Debt management plan experiences?

[dazzlinghaze]

I feel so embarrassed to be writing this but I think I'm going to have to arrange a debt management plan. I split with my long term partner two years ago and took our mortgage on myself. I took out credit cards thinking it would help me get on my feet and I'd be able to pay it back in time but as the zero percent offers have ended over the past year or so I've found myself struggling more and more each month. I was also diagnosed with depression last year and I think this has had a big impact on how spectacularly I've buried my head in the sand about all this. It was just one extra thing I felt I couldn't deal with.

After listing all of my debts on Step Change I'm mortified to admit I'm in just under 10 grand of debt. Step Change have recommended a debt management plan.

I know it will have a negative impact on my credit rating but that's so poor just now anyway so I feel that it's the least of my worries. The thing I'm most worried about is that it says online (haven't spoken with step change on the phone yet) that your creditors can refuse to freeze your interest and still take you to court over the debts. Is this common? If so, I could possibly ask for my parents help but I really want to avoid this and deal with the issue myself as I desperately don't want to disappoint them or cause them worry and upset if they aren't able to help.

Really I'm just looking to hear people's experiences of DMP's and how it affected their lives.

Thanks in advance.

I'm on a DMP, it's like a two tonne weight being lifted of me. Speak to stepchange.

Oh and you don't have to speak to anyone, you can do it all online.

@AriettyHomily that's so reassuring! If you don't mind me asking, did your creditors agree to freeze your interest?

Yes they did, I was properly stuck in a cycle of debt, this broke it for me, nothing else would have done.

The effect on your credit rating lasts 6/7 years as far as I remember but it also affects anyone you have a joint account with so if you have or have had any joint accounts, ask stepchange about that too.
Sorry you’re in this situation.
Stepchange are really good and flexible if your circumstances change over the period and once stepchange are involved, lenders are much more open to accept early settlement deals if you get any windfalls during the time of the debt management plan.

@AriettyHomily that's great! Glad things are back on track for you!

@Idontwantaname No joint accounts thankfully. One thing that's pushed me to get realistic is I met someone in December that I can really see a future with and although it will be a good while before we start thinking about moving in together etc I don't want this to be hanging over me and our possible future. And don't want it to get to the point of CCJ's. I'm only 26 so I'm thinking it's best to get it sorted with now while
I'm still young.

Feeling a bit better about everything today! After finalising everything on the StepChange website their recommendation has changed to a DPP which is similar to a DMP but as I'm in Scotland there's some extra legal protection for me. After it's been accepted all lenders have to freeze interest and stop charges and from what I've read, it's rare for them not to be accepted.

I applied for a new basic bank account for my wages to go into tonight which was approved and I've made a list of everything I need to do this week eg. Make copies of payslips, write to creditors to inform them I'm working with StepChange etc.

I also confided in my sister about what's happening and I feel so much better! She was really supportive and didn't make me feel bad at all. I'm really feeling like things could get better for me.

If it's alright I'm going to keep posting on here, just as a way to get my thoughts out.

I've been on one with PayPlan for 2 years now and they're amazing. Can't recommend them enough.

As PP said, it's a huge weight off