what order to pay off creditors

dobbollah

me and the missus are on a dmp....we have 5 creditors and have been defaulted on 3

hbos - £4137 (default expires dec 2017)
moorcroft - £7854 (default expires dec 2016)
paragon - £488 (default expires dec 2016)

the other 2 we are not defaulted

barclays CC £3700
paragon £1800

I'm paying £170 a month on the DMP however a family member has kindly offered £300 a month to help pay it off.

So what should I do, save lump sums and aim for a settlement figure or just pick one and start hammering £300 a month to pick off one by one...?

If the answer is save for a lump sum which ones would be best to go for first...?

On top of that, should I ask for CCAs from every creditor as if they cant provide it I should be able to get a better figure...?

thanks in advance

happy_bunny_2

What are the accounts for?

When taken out, approx?

dobbollah

hbos - credit card - Aug 2008
moorcroft - personal loan - Nov 2008
paragon(488) overdraft/bank fees - 2006

barclays - credit card - Aug 2009
paragon (1800) - credit card - Aug 2009

happy_bunny_2

OK, was thinking of a CCA request on accounts before 2007 as this may help get a discount, but doesn't apply here. You could still do it, but I wouldn't bother,

As the defaults fall off fairly soon, I would be tempted by full and final offers.

Who is your DMP with?

As it will take a while to save up the money to pay off all these, I'd tackle the small one first, offering say 50% from a family member using the national debtline template.

dobbollah

the DMP is with payplan...

so you would tackle the defaulted ones, smallest first.....

the HBOS default, that ends a year later - want to get removed if i can, i want to get on my life, get a new mortgage deal and at the end of next year I could which would save more more money...but for that HBOS default....it delays things one more year

does it make a difference if its from a family member?

happy_bunny_2

Missed the fact that 2 are not defaulted.

What are they being reported to the CRA as?

How do you mean getting the HBOS default removed? If you pay it, its still defaulted, just settled.

Family member is good as if they suddenly think you have a pile of cash they could take you to court to get it.

I don't know what pay plan will make of you settling one account as DMPs are supposed to be fair to all creditors?

dobbollah

I guess the plan was to offer to settle with HBOS on the condition they removed the default or at least try......

according the the noddle report barclays show it as 'late payment' code BB and moorgate show 'late payment' DM

I'll double check with payplan about their views on settling one creditor. When i raised the issue of settling they encouraged me to contact the creditor as I was told creditors react better to me making an effort to resolve the issue personally.

happy_bunny_2

Hmm, ok.

I seriously doubt HBOS will remove it. You may as well ask though.

You realise that those late and DM flags will stay on your credit report for 6 years from the date you pay off the accounts in full? Is there an arrangement to pay marker?

You may be better to try and get a default applied retrospectively via a complaint. Especially if paying a low amount compared to the contracted minimum,

dobbollah

that interesting as I spoke to moorgate on the phone a while back who informed me that if i bought the payments up to date (as far as they are concerned I'm £276 behind on what they percieve the minmum payment to be) then the late payment markers would be updated to show 'green ok' sounds like i may have been fobbed off

so working on wanting the best credit file at the end of all this.....would perhaps be better just to save the extra from the family help and pay off the 2 non defaulted ones asap?

happy_bunny_2

It sounds like you have an arrangement to pay with Moorgate. So I would try and get what they said on the phone in writing.

It may be worth writing to both the non-defaulted ones, asking what they intend to report the account as. Both now, as long as you pay the amount you are and at the end, once the account is settled. That way, if they screw you over, you can complain and refer to FOS to get it fixed.

Barclays are infamous on here for using arrangements instead of defaults. Some have got them backdated, some have failed. Barclays have been known to default the account as soon as the last payment has been made, thus screwing you for 6 years from that point.

I suspect any partial settlement offer on these would also trigger a default.

I would treat the non defaulted ones very carefully.

dobbollah

yes thats what concerns me, especially with barclays as I have heard this,. My original plan was to save up and just pay the balance , once that payment is clear with a zero balance surely they cant default then?