Stepchange DMP

Debtfree30s

Hi all.

SC agreed my DMP and want to begin payments on the 1st August. I’ve been reading up and it’s recommended to default first.

I have some loans which have interest factored into the overall payment amount, if this defaults would the interest outstanding reduce?

Do I ask Stepchange to pause whilst waiting for defaults?

I have klarna & tesco loan on payment plans - so they’ll probably default quickly. What do I do whilst waiting for the others to default?

thank you, it’s all confusing.

ManyWays

I have some loans which have interest factored into the overall payment amount, if this defaults would the interest outstanding reduce?
Normally a default doesn't help here.Have you looked at affordability complaints about the loans? They would remove the interest.

If you want to "wait for defaults", you need to stop paying anyone. Including the current payment arrangements.

fatbelly

Have a look again at your previous thread, particularly Grumpelstiltskin's post. You are rushing things

https://forums.moneysavingexpert.com/discussion/6671899/stepchange

Debtfree30s

https://forums.moneysavingexpert.com/discussion/comment/82056393#Comment_82056393

will definitely do that. Stepchange emailed to say my DMP is up and running and first payment is 1st August, how do I cancel this or delay this with them? Stupid I know.

Rob5342

https://forums.moneysavingexpert.com/discussion/comment/82056649#Comment_82056649

Just send them an email saying you want to delay starting until you have got defaults. They can be useful but unfortunately they do rush people into starting DMPs before they have defaulted.

RAS

You also need an emergency fund before you start a DMP.

Otherwise you'll spend the first couple of years lurching from crisis to crisis every time anything breaks and requires more than £xxx. Much better to get a £zk in an ISA first. Otherwise, you'll be pausing your DMP every few months.

Also gives you time to stress test your SOA.

Rob5342

It's also very easy to manage a DMP yourself, that can make things a lot simpler as you can just do what you want to without the extra hassle of having to keep Stepchamge happy. If you did that you could simply start paying each debt as it defaulted.

Debtfree30s

Stepchange just got back to me, they said I can discuss delaying to September - I’ve replied asking for it to be pushed back to Oct/nov would they likely agree?

tigergambit

https://forums.moneysavingexpert.com/discussion/comment/82063965#Comment_82063965

If they don't agree just cancel it and start another in November. This process takes time and you need to get your ducks in a row before starting.

RAS

How much have you saved into your emergency fund? You must have that before you start.