DMPs and support/advice ??

startsomewhere · 9 May 2018 at 10:05PM

Hi all,

I've much like you all sadly gotten myself into a mess with my finances over the years... Its now accumulated to the point where I can't pay them all after priority bills.

I'm just wondering what the next steps should be if I DMP? I am in debt to the below lenders and am 1 month over credit with the credit cards and store card (but did pay minimum payment) but am not sure what I should do... I've an appointment with the Citizens Advise next week but would appreciate your thoughts. I've been looking at Step Change too and soon all your hopeful messages

2 credit cards
1 store card
Overdraft
Personal loan
Payday loan

I'm in the process of setting up a new direct debt for work. Should I be asking them to freeze stuff now? I'm really concerned the payday loan will debt as well as the overdraft swallow my wages. Should I cancel all my direct debts?

I'm starting budgeting but am not sure about food and expenses having been in debt for so long - what is the average cost for a singleton does anybody know? Is there any debtors I should prioritise?

Sorry for rambling - I'm just a bit anxious and am uncertain!

Thanks in advance
M

Slytherin · 9 May 2018 at 11:15PM

If you haven't already, please read the first post in the mutual support thread. It's absolutely essential (imo) and covers all the main concerns you've probably got.

startsomewhere · 9 May 2018 at 11:37PM

Slytherin wrote: »

If you haven't already, please read the first post in the mutual support thread. It's absolutely essential (imo) and covers all the main concerns you've probably got.

Thank you! It was a great starting point. I'm yet start the DMP but it is highly likely unless I can come to an agreement with six lenders.

I do still have some questions though - do I cancel direct debits and let my loan and overdraft provider know I'm having financial difficulty first and offer to make a reduced payment? I've set up a new bank account.

The payday loan I am particularly concerned about - is the sooner the better I notify them or wait until the day before to let them know the payment won't be accepted and make an agreement? How long does it take to set up a DMP? Should I wait until after my next payday?

I'm in about 12000 of debt and earn 1750 and wonder living costs etc too.

Thanks again.

sourcrates · 9 May 2018 at 11:41PM

startsomewhere wrote: »

Thank you! It was a great starting point. I'm yet start the DMP but it is highly likely unless I can come to an agreement with six lenders.

I do still have some questions though - do I cancel direct debits and let my loan and overdraft provider know I'm having financial difficulty first and offer to make a reduced payment? I've set up a new bank account.

The payday loan I am particularly concerned about - is the sooner the better I notify them or wait until the day before to let them know the payment won't be accepted and make an agreement?

I'm in about 12000 of debt and earn 1750 and wonder living costs etc too.

Thanks again.

Cancel all existing payments if your entering debt management.

Take a couple of months to sort yourself out, let your creditors know of your intentions, otherwise they will continue to take normal payments.

Once told of your situation, there is a 30/day grace period from collection activity.

You must be pro-active now.

startsomewhere · 10 May 2018 at 12:02AM

sourcrates wrote: »

Cancel all existing payments if your entering debt management.

Take a couple of months to sort yourself out, let your creditors know of your intentions, otherwise they will continue to take normal payments.

Once told of your situation, there is a 30/day grace period from collection activity.

You must be pro-active now.

Thank you for that.

I effectively want none of my debts to come out when I'm paid to my current current account which also will need stopping as overdraft. Would you advise setting up a temporary arrangement in the meantime with each creditor before waiting for the DMP?

I'm just concerned as all this will begin when I'm next paid and I won't be able to get myself together before hand and not spoke to creditors. Also I let my bank know now they will stop my account immediately.

Sorry this is new newbie new right here, literally at the beginning of this journey and my brain is wired

Thanks again

sourcrates · 10 May 2018 at 6:40AM

Read my last post again.

Once you have informed your creditors you are in financial difficulties they should give you at least 30 days breathing space before collection activity will start.

You simply write or email them, do not ring them, tell them your seeking help from stepchange, and will be in touch with payment proposals in the near future.

Thats all you need do, then speak to the debt charity, to sort out what happens next.

startsomewhere · 10 May 2018 at 10:53AM

sourcrates wrote: »

Read my last post again.

Once you have informed your creditors you are in financial difficulties they should give you at least 30 days breathing space before collection activity will start.

You simply write or email them, do not ring them, tell them your seeking help from stepchange, and will be in touch with payment proposals in the near future.

Thats all you need do, then speak to the debt charity, to sort out what happens next.

Thank you so much. I've read all of your advice and feel a bit little more settled.

Do you know roughly how long it takes to set up a DMP? I'm wondering for my future finances (emergency fund etc). I've an appointment with the Citizens Advice next week but am wondering if there is anything I can do in the meantime and to cease some of my immediate concerns/worries - stresss!

Thanks

sourcrates · 10 May 2018 at 11:33AM

startsomewhere wrote: »

Thank you so much. I've read all of your advice and feel a bit little more settled.

Do you know roughly how long it takes to set up a DMP? I'm wondering for my future finances (emergency fund etc). I've an appointment with the Citizens Advice next week but am wondering if there is anything I can do in the meantime and to cease some of my immediate concerns/worries - stresss!

Thanks

Not long, depends how busy stepchange are and how quickl the creditors response is.

DMPs and support/advice ??

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