Debt Arrangement Scheme

[bubblebar1317]

Can anyone help me regarding something!

I’m on my 3rd month of my DMP thanks to everyone who helped me out, I feel so much lighter doing it this way than trying to afford crazy repayments.

I was just curious I know you can still get a mortgage but it’s dependent on how far into your DMP you are etc.

I had a mortgage as a first time buyer in 2018 with my ex partner, I was released from that in 2019 and he kept our home and had the mortgage in his name. I then just rented afterwards.

My new partner bought his home himself in 2020 and I moved in but we are wanting to buy a home together once my DMP is over in 4 years.

Do you know if I’d be more likely to get a mortgage having had one before? And does anyone have experience of getting a mortgage after a DMP?

 

[BettyCrockerr]

hi, how does this work, how do i apply for it

This won’t help your parents with their rent and council tax debt.

 

[havee]

not to give too much info but basically my parents are in debt, but are not dealing with it and have left it to me. my mum doesnt speak english and my dad doesnt handle the stuff. he for some reason does not pay the rent or tax etc as his friends do not pay it and have advised him to pay as well. he is rarley home but all the letters of home possessions and tax libality and courts come to me. most of the rent is payed by benefit due to low income but due to me not going into higher education benefits stopped paying for my share of rent and tax. due to covid being in peak and my social anxiety at it worst i wasnt able to find or look for a job. enforcement agents even had to come to get tax payments and extra pirce was added due to agent coming, my dad payed for it but blamed me for it. now the place that is supposed to be home is at stakes due to court hearing of repossesion, my mum blames me for not finding a job and paying it off and my dad is dismissing it. part of the rent is mine and partly is my dads as he earns a little bit more than recomended living wage so has to pay % of extra wage towards rent. but he is refusing to understand that and is saying all the rent is mine but i dont have anyhting to pay for it. i dont know what to do and incomes team arent really helping, how do i explain my situaton?
I am in need of serous help, enforcement agents came today, im scared what to do.

 

[bubblebar1317]

Thanks so much!

 

[Helena Sell]

Hey! Congratulations on taking the first step, it’ll take a weight off you!

Everyone is different when it comes to the repayments and they’ll take into consideration all your outgoings and life tbh - for example my repayments to credit cards was nearly £600 a month when factoring them all in and they got it down to £345 for me. They still asked if it was ok and if I thought there’d be enough left over for me each month. Hope this helps
Xx

Thank you!!
That’s really reassuring as my monthly payments are near enough the same as yours were too! It’s terrifying having this much debt and now with everything else going up it has become very real.
You have really put my mind at ease so thank you xx

 

[havee]

This won’t help your parents with their rent and council tax debt.

why not

 

[bubblebar1317]

Definitely sounds like the best way to get the ball rolling!
Sorry, can I ask how long it took for a plan to be put in place?

Glad it’s helped you out and made you feel better about things!!
xx

Of course! So I enquired before Christmas and made my first payment in February. It was quite good as they advise you to stop paying your monthly payments to who you owe for that period so they can solidify how much you owe, it gives you some time to save for the first payment / breathing space for a month. All timescales are different though. If I’m right who you owe money to has 42 days to decide if they accept the DMP, I was told it’s rare they say no to the process as they’re guaranteed repayment even if less than fully owed.
Hope that helps! Xx

 

[MissSL]

Hi. I know this thread hasn’t been active in a while but I’m really hoping I get a response.
My sister and her husband, have managed to get themselves into nearly 1 million (yes 1 million pounds) worth of debt.
It sounds unbelievable - but they have. And £650k of that is on personal guarantees against their house (that her husband managed to sign without needing her signature- so she says to me). Long story short, they had a limited business, were not paid by their client for a number of weeks, and the husband made the absolutely catastrophic decision of raiding their savings/taking out more and more loans and allowing his contractors to work without being paid (on the promise the money would come good and he would pay people).
my sister is complicit in not stopping him and continuing to spend outside of their means (I mean really OTT spending).
they have been told by their privately hired debt consultant person that the best Thing for him to now do is declare bankruptcy. But he is refusing to- telling my sister he will apply for an IVA. Has anyone got any advice for me to support her? I’ve never known anything like it and am so worried for her even though this mess is collectively of their own making. Please help if you can!

 

[FlipFlop0706]

Revisiting this thread- I’m trying to help my friend. She’s in debt- not to a large amount (under 5k) but it’s enough that she’s worried sick about it. We’ve sat down and gone through all of the bills and she’s making minimum payments but not having enough to live on. Had a look at step change but it says that they cannot help as she’s self employed. Ideally she wanted to go on a debt management plan to freeze the interest so she could make a dent in clearing the balances.

Not sure what else to do? She can’t get a loan to consolidate as her credit rating is crap. I feel awful as I really thought Stepchange would be able to help and it’s taken her a lot to get her head out of the sand and address the debts head on.

Any ideas?

 

[a.pain]

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!

