DMP Mutual Support Thread - Part 12

Keezing

sourcrates wrote: »

Just a little note to anyone who is trying to save an emergency fund, before going self managed, and are worried about creditors reactions.

Let's address the very worst scenario first, so you don't pay, what will happen ?

The very worst thing your creditors can do is take you to court and have judgement granted against you, so what exactly does that mean ?

That means you agree an affordable monthly payment with the court, and, as long as you stick to it, that's as far as it will go.

The odds are all in your favour, 99.9% of debts never see a court!!

Debt collection takes a very long time, people think that because they miss one payment, they will be taken to court the next week, not so, in fact nothing could be further from the truth.

Original creditors almost never take action through the courts, they first of all pass your debt to a debt collector to attempt collection, this may go on for a good few months, and may get passed to various different debt collection agencies, for anywhere up to a few years, eventually your debt will be sold, then the game starts again, but this is the point you should either start paying or settle up, as the new owner can and might take court action.

What I am trying to get over to you is that nothing happens quickly were debt collection is concerned, if you stopped paying all your credit tomorrow, it could be 3/4 years before you were faced with the courts.

Debt is a problem these days, but certainly nothing to worry about, it's only money, they can't take what you don't have, there is always a solution, people worry because of stories about intimidation and threats, it's 99% bluff most of the time, there is no reason to be scared.

I hate to be negative but I think 99.9% of defaulted debts never seeing a court is very optimistic. Almost 1 million debt related CCJs were issued in 2016 and the numbers are rising every year. (See: https://www.trustonline.org.uk/press?download=202:q4-2016-england-wales-consumer-pdf)

As you know, some original creditors are litigious, including some P2P lenders and smaller credit card companies, so it's worth researching online to see recent claims and from whom. You are right though that these days it seems like most mainstream lenders don't bother with the courts.

sourcrates

There will always be exceptions to the rule keezing, I'm speaking in general terms mainly.

January2015

It would be interesting to know how many of the CCJs issued are for credit card / loan defaults, i.e. the type most of us have on our DMPs.

If you ever watch those Can't Pay We'll Take It Away type programs, you will notice that all of the debts are for unpaid work, failed contracts etc. I've never yet seen a CCJ that's been escalated to bailiff level on one of those programs that mentioned the debtor owing XYZ bank or credit card for unpaid loan or credit card debt.

I'm not saying these type of debts will never end up in court, but I tend to agree with Sourcrates that the majority of bank/credit card debts will not end up in court. I'm not even going to guess at a percentage though

Seriously though - keep in contact with your creditors (even if you are not paying them) and I believe that the debts will not end up in court.

January2015

sourcrates wrote: »

Just a little note to anyone who is trying to save an emergency fund, before going self managed, and are worried about creditors reactions.

Let's address the very worst scenario first, so you don't pay, what will happen ?

The very worst thing your creditors can do is take you to court and have judgement granted against you, so what exactly does that mean ?

That means you agree an affordable monthly payment with the court, and, as long as you stick to it, that's as far as it will go.

The odds are all in your favour, 99.9% of debts never see a court!!

Debt collection takes a very long time, people think that because they miss one payment, they will be taken to court the next week, not so, in fact nothing could be further from the truth.

Original creditors almost never take action through the courts, they first of all pass your debt to a debt collector to attempt collection, this may go on for a good few months, and may get passed to various different debt collection agencies, for anywhere up to a few years, eventually your debt will be sold, then the game starts again, but this is the point you should either start paying or settle up, as the new owner can and might take court action.

What I am trying to get over to you is that nothing happens quickly were debt collection is concerned, if you stopped paying all your credit tomorrow, it could be 3/4 years before you were faced with the courts.

Debt is a problem these days, but certainly nothing to worry about, it's only money, they can't take what you don't have, there is always a solution, people worry because of stories about intimidation and threats, it's 99% bluff most of the time, there is no reason to be scared.

I agree with you on this Sourcrates but I also think that communication in writing with creditors is not a bad thing. Just stop paying and stop communicating and creditors will rack on as many charges as they can. The interest will continue to pile on as well.

Keep communicating, tell them your entering a DMP, tell them communicate in writing only (because you don't want to talk to them :eek:).

Otherwise - yes - 100% agree it will take months and months before anything happens and even then it will be a much wanted default (hopefully) and eventually the account will be passed to, or even better, sold on to the DCA. These are all things you want to happen so don't worry about them.

The only things you don't want are charges and interest and phone calls and do only what you need to ensure you don't get them.

sourcrates

January2015 wrote: »

It would be interesting to know how many of the CCJs issued are for credit card / loan defaults, i.e. the type most of us have on our DMPs.

If you ever watch those Can't Pay We'll Take It Away type programs, you will notice that all of the debts are for unpaid work, failed contracts etc. I've never yet seen a CCJ that's been escalated to bailiff level on one of those programs that mentioned the debtor owing XYZ bank or credit card for unpaid loan or credit card debt.

I'm not saying these type of debts will never end up in court, but I tend to agree with Sourcrates that the majority of bank/credit card debts will not end up in court. I'm not even going to guess at a percentage though

Seriously though - keep in contact with your creditors (even if you are not paying them) and I believe that the debts will not end up in court.

Only the county court can deal with consumer credit act debts, never the high court.

Any bailiffs will be from the county court only.

If you owe an individual money, like rent arrears or an unregulated loan, then they can be escalated to the high court.

