Half way through my DMP and feeling very low - Don't think I'll ever recover from it

Countdown_has_begun · 3 December 2017 at 9:41PM

I'm halfway through my DMP with StepChange and although I felt positive at first, I'm now wondering whether I've done the right thing...I'm not sure if this is a normal feeling at this stage or just because it's Christmas and I'm getting frustrated that I have little money.

My debt was a staggering and shameful £32k and I have already paid off £10k, but unfortunately, I lost my evening (second) job last month and I had to lower my debt repayments by £300 per month

This has changed my debt free date to July 2020, when it was Oct 2019. I am going to start looking for a new evening job in January which should bring my debt free date forward, but I'm just starting to feel that I'll never be out of this.

I recently looked at my credit report and it's shocking. Please can anyone advise me on life after a DMP and whether you ever recover from it? I'm beginning to think I'll never get a mortgage or credit again.

sourcrates · 3 December 2017 at 9:55PM

Every six years usually you gain another life.

Everything is forgiven, allowing you to mess things up again as much as you want !!

If the DMP is taking too long, would you qualify for a DRO now ?

Any assets to lose ? Maybe choose bankrupcy, if not, you just gotta stick it out unfortunately.

Countdown_has_begun · 3 December 2017 at 10:03PM

Thank you sourcrates.

I'm hoping that I never mess things up again. StepChange advised that a DMP was the best option for me. How does a Debt Relief Order differ from a DMP?

SC said that bankruptcy wasn't really necessary for me as I have enough to pay through a DMP, but it seems that a DMP well take me longer to recover from and if I've been declared bankrupt surely I will never be able to get a mortgage??

sourcrates · 3 December 2017 at 10:21PM

Nothing stays on your credit file longer than 6 years normally.

Of course you can obtain a mortgage in the future, you are asked on some applications if you have ever been bankrupt, doesn’t mean automatic rejection, life goes on.

I suggest you google the available debt options and see if you fit any of the criteria, if not you will just have to stick at it.

-taff · 3 December 2017 at 10:43PM

Bankruptcy won't prevent you getting a mortgage but it may be six years from the end of the bankruptcy that you can get ne, or, it may not.
There are lenders who will lend, and sometimes in advance of the six years, but it depends on affordability.
However, you're already 2 years through your DMP so your credit file will be cleared in 4 years time.....
Again, there are lenders who do adverse credit, so don't give up hope

Countdown_has_begun · 4 December 2017 at 12:13AM

Thank you both.

I’m just tired of feeling like I’m a failure and even when I have worked hard to clear my debt I will only be applicable for adverse credit options and at much higher interest rates, which just doesn’t seem fair. I know you pose a higher risk to creditors after a DMP but I just want a time in my life where I can have a good credit rating and put this well and truly behind me. At the moment it just feels like that will never happen.

tori.k · 4 December 2017 at 8:59AM

Honestly the middle bit is the boring bit, we have all been there I found the only way to keep me sane ( well that's debatable at times) was use the time to get my house in order, I declutter and cleaned, found free things to do in my community, cooked from scratch trying to make meals cheaper anything that kept me busy that i could think off that didn't cost any real money.
Time to find your inner scrooge

good luck

Happy_Kitties · 4 December 2017 at 9:41AM

I totally agree with tori.k and did exactly the same!

I didn't do a DMP but an IVA and again the middle bit was the boring bit aswell. I had to do an extra year with the IVA and sometimes I felt like I was wishing my life away. You will get there, it will end. I actually got really stressed at the end of my IVA, I had lived with it for 6 years then all of a sudden it wouldn't be around,that I would almost have to stand on my own 2 feet with budgeting.......again you do it.
Draw a line under the fact that the debt was 32k as you sound as if u are still beating yourself up about it (mine was 56k), be kind and give urself a pat on the back that u r addressing the problem and have already paid back 10k.
Good luck on your journey x

166million · 4 December 2017 at 5:48PM

I was in a horrible situation when I had my debts. You are on the right track now.
My credit ratings are all 75-90% of perfect these days. It will come right if you stay on the right path

Countdown_has_begun · 4 December 2017 at 7:07PM

Thanks guys, I really appreciate all your support and words of encouragement.

I'm at a really low point in my life and feeling like I'll never be financially sound again. SC have definitely helped with stopping all the calls, but the feeling of being so useless just hangs over me.

166million · 4 December 2017 at 8:08PM

You are nt useless. You are moving forward . All mistakes are learning opportunities so you will have valuable learning to take from this.

Half way through my DMP and feeling very low - Don't think I'll ever recover from it

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