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  • FIRST POST
    • Norfolk_Jim
    • By Norfolk_Jim 6th Nov 18, 11:31 AM
    • 1,209Posts
    • 1,121Thanks
    Norfolk_Jim
    In debt and home owner?
    • #1
    • 6th Nov 18, 11:31 AM
    In debt and home owner? 6th Nov 18 at 11:31 AM
    Hi, I've visited these boards many times over the years and had a lot of helpful advice (some of which I have followed). I've been feeling very depressed (yes I've sought help for that - it's a long standing issue for me) since I contacted Stepchange and found out that with their budget advice it would take me 33 years to repay my debts on a DMP. As I'm nearly 55 that does not look like it could work. They also suggested I consider bankruptcy.
    But I do have quite a lot of capital in my house, though it is a house at the cheaper end of the scale (Downsizing would be to a tent). My wife is increasingly disabled as is daughter who is 22 but lives with us.
    I have thought of going on the DMP Stepchange suggest and in a couple of years I would be able to access my pension and maybe use it to make F&F offers. I have a teachers pension that will help me in old age, the one I'd like to cash is one I started in my youth but didn't keep - it's grown into a tidy sum - about half what I owe.
    My concern is that creditors will see that it will take 33 years on a DMP and decide to go after repayment by taking my house somehow or bankrupting me
    Only I do not see any posts on these boards that reflect that. I don't see posts saying they are bankrupting the contributor or taking their home from them.
    I just wondered if the people posting here are homeowners and what is your experience of owning a home and paying creditors on DMP's.
    I'm about to change jobs as I can't take the stress of being a teacher any more - it's killing me. It pays the same as now but it out in the countryside.
    I'm very lonely in this battle with debt. Of late it's been like I'm feeling my life is over, I will just be working to pay debt for the rest of my life. I own nothing of any value - anything I have of value I've sold. I'm now selling anything I can find on ebay to get even a little money.
    All the responsibility for the family and the debt is on my shoulders and I feel completely alone even though I have a family.
    Can anyone suggest a support group or chat room? Somewhere I can just share some of the burden without being judged. I really do want to repay what I owe. Defaulting would be a cause of shame to me but with no light at the end of the tunnel. I just don't want to always feel like I'm on my own, it's just me against the world and if I fail, well, as I said, my wife is increasingly disabled. Does get PIP and without it we would not be able to make even the minimum payments. Is that what the debt free diary pages are for?
    Wasn't sure if I'd post this - wasn't sure if I'd admit I wasn't sure, just feeling so "on my own"
    Last edited by Norfolk_Jim; 06-11-2018 at 11:38 AM.
Page 1
    • Suseka97
    • By Suseka97 6th Nov 18, 11:48 AM
    • 475 Posts
    • 601 Thanks
    Suseka97
    • #2
    • 6th Nov 18, 11:48 AM
    • #2
    • 6th Nov 18, 11:48 AM
    Hello Norfolk_Jim

    I've just jumped on the board for a quick look and didn't want to read and run. So forgive the brevity of this message - will pop back later.

    You should head on over to the DMP Mutual Support Thread - there's a lot of us 'debt free wannabees' there and no-one judges. In my view a 33 year DMP isn't the solution for you and can see why SC would have suggested bankruptcy. Hopefully Sourcrates or another of the forum stalwarts will be along to help you work that solution through.

    Bankruptcy doesn't mean you'll lose your house, but it does mean (I think) that at the end of it you'll need to release some of its equity. But I'm no expert here. I just wanted to reach out to you and extend the hand of forum friendship. You are definitely not alone in this.
    LBM April 2013 85k /14 Creditors
    SC DMP May 2013 - July 2017 (74k repaid)
    SM DMP July 2017 current 9k / 4 outstanding / 3 x UE, 1 not UE
    • Norfolk_Jim
    • By Norfolk_Jim 6th Nov 18, 11:55 AM
    • 1,209 Posts
    • 1,121 Thanks
    Norfolk_Jim
    • #3
    • 6th Nov 18, 11:55 AM
    • #3
    • 6th Nov 18, 11:55 AM
    I didn't know there even is a DMP Mutual Support Thread
    • sourcrates
    • By sourcrates 6th Nov 18, 12:22 PM
    • 15,737 Posts
    • 14,797 Thanks
    sourcrates
    • #4
    • 6th Nov 18, 12:22 PM
    • #4
    • 6th Nov 18, 12:22 PM
    Hi,


    You certainly do not want to go bankrupt if you are a homeowner, especially with a lot of equity in the property.


    It can be difficult in your situation, but creditors have never been so flexible with payments as they presently are, you could start off on a DMP let it run until your pension matures, then try and settle each debt for as little as possible.