I’m in a DMP which started in 2019, just been approved for a mortgage with a specialist bad credit mortgage company- it’s not a great interest rate obvs but it’s manageable for us. The sub prime lenders will generally accept DMPs if payments have been made for over 12 months and any defaults on your credit file are over 2 years old. In two years we can remortgage to a better interest rate then two years after that our DMP should be paid off, defaults fallen off credit file and hopefully we can mortgage with a high street lender our previous mortgage was with a high street lender, before we got into debt, but it didn’t make any difference to our situation now that we had had one before. In short you can access a mortgage during your DMP after a couple of years but if you want a decent one you’ll need to be out of it and defaults older than 6 years

 

[Dancing_in_the_dark]

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.

 

[bubblebar1317]

Hello, looking for a bit of advice. I had to take out a DMP with StepChange which has got off to a difficult start due to some companies saying they hadn’t received paperwork.
I keep track of my credit file on ClearScore and all my debts are disappearing from it? Did this happen with anyone else?

not from what I remember but it will just be temporary whilst your file updates I’m guessing!

 

[Fizzwhizz2020]

It would be better to get a debt management plan like you say and pay it off in smaller amounts and actually pay off the debt, rather than just the interest. In terms of getting a mortgage down the line, if you have that amount of debt, that will also impact your credit score and your affordability for a mortgage will be less, so either way there will be an impact. But, a few months of paying it off, you’ll see your credit score rise again x

 

[JoeBloggs]

Yes I was thinking that no one would accept him for an IVA given that amount of debt. He’ll never be able to pay it back. I’m so worried she’s going to lose her house but she keeps telling me she’s just a year to buy him out before they can force her to move…. I’m not sure that’s right and how she can be so certain!

As the debts been taken out against the house, how does she plan buying him out. The house is the collateral if he can’t pay.

Sadly I think she’s delusional. It must be a big shock and be prepared for the reality to hit for her.

 

[BettyCrockerr]

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!

It will depend on your own individual circumstances but they sort it so that it’s an affordable amount that still allows you to live! I think I was paying £80 a month or something when I did mine which was far less than what I was paying off on credit card repayments etc every month. It’s all just Based on your own debt and your own income and outgoings but it will be something that you can actually afford.

 

[BettyCrockerr]

Can anyone help me regarding something!

I’m on my 3rd month of my DMP thanks to everyone who helped me out, I feel so much lighter doing it this way than trying to afford crazy repayments.

I was just curious I know you can still get a mortgage but it’s dependent on how far into your DMP you are etc.

I had a mortgage as a first time buyer in 2018 with my ex partner, I was released from that in 2019 and he kept our home and had the mortgage in his name. I then just rented afterwards.

My new partner bought his home himself in 2020 and I moved in but we are wanting to buy a home together once my DMP is over in 4 years.

Do you know if I’d be more likely to get a mortgage having had one before? And does anyone have experience of getting a mortgage after a DMP?

Yes you can get a mortgage after you’ve had a DMP, you’ll need to wait until the plan is finished and your debt is clear and it will likely have an adverse effect on potentially how much can be borrowed/interest rates etc but it’s by no means impossible. Go and speak to an independent FA to
Discuss it or nearer the time contact a mortgage broker for advice

 

[bubblebar1317]

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!

Hey! Congratulations on taking the first step, it’ll take a weight off you!

Everyone is different when it comes to the repayments and they’ll take into consideration all your outgoings and life tbh - for example my repayments to credit cards was nearly £600 a month when factoring them all in and they got it down to £345 for me. They still asked if it was ok and if I thought there’d be enough left over for me each month. Hope this helps
Xx

 

[BettyCrockerr]

Revisiting this thread- I’m trying to help my friend. She’s in debt- not to a large amount (under 5k) but it’s enough that she’s worried sick about it. We’ve sat down and gone through all of the bills and she’s making minimum payments but not having enough to live on. Had a look at step change but it says that they cannot help as she’s self employed. Ideally she wanted to go on a debt management plan to freeze the interest so she could make a dent in clearing the balances.

Not sure what else to do? She can’t get a loan to consolidate as her credit rating is crap. I feel awful as I really thought Stepchange would be able to help and it’s taken her a lot to get her head out of the sand and address the debts head on.

Any ideas?

What line of work is she in? If she’s only got £5K worth of debt but is struggling to afford to make minimal payments and cover her normal bills it may be worth her looking for an employed PAYE job and then get into a DMP.
Did she actually speak to an adviser at step change? There are options for those who are self employed but you have to go via the business debt help line - even through shes got personal debt to
Clear. They should have passed her over to that department.

 

[havee]

Because your father is deliberately not paying his rent and council tax. Also your FATHER is the one in debt not you - you can’t even get him to admit that so how on Earth do you think you are going to get him to look into and apply for debt solutions?

can i not apply under my mums name

 

[CrazyGiraffeLady]

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!

I made this mistake of thinking credit cards were free money too! And things like very with but now pay later so so easy to get your credit limit upped.