Debt Arrangement Scheme

[Bleurghgram]

I entered a DMP with Stepchange in 2013 and paid it off by 2017. They dealt with everything and no one was able to contact me in that time. It’s completely changed my spending habits now, I can’t believe I ever got into the position but it’s so easily done.

I built my credit back up with a low limit credit card that I put my petrol on every month, it’s shot up so much quicker than I expected so it’s totally possible to come back from. Now I’m buying a house and managed to secure a mortgage through a high street lender with decent rates - something I didn’t think would ever be possible.

Best of luck with everything, it’ll feel like such a relief x

 

[Rose28454]

Best of luck I was there about 13 years am now debt free no mortgage and retired. It can be done abs I would have never have got there without the money saving expert site. Martin lewis for prime minister !

 

[LennyBriscoe]

Hi everyone,

Looking for some non judgemental advice! Has anyone had Debt Arrangement Scheme to help manage debts?

I have around £18000 worth of debt and paying out £550 a month alongside all my other outgoings I’m not left with a lot to actually spend.

Has anyone had this what was it like? I’m concerned about the adverse effect on my credit rating for another mortgage in the future.

Thanks!!!

Yes - best thing I ever did. I paid what I could afford and after 4 years, the debt was gone. The relief was huge. It worked in my favour that I couldn’t get credit for 7 years in total because I was working on other issues and when that came around, the overwhelming need to buy things was gone.

I’m in Scotland and I know we have a different way of working up here but it 100% did the trick for me and I have had a consistently decent credit score for about 6/7 years now.

 

[Bettyframe]

11 days ago i found this thread. My dmp has been confirmed this morning and my head feels light!!! Thank you for sharing, and anyone struggling....please contact them, the relief is something else

 

[Helena Sell]

Good morning everyone!

Just wanted to say a massive thank you for your help and the support on this thread -My DMP has been set up and now I feel like a huge weight has been lifted!

Thank you so much!
x

 

[Bleurghgram]

I mentioned upthread, I finished my DMP in 2017 and have just bought my first house with a mortgage.

My credit rating was shot to smithereens when it finished. I got a credit building credit card that I put my fuel on and paid in full each month, and didn’t take out any other forms of credit in between it ending and applying for a mortgage.

My last failed payment was 52 months prior to my mortgage application so I got a decent mortgage, but I know there are a few lenders for people with adverse credit. I never thought it’d be possible but it is

 

[CrazyGiraffeLady]

I have an Iva, around £13k worth of debts and I pay £110 a month. I shouldn’t have let it get this bad but sometimes things happen in life and now it’s being sorted it’s a big relief x

 

[al255]

I’m glad I’ve found this - I’ve just recently set up a DMP with Payplan after realising all my bills wipe out my income pretty much, and I was using credit to live/pay for food, petrol etc. I knew I had to do something. I was constantly worried about money and I can sleep at night. I have more money spare now a month, and I don’t have to worry about budgeting. I’m going to pay more towards my DMP for sure! I had 16k worth of debt and I’m paying £162 a month. I’ve already got a mortgage so I don’t need to worry about the future and my fixed rate doesn’t end for 4 years whereby that point my DMP would be settled, my current lender accepts settled DMPs.

My creditscore is going to be awful but I won’t be using credit anymore!! The only thing I have to worry about is my phone contract but that ends in January 2023 and I’m going to go on a sim only plan anyway.

 

[Elizaaaaa]

Oh my goodness, just reading this thread I feel a weight lifting - I've been feeling so alone and ashamed about my credit card debt. Thank you all for sharing your experiences. I've been considering contacting step change but was worried about the possible credit score impact. I feel sick thinking about how much money I owe, and I have nothing to show for it either - no mortgage, no car etc.

 

[Neonmoon]

I worked for a debt collection company for 5 years so if anyone would like any advice I can try help the best I can!
I agree stepchange are amazing!

 

[Fintonagirl]

Best of luck I was there about 13 years am now debt free no mortgage and retired. It can be done abs I would have never have got there without the money saving expert site. Martin lewis for prime minister !

His website is amazing! He doesn’t get enough credit for it! He knows his stuff

 

[Be More Pacific]

I’m currently starting to set up an Iva via step change. I’ve had to stop working due to A heath condition so I can no longer afford my debts. I’ve got £31000 to my name and I’ve been so ashamed and hidden it. Already I feel so less stressed to just start the process. It’s so horrible being in debt, anyone who is thinking of doing any form of debt management I would definitely recommend it.

I had to stop working because of a health condition and, with the help of a letter from my nurse, which basically said it was very unlikely I'd work again (which I haven't) I managed to get all of my debt, which was £20,000, written off on medical grounds. Did it all myself as well.

 

[CrazyGiraffeLady]

I’m currently starting to set up an Iva via step change. I’ve had to stop working due to A heath condition so I can no longer afford my debts. I’ve got £31000 to my name and I’ve been so ashamed and hidden it. Already I feel so less stressed to just start the process. It’s so horrible being in debt, anyone who is thinking of doing any form of debt management I would definitely recommend it.

