StepChange

[saskia76]

Has anybody used step change to help with their debts? What are you experiences? Was it easy? Did it take long to set up? Do credit companies leave you alone once it's set up?

We are in the middle if setting up a debt management plan with them. They have been fantastic so far. From ringing them to our first payment it will be 6 weeks. We have heard from 3 of our 6 creditors so far. They have accepted our offer of payment and frozen our interest charges. It does say you could still get calls but all the creditors I spoke to were very nice and understood our position.

That is one of my biggest concerns, as i read even with it set up some creditors still pester you for the money. And not known anyone who has used stepchange before so wasn't sure how quick they sort it. Did your creditors get in touch via post? @CluedoAddict

I rang Step Change mid February. They told me to ring all our creditors and ask for 30 days breathing space. Everyone I rang was really nice. I was expecting a grilling but they were all understanding.

We haven't had any calls but on all the letters it says it could affect your credit file.

Our first payment is due in 1st April. They then distribute it to our creditors within 5 days. I have made some reduced payments directly with our creditors this month as it wasn't set up for 1st March as I had hoped.

If you tell your creditors that you’re dealing with StepChange, they should negotiate directly with StepChange - they should not pressurise you into paying more or refuse to speak to StepChange.

They are amazing. They are so helpful and understanding and if any creditors do contact you as soon as you say you are with step change they make a note and deal with step change direct.

Did Step Change for my DB. Had a few calls after, they give you a reference and all you need to say is you are with SC and give the reference. No calls since. Took so much stress away.

You do have to still keep an eye - sometimes I've noticed that debts are sold on by creditors and drop off the plan. SC don't follow that up - the onus is on us to call the creditor and find out the new reference number. That's all easy to track through the online portal.

If they sell your debt do the three letter process and write it off. I have done this three times successfully. Stepchange will end up costing you more and they take commission.

@AttheShriekingshack What's the 3 letter process?

Stepchange do not charge commission. They were fantastic for me. I changed to them after using a few paying service. I had over 30k in debts and they set up a dmp for me. Took 6 years but I'm now debt free. I wrote to my creditors to try and get the interest stopped but none of them would. Halifax was the worst.
I'll never have any credit again, I've learnt my lesson.

Step change DO NOT charge commission. Very dangerous to assert that they do.

The credit card companies get every penny you pay.

You can do DMP's which are managed and you pay commision, these should be avoided. But Step change don't charge you commision.

www.clearyourdebts.co.uk/debt-collectors/3-letter-process/

Here you go, had a look and seems to be mixed experiences about this. I'd worry that the debt would be lurking somewhere and come back to bite me! Better paid off and done.

Hannah4banana Congrats and well done!

@AttheShriekingshack Stepchange absolutely don't charge commission. Their debt plans are free to have, they've never charged fees for debt plans.

The commission doesn't come from you, it is covered by the debt companies.

www.citizensadvice.org.uk/debt-and-money/debt-solutions/debt-management-plans/getting-a-debt-management-plan/do-you-need-to-pay-for-a-debt-management-plan/

I was paying more to the fee paying company than what went to my debt. With stepchange every penny was paid to the debt so I was able to pay if off quicker. Don't confuse people by comparing them to a fee paying company, they are completely different and will cost you less not more!

I did a DRO with StepChange. It was really easy to do, and helped alleviate a ton of stress.

Did you have to close your bank accounts if you had an overdraft included in your DMP?

I'm starting one with PayPlan and they've told me to get another account.

Yes, I got a basic account and moved all my bills and direct debits there. I couldnt close the other accounts though as they were still in arrears. I closed them when they were clear.

StepChange is a charity so is it even legal for them to get commission?

Step change really helped me out when I was a skint student unable to manage my debts.

You need to get a bank account with no overdraft at a company you have no debt with, that way you don't have to worry about your income being eaten up by the overdraft.