Brogden's Debt Disaster & Self Managed DMP!

A question about : Brogden's Debt Disaster & Self Managed DMP!

Hi Everybody

I have really benefited from reading some of the diaries on here. Obviously not everybody has debt and some people will think the diaries are a little mundane but I like them because they are ‘real life.’ Oh the trials and tribulations………

As I look back, I have been in debt for years. Why is that?

1.When I earned well I thought that would go on forever and didn’t adjust the spending when income reduced
2. I fly blind. I don’t look at what I am spending for fear that a low account balance will ‘spoil my mood.’ If I can’t overcome this I’ll have to seek therapy!
3. I have been ‘over-optimistic.’
4. I can be a tad ‘rash.’
5. I am a ‘soft touch!’ Anything for a bit of peace!
6. I ignored the initial warning signs.

I think these are all of the reasons – laying my soul bare……….

Do I have lots of quality possessions to show for this? No. Do I have many memories of fantastic holidays and time away……a few but not much when I look at the amount of the accumulated debt!! I am not the only one but I have just not been living life in the best way have I?

So my signature below says it all. Most of the bank debt is credit cards but there is one bank loan which I took out in a moment of total madness. Yes there are payday lenders too and I have been active in this particular field too much and far too recently! You see, I have taken out payday loans to bridge the gap to payday (as they are intended) but not repaid. Maybe rolled over, maybe defaulted maybe arrears on a priority debt has taken the funds. Maybe a payday lender has taken what I need for the council tax….you know the story……a complete mess.

I did not enter into a DMP in the way that some people do when they see the warning signs. I went along in my chaotic way until one day I came up against a brick wall……and the whole thing collapsed on me! Everything went ‘belly up’ at the same time. A horrible coincidence of sorts which left me with mortgage arrears, electricity and gas arrears, a CCJ for the water and TWO attachments of earnings for the council tax. At the same time every creditor I had was sending me letters and the phone rang non stop. My life went completely upside down and serious ‘domestic unrest’ was the order of the day.

All of this happened more than two years ago and my progress at bringing this debt down has been very slow. Why is that? Well, with just about everything in arrears I have been on numerous payment plans to keep a roof over our heads and keep all of the services connected! Life is a little more peaceful than it was. The mortgage, council tax and almost all utilities are up to date and I suppose I feel that I can get properly stuck in to reducing and ultimately ridding us of this debt – it does seem like a good time for me to start this diary and I will reflect on past experiences as we go along.

Oh yes…….the DMP…..(Damage Mitigation Programme!!!) Self-Managed is the order of the day at Brogden Towers. I went through the Step Change (then CCCS) debt remedy but I couldn’t send it in…..I just couldn’t. I haphazardly fell into self-management. With the arrears on priority bills they wouldn’t have allowed me to start a DMP with them anyway. I have learned a lot over the last couple of years and I salute the superb Step Change and Payplan but there are numerous advantages to self-managing. I wake in the morning, open my eyes and ‘thank the lord,’ I am ‘Self-Managed Brogden.’

I will update the diary with both major and mundane developments so please join in with me and we’ll ride this rocky road together. I have so much to say…..I hope some people are interested and can relate

All the best,

Brogden

Best answers:

