StepChange v Self-Managed... £85k+ Debt

tigergambit

Avante_2 said:

StepChange are currently waiting for me to set up my DD to them... I am in breathing space until 14/12/25.

Now that I want to self-manage, should I:
a) Ignore them and let them close my DMP application and allow breathing space to run it's course
or
b) Email them and explain I do not want to pursue DMP via them and to remove me from breathing space? (so default process is expedited)
or 
c) ?

In the grand scheme of things... another c.2 months breathing space will allow to me build up a fund, but defaults are going to take some time too so either way I get the same outcome?

Hi Avante,

Well done on getting this far. If you can maintain this attitude you will be fine long term.

Xmas is coming and your partner is getting closer to returning to work. In your position I would be inclined to let the breathing space run and then tell Stepchange that you're going to go self managed on 14 December.

That will give you around 5 months to build up an emergency fund which you will need with a little one. 

Prepare two SOAs as suggested, a real one for your budgeting and a second one which you can show to creditors if necessary. The second one should NOT show your partner's income when she returns to work - you should use her added income to increase your emergency fund. You need to be thinking of offering settlements in 3 years or so, so building that fund should be your priority to cover settlement offers and life's mishaps along the way.

Avante_2

tigergambit said:

Avante_2 said:

StepChange are currently waiting for me to set up my DD to them... I am in breathing space until 14/12/25.

Now that I want to self-manage, should I:
a) Ignore them and let them close my DMP application and allow breathing space to run it's course
or
b) Email them and explain I do not want to pursue DMP via them and to remove me from breathing space? (so default process is expedited)
or 
c) ?

In the grand scheme of things... another c.2 months breathing space will allow to me build up a fund, but defaults are going to take some time too so either way I get the same outcome?

Hi Avante,

Well done on getting this far. If you can maintain this attitude you will be fine long term.

Xmas is coming and your partner is getting closer to returning to work. In your position I would be inclined to let the breathing space run and then tell Stepchange that you're going to go self managed on 14 December.

That will give you around 5 months to build up an emergency fund which you will need with a little one. 

Prepare two SOAs as suggested, a real one for your budgeting and a second one which you can show to creditors if necessary. The second one should NOT show your partner's income when she returns to work - you should use her added income to increase your emergency fund. You need to be thinking of offering settlements in 3 years or so, so building that fund should be your priority to cover settlement offers and life's mishaps along the way.

Hi Tiger!

Thank you, what a relief today has been, I honestly feel like a physical weight has been lifted from my shoulders. I have not been able to concentrate at work, I have been snappy with my partner and not very present with my new baby  

Now that I have a plan in motion, I feel I can stop scrolling forums at 1am!

I like your idea, let Breathing Space run until 14/12/25 and then inform them I am going self-managed.

I have already completed two SOAs (just trying not to confuse myself with them lol). One is for the unsecured creditors once they default me (shows £480 disposable to pro rata across 15 lenders). The "real" one is more like £980 disposable, to allow c.£500pm to emergency fund & eventually towards full and final settlements later down the road.

Great idea regarding when my partner returns, to use her income to increase emergency fund, this will expedite the fund growth and enable higher (potentially faster) F&F settlements.

This forum really is great, I have scrolled it for weeks and been too embarrassed to publish my own story - but the more I scroll the more I realise I am one of thousands of people in the same position and there is hope!

Rob5342

Avante_2 said:

fatbelly said:

Your plans sound good. I suspect Stepchange might struggle to understand why you are prioritising the credit union but I can see the logic of that

Approaching StepChange was a good process for me as it put everything in black and white, but now I have read a lot of detail on the forums, I think self-managed is the best way to go for me anyway

That was my experience of them. Contacting them initially meant I faced up to by debts and if they hadn't have been there then it might have taken me a lot longer to start sorting things out, but I've since learnt that their approach can be detrimental in the long term compared to other options, especially their stance on defaulting.

