DMP & Mutual Support Thread - Part 11

Puzzcat

ramblehan wrote: »

Hi everyone.
A question from me, prompted by the last few posts....

It's about your credit rating / file - so i get that once you get a default it will hang around for 6 years. If you offer and they accept a F&F so clearing your debt at a lower amount, do they record that as a partial settlement, and does that remain visible on your file? Or does that completely disappear too?
Is there any circumstances where doing a F&F at a lower amount than the total owed negatively impacts your credit file for beyond a 6 year period?
Ta muchly. Thank goodness for this group - it is SO helpful.

Ramble

Hi,

Once the account is registered as defaulted then its 6 years and everything will disappear even if you are still paying the debt. The bigger issue is that not all creditors will actually default you (most will) and the only way to force them to is to drop to token payments and keep your fingers crossed..! The more damaging is the dreaded AP/AR markers well used by BC to name one creditor... these stay on your file for 6 years from when the debt is settled.. so if it takes you 6 years to clear the debt they will still hang around for another 6 years after..
Puzz.x

minx_01

Good morning!

I am sitting down and reviewing my finances properly today!:(

Have made my first payment to SC on my DMP......... and have a debt free date of 22/05/35:eek:

I will be 66 then! So may be debt free as I retire!!!:o

Just had email from Tesco Florence and Fred - got £25 in credit on my account that I didn't know about - so good start to today!

minx_01

minx_01 wrote: »

Evening!

I am just starting out on a DMP with Stepchange.

I am totally responsible for incurring all of my debts, as I have been an idiot.

Part of my debt is an overdraft with Barclays, on a joint account with my partner.

I opened a new bank account with Lloyds to have my wages paid into, and to pay my DMP from.

My partner opened 2 new sole accounts, one for his personal use, and one to pay all our bills. We asked Barclays to transfer all the direct debits to the new bills account, and we arranged to transfer £700 each into this account every month to cover the direct debits.

Today they have taken Money from my partner's sole account to clear the overdraft on the original joint account, and now we have no money left in the bills account to cover the direct debits:(

I would be grateful for any help or advice anyone could give me.

Thanks! x

Thanks for your help on this Sourcrates and Sazzie23 :T

After hours on the phone - escalating it to a complaint - we have had the money transferred back to our original account, and the overdraft re-instated, so no fees on this account while I pay it off! Also had £30 goodwill compensation "to go for a meal!" which cleared a little bit of the debt!

Suseka97

cmcavon wrote: »

Wow Suseka you've done really well tackling all that debt in 3 years, hats off to you!...

Thanks CmC - it's been tough going and I'm not quite at the point where I feel I can justifiably say that I can see the light at the end of the tunnel, but I am glad to be over the half way mark.

You need to do things the way that best suits you -as you say it's your debt, so it's yours to manage. If paying off the odd small balance makes you feel better, so so. I considered doing that myself a few times, but chose to put aside any extra monies for emergencies only instead.

To be honest, most of my creditors had quite high balances and the only one I wish I could ditch quicker is the BC ones because of the interest charges (but I do have sufficient funds for that). By the time I do, it'll be so close to the end of my DMP I may not see the worth -but we shall see.

System

Puzzcat wrote: »

Hi,

Once the account is registered as defaulted then its 6 years and everything will disappear even if you are still paying the debt. The bigger issue is that not all creditors will actually default you (most will) and the only way to force them to is to drop to token payments and keep your fingers crossed..! The more damaging is the dreaded AP/AR markers well used by BC to name one creditor... these stay on your file for 6 years from when the debt is settled.. so if it takes you 6 years to clear the debt they will still hang around for another 6 years after..
Puzz.x

Thanks Puzz - now I understand! Thankfully no BC debt here, but I am going to do token payments with my 3 until they default to try and hurry things along.
Final question - what does AP and AR stand for?

System

minx_01 wrote: »

Good morning!

I am sitting down and reviewing my finances properly today!:(

Have made my first payment to SC on my DMP......... and have a debt free date of 22/05/35:eek:

I will be 66 then! So may be debt free as I retire!!!:o

Just had email from Tesco Florence and Fred - got £25 in credit on my account that I didn't know about - so good start to today!

