After 4 years and 3 months on my DMP...only 5 payments left to debt free

Sunbakedscobble

No real point to this post, other than writing it down makes me so happy. I started my DMP 36k in debt in October 2021. Doing that DMP was the best thing I have ever done. I have lived my life, whilst paying my debts back. I can't believe I have only 5 payments left. If you are thinking of going down this route..stop thinking and do it.

TAWNP_92

There is every point in this post! That is amazing! Congratulations! Did you self manage or go with StepChange?

Brie

Well done!!!  Was there anything in particular that made it possible for you???

theville32

Hi Sunbakedscobble, congratulations! That is a real achievement. I think a lot of us who are in a similar position right now with debt but at the start of their journey - would like to know what appraoch you took? Self-managing DMP's with all your debts, or defaulting on your debts and then sorting out DMP's. Well done.

Tabieth

Amazing. Very well done. 

Fabulous50

Amazing !

Da iawn!

What a lovely post to read.

Slow and steady wins the race....

Sunbakedscobble

Thank you so much for all the lovely comments.

I have done it all with Payplan, I simply cannot praise them enough. I got into debt through stupid use of credit cards. I would just flit from one interest free offer to another, only making minimum payments. I ended up with 5 credit cards all maxed out. Then in 2021 suddenly all my interest free offers were withdrawn, the payments were drowning me. I started to contact my credit card companies asking for help and it was my Halifax mastercard who put me in touch with Payplan...that phonecall changed my life. 

They were so helpful, non judgemental, understanding and reassuring. Going through my budget with them was a  complete eyeopener.

I had to set up a new bank account and they told me to stop paying all my creditors. I just did to the letter everything they asked me to do.

They got all my interest frozen and each time I got a letter to say interest starting again, I just downloaded that to them on the app, and they got it all frozen again. So I have paid no interest in all that time. I remember thinking this is a huge commitment for nearly 5 years..but the time has flown and it actually hasn't been hard at all. I am going to start saving the money I currently pay to them each month as I have learnt to live without it, still have holidays etc. it's nice to know how much I know I can save up in just 5 years (I will be 54 then)

The hardest thing was telling my husband about the debt.

All I can say is do it...I would have failed on my own, I have no idea why people would want to self manage.

Rob5342

Sunbakedscobble said:

All I can say is do it...I would have failed on my own, I have no idea why people would want to self manage.

People like Payplan and Stepchange can be  useful but they do follow a very rigid approach. It you self manage you have the freedom to do things differently which can reduce the overall amount you repay. A few examples are waiting for defaults to reduce how long your credit report is harmed for, making CCA requests to find out if debts are unenforceable and reducing payments to save for settlement offers. Payplan and Stepchange won't tell you any of that.

I don't want to detract from your thread, sharing how you got on will be a huge help to people, but Payplan and Stepchamge should be used with caution as they compromise a lot of your interests in favour of your creditors. 

Sunbakedscobble

Rob5342 said:

Sunbakedscobble said:

All I can say is do it...I would have failed on my own, I have no idea why people would want to self manage.

People like Payplan and Stepchange can be  useful but they do follow a very rigid approach. It you self manage you have the freedom to do things differently which can reduce the overall amount you repay. A few examples are waiting for defaults to reduce how long your credit report is harmed for, making CCA requests to find out if debts are unenforceable and reducing payments to save for settlement offers. Payplan and Stepchange won't tell you any of that.

I don't want to detract from your thread, sharing how you got on will be a huge help to people, but Payplan and Stepchamge should be used with caution as they compromise a lot of your interests in favour of your creditors. 

Fair enough, I just wanted it all to start to be sorted, that all sounds an awful lot of work and stress to do by myself. I don't know if my debts were unenforceable  they were all credit card debts if that makes a difference? All  I know is that it was so easy to set up, they talked me through the whole process and it was such a relief to know that once I was set up I didn't have to worry about it again and do very little else other than anytime I got a letter from my creditors I had to scan to the app, and they just dealt with it for me (like getting interest frozen again for example)
I had the yearly review to complete each year, but that was actually another really helpful exercise.

For me the rigidity was vital. I feel if I had self managed I am not sure I would have met each payment for example. The rigidity stopped me straying again. I just never ever had to think about anymore. I can't thank them enough for their guidance and support. It made a nightmare situation go away literally overnight. I cannot sing their praises enough.

It was great seeing my credit score improve over the years on the plan too. I am now only a few points of good and it has been at  the high end of fair (dropped to worst possible at the start)  for around a year now. I don't look at this in too much detail I just use Experian.

tigergambit

Sunbakedscobble said:

Rob5342 said:

Sunbakedscobble said:

All I can say is do it...I would have failed on my own, I have no idea why people would want to self manage.

People like Payplan and Stepchange can be  useful but they do follow a very rigid approach. It you self manage you have the freedom to do things differently which can reduce the overall amount you repay. A few examples are waiting for defaults to reduce how long your credit report is harmed for, making CCA requests to find out if debts are unenforceable and reducing payments to save for settlement offers. Payplan and Stepchange won't tell you any of that.

I don't want to detract from your thread, sharing how you got on will be a huge help to people, but Payplan and Stepchamge should be used with caution as they compromise a lot of your interests in favour of your creditors. 

Fair enough, I just wanted it all to start to be sorted, that all sounds an awful lot of work and stress to do by myself. I don't know if my debts were unenforceable  they were all credit card debts if that makes a difference? All  I know is that it was so easy to set up, they talked me through the whole process and it was such a relief to know that once I was set up I didn't have to worry about it again and do very little else other than anytime I got a letter from my creditors I had to scan to the app, and they just dealt with it for me (like getting interest frozen again for example)
I had the yearly review to complete each year, but that was actually another really helpful exercise.

For me the rigidity was vital. I feel if I had self managed I am not sure I would have met each payment for example. The rigidity stopped me straying again. I just never ever had to think about anymore. I can't thank them enough for their guidance and support. It made a nightmare situation go away literally overnight. I cannot sing their praises enough.

It was great seeing my credit score improve over the years on the plan too. I am now only a few points of good and it has been at  the high end of fair (dropped to worst possible at the start)  for around a year now. I don't look at this in too much detail I just use Experian.

Well done on keeping to the plan and getting to the point of clearing your debt.

I too started with PayPlan and found them wonderfully supportive at a very low point in my life. Like you I found that they managed to get interest and charges stopped straight away and that is reassuring for many. PayPlan are very supportive and do take a lot of the pressure off you.

My problem was that due to age and health I simply didn't have enough spare at the end of the month to pay the debt off over a reasonable period so had to change approach. But you have found a solution that fits for you, so congratulations and make sure to give yourself time for a little celebration when you make that last payment!

GibbsRule_No3.

Many years now debt free, I'll also say thank you to PayPlan. I'm sure if you are really well versed with managing debts then doing it on your own is fine, (nothing to stop you doing it if/when you feel comfortable dealing with creditors) but I know I knew a lot less when I started down the route. So was very grateful to PayPlan, they don't often get mentioned, Step Change and Christians Against Poverty do. I was really scared when, my then Bank refused a loan, that I had always used to cover my debts, knowing that when I retired I'd have lump sums and set monthly payments due to Civil Service pensions. I had no idea what to do, PayPlan held my hand. It also meant I kept my lump sums when I did approach retirement (still doing two days a week at 71, using that "pin money" for nice holidays) and unlike before the DMP I now have savings as well!  It is scary but it was the best thing that happened to me. Also friends and family, who didn't know about the debt but fed me at weekends. Lump sums from credit card reimbursements helped get final payments, that shortened the years predicted.

Well done.