Debt Arrangement Scheme

[BettyCrockerr]

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, had one years ago. Best thing I ever did!

They will look at your income and all your outgoings and will decide on a mutually agreeable affordable monthly repayment amount - it will be far far far less than what you are paying out at the moment on debt. They will deal with all creditors so you won’t have to actually deal with any of the arrangements and usually it freezes the debt and no more fees are added on and you shouldn’t get any further communications from creditors after everything is set up. It takes so much stress away. Yes, it obviously has an adverse effect on your credit file but frankly you can’t help that now - you aren’t in a position to do anything else to get out of this now so you just have to accept the hit on your credit file and move on. You wouldn’t get a mortgage with outstanding debt and in your financial position as it stands now anyway so you need to take steps to sorting the debt now.


Make the call, get the ball rolling, you’ll feel so much better!

 

[bubblebar1317]

Thank you so much for replying! I had a look into stepchange and identified that a debt management plan is definitely best to get my payments down whilst also getting it paid off in 4 years! Just waiting to hopefully get accepted

 

[bubblebar1317]

Yes, had one years ago. Best thing I ever did!

They will look at your income and all your outgoings and will decide on a mutually agreeable affordable monthly repayment amount - it will be far far far less than what you are paying out at the moment on debt. They will deal with all creditors so you won’t have to actually deal with any of the arrangements and usually it freezes the debt and no more fees are added on and you shouldn’t get any further communications from creditors after everything is set up. It takes so much stress away. Yes, it obviously has an adverse effect on your credit file but frankly you can’t help that now - you aren’t in a position to do anything else to get out of this now so you just have to accept the hit on your credit file and move on. You wouldn’t get a mortgage with outstanding debt and in your financial position as it stands now anyway so you need to take steps to sorting the debt now.


Make the call, get the ball rolling, you’ll feel so much better!

You’re so right! I’ve submitted all my docs and payslips etc just waiting on word back from Step Change.

i was so worried about the adverse affect but tbh it takes an absolute battering every month because I use any payment I make on credit cards again because I’m so stuck!!!

 

[JoeBloggs]

can i not apply under my mums name

You need to get some advice asap, please speak to Citizens advice. I take it you speak your mothers language? You need to speak to her and explain whats going on. They need to get this sorted and you cannot do it for them. You can help but do not apply for things in their name.

 

[Guacamole123]

So glad I found this thread and it’s such a relief to see that it’s not just me in debt problems! Applied for the 60 day breathing space today and my DMP. Debt is such a dirty secret that no one talks about, I’d be interested to know how many people in my real life are in the same issue as me. I have about 9.5k debt, and this includes my overdraft too which I’m SO happy to be getting rid of as I’ve had it since I was a student.

 

[bubblebar1317]

Absolutely! I really didn’t appreciate the value of money and saw credit cards as free money! I cleared them with a consolidation loan initially and said to myself I’d close the accounts with credit cards and I spent another £6000 it was the worst thing I’ve ever done. It’s embarrassing how much I let it spiral, I only ever told my partner and he doesn’t even know the full amount he thinks it’s around £16,000 but it’s now under £20k.
It causes me so much stress I just don’t want to mention it again so if I’m paying my DMP then u can just know it’s being handled!

i hate calculating how much extra money I’d have it u hadn’t been so silly with credit cards!

 

[Be More Pacific]

I’ve spoken to step change again and things are looking better now. My specialist is being a twat tbh and won’t even bother taking my calls least not write a letter saying I won’t work again unfortunately. We now do have a plan going forward though that I’m happy with, but when I speak to the hospital next I will discuss it and see what can be done xx

Bloody pip rejected my claim as I’m not disabled enough would you believe

PIP is HARD.

I was on a lifetime DLA award (no form of assessment but I had help to complete the form by someone from the MS Society on a newly diagnosed course laid on by the hospital trust I was with at the time) but then I was finally "invited" to apply for PIP.

This time, I used a disability advisory service recommended by my MS nurse. Application was submitted. I had to have a home assessment and subsequently didn't get the award I wanted (to keep my Motability car) or that I was led to believe I could expect. And it was only awarded for three years I think it was because we all know that progressive illnesses we get better the longer time goes on....

But I can absolutely see why now, as the advisory service completed the form and it wasn't anywhere near detailed enough - this was despite interviewing me in person for two hours. And their advice to completely ignore and not provide any additional information at the mandatory reconsideration stage was also totally and completely fucking wrong.

Anyway, by this time, I had moved out of the area and they couldn't represent me at tribunal (probably for the best) so I spoke to a welfare organisation, where I am now, just for advice about what medical evidence to submit with my appeal which basically turned into an hour long character assassination - I was told that I should just be grateful for what I had been awarded and I stood absolutely no chance at tribunal. Honestly, he was so vile to me, he made me cry and I'm a right hard faced bitch so it must have been bad. And they are supposed to be there to help!

