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

Rob5342

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!).

I would say concentrate on your own finances and not worry too much about what you tell your creditors. You need to be completely on top of your own finances to make sure you have all expenses completely covered and are able to pay for everything. What you tell your creditors doesn't have to be accurate, just something plausible that arrives at the final figure you want to pay and lets complete their affordability box ticking exercise. I would simply tell them what you will be paying without giving any figures, and if they start making a too much of a fuss about it then concoct something to shut them up. Ideally you want to clear the debts with settlement offers rather then paying the full amount, so it helps if you have a story to back up that narrative. You might for example pay less then you can afford and save into a settlement offer account, then at some point down the line you will have money for a settlement offer and your reduced payments might help make them think that it will take a long time to recover the money otherwise.

Remember it's all a game you need to play to your advantage. When debts are sold it's normally for something like 10% of their value so if you repay the full amount to a purchaser they make a massive profit. They will try and act like they are hard done by and aree doing you a favour by offering a 10% discount, so don't feel any guilt about playing them at their own game.

Affordability complaints can take a long time and it's very common for lenders to reject your initial complaint. Just keep at it and escalate the complaint to the FOS if it's rejected. Just to set some expectations, redress from an affordability complaint would typically be a refund of the interest you paid as a result of the credit limit increase. In my experience you are more likely to win after multiple increases from the same lender rather than on a new loan. 

ManyWays

"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"
Then that is a single affordability complaint about all three.  
In contrast to @Rob5342, I have seen a lot more good wins against loans taken in the last 6 years, than credit cards with multiple limit increases, so my suggestion is not to self-restrict what you apply for but go after them all!

Rob5342

I can only speak from my own experience obviously. Try complaints against all of them absolutely, that's what I did, I was just giving my experience to try and give some idea of how likely success would be. Don't pin your hopes on anything, assume you'll win nothing and carry with a strategy that will clear them all, and treat any wins as a bind bonus. 

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.

Hi @tigergambit

I took your suggestion and ran with it.

Today I have paid off via emergency fund:

1. £559 arrears on x2 Credit Union loans. (To be maintained full payment going forward until repaid in 2028 & 2029 as I must avoid CCJ at all costs).

2. £165 Credit Spring debt, when I logged in it was actually £97 so felt like a win....

3. £145 Creation finance.

When I get paid end of November, I will clear the £299.58 Payment Assist debt and put everything else into my emergency fund.

That will leave me with 12 creditors and total debt of £63,027 to self manage via DMP & 2 credit union loans to maintain at £559pm and combined balance of £21,122.89.

Early days but I can finally see some light....

Always_Fishing

Avante, just as an FYI for you, I've sent off all my affordability complaints today, it was easy enough using this link that was shared with me on my post https://debtcamel.co.uk/refunds-large-high-cost-loans/

I've already had a couple of responses just asking for some personal details to identify the account or an acknowledgment of the complaint, not much yet in the grand scheme of things but its another step forward that's quite simple to do if you want to keep the progress going!

Well done so far, looks like you're on a roll.

Avante_2

Always_Fishing said:

Avante, just as an FYI for you, I've sent off all my affordability complaints today, it was easy enough using this link that was shared with me on my post https://debtcamel.co.uk/refunds-large-high-cost-loans/

I've already had a couple of responses just asking for some personal details to identify the account or an acknowledgment of the complaint, not much yet in the grand scheme of things but its another step forward that's quite simple to do if you want to keep the progress going!

Well done so far, looks like you're on a roll.

Thanks so much for this Always Fishing,

This was tomorrow’s task as I spent most of today sorting out the details on previous posts but progress is progress! 

You’ve given me a nice head start on tomorrow’s task so thanks again. Please let me know how you get on, be interesting if NewDay treat us the same/different (I know individual circumstances differ).

As Rob previously mentioned I’m going to expect nothing and be pleasantly surprised if I get anything.

p.s. I naively let a third party explore some unaffordable complaints with previous payday lenders around COVID time, I recently got £500 back, they deducted £180 for their fee! Definitely doing the “proper” affordability complaints myself.

Rob5342

Well done on getting started. It can feel insurmountable at first but you soon start to feel in control when things start going down. Once debts have defaulted and have been with debt purchasers for a while you might also consider asking for the CCA, if they can't produce it then the debt can't be enforced and you can simply ignore it. With affordability complaints, CCA requests and settlement offers you can knock years off a DMP.