    Unsecured debts are just that, unsecured, although the process does exist to make you bankrupt, or to force the sale of your home, these powers are very seldom used in everyday life, think about it, why would a company make you bankrupt, then get virtually nothing out of it, its a waste of there time and money, just does not happen.


    If court action was taken, theoretically a CO could be put on your house, but as long as the payments were up to date, nothing more can be done by the creditor.


    I would say start on a DMP and see where it leads.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • January2015
    • By January2015 6th Nov 18, 12:28 PM
    • 2,301 Posts
    • 5,484 Thanks
    January2015
    • #5
    • 6th Nov 18, 12:28 PM
    • #5
    • 6th Nov 18, 12:28 PM
    Hello and welcome

    I am in a DMP. I started owing over 95k and have approx quarter of a million in equity in my home. I just wanted to reassure you that despite the level of my debt and my DMP forecast to take well in excess of 30 years, all of my creditors have been supportive and helpful. There has been absolutely no mention of any requirement to sell my home or put a charge on it. I love my DMP and it is seriously the best thing I have ever done financially.

    My partner and I are a bit older than you.

    My advice regarding access the pension would be to not do it if it is your main pension pot. The debts will plod along at zero interest and you can save towards settlement offers over the next few years. However your pension pot will only be there once - enjoy it in your retirement.

    That said, we did access a couple of small pension pots from previous jobs when we could and released a lump sum which helped us put forward some full and final settlement offers. However, I would never touch our main pensions - we need that to ensure we are comfortable in our retirement.

    This is the link to the current DMP Mutual Support Forum. It is absolutely the best place to talk to others in the same situation. You will find fantastic advice and support to get you through.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    • Suseka97
    • By Suseka97 6th Nov 18, 2:12 PM
    • 475 Posts
    • 601 Thanks
    Suseka97
    • #6
    • 6th Nov 18, 2:12 PM
    • #6
    • 6th Nov 18, 2:12 PM
    I said I'd pop back.

    Good to see Sourcrates and Jan15 are on the case, especially with regards to the 'not going down the bankruptcy route' advice. You'll see that Jan15 is very adept at managing her DMP and I am definitely in agreement with not touching your pension pot for this.

    My debts were quite high but we were fortunate that due to our incomes we were not facing such a lengthy DMP term. Mind you our repayments were set too high at the outset, something I encourage others to avoid.

    I see you've introduced yourself on the DMP Mutual Support thread, so I'll head over to help answer some of your questions.

    You'll get lots of support there.
    LBM April 2013 85k /14 Creditors
    SC DMP May 2013 - July 2017 (74k repaid)
    SM DMP July 2017 current 9k / 4 outstanding / 3 x UE, 1 not UE
    • Pixie5740
    • By Pixie5740 6th Nov 18, 2:34 PM
    • 13,280 Posts
    • 19,112 Thanks
    Pixie5740
    • #7
    • 6th Nov 18, 2:34 PM
    • #7
    • 6th Nov 18, 2:34 PM
    Is your current home going to remain suitable accommodation for your wife who is becoming increasingly disabled and your daughter who is also disabled? The reason I ask is because if it's not then the council might be able to help find you more suitable accommodation. Then you could be a social tenant with a secure tenancy is a home that better suits your family's needs. It would also open up bankruptcy as an option or release some equity to make full and final settlement offers.
    • enthusiasticsaver
    • By enthusiasticsaver 6th Nov 18, 3:17 PM
    • 7,284 Posts
    • 15,993 Thanks
    enthusiasticsaver
    • #8
    • 6th Nov 18, 3:17 PM
    • #8
    • 6th Nov 18, 3:17 PM
    Keeping a debt free diary or posting on the DMP mutual support thread would be a way of getting support.

    Do not go bankrupt if you have significant equity in your house. Even if it would take a long time to repay, most lenders will stop charging interest and payments would be set at a level you could afford on a DMP so with an asset to protect (house equity) that would normally be the route to take. Rarely would lenders enforce bankruptcy if you keep them informed and make an arranged payment through stepchange.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • NeverendingDMP
    • By NeverendingDMP 6th Nov 18, 6:02 PM
    • 130 Posts
    • 550 Thanks
    NeverendingDMP
    • #9
    • 6th Nov 18, 6:02 PM
    • #9
    • 6th Nov 18, 6:02 PM
    Hiya just wanted to say that I am a homeowner with equity and started with a DMP that would take 18.5 years. This has gone up and down each time I've altered my budget but no one has taken it further or mentioned the house. Four of the original eight debts got sold on to debt collection agencies but to be honest that's benefitted me as I've settled three via full and final settlement for about 60 % off figure owed. I think what I'm paying now means it will take 15 years but as long as I do regular reviews no one seems to mind
    P
    35,213 in Jan 2018, 30000 remaining.
    Mortgage 77230 in Jan 2018
    75112 remaining.
    Emergency fund 250
    • DCFC79
    • By DCFC79 6th Nov 18, 6:20 PM
    • 32,928 Posts
    • 20,738 Thanks
    DCFC79
    Hiya just wanted to say that I am a homeowner with equity and started with a DMP that would take 18.5 years. This has gone up and down each time I've altered my budget but no one has taken it further or mentioned the house. Four of the original eight debts got sold on to debt collection agencies but to be honest that's benefitted me as I've settled three via full and final settlement for about 60 % off figure owed. I think what I'm paying now means it will take 15 years but as long as I do regular reviews no one seems to mind
    P
    Originally posted by NeverendingDMP