• Hi There!
  Just wanted to pop in and say welcome to the debt free diaries!
  I had my LBM in March 2012 at Ј28k and am now in my last few months of my plan. I have found that having a diary on here is a great help and I have had a lot of support and money saving tips from readers. I think that one of the hardest things in getting out of debt is getting into the right mindframe. I had been in debt about 18 years when I had my LBM and it is hard to reprogramme the way you think regarding money. Once you get into the mindframe of living frugally, saving every penny and paying as much as you can off your debt, it becomes a lot easier. Still, there are ups and downs but I have found that it has gone mainly pretty well for me and the time has really flown by.
  I hope you succeed in your goal to get debt free and wish you lots of luck!
  GMOOD
• Good Morning Everyone
  A bit of a slow start for me and its a very grey, cool, autumnal morning. I'm at my desk trying to get my work organised but dwelling on ideas for getting rid of creditors and reducing the debt mountain
  I think my progress will be slow until early next year when I should be in the position to offer F&F's and whilst I very much doubt I will come anywhere near clearing this debt, I do think things will be a lot better and I will hopefully be in a postion to estimate when a debt free day may be on the cards. I am very interested indeed in the whole subject of F&F's at the moment and if anybody has any tips or stories I would love to hear To be honest......I just can't stop thinking about F&F's
  Within my payday loan 'portfolio' are two or three scraggy, irritating little debts which are on payment plans and to clear things up a bit I will be setting my sights on those and hopefully picking some off. The big action on the 'respectable banks' really can't happen for a while yet although I may have the firepower to blow M&S away shortly - that is the debt that causes the most domestic unrest when the pesky letters and statements intrude through the letterbox
  Have a great day everybody and tell me how you are doin'
  Brogden
• Hi Brogden,
  Good Luck!!!! Only just started diary myself in August, and its really helping me to stay positive
  We have a huge debt too, as have been self employed - I kept thinking business would pick up (it always did before) but after this recession it just didn't.
  Would be interested to hear your thoughts on your self managed DMP - have not set one up yet - just making token payments but will need to do something soon!
  x
• Hello Brogden, I just wanted to say hello and let you know I have subscribed to your diary.
  Almost 4 years ago my husband was left high & dry by a business partner of 15 years. They had accumulated around Ј60K of debt and our home was used as security against a Ј100K bank loan. Needless to say, we had to re-mortgage out home, he got off scot free and my husband and I have worked tirelessly to reduce our mortgage back to its previous amount. Its been really tough along the way but we are getting there. This website has been a tremendous help and its members have some terrific wisdom and advice. At times its been a great comfort to me.
  Best wishes, PennySaving
• I AM SO SORRY........PENNYSAVING NOT PENNYWISE
  Brogden's getting his coat. x
• Hee Hee, don't apologise.
  It was very tough at first to think that someone who you thought always had your back could waltz off without looking back. But you live and learn!!
  Yes, for us the business credit cards, personal cards and car loan were tackled first then the mortgage.
• just had to post - you're situation and what led you to be in this position is close to where I'm at. the decision to go it alone for dmp the same (and the same reasons by the look of it). Hope it picks up for you and you get some good news with the f/f next year - fingers crossed for you and I will be picking your brains on how to do it as im going to be in the same position later next year. have subscribed
• Hi Everybody,
  Its been a short while since my last post as I had to leave the house very early yesterday, wasn't back until evening and walked into a lot of work (business and domestic) which needed attending to and then ate my tea and was a bit of a sleepy Brogden
  I burned a bit of diesel and not having time to make a 'DMP-Sandwich,' called at one of my favourite chip shops and had the most beautiful piece of fish Not the best budgeting day really - putting the fish aside for a moment, I do find that fuel requirements are an absolute b*gger to budget for. I have no choice but to drive though and I enjoy getting out. These days I play games as I am driving, looking at the trip computer and trying to get the best average consumption figure on the screen Got it up to 55mpg yesterday but on long easy cruises I have nudged 70 mpg a few times What a sad Brogden!!!!!!
  Speak to you all soon.
  Brogden
• Not sad at all Brogden - I have been eco driving for years - and have managed to eke out 10%extra mileage for keeping to 50-60 and not thrashing the car (not on the 30mph roads - obviously )....it does annoy others though, I laugh at the boy (sorry sexist, and girl) racers who rev hard overtake and then pull up at the red traffic light 2 seconds before you
  Going back to your non "purist" DMP Did you keep some cards going through your DMP? and did the other creditors kick up a fuss if you did?
  x
• Hi Brogden,
  That all makes perfect sense, I know what I should do, and I suspect there wont be much of a credit limit left as they are bound to catch on soon ....Yes Sainsbury have done that to OH card already!!! It is short term and as soon as I have a comfortable little pot of funds for the unexpected I will stop (Balance on it is Ј600 ish).
  Fish and Chips? yummy - you need a treat every now and then - I gave in to eclairs yesterday!
  Am working at school tomorrow, will catch up soon
  x