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Original poster

Stepchange - can anyone tell me what happens please?

9 replies

MurielsBottom · 04/07/2017 14:43

I am looking at out huge credit card debts and feeling scared (and very foolish for getting in this mess). Dh is very likely to lose his job due to ill health soon and I know we are only just keeping our heads above water now. So I have looked at Stepchange after seeing it recommended by many people and I have done the initial online form. The website has then asked me to phone up with dh to discuss our options.

Can anyone tell me what happens next? How do they deal with the debt and the creditors? What will we have to do?

OP posts:
BumblebeeTea · 04/07/2017 14:52

I had a debt management plan with them which I made my last payment for recently (such a great feeling!)
Basically I had to phone them up to discuss everything which took about an hour. They were very nice and didn't want to pry into why I'd gotten into debt in the first place, they just wanted to go over all my ingoings and outgoings.
They then put me on a debt management plan which meant I paid a consolidated amount of money each month directly to step change and they then broke it down and forwarded it on to all my creditors. All the threatening letters from my creditors stopped within 3 months and I also had the interest frozen on all but two of my debts.
It was great going from having to pay out about £1200 per month on my debts each month to just having to pay £250 per month.

Things to take into consideration -
Stepchange will force you to put ALL of your debts into the management plan, even the ones you are on top of. So any bank overdrafts you have, all credit cards, all payday loans and anything on finance. They won't let you pick and choose which debts you want to include and which you don't.

Let me know if you have anymore questions and good luck x

Original poster
MurielsBottom · 04/07/2017 15:45

Thank you for replying. At this exact moment we are not behind with anything, but we are struggling and if dh is made redundant then we will not be able to pay anything. (Prob 1 to 2 months away from this.)

My only concern is getting a car, at the moment we have a company car which will obviously go but dh's health has deteriorated so much he will now be more or less housebound without a car! I am assuming that we won't be able to take on any finance to purchase a car.

Did you have any contact with your creditors after you contacted Stepchange? Were there any problems? I am not sure I can cope with having to deal with them all myself.

OP posts:
Teddy7878 · 04/07/2017 15:57

Hi
(It's me again but changed my name because of a different post I was on).
No i didn't have any contact with my creditors, stepchange do all the negotiations with them on your behalf. It takes about 6-10 weeks for everything to get set up with all the creditors so during that time you'll still receive the usual threatening letters but you just have to ignore them.
You are unlikely to get accepted for anything on finance anyway if you go on a debt management plan as your credit rating will be ruined for 6 years. After 6 years your credit rating is wiped and starts afresh so you'll be able to get things on finance again then (as long as you have been keeping up with your repayments and not getting into anymore debt).

drspouse · 04/07/2017 16:11

I don't know much about stepchange but it sounds like you are keeping up with your payments now, but need to reduce them so you have a bit spare a) if your DH is made redundant b) for transport if he no longer has a company car.
It might be cheaper to use taxis or rent a car occasionally or use Uber/zipcar/car sharing - or buy an old banger but save monthly for repairs?

If he is made redundant can you work/work more? Would his health be likely to improve so he can get another job?

Do you have any lower interest credit than the credit cards (mortgage/bank loan) or is it all credit cards? If you have a mortgage then taking a mortgage break would not accrue as much interest as asking to reduce your payments on the credit cards.

Original poster
MurielsBottom · 04/07/2017 16:43

It is unlikely that dh's health will improve. We are on a slow downward trend (confirmed by GP), I think he might be able to manage part time but we are not sure and it depends if he can get something suitable. As for me, we have dc at school and I do some caring for Dh so I am not totally free to work although I am studying at the moment which should help.

We rent so no mortgage. In regards to the car I think we will have to get something at the moment dh is applying for PIP.

OP posts:
drspouse · 04/07/2017 17:16

PiP should help with that side of things, fingers crossed.

So sorry to hear about your DH, that is awful news. Does he have a pension he can take early?

Original poster
MurielsBottom · 04/07/2017 21:15

I'm not sure about a pension. I suspect it is too small to do anything with. Dh is only in his thirties.

OP posts:
Tillymintsmama · 04/07/2017 21:21

Can car finance be included with these sorts of things and still keep a car? Struggling with credit card and car (PCP) payments totalling £600. My mortgage is only £544!

Identity1 · 11/08/2017 08:54

Hi there so sorry to read your post. If you have any way of affording a small run around ie could family or friends lend you a small amount so you can at least get around. Have you considered motability (I think that's what it is) I don't know if it's a form of credit or not though, PiP should be able to assist or have a look at their website to see if you qualify. Hope you have been successful with step change x

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