    Congrats on the work you have done so far to reduce the debt.
    • mrsjolie
    • By mrsjolie 9th Nov 18, 9:21 PM
    • 4 Posts
    • 11 Thanks
    mrsjolie
    I have a DMP with Stepchange and own a house that is worth a considerable amount of money. Never ever has anyone apart from Stepchange suggested I go bankrupt. As a homeowner it is a riddiculous suggestion. Not one of the 12 companies I owe money to have ever suggested I go bankrupt. Neither have they put a charge on my house. Or suggested I sell it. They are happy to receive regular payments and since I just keep on paying they don't do anything. They have all defaulted me and the last one is about to drop of my credit file any day now.

    I pay only a minimal amount as I gave up struggling trying to pay it off quickly years ago. There is no point - I just pay a token amount and seven years in I am not afraid or frightened for the future. These days I pay less than I can afford - gone are the days of juggling pennies to make ends meet and trying to throw everything at my plan to keep the likes of Barclaycard at bay.. In truth you are just a number and they really don't care how much you pay. As long as you pay something they won't take action. There are millions of people out there who owe them money and they all are just like you and me and all the other lovely helpful people on these boards. These people won't single you out and come after you - they really won't. They don't have the resources.

    My advice is to keep paying but only pay the bare minimum. Don't let anyone (including Stepchange) convince you that you need to pay it all back asap. You really don't.

    I have been in a DMP with them since 2011 and at the rate I am paying (less than 50 a month) it will never be paid off. In the beginning we owed 79k and now it's down to just under 40k.

    Every year at review time Stepchange tell me to go bankrupt or sell my house. I refuse - tell that my circumstances may change and they say - ok and I carry on
    paying my DMP for another year. I hardly notice the payment now - my life is back to normal and apart from the annual review I don't have anything to worry about.

    I have just sent off CCA's as I may finally be able settle with a reduced figure - but that's another subject.

    Keep strong OP - you need to stop stressing about this and enjoy family time. You have come to the right place for help and support. Life is too short for worrying.
    • BadDebtor
    • By BadDebtor 10th Nov 18, 9:36 AM
    • 24 Posts
    • 8 Thanks
    BadDebtor
    Splitting up as can't read lump of text with no paragraph spacing

    Hi, I've visited these boards many times over the years and had a lot of helpful advice (some of which I have followed). I've been feeling very depressed (yes I've sought help for that - it's a long standing issue for me) since I contacted Stepchange and found out that with their budget advice it would take me 33 years to repay my debts on a DMP. As I'm nearly 55 that does not look like it could work. They also suggested I consider bankruptcy.

    But I do have quite a lot of capital in my house, though it is a house at the cheaper end of the scale (Downsizing would be to a tent). My wife is increasingly disabled as is daughter who is 22 but lives with us.

    I have thought of going on the DMP Stepchange suggest and in a couple of years I would be able to access my pension and maybe use it to make F&F offers. I have a teachers pension that will help me in old age, the one I'd like to cash is one I started in my youth but didn't keep - it's grown into a tidy sum - about half what I owe.

    My concern is that creditors will see that it will take 33 years on a DMP and decide to go after repayment by taking my house somehow or bankrupting me

    Only I do not see any posts on these boards that reflect that. I don't see posts saying they are bankrupting the contributor or taking their home from them.

    I just wondered if the people posting here are homeowners and what is your experience of owning a home and paying creditors on DMP's.

    I'm about to change jobs as I can't take the stress of being a teacher any more - it's killing me. It pays the same as now but it out in the countryside.

    I'm very lonely in this battle with debt. Of late it's been like I'm feeling my life is over, I will just be working to pay debt for the rest of my life. I own nothing of any value - anything I have of value I've sold. I'm now selling anything I can find on ebay to get even a little money.
    All the responsibility for the family and the debt is on my shoulders and I feel completely alone even though I have a family.

    Can anyone suggest a support group or chat room? Somewhere I can just share some of the burden without being judged. I really do want to repay what I owe. Defaulting would be a cause of shame to me but with no light at the end of the tunnel. I just don't want to always feel like I'm on my own, it's just me against the world and if I fail, well, as I said, my wife is increasingly disabled. Does get PIP and without it we would not be able to make even the minimum payments. Is that what the debt free diary pages are for?

