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Stepchange DMP

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  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,481 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Jamie what you have got to realise is that you are in charge not  your creditors.

    Did you save an emergency fund before you started your DMP? That is vital as you will have no access to credit  when you do have an emergency,

    Cancel your DMP and use the money to save your emergency fund, don't panic nothing terrible will happen if you don't pay for a few months.


    If you go down to the woods today you better not go alone.
  • JamieWM1976
    JamieWM1976 Posts: 8 Newbie
    Name Dropper First Post Photogenic
    @sourcrates So just to be clear, even though on my DMP it says 20 or 30 years or whatever before the debts are clear, in reality it gets wiped off after 6 years anyway? I just assumed I would continue paying it all back with Stepchange DMP for the full 20/30 years until its cleared?
  • sourcrates
    sourcrates Posts: 31,582 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    You are mis-interpreting my answers.

    The debt is still live and payable for as long as you keep paying it, and the debt won`t be cleared unless you clear it or it is settled early, for however long that may take.

    The debts will show on your credit file for 6 years, as I said before, even though they may drop off your file, they will still be collectable as long as the above applies, does that make it any clearer?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,481 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Defaults are removed from your credit report 6 years after they start even if you haven't paid 1 penny off the debt.

    There  will bee no chance of your DMP lasting 20 years, you will further along the line be able to settle for less than the amount you owe, that is not taking into account things like unaffordability.

    Start by reading this thread.

    In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions. — MoneySavingExpert Forum

    Complete a honest SOA and post it on here then when we can see the full picture we can give you the best advice of what to do next.
    If you go down to the woods today you better not go alone.
  • RAS
    RAS Posts: 35,614 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    No. 

    The debt is no longer reported on your credit record, that does not mean it does not exist. It's still collectable and the creditor can still enforce it in court. But that improves your credit record.

    It's already been suggested that you make affordability claims which might result in repayments of interest already paid. One poster reported debts reduced by 30% as a result of successful claims.

    But before we go there, can you advise a few basics?

    What's the total you owe?
    Renting, home owner, mortgage?
    Any assets valued at over 4k?


    If you've have not made a mistake, you've made nothing
  • JamieWM1976
    JamieWM1976 Posts: 8 Newbie
    Name Dropper First Post Photogenic
    RAS said:
    No. 

    The debt is no longer reported on your credit record, that does not mean it does not exist. It's still collectable and the creditor can still enforce it in court. But that improves your credit record.

    It's already been suggested that you make affordability claims which might result in repayments of interest already paid. One poster reported debts reduced by 30% as a result of successful claims.

    But before we go there, can you advise a few basics?

    What's the total you owe?
    Renting, home owner, mortgage?
    Any assets valued at over 4k?


    I'm embarrassed to admit that my debt is just over £30k. I have a mortgage on my home, no assets. 
  • ManyWays
    ManyWays Posts: 1,357 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    Dont be embarrassed, almost everyone here has had signifiacnt debts, life happens, you have to do the best for you (and your family) from where you are now, regretting what you did in the past doent help much.

    So if all the debts in your DMP are marked as defaulted on your credit record, that is good.

    I hope someone has explained to you that you will be able to get a new fix from your mortgage lender when the current one ends; they wont even do a credit or affordability check,. they will drop off your credit record in 6 years.

    Are you comfortable with the amount you are paying Stepchange at the moment? You are just coming up to your annual review, so if any of your costs have gone up in April or general cost of living, say this.

    Are you able to save any money each month as an emergency fund?
  • @ManyWays Thanks, I was wondering about the mortgage and was a little worried about it. I have recently done a review and my payment has actually decreased as I was struggling to pay what was originally agreed. No savings at all, no emergency fund - I wish!

    I have submitted a irresponsible Lending complaint using the template on this thread, any amount that comes off the balances owed would be a bonus!
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,481 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Jamie you must use the period after you have cancelled our DMP to save an emergency fund, it is vital as there will be emergencies crop up and you will have no access to credit so it needs to be enough to cover at least 3 months outgoings.
    If you go down to the woods today you better not go alone.
  • RAS
    RAS Posts: 35,614 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Do the default letters you've received refer to re section 87(1) of the Consumer Credit Act? If not they are just information that you are not paying the full amount.

    Please open an instant access ISA and transfer the amount that you would be paying Stepchange when your salary is paid in.

    That'll enable you to create an emergency fund. As a home owner you need to be able to pay if the gutters need repairing. You can manage with a second hand cooker but if the boiler needs repairing, you need those funds.
    If you've have not made a mistake, you've made nothing
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