Always_Fishing

Avante_2 said:

Always_Fishing said:

Avante, just as an FYI for you, I've sent off all my affordability complaints today, it was easy enough using this link that was shared with me on my post https://debtcamel.co.uk/refunds-large-high-cost-loans/

I've already had a couple of responses just asking for some personal details to identify the account or an acknowledgment of the complaint, not much yet in the grand scheme of things but its another step forward that's quite simple to do if you want to keep the progress going!

Well done so far, looks like you're on a roll.

Thanks so much for this Always Fishing,

This was tomorrow’s task as I spent most of today sorting out the details on previous posts but progress is progress! 

You’ve given me a nice head start on tomorrow’s task so thanks again. Please let me know how you get on, be interesting if NewDay treat us the same/different (I know individual circumstances differ).

As Rob previously mentioned I’m going to expect nothing and be pleasantly surprised if I get anything.

p.s. I naively let a third party explore some unaffordable complaints with previous payday lenders around COVID time, I recently got £500 back, they deducted £180 for their fee! Definitely doing the “proper” affordability complaints myself.

Out of interest, how long ago were the payday lenders used? I got caught in the payday loan trap and ended up paying them all off in full after defaulting but this was probably more than 10 years ago now so I don't have any records or info, I'm curious if I can still claim against these. 

Rob5342

Always_Fishing said:

Avante_2 said:

Always_Fishing said:

Avante, just as an FYI for you, I've sent off all my affordability complaints today, it was easy enough using this link that was shared with me on my post https://debtcamel.co.uk/refunds-large-high-cost-loans/

I've already had a couple of responses just asking for some personal details to identify the account or an acknowledgment of the complaint, not much yet in the grand scheme of things but its another step forward that's quite simple to do if you want to keep the progress going!

Well done so far, looks like you're on a roll.

Thanks so much for this Always Fishing,

This was tomorrow’s task as I spent most of today sorting out the details on previous posts but progress is progress! 

You’ve given me a nice head start on tomorrow’s task so thanks again. Please let me know how you get on, be interesting if NewDay treat us the same/different (I know individual circumstances differ).

As Rob previously mentioned I’m going to expect nothing and be pleasantly surprised if I get anything.

p.s. I naively let a third party explore some unaffordable complaints with previous payday lenders around COVID time, I recently got £500 back, they deducted £180 for their fee! Definitely doing the “proper” affordability complaints myself.

Out of interest, how long ago were the payday lenders used? I got caught in the payday loan trap and ended up paying them all off in full after defaulting but this was probably more than 10 years ago now so I don't have any records or info, I'm curious if I can still claim against these. 

You have to complain within 6 years of the event happening or within 3 years of becoming aware you could complain. The latter will be difficult to argue although I have successfully argued it with one complaint 7 years later. It's going to be difficult lt to complain about something 10 years later as lots of records may not exist any more. Also a lot of payday loan companies have gone out of business so there might not be anyone left to complain too. 

Always_Fishing

Rob5342 said:

Always_Fishing said:

Avante_2 said:

Always_Fishing said:

Avante, just as an FYI for you, I've sent off all my affordability complaints today, it was easy enough using this link that was shared with me on my post https://debtcamel.co.uk/refunds-large-high-cost-loans/

I've already had a couple of responses just asking for some personal details to identify the account or an acknowledgment of the complaint, not much yet in the grand scheme of things but its another step forward that's quite simple to do if you want to keep the progress going!

Well done so far, looks like you're on a roll.

Thanks so much for this Always Fishing,

This was tomorrow’s task as I spent most of today sorting out the details on previous posts but progress is progress! 

You’ve given me a nice head start on tomorrow’s task so thanks again. Please let me know how you get on, be interesting if NewDay treat us the same/different (I know individual circumstances differ).

As Rob previously mentioned I’m going to expect nothing and be pleasantly surprised if I get anything.

p.s. I naively let a third party explore some unaffordable complaints with previous payday lenders around COVID time, I recently got £500 back, they deducted £180 for their fee! Definitely doing the “proper” affordability complaints myself.

Out of interest, how long ago were the payday lenders used? I got caught in the payday loan trap and ended up paying them all off in full after defaulting but this was probably more than 10 years ago now so I don't have any records or info, I'm curious if I can still claim against these. 

You have to complain within 6 years of the event happening or within 3 years of becoming aware you could complain. The latter will be difficult to argue although I have successfully argued it with one complaint 7 years later. It's going to be difficult lt to complain about something 10 years later as lots of records may not exist any more. Also a lot of payday loan companies have gone out of business so there might not be anyone left to complain too. 

Ahhh, never mind then. I'd be hard pressed to remember who they were with to be honest barring a couple of them.