Has anyone done a DMP? Anxious

[MegaMinion34]

Hi all. Name changed for this as I'm so ashamed 😔

I have around 15k in debt, mostly credit cards and personal loans but also a couple of store cards. Husband and I both work full time and I can afford the monthly minimum payments but only just. Once they've been paid along with bills we have literally nothing left. No spare money, no savings, nothing.

I knew something needed to change so I contacted Stepchange who recommended a DMP. My monthly payments will be reduced from almost £800 a month to £200 which is far more manageable and affordable. However I understand that with a DMP creditors can still contact you and can also still take further legal action against you.

I am absolutely terrified at the prospect of this! I have DC, I don't want debt collectors/bailiffs at my door 😔

Has anyone else done a DMP with stepchange? What was it like? Would you recommend one?

Many thanks ☺️

I did one with them and Stepchange wrote to all my creditors on my behalf and got the interest frozen. They all agreed to the plan so I had no further debt collector letters or anything like bailiffs showing up at my door. I think the majority of creditors would always accept a DMP as it’s not in their best interests to pay to chase the debt of someone who they now know can’t afford to pay it. My credit rating was ruined for 6 years but it is fine now and I’ve managed to rebuild it back up to a good rating

I did. I had 30k debt as a single parent. StepChange were wonderful and I did pay it off over 3 years. They sent me a certificate on the last payment saying "you're now debt-free" and it felt amazing. This was a few years ago now, and I've now got savings and severely reduced my mortgage balance. Credit score of 975 - if I can do that, anybody can 😂

Unlikely that any companies will take further legal action, but they have to state it's still within their rights to.

Look into it further, make sure it won't affect your career or anything (certain jobs like accountants, estate agents etc I believe aren't able to have DMPs), but I really recommend them.

I did. I'd recommend it to anyone.

I have and I agree with pps about stepchange. They make sure it all goes smoothly and communicate with your creditors for you.

You've made a good choice op.

@Demeter222 yes! I was as proud as a child getting a certificate in assembly when they wrote and told me I had fully paid.

Really is a lovely touch, isnt it 🥲