Author Topic: Anyone with a Step Change DMP?  (Read 3932 times)

omg999

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Anyone with a Step Change DMP?
« on: Sep 13, 2013, 05:58:23 PM »
Hi guys, I'm new here, so hello everybody :j

I've had a gradual slide into debt since my husband left me 5 years ago with 2 lil'uns and a stupendously expensive mortgage that I can't get out of.

Anyway, the last year has been the worst as HMRC had massively cut my tax credits which left me so short that all my money after the mortgage goes straight on my debts... Which means that I use credit cards to buy basics like food and petrol.

I can feel a waffle coming on about my life so I'll cut straight to the point...

I've looked into what I can do about my debts- bankruptcy and debt recovery are out of the question where I "own" my house (despite it's £25k neg equity) and I'm just short of the IVA route...

So, the Step Change website has suggested I go for one of their Debt Management Plans....


... I'm so wary. I know they're respected and non-profit but do creditors take them seriously?

Also, do many creditors sell the debts onto debt recovery companies whilst you're in a DMP?

I don't want to be in a situation where my debts get sold onto nasty debt recovery companies :(

Also, what are people's experiences with Step Change as a company to deal with?

Thanks for any insight that anyone can give me... And apologies for waffling on xxx:p

juliec71

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Re: Anyone with a Step Change DMP?
« Reply #1 on: Oct 19, 2013, 03:14:49 PM »
Hi


I have a DMP with them and it has been life changing, I dont have any hassle from creditors anymore.  I would recommend them  :)

James Falla

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Re: Anyone with a Step Change DMP?
« Reply #2 on: Feb 21, 2014, 09:55:50 AM »
Hi omg999

Step Change are normally good to work with however it is useful to be aware that although the service they provide to you is free they are paid by your creditors. As such there is a question about who's corner they are really fighting for. Sometimes this becomes an issue as they do not seem to work very hard at getting interest frozen which is vital for DMP to have any chance of working.

In terms of your situation however a DMP with Step Change or anybody else is unlikely to resolve the problem with your mortgage. You have said that your house is in negative equity. Would you say you are struggling to pay your mortgage even though you are in a DMP? If so then the property is at risk of repossession what ever you do. In this situation I would advise moving out of the property into rented accommodation, allowing the property to be repossessed and then going bankrupt. This way you would be rid of all your debts and can move on debt free. It is a route that I have used to help many people in a similar position to you in the past and is certainly worth considering.
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