New DMP

SpaceCadet12

Hi all,

So my DMP with Step Change is up and running....not heard directly from any of my creditors so assuming they have accepted the proposals - I pay my DMP and crack on with life.  Getting myself into a sensible budget, changing my mindset and getting myself out of this mess which I created through my own stupidity.    I have an end date for my DMP - do most people achieve freedom by this date?

I have heard from Barclay Card who are defaulting my account, demanding I call them to pay the difference as my payment is late etc. Reading the bottom of the letter it states if your situation had not changes we will freeze interest and I continue paying via my DMP (I have assumed)....should I call them, I feel so ashamed I hate talking to people on the phone. 

I am worried I am going to have bayliffs or people knocking on my door - will this happen? As that gives me massive anxiety.

Im a lucky to be in a secure job, I do not live an overly lavish lifestyle (surprisingly) I just love holidays...my plan is to pay my monthly amount and as I learn to budget better my surplus I will put into a little account and pay a lump sum at the end of each year....even if is like £100 or something.  

Any advice and reassurance is greatly appreciated. 

RAS

Forget bailiffs. 

It is unusual for a debt to even go as far as a CCJ, and if you managed that you'll just be told to pay an affordable amount each month. Only if you fail to do that can the creditor go back to court and try to enforce.

There are a couple of companies like Verify and Resolvecall who are occasionally paid to chase debts. Their staff have as much power as next door's Kittie, so just tell them to jog on.  

sourcrates

Please don`t overthink things, reading stuff on the internet about what "could" happen, verses what "will" happen is like the difference between chalk and cheese.

You don`t have to call anyone, stepchange will have informed your creditors of your debt management plan, it will take some time to filter down the food chain, and in the meantime you may continue to get computer generated mail, but its nothing to be concerned about.

Once things settle down, your monthly payments will be distributed by stepchange and all will go on as before, life will carry on and you won`t even know anything has changed.

Just a couple of things to be aware of, there is no acceptance or otherwise of a debt management plan, if the lender does not like what is proposed, they sell the debt to someone else, or simply pass it to a debt collector, so you (or stepchange) will pay them instead, its quite likely some debts will change hands, you will be notified in writing of this, and you just pass the new details  to stepchange, they will deal with it, that`s what they do.

Oh, and as for bailiffs, first a lender would have to take you to court and obtain a CCJ, you would then have to default on the judgement payments, and only then could a county court bailiff become involved, there use is extremely rare, and as they are employees of the court, they are normally quite reasonable to deal with.

But none of that is going to happen as you are in a debt management plan, and as long as lenders get a regular payment, they are normally quite happy at that, so again, try not to get paranoid, as nothing else is going to happen here, you are one of tens of thousands in debt management, in that respect you are nothing special.

Believe me when I tell you, they are more worried about you not paying them, than you are about them taking further action, with the cost of living crisis, affordability complaints etc etc, its a dog eat dog world, and unsecured consumer credit debts are all of the non essential variety, so when push comes to shove, they simply don`t get paid, and there is very little a creditor can do about it.

ManyWays

Getting that letter from Barclays is great as it means they are defaulting your debts and so stopping interest. You dont have to reply, it is a letter they are legally obliged to send because they default a debt and it does not mean they are goping to take you to court. Look forward to getting more of these letters, it means your DMP is going to be working well.

Your plan to save money every month is good. I suggest not paying any more to the DMP until you have an emergency fund of at least £1000 put aside.

If you want to speed your DMP up, you could look at affordability complaints. Some people have had success with these in the early stages of a DMP. 

gwynlas

Barclaycard are stilll contacting my partner over 10 years into Stepchange DMP as review is out of step with default.
They simply refer them back to Stepchange without further engagement.

SpaceCadet12

Thank you all for your replies - cartainly put a little bit of stress out of my mind. 
I know I have a long way to go and I feel I can certaibnly get my life back under control and still have a life. 

I feel my repayments are substanital and fair and should hopefully reduce over time.  

Thinking about affordability complaints, I definaltely think some of mine debts were not approapriatley checked and I got credit far too easy.  How does this work? thanks in advance for your advice x

Grumpelstiltskin

Information in this thread.

DFW Sticky-Provit/Statute Barred Letters, Defaults, Mental Health Help and Guidance, all here. — MoneySavingExpert Forum