Defaults due to end, still on DMP, what next?

johnnybrando

Hi,

I have been on a DMP for almost 6 years. Initially I made larger payments as I was living with parents. I now live alone (rent a place) and outgoings have gone up considerably so I still make a payment but its under £100 a month now and has been for 3 years. 1 of my 4 defaults has fallen off my credit file now, and 3 others are due to fall off by October. I have not settled any of my original debt as yet, but as long as Im not hit with a CCJ, my credit file will look pretty clean by the end of the year. I did (and I know a lot of people will disagree with this) get a credit card last December to help build my credit score - I spend approx £5-10 a month and clear it each month. My question I guess is what next? Whats best for my future? I was advised by Stepchange that the best thing to do would be bankruptcy, however this would give me a further 6 years of no credit, no opportunity to purchase a house etc. I am not looking to play the system or dodge creditors, but I would also like to buy a house whilst I still have time to pay off a mortgage before retirement. I will be receiving a pay increase in April 2018 (first in years) and will have some extra cash to...I'm 35 so it needs to happen in the next few years if I want to buy. I've considered asking for settlement amounts and seeing if I can get a decent rate loan to clear the debts, continue paying my DMP and getting a loan for a small deposit then try buy a house? Stay as I am, pay a bit more each month and don't buy a house? I need to do what is best for me in the long term, and bankruptcy does not seem to be the best for me right now....
Any advise/ guidance would be greatly received
Cheers
John

Keezing

Have you issued CCA requests to each of your creditors to find out if the debts are enforceable?

If they are not, then no CCJs.

johnnybrando

I did this last year and got conflicting messages....people on here saying they need to keep them, creditors saying they don't need to keep the paperwork, so never knew what was right. I didn't ever receive CCA from any creditor at the time. Since then 3 have been sold and I've not contacted them

sourcrates

johnnybrando wrote: »

I did this last year and got conflicting messages....people on here saying they need to keep them, creditors saying they don't need to keep the paperwork, so never knew what was right. I didn't ever receive CCA from any creditor at the time. Since then 3 have been sold and I've not contacted them

Well i can tell you now whats "right".

If you made CCA requests last year, and those accounts were standard running credit agreements, such as loans, credit cards, catalogues etc (not overdraughts or mobile service contracts) and the creditors failed to respond, then those agreements are currently unenforceable in court until they do respond, how ever long that may be.

You need to clarify exactly what has happened here, and what responses you got to which debts.

National_Debtline

Hi Jonnybrando,

johnnybrando wrote: »

Hi,

I have been on a DMP for almost 6 years. Initially I made larger payments as I was living with parents. I now live alone (rent a place) and outgoings have gone up considerably so I still make a payment but its under £100 a month now and has been for 3 years. 1 of my 4 defaults has fallen off my credit file now, and 3 others are due to fall off by October. I have not settled any of my original debt as yet, but as long as Im not hit with a CCJ, my credit file will look pretty clean by the end of the year. I did (and I know a lot of people will disagree with this) get a credit card last December to help build my credit score - I spend approx £5-10 a month and clear it each month. My question I guess is what next? Whats best for my future? I was advised by Stepchange that the best thing to do would be bankruptcy, however this would give me a further 6 years of no credit, no opportunity to purchase a house etc. How much debt do you owe please? If Step Change is suggesting bankruptcy it means your debts are likely over £20k – is that correct? I am not looking to play the system or dodge creditors, but I would also like to buy a house whilst I still have time to pay off a mortgage before retirement. I will be receiving a pay increase in April 2018 (first in years) and will have some extra cash to Again, can you clarify how much extra you estimate you would be able to pay to your debts then please?...I'm 35 so it needs to happen in the next few years if I want to buy. I've considered asking for settlement amounts and seeing if I can get a decent rate loan to clear the debts, continue paying my DMP and getting a loan for a small deposit then try buy a house? This is a bad idea and I am afraid, unlikely to work in practice. Your loan payments would be deducted from your affordability on a mortgage assessment as would your DMP payments. You would have to declare the debts in the DMP – even if they are no longer on your credit file – otherwise you won’t have declared everything as requested on the mortgage application. Stay as I am, pay a bit more each month and don't buy a house? Other posters will need more details, but the house may have to go on the back burner for a little bit longer by the sounds of things. I need to do what is best for me in the long term, and bankruptcy does not seem to be the best for me right now....
Any advise/ guidance would be greatly received Perhaps posting a SOA would be the best thing for future posters to guide you further.
Cheers
John

Laura
@natdebtline