Grumpelstiltskin

What  has happened over the last few hours has been huge, so take things slowly over the next few days.

Just remember don't panic, be prepared for phone calls ( block all numbers ) texts and E Mails, you can ignore them, anything important has to be sent by snail mail. Just remember you are in charge and you are not alone.

Avante_2

Rob5342 said:

Avante_2 said:

fatbelly said:

Your plans sound good. I suspect Stepchange might struggle to understand why you are prioritising the credit union but I can see the logic of that

Approaching StepChange was a good process for me as it put everything in black and white, but now I have read a lot of detail on the forums, I think self-managed is the best way to go for me anyway

That was my experience of them. Contacting them initially meant I faced up to by debts and if they hadn't have been there then it might have taken me a lot longer to start sorting things out, but I've since learnt that their approach can be detrimental in the long term compared to other options, especially their stance on defaulting.

Thanks Rob, sounds like we had a similar "start" to this. 

Do you have any tips for self-managing a DMP? I am currently using the SOA calculator and Excel spreadsheets. I tried to use the CAB website but do not find it very user friendly...

I have my income/expenditure, debts and pro rata offers on excel so think that covers it all?

My next step is to look into affordability complaints. (As an aside...whilst I was in breathing space and at 90% utilisation... Fluid credit card offered me a credit limit increase from £4500 to £7200!).

Always_Fishing

Avante_2 said:

Rob5342 said:

Avante_2 said:

fatbelly said:

Your plans sound good. I suspect Stepchange might struggle to understand why you are prioritising the credit union but I can see the logic of that

Approaching StepChange was a good process for me as it put everything in black and white, but now I have read a lot of detail on the forums, I think self-managed is the best way to go for me anyway

That was my experience of them. Contacting them initially meant I faced up to by debts and if they hadn't have been there then it might have taken me a lot longer to start sorting things out, but I've since learnt that their approach can be detrimental in the long term compared to other options, especially their stance on defaulting.

Thanks Rob, sounds like we had a similar "start" to this. 

Do you have any tips for self-managing a DMP? I am currently using the SOA calculator and Excel spreadsheets. I tried to use the CAB website but do not find it very user friendly...

I have my income/expenditure, debts and pro rata offers on excel so think that covers it all?

My next step is to look into affordability complaints. (As an aside...whilst I was in breathing space and at 90% utilisation... Fluid credit card offered me a credit limit increase from £4500 to £7200!).

Hi

Just wanted to say good luck with your journey. I think we're literally a few days apart on a similar path as I've just started mine with the help of everyone on this forum. 

I'm just staring to look at affordability complaints, and on both my fluid and aqua CC's, both owed by Newday, gave me credit limit increases either in the same month or the following month of my account getting temporarily suspended for exceeding my credit limit or being late on a payment. They prey on people looking for a way out!

tigergambit

Avante_2 said:

tigergambit said:

Avante_2 said:

StepChange are currently waiting for me to set up my DD to them... I am in breathing space until 14/12/25.

Now that I want to self-manage, should I:
a) Ignore them and let them close my DMP application and allow breathing space to run it's course
or
b) Email them and explain I do not want to pursue DMP via them and to remove me from breathing space? (so default process is expedited)
or 
c) ?

In the grand scheme of things... another c.2 months breathing space will allow to me build up a fund, but defaults are going to take some time too so either way I get the same outcome?

Hi Avante,

Well done on getting this far. If you can maintain this attitude you will be fine long term.

Xmas is coming and your partner is getting closer to returning to work. In your position I would be inclined to let the breathing space run and then tell Stepchange that you're going to go self managed on 14 December.

That will give you around 5 months to build up an emergency fund which you will need with a little one. 

Prepare two SOAs as suggested, a real one for your budgeting and a second one which you can show to creditors if necessary. The second one should NOT show your partner's income when she returns to work - you should use her added income to increase your emergency fund. You need to be thinking of offering settlements in 3 years or so, so building that fund should be your priority to cover settlement offers and life's mishaps along the way.