Please don’t feel ashamed, we’ve all made mistakes that lead to this and you’ve made the first steps by sorting it out and not allowing it to spiral further. It’s a big weight lifted x

 

[Begborrowsteal]

I have a DMP and it took SO much pressure off!

 

[bubblebar1317]

Yes - best thing I ever did. I paid what I could afford and after 4 years, the debt was gone. The relief was huge. It worked in my favour that I couldn’t get credit for 7 years in total because I was working on other issues and when that came around, the overwhelming need to buy things was gone.

I’m in Scotland and I know we have a different way of working up here but it 100% did the trick for me and I have had a consistently decent credit score for about 6/7 years now.

thank you so much! I’m Scotland too and have contacted Stepchange. I was in the same boat, bad feelings and ended up spending so much

Thank you so much for everyone’s replies, even sharing that feels a weight has been lifted and I’m glad so many can relate to how I feel.

 

[CrazyGiraffeLady]

Being able to anonymously say on here has been helpful, kind of like I’ve released it in some ways. Just looking to the future now.
It’s so easy to get into debt, then having to leave work has been hard as it was, but to be constantly worrying about how to pay bills is awful. Now I just feel another stress has been relieved

I agree it’s nice to know there’s others in the same position as me and I can discuss it anonymously. I feel like my mental health has improved since going on an Iva, I know everything is paid with one payment x

 

[Be More Pacific]

You've had some great advice but I would just say to anyone please, please don't worry about your credit "score" with credit reference agencies.

Lenders generally have their own credit scoring system made up of lots of different factors that matter to them. On application, all your personal information is inputted into their system and you press a button. A check will then be run with credit reference agencies, depending on who they use, which will assess the accounts they hold for you - so any loans, credit cards, store cards etc etc - and the system will come up with basically a pass or a fail based on all of that information combined.

Credit "scores" from credit references agencies are a huge money making scam in my opinion. And I'm an ex-mortgage underwriter. Been out of the game a while but, I can tell you from experience, that I have NEVER used someone's credit score number to help me determine whether I would give them a mortgage or not. Even when I was manually underwriting, I would never see it - just individual credit records - unless an applicant provided it with their paperwork, which I would then promptly ignore!

 

[Begborrowsteal]

This is my main hope! It is creeping into my personal life as I’m always worried and my partner can tell and it then creates tension.

I’m nearly £600 a month paying the minimum amount & can’t make it through the month without then accessing the payment
I’ve paid for that month I just feel totally trapped in a cycle of debt.

i think my biggest worry was a mortgage in the future again, I had one previously but then left my old home with my ex and haven’t bought again. I was worried about my credit score but tbh that is constantly going down because of my useage!

You'll be surprised how quickly the credit score creeps back up! X

 

[Brunetteem]

Absolutely recommend stepchange for getting you back on track and pressure off. I used them until I was able to pay everything off in full, was on a plan for a couple of years before being lucky enough to pay it back. Really helpful, non judgy people on the phone, and you update yearly so if a bill went up and you felt squeezed, your payment would go down, or vice versa if you had extra money.

 

[Gossgirl12]

Hi everyone, I wrote on here a little while back but still haven't actually taken any steps towards dealing with my debt I have so much fear, about everything, the overwhelm is paralysing.

I've just turned 31 and feel like such a failure, I know things need to change but it's so hard knowing where to start and I feel so alone. My relationship ended 6 months ago, I hate my job, rent a flat that doesn't feel like home and my 0% periods have ended on all my credit cards. The interest has made me realise just how out of control it is, and that I've been reliant on credit for too long.

I really want to move, but rental prices have increased so much plus I don't even have a deposit built up at the moment. I've even realised I may have to consider a shared property, as I don't have the option of moving back "home" (complicated family!), but that has it's own challenges.

Every possible option feels terrifying, that I'll make the wrong choice. Doing nothing can't be an option, I can't keep on like this. But if I enter a plan of some sort, how will it affect my living arrangements? Will I be stuck here? Would I need to tell my landlord? What about work? I'm a civil servant (v. low level, definitely not who horrible headlines are aimed at ) but can poor credit affect that? I have no hope of buying a house in the imaginable future so that's not a worry, though what's if I somehow manage to have a relationship, would any decisions I take now negatively impact them?

Yep I know it's weird I'm concerned about someone who doesn't exist and may never exist, but this is where my mind goes. Overthinking, catastrophising, getting myself worked up.

Sorry for the super long post, once I started typing more has come up, but maybe just putting it out there will mean I can breathe a little easier, maybe even sleep tonight?

Hi, I entered a debt management a few years ago which is luckily now paid off and it was the best thing I ever did. Your existing landlord doesn't need to know, nor does your job. A new landlord may see it on a credit check however I had no problems in moving whilst I was in a debt management. I was just honest, I'd never missed a payment while I was in my debt management, I was working so I felt like it didn't really effect me. I went through stepchange and they were amazing, don't use a company that charges a fee. Just pick up the phone and ring them, I promise you'll feel so much better.