Stepchange DMP

[Debt2eyeballs]

I sat down today and worked out what I owe where. £30k across 15 creditors. I've got myself in a real mess. I've been servicing it all, but have nothing left each month now so I've been then putting essentials on credit cards, which pushes the balance and minimum payment up. It's a vicious cycle.
I've filled in the forms on stepchange today.
I just want to hear from people who've done it and found it to work OK. Stepchange estimates I can clear my balances in 4 years, so does this mean my plan would last 4 years? Has everyone had success with it?
I've seen people suggest just stop paying but my nerves couldn't take it. I'm already a wreck.

We didn’t go with step change a few years back as they were factoring in my dc dla as our income and wanting a huge sum each month and when we put down expenses for dc disability (the same amount as the dla they get ) it wasn’t allowed ??!!

So I called everyone we owed myself and sorted out my own payments and some extremely good settlement offers

@Debt2eyeballs , I did the same as @Letrozolehope . I am still on it.

I reached out to Stepchange back in May 2022. and started with them, but found i too rigid, and took things into my own hands and contacted the creditors direct to work things out.

I feel your pain though, and yes theres not a lot left at end of the month each month. But i tell myself its a temporary phase.

We had severe debt about 20 years ago due to business failure. In a way it's a lot easier to be in a formal debt management plan, because it stops the creditors phoning you to ask for money you don't have and it also means you won't be robbing Peter to pay Paul as long as you stick to your budget.

What I learned is that you shouldn't prioritise payment of unsecured debt above essential household costs including those which occur irregularly such as school uniforms, even Christmas (you are allowed to include modest amounts for non essentials or can 'hide' these in your grocery budget because the amount allowed is quite generous, we were allowed £400 pm for a couple 20 years ago.

So concentrate on putting together a comprehensive sustainable budget that includes all costs. Remember you'll have to live without credit for at least 6 years as you'll likely have defaults recorded on your credit file and whatever sort of solution you have will likely mean you can't take out any new credit until you're out of debt.

What's your situation? Rent or mortgage, single or in a couple? Because that can affect what is the best solution, but if you can get out of debt in 4 years with just a debt management plan and not an IVA or DRO or similar, that's not too bad really.

My sister used StepChange for a while but found them too ridged with the amount she was asked to pay,she went on to get in touch with her creditors herself and offered the lowest she could with them out of seven Companies only one was difficult but she managed to get them on side in the end.
What she did was as soon as she was paid she paid out the monthly amounts to the creditors so she always knew what she had left to live on after a while she was able to pay off a wee bit more as and when she could,she cleared the debts after 3 yrs, with StepChange it would have been 4yrs and at higher monthly payments so be careful.
Be firm with the Companies when telling them how much you can afford they will respect you for trying to clear the debt.

I also found step change limited in suggestions for me, and not able to take in individual situations.
I had 3 credit cards and at first had less coming in than going out. But inability to keep regular payments 1 went to debt company, 1 on payment plan and the lowest amount paid off quickest.

took some years but all paid off.
felt unmanageable for a while, really stressful, credit probably shot, but doing ok and so much better than when in full debt!
find a way to make arrangements and payments that are manageable

I've got an IVA it's £80 a month for 5 years.
Stepchange were ridiculous, they were reducing the amount I had to spend on food to make the figures work. It's a tick box exercise with them.
I'm with Hanover insolvency. There've been fair to me all the way through the process. I've been paying it for a few years now and my credit rating is rising 😊