D(MP) Day! 1st July 2025

djdebt_bosh

Hi everyone,

First of all, a massive thank you to:

• Everyone who has shared their experiences with debt – it’s incredibly reassuring to know I’m not alone.
• Everyone who offers advice and support – this forum has been a godsend.

I’m currently dealing with around 46k of unsecured debt:

• MBNA Credit Card – £17,000
• Barclaycard Credit Card – £10,900
• Virgin Credit Card – £6,000
• Halifax Unsecured Loan – £12,000

July 1st was the first time I’ve ever intentionally missed a payment. After making payments at the start of June, I realised I wouldn’t be able to cover July’s bills using my usual juggling act. Cue two weeks of extreme stress. I’ve now cancelled all debt payments and opened a new Monzo account where I received my most recent salary.

One thing I want to echo from others here: don’t rush into a DMP. I was about to go with StepChange but held off – and I’m glad I did. Even though I’ve tracked my spending for two years and know my avarge monthly spend on things like groceries, home maintenance etc it doesn't mean I could just jump straight into the DMP. For example, in just the first week of July, I had to pay for boiler maintenance – a one-off cost I hadn’t previously budgeted for. I also have a bi-annual residents’ fee due in three months, so need to effectively double up on what would be the 'normal' monthly amount in my budget for these next few months. If I’d jumped straight into a DMP, I’d already be strapped for cash!

I do have one question that I'd appreciate any responses to. The Halifax loan was agreed in March this year, after they put me on a 6-month payment plan to “test affordability.” I went through a budget with them over the phone, and at the time it seemed like a no-brainer: I was paying around £300/month on a credit card and £50–60 a month on an overdraft, and the new consolidate loan was £251/month. But now, with a clearer mindset (thanks to this forum), I’m frustrated that Halifax offered me the loan at all. I had around £43k debt at the time – they would have seen that I was up to my eyeballs in debt, that my debt levels ahd been increasing and that I had only been making minimum payments for an extended period and yet their solution was to give me another loan - tagging on interest of course. Is there any ground here for an affordability complaint? Will they just dismiss it because I only signed it 3 months ago and they went through a perfunctory budget on the phone? A follow up question is if it is worth doing one, should I do it now or might that hold up the defaulting process as they investigate? Any thoughts on this would be hugely appreciated.

Thanks again to everyone here – honestly, I can’t believe how calm and relaxed I feel now compared to a few weeks back. My mindset has completely shifted from one of paying creditors 'their money' at any cost to my own personal health and well-being to me with 'my debt' in the best way for ME!

ManyWays

they put me on a 6-month payment plan to “test affordability.” 
I dont think I have heard of this before, and Im not sure how this worked? What were you paying for 6 months?

djdebt_bosh

ManyWays said:

they put me on a 6-month payment plan to “test affordability.” 
I dont think I have heard of this before, and Im not sure how this worked? What were you paying for 6 months?

So I rang then to say I was struggling to keep up with the minimum CC payments (300/month). They said if I could consolidate CC and O/D into a consolidation loan. Paid 251/month for 6 months before the loan was formalised. 

sourcrates

djdebt_bosh said:

ManyWays said:

they put me on a 6-month payment plan to “test affordability.” 
I dont think I have heard of this before, and Im not sure how this worked? What were you paying for 6 months?

So I rang then to say I was struggling to keep up with the minimum CC payments (300/month). They said if I could consolidate CC and O/D into a consolidation loan. Paid 251/month for 6 months before the loan was formalised. 

That would have been a terrible thing to do.

Keep in mind that banks do not offer debt advice, they want to keep you in debt so you remain a customer.

Glad you have had your "lightbulb moment".

djdebt_bosh

sourcrates said:

djdebt_bosh said:

ManyWays said:

they put me on a 6-month payment plan to “test affordability.” 
I dont think I have heard of this before, and Im not sure how this worked? What were you paying for 6 months?

So I rang then to say I was struggling to keep up with the minimum CC payments (300/month). They said if I could consolidate CC and O/D into a consolidation loan. Paid 251/month for 6 months before the loan was formalised. 

That would have been a terrible thing to do.

Keep in mind that banks do not offer debt advice, they want to keep you in debt so you remain a customer.

Glad you have had your "lightbulb moment".

Is it best to let the accounts default first before following up with any affordability complaints? Might it hold up the process if I submit now?

sourcrates

djdebt_bosh said:.

Is it best to let the accounts default first before following up with any affordability complaints? Might it hold up the process if I submit now?

One has no bearing on the other.

katsu

If the overdraft and credit card were charging you interest and the new loan was not for more money, it doesn't seem that the bank were trying to make the situation worse. They and you were focused on monthly costs from the sound of it. 

If they had you pay regular payments for 6 months first, did things change after the six months or were you still getting into debt during the six months? 

You don't have to answer us here but it might help you to think about those questions to help you make sure your future budgeting covers your costs. 

Good luck.