Help advice sought

JCSussex

Hello. Im new to this so please bear with me if this is the wrong place to post this.  I am currently talking to Step Change and completed their online form to enter a DMP (debt management plan). They came back with a monthly figure I need to pay.  Due to a change in circumstances. I asked if this could be reviewed.  The person I spoke to said that I was given the wrong advice and that the monthly amount I had to pay was too high.  She recommended a DRO instead.  I do not want a DRO simply because I rent from a private landlord and when I move, it will be impossible to get accepted by a new landlord.  I am now concerned about step change as being a competent service having been given conflicting advice from different people.  Also, I wanted to exclude a loan from the DMP as it is a loan with a Gaurantor.  I do not want the loan company asking my Gaurantor to pay so decided to continue to pay the loan separately from the DMP.  Can anyone help me please.  Thank you. 

ManyWays

How much did Stepchange originally say you had to pay? Did this take account of you carrying on paying the guarantor loan? what was the change in your circustances or did you just realise that you couldnt pay that much? 

Who is the lender for the gaurantor loan? When did this start and how much more is there to pay? 

JCSussex

Hi ManyWays. Step Change said i would need to pay £689 a month which i feel is a bit steep.  I rang them but got told by a different person to go for  DRO but as I said, that will have serious implications re my moving to a different rental property.   
The guarantor loan is with a company called Share My Loan. The interest rate is obscene!! 

ManyWays

How much is there to repay on that loan and what are the monthly payments? Can the joint lender afford that? 

Could you post a Statement of Affairs here, because these numbers sound odd? https://www.stoozing.com/soa.php

gwynlas

Please follow the guidance above in order to get specific advice.

Stepchange require you to treat all creditors equally which does not allow you to choose who you include in DMP.

You do not have to use Stepchange as you can self mange your plan.

Any payments that you agree to make must be affordable to you and not cause a strain on your day to day life otherwise you might be tempted to default as feel overwhelmed

ManyWays

Stepchange require you to treat all creditors equally which does not allow you to choose who you include in DMP.
Stepchange may well let you leave a guarantor/joint loan out of a DMP, but this is not likely to work in a DRO. It isnt clear to me if a DRO is remotely possible though. 

RAS

Hi, please complete the SOA and list the type of debt, APRs and providers as some are easier to deal with than others.

I'd add that it is common for people not to identify some of their living costs when putting an SOA together the first time. The budget needs to be sustainable so including things like holidays, medical and dental, as well as some saving.

Typically Stepchange ask you to enter a DMP straight away, whilst we suggest that you start paying after defaults are issued. That also allows you to build up an emergency fund, as you won't be getting credit in the next few years.

As a renter, enough to cover a deposit and moving costs is a good idea. You can top it up again when you get the deposit on the old property back.

sourcrates

You can easily run a DMP yourself, with no need of any 3rd party help.

You just do a workable budget, and what`s left you distribute amongst your creditors, nothing could be simpler.

You will have to accept that defaults and negative credit information is all part and parcel of any and every debt solution, most rentals only do landlord checks which just check public information, lots of folk manage DMP`s whilst renting with very few issues.