Self managed DMP? Need advice

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/82109728#Comment_82109728

Yes, it was for me as well, it is for everyone who finds themselves in this position, sometimes after decades playing the credit game, you reach the point where you can no longer afford the min payments, and every credit line is maxed out, likely where you are now, well its time to stop playing by their rules and re-take charge of your financial life.

Old bank accounts with maxed out overdrafts can be tricky, as there is no min payment on an overdraft, they can go delinquent and keep amassing interest for quite some time, but honestly, that`s for the bank to worry about, not you, your involvement in that account is now over, what the bank does is not for you to be concerned with anymore.

If you want to speed up the default process, write and tell the bank what your plans are, as soon as they understand they will not be retaining you as a customer, they will stop interest, default the account, and send the balance to collections, where it just becomes another non essential debt to service.

You really need to take the fear factor out of the equation, its simply business, most of the process is automated, you are but an account number in a long list of account numbers, the automated collection process may make it seem like the debt matters, but it really doesn't, I really cannot emphasise enough how unimportant this is in the grand scale of things, they sell debts at a massive loss all the time, and write off billions every year to tax, its all one big silly game.

Sunnyseaside

hi I'm strug

Sunnyseaside

so I've now contacted step change and now feel under oressiure. I've contacted some and given them the step change reference. Then iv come to a stop finding all the messages overwhelming. I will open a new bank account tomorrow. I'm overwhelmed in work and have blocked it out and stopped doing anything just watching my DDs be declined why have I just frozen with all of this

ManyWays

The point where you cancel payments does feel very scary to you.
We can keep saying this is business as usual for the lenders, that nothing in debt collection happens quickly and that getting defaults soon is good. But it still feels scary to most people.

You don't have to talk to your lenders ar say what is happening; they will realise when Stepchange contact them. And the fact you have arrears accumulating helps a lender to default an account more quickly in a DMP.

I suggest your task for the weekend is to open a new bank account. You can do this!

Grumpelstiltskin

OK As Many Ways says do not contact your creditors, you need to stop, take a deep breath and calm down.

All the messages you get from them are computer generated there is no human being behind them block all telephone numbers, delete texts and E Mails and only look at any letters you get by snail mail.

You have to realize now you are in charge not your creditors so get your new basic bank account and change all vital ins and outs over manually do not use the banking switch service.

You have to remember it is only money, your health and well being is the most important factor from now on.

RAS

Even as a customer paying everything required, on time, every month, you are just an account number. Retail banking changed the customer relationships in the 80/90s.

The pre-programme letters about debt are aimed to keep just inside the law and try to scare you. They list multiple potential consequences that are legally possible, but would require you to ignore them for many years instead of setting up payments when the debt defaults. So it's not going to happen.

And contrary to scare stories, they can't send bailiffs and they can't just "put a charge on your house".

You need that new bank account pronto. You can set up Starling or Monzo on-line. Basic bank accounts don't require a credit check and almost every bank offers on.

Do not use Switch to transfer DDs because your creditors can then re-instate DDs that you've cancelled. Log in or ring utility suppliers and change the details with them. Ditto housing and media. You change standing orders yourself.

sourcrates

OK, concentrate on the things that you can control, not the things you can`t.

For instance, you can`t stop the automated collection messages, but you can block them, likewise any collection letters you can feed nicely into the recycle bin.

You can set up a new basic bank account, and its essential that you do.

In time, you will lose the fear and anxiety, these messages encourage, they play mind games with you, the sooner you understand the basic mechanics of the collection process, the sooner you will calm down.

They use a specific computer generated algorithm, designed to get you to contact them, as threats are all unsecured creditors actually have to get you to pay your debts, they don`t have any security, like secured lenders do, so if you don`t pay, there is very little they can actually do to force you.

Its a leaning curve, once you get settled you will not be bothered about such mundane things.

Rob5342

I've been through the process. When you have been pulling every trick you can to pay the minimum payment it can be difficult to accept that you can simply just stop. The first letters or messages can seem quite scary, but you soon come to realise that they are all going through the same send automated letters process. After a while it all calms down and you can relax making affordable payments. Give it a year and you will be back here telling people new to the process how simple it was for you.