TPP StepChange

MsScotz

Hi All

Over time, since my divorce, I have slowly been building more and more debt, mostly CC’s, short term loans, home shopping.
I initially applied for a DMP with SC, but after some changes to my I&E, they say I don’t have enough funds to deal with the 23 (god 🙄) creditors. I only have £110pm available. So they have come back with a TPP.

To be honest, I’m so sick of juggling everything and constantly unable to afford basics, that I’m ready to say yes to anything! Many accounts have now defaulted. After telling a few of the loans that I was taking advice from SC, they just handed my account over to CRS. But I do wonder what will happen with a TPP in respect of, how long can that go on? What if my situation doesn’t improve? I’m not expecting an increase in pay or anything other than a general rate of inflation increase. So what happens… I forever pay token payments?? I’m confused as obviously a DMP you are actually paying debt off.

ManyWays

How much do these debts add up to?
Are you buying or renting?
Do you own a car worth more than 4k or have one on finance?

MsScotz

car on finance

£19k debt

Social Housing

fatbelly

Token payments are only useful for a short time while something else is put in place. It doesn't sound like Stepchange have worked out what that should be.

On the face of it, a dmp would take a long time, and you have marginally too much surplus for a DRO. So you might think about bankruptcy.

BUT

The devil is in the detail here. Do you think you could give us a statement of affairs?

https://lemonfool.co.uk/financecalculators/soa.php

MsScotz

I will have a look at the SOA

They have put bankruptcy as available but not recommended, the TPP as recommended

I have some rent arrears and utilities arrears which would be paid off in 5 or 6 months, so assume that £300 (ish) could then be used as a DMP after they are clear?

ManyWays

I too think seeing a SoA would be a help. Please put the lender names in, not just CC1 etc

RAS

Can you also include when any loans and what type of financing for the car, please.