Hi Tiger!

Thank you, what a relief today has been, I honestly feel like a physical weight has been lifted from my shoulders. I have not been able to concentrate at work, I have been snappy with my partner and not very present with my new baby  

Now that I have a plan in motion, I feel I can stop scrolling forums at 1am!

I like your idea, let Breathing Space run until 14/12/25 and then inform them I am going self-managed.

I have already completed two SOAs (just trying not to confuse myself with them lol). One is for the unsecured creditors once they default me (shows £480 disposable to pro rata across 15 lenders). The "real" one is more like £980 disposable, to allow c.£500pm to emergency fund & eventually towards full and final settlements later down the road.

Great idea regarding when my partner returns, to use her income to increase emergency fund, this will expedite the fund growth and enable higher (potentially faster) F&F settlements.

This forum really is great, I have scrolled it for weeks and been too embarrassed to publish my own story - but the more I scroll the more I realise I am one of thousands of people in the same position and there is hope!

You might also consider paying off the three small creditors rather than letting them default. That would reduce the number of creditors by 20%, and you're unlikely to get much of a reduction on them anyway. Makes it easier keeping on top of things.

Avante_2

tigergambit said:

Avante_2 said:

tigergambit said:

Avante_2 said:

StepChange are currently waiting for me to set up my DD to them... I am in breathing space until 14/12/25.

Now that I want to self-manage, should I:
a) Ignore them and let them close my DMP application and allow breathing space to run it's course
or
b) Email them and explain I do not want to pursue DMP via them and to remove me from breathing space? (so default process is expedited)
or 
c) ?

In the grand scheme of things... another c.2 months breathing space will allow to me build up a fund, but defaults are going to take some time too so either way I get the same outcome?

Hi Avante,

Well done on getting this far. If you can maintain this attitude you will be fine long term.

Xmas is coming and your partner is getting closer to returning to work. In your position I would be inclined to let the breathing space run and then tell Stepchange that you're going to go self managed on 14 December.

That will give you around 5 months to build up an emergency fund which you will need with a little one. 

Prepare two SOAs as suggested, a real one for your budgeting and a second one which you can show to creditors if necessary. The second one should NOT show your partner's income when she returns to work - you should use her added income to increase your emergency fund. You need to be thinking of offering settlements in 3 years or so, so building that fund should be your priority to cover settlement offers and life's mishaps along the way.

Hi Tiger!

Thank you, what a relief today has been, I honestly feel like a physical weight has been lifted from my shoulders. I have not been able to concentrate at work, I have been snappy with my partner and not very present with my new baby  

Now that I have a plan in motion, I feel I can stop scrolling forums at 1am!

I like your idea, let Breathing Space run until 14/12/25 and then inform them I am going self-managed.

I have already completed two SOAs (just trying not to confuse myself with them lol). One is for the unsecured creditors once they default me (shows £480 disposable to pro rata across 15 lenders). The "real" one is more like £980 disposable, to allow c.£500pm to emergency fund & eventually towards full and final settlements later down the road.

Great idea regarding when my partner returns, to use her income to increase emergency fund, this will expedite the fund growth and enable higher (potentially faster) F&F settlements.

This forum really is great, I have scrolled it for weeks and been too embarrassed to publish my own story - but the more I scroll the more I realise I am one of thousands of people in the same position and there is hope!

You might also consider paying off the three small creditors rather than letting them default. That would reduce the number of creditors by 20%, and you're unlikely to get much of a reduction on them anyway. Makes it easier keeping on top of things.

Good minds think alike, I thought the same Tiger. No point defaulting on c.£100-£300 debts that I can resolve with some of the emergency fund. Even though I could let them default it just seems unnecessary to let them add fees and charges when I am able to clear in full now/next month.

