Debt Arrangement Scheme

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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.
 
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?
As Betty said StepChange should be able to help, regardless.

If she is self employed could she not look at upping her prices, adding to her services, taking on more clients etc?
 
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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
 
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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,

 
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I've contacted Step Change for some assistance. Has anyone had any experience with debts been written off or reduced? thanks ..
 
Erm I'm not sure if honest, either the debt is written off after a lengthy period or someone has stepped in to make an agreement ..
 
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 crappy 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
 
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Well I had a slightly happy moment the other day, got a letter from MBNA (we had six of their cards between us which got put into our joint DMP 🤢 they had sold on five of them to a debt collector who we have been paying but apparently there was one rogue one that we were paying them direct for)- they said they made a mistake with the account we still had with them and to fix it they were removing the defaulted account from our credit reports and clearing the debt! They confirmed this to step change as well. No idea why it’s happened but it’s 3k written off, I’ll take it!
 
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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?
Is the debt with multiple companies?
The minimum payments, call these companies say she has done income and expenditures and is struggling and would like to make the smallest payment possible, the minimum is usually £1 - £5 or ask for a payment hold for 30 days while she comes up with a plan.
If you need any other help or any questions let me know.

In fact it anyone needs any advice I'll do my best. I work in debt management
 
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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. 😭
 
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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.
 
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.
Could you not apply for PIP and get a car via the motability scheme??
 
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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.
Think you only have to sell if it's worth more than 7K? Which isn't hard just now with the price of used cars... you could sell and buy something cheaper and put extra cash towards your debt, or apply for PIP motability if you're registered disabled. If you have the car on finance then it's considered part of your debt so would need to be consolidated with the rest of it? If you're reducing your monthly outgoings with giving to your car it will hopefully allow you to save and get something a bit cheaper in the future.

Good luck, I considered entering a debt arrangement at one point but managed to pay it off myself, had to go full time at work and give up a lot! Currently driving a 15 year old car when my last one was brand new out the showroom, had about about £16k total debt and now I'm down to £1k left on a 0% card so I know how tough it is having debts that seem unmanageable and it's given me a reality check with my spending. I feel for you having to do this without being able to work and pay it off. Hope things get better.
 
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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.
 
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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.
I’ve spoken to step change again and things are looking better now. My specialist is being a twit 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

Could you not apply for PIP and get a car via the motability scheme??
Bloody pip rejected my claim as I’m not disabled enough would you believe 🙄
 
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I’ve spoken to step change again and things are looking better now. My specialist is being a twit 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 🙄
Re-apply for pip. Can you also not apply for it on behalf of your son? Or something similar?
 
I’ve spoken to step change again and things are looking better now. My specialist is being a twit 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 bleeping 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 witch 😂 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 bleeping hard but ultimately worth it.

Definitely reapply but do your research.
 
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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!
 
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