Trouble with creditors...

hollister_2

Hi I know there are probably hundreds of posts simialar to this already on here however I have got problems with my bank and other creditors I owe money to and don't know what I should do..!?

I have got an account with RBS that is over drawn and have recieved a letter saying they are going to lodge a default on my credit file if I dont clear my owing balance or make a suitable repayment offer to them. I also have other creditors who I owe money to however I have been making smaller than usual payments to them just to try and get the balances down and also prevent any black marks being added to my credit file, which so far I have managed to avoid. A friend of mine has said to go into a debt management plan but I am worried that I will just obliterate my credit score for the next 6 years if I do that, will a debt management plan prevent creditors logging defaults against me? Also has anyone had a similar experience with RBS? If so do they still log defaults if I were to come with an agreement with them directly? Any advice or suggestions would be greatly appreciated.

Thanks

PNPSUKNET

They can place defaults even if on a debt management plan , its due to you making less than agreed on payments.

podperson

Have you tried contacting RBS to come to a repayment plan with them? If you can arrange something they are happy with then they are less likely to put a default on your account, but make sure it is something you can afford to stick to.
Regarding a dmp, no this doesn't prevent creditors giving you defaults - it is basically taking the money you have left at the end of the month after paying your bills and essentials and splitting it between all your debts. Depending on how much you have left this may not cover the payments some of the creditors expect to be paid and therefore they may default you. It depends on your circumstances, if you are unable to make the regular payments on all your debts you may have to look at that option.