DMP Mutual Support Thread (Part 5)

cocker100

Hi all,

For anyone who has been concerned about getting defaults on their accounts, please do not be alarmed at this as it is standard proceedure!!!;)

A default basically means that as you have entered into a DMP with reduced repayments, you have broken the terms and conditions of your credit agreement with your creditor, so the creditor has cancelled the account.

This is because you are no longer paying the required monthly payment to the credit account.

Defaults are a good thing becuase once the account is defaulted, no further interest or charges can be added to the amount still owed, because the terms and conditions that allow the creditor to add these have been annulled and are no longer valid!

Yes, the default is recorded on your credit file, but this is only for 6 years, so really the quicker it appears, the quicker it disappears again! Your credit file is trashed anyway whilst on a DMP! Also, you aren't allowed any more unsercured credit either whilst on a DMP, so it doesn't really matter.

The only downside really would be if you were trying to get a new mortgage, as you would probably only be offered a really naff one, if any at all!!

Hope this helps some of the newbies out there!!!

Cocker:)

dlb

Evening guys.

If you have a dmp start date and you get any hassel via phone calls ect just keep telling them your dmp ref number and give them payplan/cccs phone number and hang up.
DONT NOT FEEL BAD FOR DOING THIS the creditors dont worry about hasseling you so dont feel bad about hanging up you have given them all the info they need your ref number and company you are with, they need nothing else.
I never sent any letters off to my creditors just stuck to my tactic of talking over the top of them and then hanging up..they soon began to communicate via letter only and were all onside within 3 months.

As everyone has said defaults are a good thing and also debts being sold on to collection companys as they are more likley to agree to any payment no matter how small.

To all of you just starting out
1-Dont Panic
2-Just stay strong and stick to you guns
3-Just wait for a few weeks even months these things take time to set up and start to run smoothly, the creditors will get it..it just takes them longer than normal people to understand what you are asking as the left hand doesnt know what the right hand is doing!!!lol
4-Be proud you are dealing with you debts...do not feel ashamed we are all in the same situation here, and i bet there are more people in debt than arnt in debt at the moment...so dont feel you are different...the only differnce with us is that we are facing up to it and doing something about it and not hiding from the fact!

I know this is all very easy for me to say as im over 3 years in and have done `the hard part` so to speak, but it does get better infact it gets an amazingly amount better as the weeks pass.

I stand by what i have always said....
A DMP HAS BEEN THE BEST THING I HAVE EVER DONE AND WISHED I HAD STARTED IT YEARS BEFORE I HAD.

Donna
xx

2009timeforchange

Cheesepuff - I had the exact same letter from Natiowide today RE my loan, they must be working hard for once!!

As always , this bard is full of support, I know I dont often post but i read every day and between you all you reassure me so much.

2009timeforchange

Also can i ask

One of our creditors is Nationwide and our daughter has a smart account with them. Is there anyway the NW can touch her money for our debt????

dlb

2009timeforchange wrote: »

Cheesepuff - I had the exact same letter from Natiowide today RE my loan, they must be working hard for once!!

As always , this bard is full of support, I know I dont often post but i read every day and between you all you reassure me so much.

There are many of us that try to get on as often as possible to make sure no ones questions go unanswered...so if you ever post and dont get a reply please repost as it will just have been overlooked when there has been lots of posting happening that day.

We are all here to support each other...so please post as often as you wish
Donna
x

boot13t

cocker100 wrote: »

Hi all,

The only downside really would be if you were trying to get a new mortgage, as you would probably only be offered a really naff one, if any at all!!

Our mortgage is with the RBS (who is one of the creditors) and is up for renewal next year. Will we find it difficult to secure a new mortgage with them or anybody else? Also could the RBS cause any problems e.g. latching a loan or credit card debt onto the house?

:eek:

Cheers,
Boot

dlb

2009timeforchange wrote: »

Also can i ask

One of our creditors is Nationwide and our daughter has a smart account with them. Is there anyway the NW can touch her money for our debt????

Im not 100% sure but i would say not as the account is in your daughters name and so should not be able to touch it, the debts are not hers and she is under 18 so i would say no they cant.
Im sure someone will tell me if im wrong on that. :rolleyes:

cheesypuff

This Board is great with all the advice and support, thanks E1 for all the reassurance about the defaults:T Just one thing do I send the default letter to CCCS or keep it

Funny I was wondering about our mortgae too, ours is with Abbey and our fixed rate ends in August, they are one of our creditors I wonder will they still offer us a new deal? Anyone else had mortgage with a creditor? did it effect things?? Would be intersted to know.

Have all token pymts sent off, thankfully

Tigert

cocker100 wrote: »

Defaults are a good thing becuase once the account is defaulted, no further interest or charges can be added to the amount still owed, because the terms and conditions that allow the creditor to add these have been annulled and are no longer valid!

Don't think this is true. 13 of my 15 creditors have defaulted me, but some are still charging interest.

They aren't a bad thing though. Your credit rating will be wrecked by a DMP regardless. A creditor has to default you before passing the debt on. All mine that have been passed to DCA's (6 of them in total) have stopped interest and accepted reduced payments.

On a happyish note, I increased my payments last month. Looked on Justabank today (Payplan site) and my DFD is down to June 2012 - Only just over 3 years to go Started out with £75,000 of debt and a DFD in 2014. Now down to £53,000. So am feeling quite happy about that.

Moany_Money

Hi everyone!

Well my DMP is now up and running. The most helpful and understanding creditor has actually been MBNA who accepted the plan almost immediately. The worst has to be Natwest, I've been sent all sorts of letters which annoyingly advertise the CCCS (whom I'm with) at the bottom of the letter. All my other debts are with RBOS owned companies (Halifax + Sainsbury's) and I've been informed they can be tough nuts. Anyone else had dealings with these ?