DMP mutual support thread part 13 !!
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Hi JD,
Maybe start a DFW diary to chart your progress. Some people find that both helpful and therapeutic.
I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
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........My total debt is just over £15000 (£7000 in a DMP) the rest I am managing privately) We are living in a housing association home which is rented.
To be honest nice to just get it off my chest, I am currently in agreed repayment plans with my creditors but feels a hell of a long way to being debt free ! Thanks JD
Well done for taking control of your debts and your gamling addiction :T
As has been said - don't beat yourself up about it, you're doing the right thing now and I'm sure your wife and son have nothing but admiration for you. I know you have payment plans in place with those outside of your DMP, but wouldn't it be easier just to combine them all and start afresh in a new DMP? Assuming when you've posted your SOA that there are no other solutions folks might suggest for you.0 -
Hi Just want to say `I just made my first payment on my SC DMP. It's taken me 3 month to do the switch and I'm now paying £125 in stead of (not) paying £700 + about 18% interest. Compared to the size of my debt it won't work in the long run, on the other hand it means I have a life and apart from my summer holls being cancelled which is driving my family nuts, )I want to get to a place where I don't think about money all the time (as long as I don't spend any).
Also I have managed to build a little EF of £400 so far, my secret target is £2000 as it also doubles up as an investment fund for rebuilding self employed business, budget account, and other dream castles - eventually I hope to save these purposes out but for now it will ave to double up.
My first mini victory was paying a water bill of £178 straight out last month and still making it to the end of the month.
Thanks for this thread and I'll continue to revisit regularly.
(Long term plan - in a couple of years when my credit file starts to calm down, I will seek to go independent and start to offer F & F but obviously I can only do that if I manage to save up a realistic amount. And ideally close my debts by paying 40% £10.000 - 60% £15000. This is a 6 year plan - not the 14 years of the DMP)LBM Jan 2019 - £25.928/Active debt £14253, 54% sorted
Housing fund Jan 2024 £2000/6000 36%
EF Jan 2024 £0/1000 0% Emergency fund is for worn out things like vacuum cleaner, dish washer, and washing machine.0 -
After starting a DMP with Step Change back in August last year, I have now changed to self managing. I contacted all my creditors last week (using NEDCAB templates), so far only 1 has replied (Credit Resource Solutions - Lending Stream) accepting my offer. I'm still waiting to hear back from the others. I have also paid off my 2 smallest debts which means I only have 6 creditors now! Thankyou for all the great advice on here.0
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Hi all!
Currently going through the process of getting a DMP arranged with SC - I have filled out, but not yet returned the paperwork for this. After the I&E I can realistically afford to pay 1.2k across all creditors, and should all creditors accept then I should be DF in just over 5 years.
However with the situation I'm in currently I'm not sure about that first payment to SC going though. I get paid around the 20th of the month, with all bills coming out shortly after. I'm also waiting on a new bank account to be opened, as one of the creditors is Barclays with an overdraft, but changes to my bank for salary purposes need to go through by the 11th which is unlikely to happen.
What I'm unsure of is how to fully go about this between submitting the DMP and getting accounts changed. My understanding is to submit the completed forms and information to SC, contact all creditors (except for Barclays - I'll contact these one my new account with NatWest is finished) and inform them of speaking to SC in regards to debt management, cancel DD's and pay what I can towards the bills.
My issue with this is how SC seem to want monies on account for this by the middle of the month, just right before pay day. Should I therefore be offering to pay the creditors a much smaller token amount prior to the setup of the DMP, with the understanding that the payment amounts will increase once it is up and running?
Cheers!DMP Start Date: 27/9/19 - £72k
17/09/21 - £57k0 -
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My issue with this is how SC seem to want monies on account for this by the middle of the month, just right before pay day. Should I therefore be offering to pay the creditors a much smaller token amount prior to the setup of the DMP, with the understanding that the payment amounts will increase once it is up and running? Cheers!
Okay, sounds like you have things in hand - which is good. What you need to do is stall setting up your DMP for at least 3 months, during which time you make no payments to your creditors in order to build up an emergency fund for those 'unknown expenses' that could trip you up at some point along the way.
My advice therefore would be to cancel all your non priority debt payments (direct debits) with immediate effect and write to them to say you are experiencing financial difficulties and that you are in discussion with StepChange (you can also provide the SC reference if you wish). Tell them that you will be in touch with them in due course once you are in a position to make offers of payment, but that is likely to take a few months (or words to that effect). Most, if not all, will put your account on hold for 30 days as a starting point.
Then progress with your plans to set up a new bank account with an institution that has no connections with any of your other creditors and once set up transfer your household bill payments and other priority debt payments across to that. Do that manually so your bank is not alerted to the fact you are about to put your overdraft or any other debt associated with them into a DMP.
That will give you the headspace you need and you can then get your DMP up and running a little further down the line and it then shouldn't matter what day of the month the SC payment is taken from your account.0 -
Suseka,
Many, many thanks for that, really appreciated! Drafted a letter along those lines now (and requested future correspondence to be written - much easier to keep a record!), so will cancel the DD's for non-priority debts and get that sent off ASAP!
The new account is just a basic account, and opted not to use the switching feature just in case.
Even just starting on this feels like a burden and worry is being lifted.DMP Start Date: 27/9/19 - £72k
17/09/21 - £57k0 -
Suseka,
Many, many thanks for that, really appreciated! Drafted a letter along those lines now (and requested future correspondence to be written - much easier to keep a record!), so will cancel the DD's for non-priority debts and get that sent off ASAP!
The new account is just a basic account, and opted not to use the switching feature just in case. Even just starting on this feels like a burden and worry is being lifted.
Excellent! You've definitely have a good handle on this and once things settle down, and it will take a wee while, it'll be the best thing you've done to resolve your financial issues. There's much to learn about DMPs, so worth you taking time to read back through this thread - becuase you will find answers to many questions that pop into your head along the way. With that said - do also feel welcome to ask us anything you're not sure about.
Do hold SC off for a while - even though they will likely want you to start asap 0 -
Hi All,
I have been on a stepchange DMP since start of October, so far, so good, but I'm starting to feel like i'm struggling. I earn £1,500 a month and £438 of that goes on my DMP. With my rent and fuel expenses This is another £550 a month and the last £500 doesn't last very long even with a tight budget, but insurance, phone etc it quickly goes! I was about to call SC to talk about lowering payments, when now my car needs an unexpected repair, which I don't have money for! I haven't built up and emergency fund and I have no way of paying this so need to cancel my DMP payment for this month. Does anyone know if SC allow me to take a break for a month or 2? I like that SC do all the negotiation, so do not want to go self managed.
Any help welcome, thank you all x0 -
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