Avante_2

Always_Fishing said:

Avante_2 said:

Rob5342 said:

Avante_2 said:

fatbelly said:

Your plans sound good. I suspect Stepchange might struggle to understand why you are prioritising the credit union but I can see the logic of that

Approaching StepChange was a good process for me as it put everything in black and white, but now I have read a lot of detail on the forums, I think self-managed is the best way to go for me anyway

That was my experience of them. Contacting them initially meant I faced up to by debts and if they hadn't have been there then it might have taken me a lot longer to start sorting things out, but I've since learnt that their approach can be detrimental in the long term compared to other options, especially their stance on defaulting.

Thanks Rob, sounds like we had a similar "start" to this. 

Do you have any tips for self-managing a DMP? I am currently using the SOA calculator and Excel spreadsheets. I tried to use the CAB website but do not find it very user friendly...

I have my income/expenditure, debts and pro rata offers on excel so think that covers it all?

My next step is to look into affordability complaints. (As an aside...whilst I was in breathing space and at 90% utilisation... Fluid credit card offered me a credit limit increase from £4500 to £7200!).

Hi

Just wanted to say good luck with your journey. I think we're literally a few days apart on a similar path as I've just started mine with the help of everyone on this forum. 

I'm just staring to look at affordability complaints, and on both my fluid and aqua CC's, both owed by Newday, gave me credit limit increases either in the same month or the following month of my account getting temporarily suspended for exceeding my credit limit or being late on a payment. They prey on people looking for a way out!

Hi Always_Fishing

I have also read your thread and found it really useful.

Yeah NewDay are behind my Fluid cc (previously had an Aqua too that I paid off and closed and will be doing an affordability complaint on), they also manage my AO account. I have had persistent debt letters and then enter breathing space and they offer me a credit limit increase - !!!!!!?!

Let's keep in touch as we navigate this new process together, share tips and experiences etc

Wish you the best of luck

Always_Fishing

Avante_2 said:

Always_Fishing said:

Avante_2 said:

Rob5342 said:

Avante_2 said:

fatbelly said:

Your plans sound good. I suspect Stepchange might struggle to understand why you are prioritising the credit union but I can see the logic of that

Approaching StepChange was a good process for me as it put everything in black and white, but now I have read a lot of detail on the forums, I think self-managed is the best way to go for me anyway

That was my experience of them. Contacting them initially meant I faced up to by debts and if they hadn't have been there then it might have taken me a lot longer to start sorting things out, but I've since learnt that their approach can be detrimental in the long term compared to other options, especially their stance on defaulting.

Thanks Rob, sounds like we had a similar "start" to this. 

Do you have any tips for self-managing a DMP? I am currently using the SOA calculator and Excel spreadsheets. I tried to use the CAB website but do not find it very user friendly...

I have my income/expenditure, debts and pro rata offers on excel so think that covers it all?

My next step is to look into affordability complaints. (As an aside...whilst I was in breathing space and at 90% utilisation... Fluid credit card offered me a credit limit increase from £4500 to £7200!).

Hi

Just wanted to say good luck with your journey. I think we're literally a few days apart on a similar path as I've just started mine with the help of everyone on this forum. 

I'm just staring to look at affordability complaints, and on both my fluid and aqua CC's, both owed by Newday, gave me credit limit increases either in the same month or the following month of my account getting temporarily suspended for exceeding my credit limit or being late on a payment. They prey on people looking for a way out!

Hi Always_Fishing

I have also read your thread and found it really useful.

Yeah NewDay are behind my Fluid cc (previously had an Aqua too that I paid off and closed and will be doing an affordability complaint on), they also manage my AO account. I have had persistent debt letters and then enter breathing space and they offer me a credit limit increase - !!!!!!?!

Let's keep in touch as we navigate this new process together, share tips and experiences etc

Wish you the best of luck

Absolutely, it will be good to have someone to speak to who's on the same path!