In Debt - Reality Check in place!

katsu

I appreciate that you say your wife pays some things and you pay others. Has she also ended up with a load of debt too?

Whether she has or hasn't, you might benefit from reviewing with her your family approach to your life, savings and events.  You want to find a way to not only get out of debt but avoid getting into debt again when something else happens to you as life will happen, a boiler breaks/need to change the central heating, sick relative and so on. 

When you both are in the same lane it's much easier to for eg not have a holiday or to agree to save up together and make economies on XYZ to get a new sofa or whatever. 

The strength of this forum is the mindset shift that helps you live a debt free life. 

Good luck to you and your wife. 

Reddington85

I just want to thank everyone for their support so far with this - I was hoping to hold off entering a DMP

I work in an FCA regulated company - we don't customer face and my role is far removed and I have no budget or other areas where I'd be considered a risk. Unfortunately (in the sense for me!) our annual Fitness and Propriety declaration came up and and I had to declare missed payments and any change in circumstances (they credit check so it would have come up so no point lying) 

I've been very open with the employer, I have to add my employer has been very supportive and signposted as well as offering financial support through an employment partner in forms of vouchers and practical advice etc, They ran a credit check but all they see is a few missed payments and I shared the DMP plan with StepChange - who ironically they signposted me too.

However, I realise I've probably gone into the DMP too early through the fear of needing an arrangement in place as per my fitness contract at work  - would anyone recommend exiting the plan now employment is secure, waiting a few months to build the fund up and then entering with Payplan or just knuckle down and keep on with StepChange?

Grumpelstiltskin

Have the debts defaulted? If not and they have been marked Arrangement too Pay that can damage your credit record for longer.

Reddington85

Grumpelstiltskin said:

Have the debts defaulted? If not and they have been marked Arrangement too Pay that can damage your credit record for longer.

Nothing has defaulted yet, only one debt has a marker on which is the Monzo - the others I've had no to minimal contact about surprisingly 

I was debating ending the DMP - waiting - then trying it with PayPlan but not sure how my creditors would then react

Grumpelstiltskin

OK Yes stop your DMP now, use the next few months to build up an emergency fund and when they have defaulted either go to Payplan or self manage.

Don't bother with how the creditors will react, you have to remember you are in charge not your creditors, and don't contact your creditors, if you do they will try and get you to pay them more than you can afford.

Keep coming back to us if you have problems or you don't understand anything

RAS

As you are discovering debt management moves at a snail's pace most of the time.

So your employer has referred you to Stepchange?

It would be a good idea to go back to your employer, probably HR, and discuss the advice from Stepchange. Then explain that going into a DMP immediately will damage your credit record longer and affect your ability to create a decent emergency fund.

You don't want consumer credit again but if you get another "roof situation", you need to have funds to cover it without access to credit. Also, defaults will clear your credit record in 6 years, whilst AP markers stay for 6 years after the debt is paid off.

You can renew to a new fix with your existing mortgage provider, but might want to be able to look at the whole market sometime in the next decade?

And do make all affordability claims that seem reasonable ASAP and be prepared to take them to the ombudsman. If you win, they might repay interest and more importantly, stop reporting the debt on your credit record.

You need to know how your employer will respond if you have a dozen defaults this time next year and are self-managing payments to them, whilst waiting for the last to default and transfer to Stepchange?

I'd also ask how they'd respond if you paid off things like the Cap1 debt just to reduce the number of accounts? Some employers regard "preferential treatment" as unethical, others might understand that simplify your debt situation isn't unreasonable, as long as you pay prorata once the main payments are set up.

Reddington85

RAS said:

As you are discovering debt management moves at a snail's pace most of the time.

So your employer has referred you to Stepchange?

It would be a good idea to go back to your employer, probably HR, and discuss the advice from Stepchange. Then explain that going into a DMP immediately will damage your credit record longer and affect your ability to create a decent emergency fund.

You don't want consumer credit again but if you get another "roof situation", you need to have funds to cover it without access to credit. Also, defaults will clear your credit record in 6 years, whilst AP markers stay for 6 years after the debt is paid off.

You can renew to a new fix with your existing mortgage provider, but might want to be able to look at the whole market sometime in the next decade?

And do make all affordability claims that seem reasonable ASAP and be prepared to take them to the ombudsman. If you win, they might repay interest and more importantly, stop reporting the debt on your credit record.

You need to know how your employer will respond if you have a dozen defaults this time next year and are self-managing payments to them, whilst waiting for the last to default and transfer to Stepchange?

I'd also ask how they'd respond if you paid off things like the Cap1 debt just to reduce the number of accounts? Some employers regard "preferential treatment" as unethical, others might understand that simplify your debt situation isn't unreasonable, as long as you pay prorata once the main payments are set up.

Thank you - my mortgage actually comes up for renewal early part of next year so I should see an offer from my provider soon. 

Thanks on the affordability piece, just had all my bank statements downloaded so will shortly be engaging with providers on those. 

So in terms of employer which as ever is my main concern - I'd move from a low risk to a med-high but the policy remains supportive. As I do not and will not customer face and don't have a budget sign off - the only thing they ask for is a quarterly wellbeing check in and the proof of the DMP being in place or that I'm taking responsible measures. They carried out a credit check at the start but obviously that shows minimal aside a missed payment or two. Hence that was the move to Stepchange DMP to prove I am taking steps

The policy and contract wording is:
Please note we'll always look to be aware of your situation in order to determine any support you may require in the first instance. Being in financial difficulty doesn't necessarily mean you will face disciplinary action at work providing we can put appropriate risk measures or redployment in place.