Rebeccadougherty

Hello, sorry for the repost but I don't think anyone saw it

"Hello everyone
Sorry, me again.
So I posted the other day about lowering my DMP payment through StepChange from 466 to 100 this month. But StepChange have written to me and it looks like they've lowered it until I tell them otherwise even though I thought they were going to lower it for the month and put it straight back to 466. And it's made me think- I would have liked maybe 2-3 months really to build up an emergency fund for the house move that is happening at some point. I felt bad so only said I'd be doing it for 1 month. Everyday loans wanted proof of why I was lowering the payment, because I told them it was due to vet fees- a lie because I just wanted to save a small emergency fund. Would it be ok to keep that lower payment for another few months? Would it be better to phone StepChange and just not bother with the extra few months of lesser payment? I know it'll make my DMP a bit longer which I am ok with if I could have the security of a small emergency fund. It isn't that the 466 is a struggle to pay but the emergency fund is so small. Although I don't really want to have to speak to Everyday Loans again. And I'm also not excited about phoning 7 creditors in general it is so exhausting and worrying. And I don't know how I'd say actually I need to extend the lower payment anyway and the reason why. I also don't want bailiffs or anyone coming to the door. I still havent told my boyfriend and I want to tell him in my own time not have him find out through someone coming to the door
Thanks in advance"

Thank you

motivated

purplepaws wrote: »

Hello Motivated,
I am so naive - when you start a DMP do you literally stop paying the monthly payment and tell them what you can (want to) pay then sit and wait for shouty letters to come through - which you ignore? Sounds too easy? I'm so terrified of breaking the law. There are many posters on that make it sound just that easy. I was hoping that having a DMP managed by Payplan might be simpler but you say that you've gone self managed and not been asked to make payment yet? Aren't you a little bit terrified?!!!??

Hi purplepaws I wrote to creditors when I decided to go self managed. I sent them the generated letter with a few tweaks on it and added my I & E statement. I added that for the months of X Y & Z I will be paying them £1 token payment and will let them know if/when our circumstances change I have informed them I will only deal with them via written letter and so far things have been quiet. I wanted to self manage as it gives me control and I aim to knock off the smaller debts first and then knock them off one by one.
Good luck on your journey
M

January2015 wrote: »

Hi motivated :wave:

Have you sent your creditors an I&E statement? I would write back to Halifax and evidence you cannot afford to make any payments at the moment and that you will keep them informed should your situation change. I would also point out that the decision to enter a DMP was not taken lightly and as such you would request they continue to suspend all fees and charges in order to assist you to deal with your debts. Also request they default your account in a timely manner.

The thing I found is not to ignore the creditors. Don't just sit and wait for letters. Be proactive. Don't pay - but don't ignore them. Let them know you know you are in financial difficulty and that you know they are supposed to support you by playing fair.

:beer:

Hi January hope all is well with you and yours.
I did sent I & E yes with the NEDCAB letter. But Halifax are the ones who scare me the most. I don't even know why. . I will write back to them today explaining the situation again. The letters I am receiving now from them are from the collections centre. I think I have just had another little wobble lol
M

StopIt

motivated wrote: »

Hi January hope all is well with you and yours.
I did sent I & E yes with the NEDCAB letter. But Halifax are the ones who scare me the most. I don't even know why. . I will write back to them today explaining the situation again. The letters I am receiving now from them are from the collections centre. I think I have just had another little wobble lol
M

It's fine to write to them but if they want to sell the debt on (When they say they'll take steps for collection, that's what they mean) and get a DCA to do the dirty work, who cares.


By the time that happens you should've been able to save an emergency fund then be able to offer a reasonable monthly payment as per your self managed DMP and away you go.


Their Collections department sounds scary, but the worst they literally will do is say "Please give us our money, pretty please".

[Deleted User]

Rebeccadougherty wrote: »

Hello, sorry for the repost but I don't think anyone saw it

"Hello everyone
Sorry, me again.
So I posted the other day about lowering my DMP payment through StepChange from 466 to 100 this month. But StepChange have written to me and it looks like they've lowered it until I tell them otherwise even though I thought they were going to lower it for the month and put it straight back to 466. And it's made me think- I would have liked maybe 2-3 months really to build up an emergency fund for the house move that is happening at some point. I felt bad so only said I'd be doing it for 1 month. Everyday loans wanted proof of why I was lowering the payment, because I told them it was due to vet fees- a lie because I just wanted to save a small emergency fund. Would it be ok to keep that lower payment for another few months? Would it be better to phone StepChange and just not bother with the extra few months of lesser payment? I know it'll make my DMP a bit longer which I am ok with if I could have the security of a small emergency fund. It isn't that the 466 is a struggle to pay but the emergency fund is so small. Although I don't really want to have to speak to Everyday Loans again. And I'm also not excited about phoning 7 creditors in general it is so exhausting and worrying. And I don't know how I'd say actually I need to extend the lower payment anyway and the reason why. I also don't want bailiffs or anyone coming to the door. I still havent told my boyfriend and I want to tell him in my own time not have him find out through someone coming to the door
Thanks in advance"

Thank you

Rebecca

Sorry not to have picked up on this post sooner:o. It's a bit hit and miss when I get online and on here at the moment:(


When you arrange a reduced monthly payment with Stepchange they like to know how long you plan to do it for. But, I think, (though don't take it as definite:o) that they don't revert back to the original payment level until you contact them and discuss your budget again. They need to be sure that you can really afford what you are planning to pay and the 'blip' in your repayment amount has righted itself. Maybe you could just delay contacting them and wait and see what amount goes out of your account on the next Stepchange payment day? I suspect it will just be £100 but I could be wrong. Often am:o


I hope someone else will come along soon who can give you a definitive answer.

spiffyiffy

Puzzcat wrote: »

You can remortgage with your current provider as they don't credit check. Well nationwide didn't and I think that's the norm.
Puzz

That's true; I'm with Santander and they never asked me anything.