Start Again

S1984

Following recent failures with DMP and missed payments I have decided to start again and this time do it correct

I didn't have emergency funds and completely over stretched myself. I will contact my DMP provider and let them know I am planning to go alone

Looks like defaulted on four creditors so far and I understand this isnt a bad thing when entering this

Should I write to creditors and offer a token payment over next couple of months as I am planning to build emergency funds and start again in new year

Long road ahead for sure just need to get better at this I presume others have had bumps in their road to a debt free life

sourcrates

Hi,

Defaults are good, token payments are a waste of time, most independent debt advisors will tell you this, by all means write and explain your situation, better still, ask them to default you, as soon as possible.

A good emergency fund is essential when your on a DMP, lots fall down on this particular point, new year new start, a good plan.

S1984

Didn't think of that to actually request a default. It's strange as I have a couple of lines with same creditors yet they seem to have just defaulted on one and not the other

sourcrates

S1984 wrote: »

Didn't think of that to actually request a default. It's strange as I have a couple of lines with same creditors yet they seem to have just defaulted on one and not the other

You will find if you ring up and engage with a creditor, they may progress the default for you.

They realize the need for this, as much as you do, once defaulted, the balance is frozen and wont go up.

Of course some creditors are easier to deal with than others, sometimes its better to write if you get nowhere on the phone.

But certainly no harm in asking them for what you want.

S1984

Are there any template letters online for requesting this or is it as simple as explaining situation - entered a DMP ... Struggled and now intend to self manage moving forward offering the amount I can afford each month

EssexHebridean

If your DMP is with Stepchange or similar have you spoken to them about the problems you've had? Self-managed does work for a lot of people but it isn't for everyone. Make sure if you do decide to give it another go as a manged DMP that you're absolutely honest about your intended spending though as otherwise you will find yourself unable to meet the agreed payments - and yes, an emergency fund is a definite must!

National_Debtline

Hi S1984


It sounds like token payments are a good idea for now. Sourcrates is right to highlight the importance of an emergency fund as it helps you develop some resilience against any sudden financial shocks.


It's worth bearing in mind that if you've decided to go DIY but are finding certain creditors more awkward than others, the CASHflow scheme may be useful:


https://www.nationaldebtline.org/EW/factsheets/Pages/cashflow/dealing-with-your-debts.aspx


Dennis
@natdebtline

sourcrates

S1984 wrote: »

Are there any template letters online for requesting this or is it as simple as explaining situation - entered a DMP ... Struggled and now intend to self manage moving forward offering the amount I can afford each month

The National Debtline website has a comprehensive list of template letters covering most situations, but i think you may need to either explain it in your own words, or cobble together paragraphs from different letters, to get your point across :

https://www.nationaldebtline.org/EW/sampleletters/Pages/default.aspx

S1984

Thank you for the responses. I will contact each creditor explaining the situation and aim to get a self managed DMP in the next 90 days which will allow me to get an emergency fund and enter this a lot better. It seems 5 creditors have defaulted and a couple have sold on so I will contact the new management companies to explain over the next 90 days I will pay a token payment whist I complete my budget to ensure a structured payment plan

I have a basic bank account which I set up. This is with a company who I do not owe so I presume when I have set the amounts I can then just pay each creditor separate from this basic account

I presume when self managed if you did experience a better wage there is nothing stopping you attacking the smaller amounts (example the PDL) - not that i have been in this situation recent but down the line if self managed you are not committed to the exact amount the DMP company/charity gives and could in theory just pay direct

S1984

Quick question

As decided to self manage DMP and go again when have an emergency fund a certain number of my creditors have defaulted me and either sold / moved the debt

Is it more likely if I don't pay whilst build this emergency fund and can then offer regular amount they will issue a ccj against me over the next say 3 months???