Default or what on my Credit File?

yeahyouknow

I have around 80k of unsecured gambling debts and I'm looking to start a DMP.

I have around £2k per month to pay off this debt.

I'm getting confused as to why people are saying it's a good thing if I get defaults early? Rather than Arranged Payment markers on my file?

I'm a month or two behind my Credit Card payments and a week or so on my loan payments.

Shall I be waiting to default on all of them before I start a DMP? How long does that take?

sourcrates

Hi,

The reason DMP'ers like defaults early, is because a default stays on your file for 6 years regardless of if the debts repaid or not.

Then it disappears.

Arrangement to pay markers stay on your credit file up to 6 years AFTER you have repaid your debts, so potentially up to 12 years or more.

Creditors usually default you after 3/4 missed payments, although there are exceptions to this rule.

Ideally you should have a file full of defaults becfore your DMP starts, but with such a high debt, you need to be careful.

yeahyouknow

Thanks Sourcrates. Why do I need to be careful though? The debt is only relative to my salary (if you see what I mean).

You mean I need to make sure I can pay a reasonable amount?

So shall I ask the creditors to default me or just wait until they do? Do I just ignore them until they default me?

sourcrates

yeahyouknow wrote: »

Thanks Sourcrates. Why do I need to be careful though? The debt is only relative to my salary (if you see what I mean).

You mean I need to make sure I can pay a reasonable amount?

So shall I ask the creditors to default me or just wait until they do? Do I just ignore them until they default me?

If you owe a lot of money to a certain creditor, you need to be aware of legal action.

Although it doesn't normally happen with original creditors, it is still possible, by saying "be careful" I mean keep a sharp eye on the postbox.

Best way to get a default is non payment, yes.