Feeling quite lost, sad and powerless...DMP and debt. Any experiences?

[BarrenFieldofFucks]

Generally a bit woe is me over here. I have a fair bit of historical debt that I've been juggling around for ages. I finally got this onto a DMP through Stepchange and have made the first few payments. I'm getting letters from my creditors (credit card companies) obviously, with warnings about registering defaults etc. I know that this is part of the process, but I'm so uncomfortable. I can't afford the payments I had been making, I can't put it on my husband and anyway, he is in the throws of setting up a new business and we don't have any more cash.

Long term, I know that if I keep plugging away, making the payments, chucking any spare cash/present money etc at it, try to increase my earnings etc then I will get there. But I'm feeling a bit low.

Despite having debt I've always had a good credit rating having juggled it all around but obviously this will change. I'm worried about what will happen when we come to remortgage at the end of our fixed period, I'm worried about the potential effect on my husband's credit rating (they told me it would have no effect though) but I don't know what else to do.

I don't want any more credit, ever, but it is the mortgage thing really.

I don't know whether if I contact the credit card companies direct and negotiated set minimum payment type things that would be better for my credit rating? Or whether just to trust in the process with Stepchange and accept what happens.

Has anyone any experiences with DMPs they could share with me?

Hi, big hugs. You're at the start of your journey and that's the worst but over. I was on a dmp with stepchange for 5 years and paid all my debt back. When I finally had my light bulb moment I was 35k in personal debt! The beginning was the hardest, I had to confess to my husband as he had no idea. 3 companies registered defaults and one refused to stop interest after numerous letters.
I'm now out the other side, have a credit builder credit card and a mortgage.
You can try negotiating with your creditors directly but don't make any arrangements that will leave you short in necessary expenses. Join money saving expert, the debt free wannabe forum was a real help with lots if good advice, it made me feel less alone.
Best of luck to you, it's hard but you will come out the other side xxx

Seems risky your husband setting up a new business when you have so much debt and needing to remortgage. Wouldn't he be better off just trying to get paid employment ?

We don't need to remortgage at all, but in about 2, 3 yrs we will come to the end of our fix. I appreciate what you're saying about the business, but he has worked solidly for decades to provide for us and needs to do something else for his own mental health. This is my mess and I'm fixing it. I'm back into (part time) work after a few years out

3 companies registered defaults

What does this mean in reality? Is it 'just' a mark on your credit file? Did any ccj you? I have three creditors.

No ccjs but a default stays on your credit file for 5 years, in Scotland, might be 6 in England. It makes it difficult for you to get any credit, I couldn't even get a phone contract. Credit companies will take less notice the longer you have them. For example if they are 4 years old you will be considered for higher interest rate credit and mortgages.
My credit rating started to improve the nearer I got to clearing my debt.
Try and get the interest stopped ASAP if you can, my debts were eventually sold on to collection agencies which was actually better, they didn't charge interest and I just had an arrangement to pay.
Who are the creditors if you don't mind me asking, some are better to deal with than others.

Tesco
Barclaycard
Halifax

I don't have a mortgage so can't comment from that point, but last month I paid my last DMP payment after about four years paying off around £18k. I honestly don't know what I would've done without stepchange, there was no way I could manage it myself. My credit score has started to improve and I will take a credit building card next year to improve it more. Good luck, it is scary to deal with but hopefully now you have had some advice you can get through it.

It was the best thing we did. Our income has doubled since we started it so in 2 years we will be done. Please stick with it. I have had a new phone contract in that time and finance on a car. You will still be able to live your life. It is scary those first few months when you get the letters coming in but you will be absolutely fine. I cant offer any advice on house remortgage unfortunately but maybe have a look on mse forums for advice.

it is so much better going via stepchange,

I was on a DMP for 8 years. Although it's a knock (to both your confidence and your credit rating) it does get better.

I didn't use stepchange, I used GPennington and they kept me up to date with any changes, loads of self addressed envelopes for any debt letters and I chipped away at it for years. If you never miss payments, it actually helps your credit rating. The day mine ended I got a low limit credit card and put everything on it and paid it off straight away and I ended up with an excellent credit rating within 3 months.

The start is the hardest. Good luck!

If you stick with your current mortgage company with regards to setting up another fixed term rate, your credit rating won't affect it as it's unlikely they will do another credit check. If you choose to go to another company, then your credit rating will affect it.

Don't panic about the defaults! If you're on a DMP, a default can be a good thing. It means that they can't add any more interest from that date and it'll fall off your credit file in 6 years whether you've finished paying it off or not. If they don't default they won't drop off until you've paid it off PLUS 6 years.
Yes, your credit file will be rubbish but if you're on a DMP it's likely to be trashed anyway.

From my experience tesco and barclaycard were pretty good at inplementing the arrangement to pay quickly but Halifax were a nightmare. They called me constantly trying to bully me into paying more while the dmp was being set up. They never, stopped interest either to the bitter end.
You don't need to out up with that! Explain you're with stepchange and they can direct any enquiries to them, never disclose your stepchange account number to them either. You don't need to x

If you remotgage with your current provider they normally don't do affordability checks so don't worry about that.

You can set up your own dmp directly with creditors if you wish you just take out the middleman.

I was in one after an ex screwed me over took me 6 years but I'm now debt free and a home owner so you will get through it!

@weekday28 wow! May I ask how you managed to get finance on the car? And which company? I'm currently 12 months into my 2.5 year plan and can't afford cash for a car at the moment.. Many thanks!

I'm starting a DMP this is my 2nd time in 5 years ish. I feel so emotional and stressed and guilty that I've got into a bad situation with my finances again. I want to confide in family not for help with money but to let them know but just don't know how too even though I know they won't feel as ashamed as I feel of myself now.

Has anyone got any advice on how to approach this with my mother?