Advice needed

yoshiyella

Dear All,


Over the last 18 months, my debts have increased beyond my financial means, and with the increase in costs to gas/electric/water/council tax I am now in do do.


My query is about defaulting some/all of these debts.


I have 9 creditors and have worked out I can afford to pay for 7 of them each month as my contract states which leaves 2 I can't manage.



So my question is, do I default on 2 or all 9? In my eyes a default messes everything up so does it matter if it is 2 or 9?


Thans for any advice.

LOVEHB

Hello, I would recommend you call Stepchange or another free debt advice service asap to be honest if you are going to default it will not make a difference if you default on one or more, note that it could take a couple of months for a default to appear on your credit file.

Have you got debts other than the important ones i.e council tax etc? I would continue to pay council tax from reading other posts / information this would cause more harm than its worth not paying it.

I strongly recommend calling Stepchange who can advise you on a plan of action, i used their services 18 months ago and have only recently stopped my dmp as i am now out of debt but they helped me hugely! Perhaps also post your SOA on here and people can give you some advice too.

yoshiyella

LOVEHB wrote: »

Hello, I would recommend you call Stepchange or another free debt advice service asap to be honest if you are going to default it will not make a difference if you default on one or more, note that it could take a couple of months for a default to appear on your credit file.

Have you got debts other than the important ones i.e council tax etc? I would continue to pay council tax from reading other posts / information this would cause more harm than its worth not paying it.

I strongly recommend calling Stepchange who can advise you on a plan of action, i used their services 18 months ago and have only recently stopped my dmp as i am now out of debt but they helped me hugely! Perhaps also post your SOA on here and people can give you some advice too.

That is what I thought about the defaults.

middleclassbutpoor

Normal process is to do an SOA and if you list your debts etc, we can give you a better idea of what solutions you have available.

Willing2Learn

Hi you may be able to get a grant or discount on your utilities. See the National Debtline factsheet below:

https://www.nationaldebtline.org/EW/factsheets/Pages/gas-and-electricity-debt/energy-debt.aspx

yoshiyella

middleclassbutpoor wrote: »

Normal process is to do an SOA and if you list your debts etc, we can give you a better idea of what solutions you have available.

Not needed for my question

datlex

OP why 2 out of 9 why not 3 or 4 for example? Ideally you don't want to default on any. Defaulting won't solve the problem. If you think you can default and then bury your head in the sand for years in the hope it will go away. The companies could apply for CCJs against you.

Of course your bills are more important than your debts. But you may be better off with token payments until you are in a better place financially.

macman

Without knowing who your debts are to and how much (by means of an SOA), how can proper advice be given about which to default? Rent/mortgage, CT, utilities and any secured borrowing are priority debts, deal with them first.

National_Debtline

Hi yoshiyella


I've assumed all your creditors are non priority debts, which usually means they are unsecured credit debts. To treat your creditors fairly, and to have the best chance of successfully dealing with all of them, you should ask all your creditors to accept a reduced payment plan and freeze interest. This may result in defaults from all of them but it also means you will not be prioritising one debt over another, which can create issues.


You may have other options apart from self negotiating but to advise you on these we would need more information about your situation. You could post a SOA or contact one of the free debt advice agencies.


Best wishes


Susie
@natdebtline