Well done on making your 1st payment - you are on your way!

Puzzcat

ramblehan wrote: »

Thanks Puzz - now I understand! Thankfully no BC debt here, but I am going to do token payments with my 3 until they default to try and hurry things along.
Final question - what does AP and AR stand for?

Arrangement to pay..or can be marked dm..all horrid you want d... but obviously they are allowed to mark you correctly and unfortunately when on a dmp those are correct. Now 2+ years in all of mine have defaulted just waiting to see what the latest one that has been sold is going to put...better be a default or I will be complaining!
Puzz.x

Sazzie23

minx_01 wrote: »

Thanks for your help on this Sourcrates and Sazzie23 :T

After hours on the phone - escalating it to a complaint - we have had the money transferred back to our original account, and the overdraft re-instated, so no fees on this account while I pay it off! Also had £30 goodwill compensation "to go for a meal!" which cleared a little bit of the debt!

Good result in the end; you are welcome, pay it forwards

[Deleted User]

Well, feeling a bit glum at the moment:(

I hadn't discovered this thread before diving straight into my SC DMP in early 2013 (with just under £57K debts:o) and had zilch savings/EF. Also, I was so ashamed and worried about my debt situation that I underestimated just how much I needed to live on. I certainly overcommitted on how much I wanted to pay towards my debts and at reviews I kept things as they were because it was exhilarating seeing the debts falling so quickly. What a sad act I am:o

Anyway, essential expenses for repairs and replacements of clapped-out washing machine, car etc and big vet bills made me deperate (no savings or possible credit available) that I asked SC to make reduced payments for 3 months. This was a lifesaver, it helped me get back on the straight and narrow.


All my creditors accepted the reduced payments and didn't bat an eye or even contact me. Admittedly they were defaulted already anyway. The only one that wasn't defaulted was Lloyds credit card who have now defaulted me after 3 years. I'm sick about this as I expected a bit more leeway with the reduced payments before they did it.

I know defaults are good but at this stage I'm not too sure. Maybe it's better than the AP marker already on my credit file for that account because it would mean about 10 years to drop off. At least with a default now it only means it will take 6. Am I understanding this correctly please?


I did a new SC review the other day and have cut myself a bit more slack with my budget:j. Shouldn't be too much of a problem now getting to the end of my DMP at the start of 2020.


Well done to all who have made progress in the war with their creditors:T. Big hugs to anyone worried or struggling at the moment:kisses3:

Puzzcat

carbootcrazy wrote: »

Well, feeling a bit glum at the moment:(

I hadn't discovered this thread before diving straight into my SC DMP in early 2013 (with just under £57K debts:o) and had zilch savings/EF. Also, I was so ashamed and worried about my debt situation that I underestimated just how much I needed to live on. I certainly overcommitted on how much I wanted to pay towards my debts and at reviews I kept things as they were because it was exhilarating seeing the debts falling so quickly. What a sad act I am:o

Anyway, essential expenses for repairs and replacements of clapped-out washing machine, car etc and big vet bills made me deperate (no savings or possible credit available) that I asked SC to make reduced payments for 3 months. This was a lifesaver, it helped me get back on the straight and narrow.


All my creditors accepted the reduced payments and didn't bat an eye or even contact me. Admittedly they were defaulted already anyway. The only one that wasn't defaulted was Lloyds credit card who have now defaulted me after 3 years. I'm sick about this as I expected a bit more leeway with the reduced payments before they did it.

I know defaults are good but at this stage I'm not too sure. Maybe it's better than the AP marker already on my credit file for that account because it would mean about 10 years to drop off. At least with a default now it only means it will take 6. Am I understanding this correctly please?


I did a new SC review the other day and have cut myself a bit more slack with my budget:j. Shouldn't be too much of a problem now getting to the end of my DMP at the start of 2020.


Well done to all who have made progress in the war with their creditors:T. Big hugs to anyone worried or struggling at the moment:kisses3:

Hi cbc,

Sorry you have been having some glum times, but :T on reducing your payments so hopefully have a little more flexibility..!

You are correct about AP markers as they stay on your file for 6 years from when the debt is settled rather than a default which falls off after 6 years from first date registered.

Puzz. x