    Wasn't sure if I'd post this - wasn't sure if I'd admit I wasn't sure, just feeling so "on my own"
    Originally posted by Norfolk_Jim
    • fatbelly
    • By fatbelly 10th Nov 18, 11:07 AM
    • 12,991 Posts
    • 10,060 Thanks
    fatbelly
    Hi, I've visited these boards many times over the years and had a lot of helpful advice (some of which I have followed). I've been feeling very depressed (yes I've sought help for that - it's a long standing issue for me) since I contacted Stepchange and found out that with their budget advice it would take me 33 years to repay my debts on a DMP. As I'm nearly 55 that does not look like it could work. They also suggested I consider bankruptcy.
    But I do have quite a lot of capital in my house...
    Originally posted by Norfolk_Jim
    Then you must not consider bankruptcy. That is terrible advice.

    I have a DMP with Stepchange and own a house that is worth a considerable amount of money. Never ever has anyone apart from Stepchange suggested I go bankrupt. As a homeowner it is a riddiculous suggestion.
    Originally posted by mrsjolie
    Exactly.

    Fortunately you can get excellent advice and support on the dfw forum, and you are doing. I would only add that you ought to check whether your creditors have the paperwork to prove their position.

    For all Consumer Credit Act debts (and that's pretty much everything apart from overdrafts, mobile phones, tax and utilities) you have the statutory right to demand a copy of the original agreement under s77-79 of the act. If they can't provide it the account is unenforceable until they do. For short, this last paragraph is usually abbreviated as 'CCA them'

    https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx
    Last edited by fatbelly; 10-11-2018 at 11:09 AM.
    • merrydance
    • By merrydance 10th Nov 18, 11:22 AM
    • 460 Posts
    • 345 Thanks
    merrydance
    Hi We were in the same position as you. We took equity release through our financial advisor. Step change recommended this route for us, but the one they came up with was much more expensive than the one we took out through our financial advisor. As long as you pay off the interest every month it does not compound. Also make sure the exit fees are low, as it looks like you may be able to pay this loan off in the future.
    • NowInspired
    • By NowInspired 10th Nov 18, 1:37 PM
    • 40 Posts
    • 17 Thanks
    NowInspired
    Step Change also suggested bankruptcy to us. I said we would not go down that route and that we would do our own DMP. They agreed to help us set that up but still said at the end of the conversation that they thought that one of the banks would possibly try and force us into bankruptcy but that they probably wouldn't as we didn't have enough equity in the house. That parting comment really upset and scared me and I wished I had never rung them. They may be helpful to some people but I found them to be just the opposite and I was more stressed than before I had rung them.

    At that point I decided we would self manage and that is what we are doing.
    • zippygeorgeandben
    • By zippygeorgeandben 10th Nov 18, 9:46 PM
    • 945 Posts
    • 1,292 Thanks
    zippygeorgeandben
    Can't you go part time as a teacher? I'm sure there are teachers (NQTs) who are cheaper than you! Or perhaps supply?
    Savings End October 2018 2240.13
    September 2018 986.09
    October 2018 1254.04
    November 2018
    December 2018
    January 2019
    • Iwanttobefree
    • By Iwanttobefree 10th Nov 18, 10:14 PM
    • 1,615 Posts
    • 3,972 Thanks
    Iwanttobefree
    Personally I found stepchange to be awful.

    I'm glad I took this boards advice and started my own DMP.
    The way things are going, soon we are all going to be victims of something or other.

    Who will we blame then?
    • DCFC79
    • By DCFC79 10th Nov 18, 10:20 PM
    • 32,928 Posts
    • 20,738 Thanks
    DCFC79
    Personally I found stepchange to be awful.

    I'm glad I took this boards advice and started my own DMP.
    Originally posted by Iwanttobefree

    Other options available like payplan, National Debtline is another.
    • OCTOBER
    • By OCTOBER 12th Nov 18, 12:06 PM
    • 5 Posts
    • 2 Thanks
    OCTOBER
    This is most inspiring - thank you mrsjolie
    sorry to but in to this thread - but I am glad I came across this as it has calmed me down !
    I thought a DMP was only suitable for debts that can be paid in under 10 years, I have spoken to SC and not sure my budget is sustainable, I am worried that I will get it underway and not be able to meet the monthly payments
    Did you have to push for a longer time than 10 years ?
    do you need to go self managed to agree a longer period of time ?
    thank you
    • Norfolk_Jim
    • By Norfolk_Jim 12th Nov 18, 12:32 PM
    • 1,209 Posts
    • 1,121 Thanks
    Norfolk_Jim
    My thanks for all the information and advice. It's taking me a little while to come to terms with defaulting on my debts as I was raised always to repay and to date I always have.
    It's taking me time to think of these financial institutions as businesses with business models that allow for some defaults and that it's just business
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