Advice needed before starting a DMP

Debttoeyeballs

hi all

I’ve been speaking to stepchange and pay plan. Stepchange I’m still in the early stages. However pay plan have suggested an IVA. I like the idea of it being over in 6 years but I’m really unsure about it. What would people suggest?

Debttoeyeballs

sorry the more I think about it the more I think I’d prefer a DMP I think. The protection of the IVA appears but I’m so unsure about the formality and rigidity. I’m feeling so ill with this decision. Could I start DMP and move to IVA if an issue?

Grumpelstiltskin

https://forums.moneysavingexpert.com/discussion/comment/82141756#Comment_82141756

Did you read what Many Ways said?

Debttoeyeballs

yes. But payplan keep pushing it as the best solution. They are saying they can be ammended if there are issues.

Will also continue to talk to stepchange and see what they say overall.

fatbelly

Just star a dmp for now. Organisations tend to oversell the protection aspect in order to sign you up and collect the fees. Once your situation is stable we can have another look at it to see if an IVA would have advantages.

flamingo22

I just wanted to just on and say that I am about to start a self managed DMP and my nerves are overwhelming. I am a homeowner too and terrified of the prospect that my house may be at risk.

I'll be following you to see what you decide to do.

fatbelly

https://forums.moneysavingexpert.com/discussion/comment/82145475#Comment_82145475

Maybe start your own thread. Can't see how a dmp would put your house at risk

Debttoeyeballs

thanks all. I’ve actually spoken to someone at stepchange today. First time I’ve spoken about it out loud and not through a screen. Had a cry. I know I need to face up to it but it’s incredibly difficult when you have spent your whole life managing and making the minimum payments.
I need to take things a step at a time. This month all creditors are paid. I get paid on the 30th and from then I need to stop payments. I can’t keep doing this.my new account is set up. All the priority direct debits have changed. I’m ready. It’s the next steps that feels like jumping off a cliff.

I really want to do the dmp. I think it right for everything going on. I just don’t work well with unknowns. The length of time paying it back doesn’t bother me. I’ve been paying some form of debt ever since I left home so I know I can do it. I’ve been paying these minimums a few years and having nothing.
its the unknown of how the creditors will respond. That’s what’s really worrying me but I have to do this.

sourcrates

"its the unknown of how the creditors will respond. That’s what’s really worrying me but I have to do this".

That`s actually the part we do know, creditors are well used to debt management, it may be new to you, but its not new to them.

They will follow a standard collection process, which will involve letters and phone calls, and eventual default of each account, your debts may be sold/assigned or may stay with the original lenders, or a mixture of all three.

Once you start making regular payments again, life simply goes on as normal, what is it you were expecting to happen?

You will be underwhelmed with the monotony of nothing happening, honestly, things just carry on as normal, can`t really say any more than that about it.

RAS

In the very short term, there may be a lot of phone calls, texts and emails.

It not even targeted at you. Debt collection is largely automated, so anyone missing a payment is sent multiple reminders to meet requirements.

You can manage the emails by setting up a new "burner" account and changing the details on your records.

Everything legally important has to be sent by snail mail. So you need to read and file letters. Very few are important and it's going to be 3-18 months before you receive them. So please just chill for a couple of months.

If you've got access to an old phone and can get a very cheap sim only deal, change your phone contact as well.