DMP Mutual Support Thread - Part 12

sourcrates

Bounty1 wrote: »

Hi, I’m new here and have been doing a lot of reading about debt management plans. We are slowly starting to struggle with credit cards that have built up over time and with the minimum payments going up it’s starting to become very hard to keep these payments up (we haven’t missed any yet). I’m after advice on DMP and having a mortgage, does it have any affect on your property? I’m currently in the process of selling some of my land, if this all goes to plan I will have enough to pay off my mortgage and debts and have a large deposit for my next house, another question is will I be able to get a small mortgage as I take it DMP will give me bad credit.

The only effect a debt management plan will have on you, is in the form of a bad credit report, although it’s not a regulated agreement, and there will be no mention of it on your credit report, any debts defaulted by making lower payments, will be recorded.

It would be better from a credit worthiness point of view, if you could settle your debts from the proceeds of the land sale, especially if you will be looking at another mortgage.

Bounty1

Thank you for your reply, the plan is to pay them all off when the land is sold but it’s a slow process and I’ve held on and managed to pay the minimum payments but it’s becoming a real struggle and it could be 6 months to a year before it’s sold. I imagine once it’s defaulted that stays on record for 6 years even if I pay it off?

sourcrates

Bounty1 wrote: »

I imagine once it’s defaulted that stays on record for 6 years even if I pay it off?

That is correct unfortunately yes.

penaltychargenotice

Hi, I wonder if someone could explain the importance of a debt being defaulted? I have read a few posts regarding defaults and I wondered how it works and why it is necessary to know? How does a default affect your credit score as opposed to missed payments? What does a default mean in regards to a DMP? How does a company decide when it issues defaults?

Thank you.

sourcrates

penaltychargenotice wrote: »

Hi, I wonder if someone could explain the importance of a debt being defaulted? I have read a few posts regarding defaults and I wondered how it works and why it is necessary to know? How does a default affect your credit score as opposed to missed payments? What does a default mean in regards to a DMP? How does a company decide when it issues defaults?

Thank you.

Hi,

This has been covered in minute detail in the past, but granted, that was a while back.

In a nutshell, once an account defaults, it draws a mythical line in the sand, so to speak, you know that whatever happens, in 6 years that default will be gone, and the debt will be off your credit file.

If you have AP markers instead, they stay on your file a further 6 years after you Finnish repaying the debt.

In terms of credit rating, that's the least of your worries when in debt, creditors do not have to default you, they are supposed to, after between 3-6 missed contractual payments, but this does not always happen.

vaper

sourcrates wrote: »

Hi,

This has been covered in minute detail in the past, but granted, that was a while back.

In a nutshell, once an account defaults, it draws a mythical line in the sand, so to speak, you know that whatever happens, in 6 years that default will be gone, and the debt will be off your credit file.

If you have AP markers instead, they stay on your file a further 6 years after you Finnish repaying the debt.

In terms of credit rating, that's the least of your worries when in debt, creditors do not have to default you, they are supposed to, after between 3-6 missed contractual payments, but this does not always happen.

Can I ask, what is an AP marker?
Nearly all our debts have defaulted now, just waiting for the last three who have threatened if they don't receive payments this month.

debtfree1ab

Hi, following this thread with interest- there’s so much good advice on here - I just spent the last day or so reading all 108 pages!

I’ve been self managing my DMP for about 4.5 years now but have just recently found out about cca’s. I sent some off at end of June and have just received a reply from Link re an old MBNA cc with a copy of my application and the t&cs from that time (Nov 02).

To my untrained eye it looks enforceable, but I know that January2015 had some success with a similar situation. Was just hoping to get some advice on where to go to get this checked out?

Thanks in advance for any help/advice

Headspinning_2

Hi All,

I started a DMP in April with stepchange but I jumped too quickly by making high monthly payments to try get the debt paid off quickly also With no emergency fund.

I only found this thread in September when I decide to stop the DMP with SC and go self managed.

I have been on the NEDCAB website and I have written to all my creditors informing them that I am going self managed.

I have been making payments to my smaller creditors (Next, link for aqua and very) but I have paid nothing to HSBC (3 debts- OD, CC, loan) or Barclaycard in September and October as I wanted those to default and get sold on.

Please could you reassure me that I'm doing it right or do you think I should pay HSBC and BC something end of this month? I want these to default as they and haven't yet, I have had the default notices but no defaults on my credit file.

I'm worried the phone calls will start up again if I don't pay them but I want them to default ASAP.

Thanks in advance.

Miss_Toffee_Penny

Hello all :j

I've just had a blast from the past by visiting my old posts on here. I used to post regularly on here back in 2008-2010 as Toffee Penny but forgot my account details. My partner and I had over £52k owed to credit cards, catalogues and loans. :eek: We had a joint DMP with CCCS now Stepchange paying a few hundred a month.

Back then I couldn't see the light at the end of the debt tunnel. It just seemed forever away. Now I'm sitting here, it's nearly the end of 2017 and we were finally debt free this year.

I'm pleased to say that over the past 8 years I have progressed in better paid jobs and finally got on to the housing ladder this year. It's been hard work and a real struggle at times but we got here in one piece.

I am a few years older, sadly a bit fatter, but hopefully a bit wiser to how easy it is to become a slave to debt. We never want to go back there again! We spur each other on and will hopefully make good choices from now on.

To all those who are starting out on their DMP journey, there is light at the end of the tunnel. It does get easier as the years pass. Keep smiling and keep going. Love to you all xx

StopIt

Headspinning wrote: »

Hi All,

I started a DMP in April with stepchange but I jumped too quickly by making high monthly payments to try get the debt paid off quickly also With no emergency fund.

I only found this thread in September when I decide to stop the DMP with SC and go self managed.

I have been on the NEDCAB website and I have written to all my creditors informing them that I am going self managed.

I have been making payments to my smaller creditors (Next, link for aqua and very) but I have paid nothing to HSBC (3 debts- OD, CC, loan) or Barclaycard in September and October as I wanted those to default and get sold on.

Please could you reassure me that I'm doing it right or do you think I should pay HSBC and BC something end of this month? I want these to default as they and haven't yet, I have had the default notices but no defaults on my credit file.

I'm worried the phone calls will start up again if I don't pay them but I want them to default ASAP.

Thanks in advance.

Although these debts are with original creditors so it shouldn't happen, you really shouldn't be paying some non priority debts (Anything that isn't Tax, HMRC, Water/Utilities and housing costs) over others.


If you're going self managed, write to all creditors saying so, saying you'll start a pro rata payment (That NECAB will help you calculated) on x date, so you can build an emergency fund.


You can either pay nothing until then, or pay token payments, or simply wait for the debts to be defaulted. if any debts are with DCAs already, pay them token payments anyway.


Aside from that, it may take a while for original creditors to default/sell the debt on so you'll need to be patient, that time allows you to build an emergency fund, and potential funds for F&Fs down the line.


Apart from the preferential payments though, you've got a decent strategy, good luck.