Stupid Debts....

MattH123

Afternoon all, first post here and a new member so could really do with loads of advice, and apologies if any of this is in the wrong place!

Basically, i got into trouble with quite a few payday lenders, using one to pay off another (very stupid im aware) until eventually it got to a point where when i got paid, i would be spending it all on covering the debts, and then taking them out again to have money to live! Very idiotic i know...but mistake learnt!

Problem would now be that i am with a debt management agency, who appear to be working fine, but i have a few companies who are still harrassing me (NDR - northern debt recovery for one) and others who have ridiculous charges (MiniCredit - borrowed £500, debt currently at £2100!). i know its my own stupid fault for borrowing from these horrible people, but believe me, lessen learnt and i wouldnt advise my enemies to use these people!

Now some of them have been ok with me, and i am settling the debt with them fairly quickly (initial estimate was 29months, i've got it down to 7!), but one company has said that if i go by the payment plan arranged, i will receive a default notice on my credit rating??

My questions guys and girls are
1) How do i get these people to leave me alone now i am in a plan with them?
2) How can i reduce the charges received from MiniCredit?
3) Is it Legal or just scare tactics from this lender telling me despite a payment plan i will still receive a Default Notice?

I look forward to your help, and thanks in advance!!

chalkie99

If you have borrowed from several PDL companies and are now in a DMP then your credit rating is already shot to pieces so you will pretty much have to clear your debts and wait a good while to try and rebuild your credit worthiness.

Just a thought on your debt management agency - who are they?

Hopefully you are using PayPlan or CCCS. If you are using a commercial agency you may be throwing away a lot of money.

MattH123

I know my credit is already shot to pieces, but i also know i can rebuild it nearly as fast as i destroyed it... but the defaults would make it a near on impossibility to get a mortgage in the next 6 years!

Im using a company called Clark Richards, was very sceptical at first but found nothing but good reviews about them so thought why not!
Think im paying £25 per month for them?? which in the scheme of things isnt that bad.

Any advice on the questions though?

DevCoder

Well done getting the payments down to 7 months (I assume by overpaying all your creditors?)

Unfortunately creditors don't have to agree to a plan, so you will probably just have to keep on at them until either they do or you can save the money to pay them off.

You have already defaulted if you are in a payment plan, so as Chalkie says I wouldn't worry about your credit file, it probably cant get much worse short of CCJ or bankruptcy.

MattH123

Ive just checked my credit report with creditexpert.co.uk and it has no defaults on it, just a very low score? which i thought was the case.

And yes Krisdorey... paying the minimal amount and saving like a trooper, and in the 5 months remaining of 7, i'll be able to save the full balances and hopefully be able to offer a compromise with some of them!

They have all agreed to the plans, but they still ring me several times a day asking me to pay it off...which im sure is a form of harrassment??

nomoneytoday

Why are they calling you?
Since the debt consolidator is being paid £25 a month - let them take the calls and earn their money - or even better, switch to a free one, allowing an extra £25 a month to go towards the debts?

CHR15

You can't expect to default on your agreement but not suffer a default.
The default tells people that you failed to stick to your side of the agreement...so a default is right and proper.

From their terms:

5 How we will be paid
5.1 Unless we agree otherwise with you we will take from each monthly payment under the debt management programme a fee equal to 14.9% of the periodic payment under the debt management programme. Subject to a minimum of £30 and a maximum of £90. If in accordance with our records you have conducted your debt management programme satisfactorily we may, at our discretion, waiver the last 6 months management fee.
5.2 Because most of our work will be done at the start of the Period, we will charge an initial fee based on your programme payment. The initial fee will not exceed the equivalent of 2 months’ payments to your Debt Management Programme.

You have already wasted two complete months worth of payments to these rip off merchants where your creditors received nothing. For sure they would have been piling up more charges so losing those two months payments is just the tip of the problem.

You are also wasting 14.9% of each and every payment which could be going toward your debts.

Either Payplan or the CCCS would have passed 100% of your payments (including the first two) straight to your creditors.

Ditch them like they are something you stood in and take the charity route who will do all this for you for free.

Experian_company_representative

Wrote a blog recently on how DMPs affect credit ratings. Might be useful.

James Jones