

Rob5342 said:

It's very easy to manage a DMP yourself, then you can run it exactly how you want instead of trying to keep Stepchange happy all the time.

Have all of your debts defaulted? 

No. I’ve had notices from NatWest but no defaults yet. This is why I was going to go self-managed so I could stop paying and encourage the defaults rather than my credit file being marked DMP. 

I’m just apprehensive after today but I need to get stronger about how I look at it as Sourcrates said. 

I just have quite a bit of equity in my house so worried about pushing creditors too far and risking legal action. 

So be careful what you tell them. It is going to take a lot of work for them to discover that and none of them will rush to court action when they have six years to do it

On the doorstep visit thing, whether it's religion or politics that they are selling, or double glazing, tv licensing, debt payment, whatever, the response is 'no thanks'. Shut the door. You get on with your life, they get on with theirs.

gwynlas

If you suffer from anxiety and catastrophising then you are perhaps better off using Stepchange.

You should probably persist with trying to talk to someone having completed a SOA which you are comfortable with. it does not matter if the plan lasts longer than you would like as long as you and your children are content with what you have left.

You can revise this annually with one phone call as your circumstances change and children move on in education.

Managing things yourself means that you will have to negociate with each creditor every year.

Scarlet_to_Black

Thank you, all good points, Gwynlas. I may cancel StepChange for now and wait for defaults and then look at using the CAB site, or CAP/Payplan too. Once everything has defaulted. 

I’m pretty self-sufficient usually, just got a bit freaked out over nothing I think. I’m a union rep, and very good/vocal at sticking up for myself and others usually!  So I will do the SOA, cancel SC for now and take it from there. 

It’s so comforting to have you all as a sounding board and a personal thanks for the time and effort you give up, which is invaluable. 

Rob5342

Defaulting and building up an emeregency fund is good first step. I'd work out a budget for yourself and live on that, saving the amount you would be paying towards the debts into an emergency fund. That will give you a bit of time to tweak it and see if it sustaianable and then you can go with it once the debts have defaulted.