So I decided to go it alone to tribunal. I read a lot of stuff online including how each area is broken down point by point and what the DWP are looking for. I spent a whole day writing my appeal - there were four areas I felt I should have been awarded points in but either didn't get what I thought I should or didn't get anything at all. Submitted it. Didn't hear anything. And then, just before the tribunal date was set by the court, I got a letter from the DWP, totally out of the blue, that they were now awarding me enhanced rate in both mobility and daily living meaning I keep my car and am actually financially better off as I only had low rate care DLA. And awarded for nine years this time so I hopefully won't have to think about it again until then.

All this took a year. A year of stress and uncertainty. So it was really fucking hard but ultimately worth it.

Definitely reapply but do your research.

 

[bubblebar1317]

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!!!

 

[Dancing_in_the_dark]

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.

 

[Gossgirl12]

Hi everybody, signed up to hopefully get some advice!
I have a fair amount of debt and have now got to a point where my incomings are not covering my outgoings - I am going to contact stepchange but I was wondering if anybody knew how much a DMP can drop monthly payments down to?

Sorry if this has already been answered!

I was in one a very long time ago, I was paying £520 per month to debts before joining stepchange, it was reduced to £180 when I entered the DMP. It will all depend on your disposable income after essential things are paid.

 

[Clairer86]

I havent read all the replies yet so i am sorry if the advice i give has already been said.

You should check out 'Christians Against Poverty'. They are a brilliant charity, and they can really help. They are so kind, and understanding, and they will do everything they can to help.

I have used them and they were absolutely brilliant. They will help you go through everything, and will help you decide what is the best route for you to take (ie) a debt relief order, IVA and so forth.

 

[BettyCrockerr]

I am reading this crying. Our remortgage has been refused because of my debts. I can’t seem to get clear of them and now my husband is talking about selling our house and renting just to pay them off.. we have no life because of them.
I have never considered something like StepChange. Would this effect my husband as it’s my debt I don’t want him to be effected in anyway. Would they help me even though I have a mortgage? I am so glad I found this forum x

Yes.contact them today to discuss all of your debt issues and start the ball rolling. If the debt is in your own name only then any debt management plan would be yours alone but obviously the two of you are already financially connected anyway through your mortgage. Contact them - they are so good, they will give you lots of options and you will feel so much better once you’ve spoken to them,

StepChange Debt Charity. Free Expert Debt Help & Advice

 

[Elizaaaaa]

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?

 

[Elizaaaaa]

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.

Thank you so much for sharing your experiences, I really appreciate it. Going to sit down and work out exactly what I owe this evening and then make the call!

 

[klarakluckbag]

Hi there. Any debt arrangement plan which means that you pay off your debts at a reduced rate, almost always has an impact on your credit file, usually for at least 6 years.

Have you sought advice from a debt charity? Stepchange is a good one, and their advice is absolutely free, as are their debt management plans (DMP) You should never pay for debt advice, nor should you pay a fee for anyone to "manage" your plan for you, although a quick google tells me that there is an administration charge for a debt arrangement plan, but this is not added to your debt, and you won't pay more than you owe.

Another really good resource is the Moneysavingexpert website. There is lots of helpful and non-judgemental advice on there, although if you do post, let them know if you're not in England as the advice, and the consumer laws, may be different.

Good luck with dealing with your debts. I've been there and it's not fun, but you will feel much better when you get to grips with your spending, and start tackling this!

 

[Dancing_in_the_dark]

I am reading this crying. Our remortgage has been refused because of my debts. I can’t seem to get clear of them and now my husband is talking about selling our house and renting just to pay them off.. we have no life because of them.
I have never considered something like StepChange. Would this effect my husband as it’s my debt I don’t want him to be effected in anyway. Would they help me even though I have a mortgage? I am so glad I found this forum x

Please don’t cry xxx it’s such a shitty awful place to be when you are in debt. But def chat with step change, they will be able to offer advice and they are genuinely so helpful and kind. It won’t always feel like this, there is a light at the end of the tunnel x

 

[oddsock17]

Follow Stacey's World Rocks on Telegram. She does 1:1 and group zooms on how to claim back your sovereignty and stop paying back debts and claim back payments already made. People have claimed back thousands from tv licence, council tax, gas and leccy, credit cards loans etc

 

[Dancing_in_the_dark]

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

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

 

[bubblebar1317]

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

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!

 

[Be More Pacific]

Ergh I just spoke with the Iva advisor about setting it up. Essentially I will have to sell my car even though I have it because I’m disabled as is my son. I have a life limiting illness and will likely be dead within ten years so now I can’t stop crying becaus what time I have got will be stuck in this house because I won’t have my car.

I have MS and I managed to get all my debt (£20,000) written off with the help of a letter from my MS nurse which said, amongst other things, that I am unlikely to ever work again (I'd been off sick for a year at this point and then came to an mutual agreement with my employers to leave - basically they offered me money to avoid a constructive dismissal claim because they promoted my junior staff, during my absence, without inviting me to apply for the job or even telling me) I wrote to all my creditors myself with the letter and they all agreed - I'd been paying either £1 or nothing for a year with the help of StepChange.