DMP Mutual Support Thread - Part 12

curlu wrote: »

Hi everyone, I'm new here having found myself exploring a DMP after getting myself into considerable debt through online gambling. I have dealt with the gambling through counselling and have all the blocks in place but have the legacy of nearly £60K of debt to repay. I earn well but am struggling with keeping on top of the stress of dealing with 7 creditors and the imminent end of my promotional rates on a number of CC's that I did transfers on. I went though the Stepchange Remedy tool and it suggested a DMP and generated an application for me which I completed. However the proposed repayment that the DMP suggests had worked out to be higher than my contractual payments and they have now said I don't qualify for a DMP at the stage but to contact if anything changes. I was feeling such relief at the thought of having just 1 monthly payment to make and knowing that I might be debt free within 2 yrs 8 months as calculated....however now I feel I am drowning again and don't know where else to turn apart from debt consolidation loans...but suspect I will struggle to borrow that much with my current lending. Any suggestions?

Hi Curlu

Welcome to the forum, I'd avoid debt consolidation, even if you could get the credit,a fair few have been there got the Tshirt and are still paying the price !

Just for a minute think about your SC DMP remedy budget, did you fill it in with the idea ofmaking a as much money available for repayments or the idea of making a liveable budget? Go back and do it again changing the budget to realistic amounts and making sure you use the available options, such as pension and parking. This may change the amount you have available to pay. Remember to use the figures for debts for when your reduced interest offers expire, especially if you are having trouble shifting debt. If you can still get decent low and 0% offers, maybe it'd be better to use the snowball calculator, I don't have the link handy but there's a link somewhere in the forum stickies or try google.

I can see why the idea of a single monthly payment appeals at the moment, but if the redone budget still puts you outside the SC criteria, there are other agencies such as Christians against poverty and citizens advice who can both help.

Self managed, as Sourcrates suggests is a great option, but sometimes you need to be in the right headspace to start it, which is why many have found starting with SC and then going self managed is a gentler route. However is still doable. The NEDCAB website has lots of advice and forms, if you can face doing this yourself it's a brilliant place to start.

Look at these ideas and come back for more help if you need it. Facing up to the gambling is an amazing start, don't let the debt grind you down.

Saz

As its a previous property I don't include it as a priority debt according to step change!

Thanks Saz
I filled the budget in accurately based on my actual outgoings. The only variable was that I initially put down mortgage payments as the property is in joint names but this was removed as my husband actually pays this...interestingly when I applying for credit they make me jointly responsible for the mortgage!
As mentioned I am getting stressed by the !8.7% interest about to hit one of my CC's and that will of course affect my budget but until something changes I cant do much.
With regard to self manage I don't see how this would benefit me.....there remains no guarantee that any of my creditors will freeze interest and I believe SC will have a better change of negotiating that for me and all my creditors will ask me for a budget and will see I can afford the contractual payments at present so to them I probably don't justify any special treatment! I am currently considering moving to a lower paid role as one of the triggers for my gambling was work stress and I am looking to reduce my stress as part of my rehab and if that happens then my budget will certainly look different!

Morning all

I have just received 2'letters from Halifax re 2 loans. Both letters state they are a formal demands for payment or else they MAY issue a default with CRA and instruct a DCA to collect payment etc.

However, I had default notices a couple of weeks ago stating that if I don't bring my accounts up to date etc by the 28th July defaults will be issued.

I assumed that after the deadline of the default notices I would automatically be defaulted. Have I missed something?
M