Self managed DMP? Need advice

Sunnyseaside

Hi I'm feeling very stressed at the moment. I have 25k unsecured debt and at the moment I'm just about managing to pay them with nothing left at end of month. In June next year my widowed parent allowance stops so I lose 720 income so then I will not be able to manage. I have one or two missed payments and an arrangement to pay with British Gas. I've tried to keep up but I know what's coming. I'm considering step change but I have read that I should self manage? Also my mortgage fix comes to an end in two years another worry. Scared of cjjs and losing my home as I have children and I'm in my own. Feel really guilty if I stop paying now so should I keep on until my till my income drops? Help please I know it's my own fault as I'm the one that took out the two loans and the 3 credit cards

Sunnyseaside

I'm in 30000 debt do t want to Dmp but I'm scared of self managing this and losing my home fix ends in 2.5 years I'm drowning and can't go on

Sunnyseaside

I'm overwhelmed and in menopause

ArtyJ931

spend some time reading threads, diaries, debt camel etc and don’t panic. It will be ok. Nothing bad will happen. You won’t lose your home.

sammyjammy

Firstly I'm so sorry for your loss, you are not going to lose your home. Keep paying the mortgage, council tax and your utilities if you can, stop paying everything else now, just cancel the DDs and give yourself a bit of breathing space.

Recommend completing a statement of your income and outgoings, keep it real, put what you need to spend not what you have been spending if you've been scrimping to pay debts.

Remember that debt is unsecured, the worst they can and probably won't do is get a CCJ and that would be a long way down the track even if it happened.

Self managed is an idea but Stepchange etc work for some, even if you use them to set it up for you and go self managed further down the line once you feel settled with it.

sammyjammy

Have a read of this post, it contains the link for the statement of affairs

https://forums.moneysavingexpert.com/discussion/6027800/dfw-sticky-provit-statute-barred-letters-defaults-mental-health-help-and-guidance-all-here

fatbelly

Ok. Don't feel bad There is no need These things happen and lenders know that. Why do you think they charge high interest? Is is because this sort of thing happens, frequently.

Keep the arrangement with BG providing they are your current supplier, and it is affordable

I would say to make a start now to debt management by cancelling direct debit payments and starting to save an emergency fund. There will be no ccjs and your house is NOT in danger provided the mortgage is kept up to date. Affordable payments to the loans and cards can start in a few months

RAS

The two most important things you can do right now are

1. Check whether the account into which your income is paid belongs to a banking group to whom you owe money? If it does open a new basic bank account (no credit check) or something like Monzo or Starling.
2. If needed move your income into the new account, move necessary DDs manually (not via switch) and then cancel the DDs paying creditors.

And breathe… The sky won't fall in and you can get the leccie up to date.

System

This discussion was created from comments split from: DMP mutual support thread part 13 !!.

sourcrates

These things always seem worse at the time of day you posted this, honestly, unsecured debt is all deemed to be non essential, and your home is perfectly safe, please try not to worry on that score.

If you can come back at a more reasonable hour and give us some more detailed info on your debts/general situation, we can help you find the right debt solution, its there waiting, you just have to access it.

edit, have merged two of OP`s threads together.

ManyWays

Three points.

1) As you are already in some difficulty, there is NO reason to wait until June next year when things get much worse.That is another year you will have paid interest for, another year of stress, and another year until this is all finally over. You don't get any thanks for paying them more interest, this is not in your best interest.

2) If you are scared to self manage, just talk to StepChange. This is not a stupid approach. People here often over estimate the benefits of a DIY DMP. These days most DMP debts get defaulted reasonably soon and it is a lot less stressful for you if you are very worried. If you want you can later switch to self managed after a year of so when the difficult first bit is over.

There is a useful saying "do not let the best be the enemy of the good". A Stepchange DMP gets you a lot of very very valuable help.A lot more stress to make it even better? That's up to you if it's worth it, but do not delay taking a decision because of this.

3) If you post a Statement of Affairs here (see https://www.stoozing.com/soa.php) with creditor names, it is easier to say specific things. But generally your house is not at risk in a DMP unless you have very very unusual creditors.