DMP mutual support thread part 13 !!

sourcrates

Headabovethewater said:

Our first 30 days is coming to end soon after 1st hold letter.  Asked for 60 days hold as off sick, most responded with 30 days freeze and some not heard off at all.   Do you send another one out just before the 30 days is up? Or just later when ready to make offer payments? I'm hoping to stretch it to the 6 months for hubby's tax bill and the emergency fund.  Felt very weird missing payments for the 1st time!

Your missing the point, you want collection activity, you want them to default you, non of that will happen if the account is on hold.

I have said this 1000 times, the debt collection process takes a very long time, you have no need to worry about what your creditors think, or do, all you want is your accounts defaulting, ideally you want the accounts all defaulted and sold on, non payment achieves this.

The only thing you must watch out for is a court claim, that is the last resort, not a first response, but it won`t happen yet, but it will be more likely once accounts are sold, but only if ignored, that is the time to start paying, anything else, up until that point, is irrelevant.

Headabovethewater

Our first 30 days is coming to end soon after 1st hold letter.  Asked for 60 days hold as off sick, most responded with 30 days freeze and some not heard off at all.   Do you send another one out just before the 30 days is up? Or just later when ready to make offer payments? I'm hoping to stretch it to the 6 months for hubby's tax bill and the emergency fund.  Felt very weird missing payments for the 1st time!

Headabovethewater

Thank you, not sure why it reposted

Willing2Learn

Orsonwelles said:

I am paying token payments at the moment on a self managed DMP. 
Two of my debts are with HSBC, an overdraft and a credit card. The overdraft is relatively small compared to the CC and so I was thinking of paying as much as possible towards this debt to clear it quicker while still paying token payments to the CC. I know that HSBC will not like this but is there anything they can do to stop it?

You are responsible for managing the plan.  If you want to start a debt snowball rolling, then that is up to you. 

Annie0707

Hi,

I realised a few months ago that I needed help and spoke with SC then who advised a DMP that would take approximately 12 years to clear my debt.  Since then I have just stopped paying and have ignored all correspondance from my many creditors.  I have just plucked up the courage to look at my credit file and see that one of my accounts has defaulted already and the rest are showing 3-5 months of missed payments.  I have been holding off on starting my DMP to build up an emergency fund and in the hope that my accounts default as soon as possible.  Now, I'm concerned that I will get a CCJ from the one that has defaulted before I am ready to start making DMP payments.  Any advice on what I should do now? Do I make my own arrangement to pay a token amount to the one that has defaulted, and continue as I am with the rest until they default? Or hurry up and finalise my DMP with SC?

Thank you in advance for your help.

sourcrates

Annie0707 said:

Hi,

I realised a few months ago that I needed help and spoke with SC then who advised a DMP that would take approximately 12 years to clear my debt.  Since then I have just stopped paying and have ignored all correspondance from my many creditors.  I have just plucked up the courage to look at my credit file and see that one of my accounts has defaulted already and the rest are showing 3-5 months of missed payments.  I have been holding off on starting my DMP to build up an emergency fund and in the hope that my accounts default as soon as possible.  Now, I'm concerned that I will get a CCJ from the one that has defaulted before I am ready to start making DMP payments.  Any advice on what I should do now? Do I make my own arrangement to pay a token amount to the one that has defaulted, and continue as I am with the rest until they default? Or hurry up and finalise my DMP with SC?

Thank you in advance for your help.

Relax, original creditors do not usually take legal action, although it is an option for them, that`s why we have debt collectors.

The usual collection stages are these :
(1) Up to month 3, Customer services
(2) Month 3 to 6, Internal collection dept
(3) Month 6 onward, External Collection agency

These are approximate times scales, and differ between companies, after 6 months the collector will run through their standard range of template letters with you, after that the debt may be sold, or not chased at all, if its sold, the new owner will run through their standard range of template letters with you (again) if you still ignore the debt, then legal action becomes more likely.

So you are a long way of that happening, its just standard collection activity for the time being.

Orsonwelles

Willing2Learn said:

Orsonwelles said:

I am paying token payments at the moment on a self managed DMP. 
Two of my debts are with HSBC, an overdraft and a credit card. The overdraft is relatively small compared to the CC and so I was thinking of paying as much as possible towards this debt to clear it quicker while still paying token payments to the CC. I know that HSBC will not like this but is there anything they can do to stop it?

You are responsible for managing the plan.  If you want to start a debt snowball rolling, then that is up to you. 

Thank you for the advice!
Today I received a letter from HSBC to say that they accept my offer of token payments which was a pleasant surprise as I never sent them an I&E form. Do you think I should send them one or just leave it?

Headabovethewater

Ok so I obviously messed up sending hold letters, business debtline advice.  So just sit on hands and wait a few months now then? Maybe send a - dmp will start in xx date letter in a few months? First month in saving ef fund, hoping to save another 5 months before starting payments. Then nearer the time do you send a letter offering xx amount and asking for payment details? (As in how I actually make said payment)  Thank you for all the advice and help much appreciated.

TuxedoCat

I stopped using PayPlan to focus on my mental health and saving money (and encourage defaults). I am due to restart this month on my own. 

Got called into a meeting with my team leader at work and two of said defaults have flagged up on my credit file - I stupidly applied for a promotion and was credit scored as I work in financial services. Not sure what will happen next, I was assured there are other staff in worse positions.

I have been asked to provide proof of payment plans to the credit card providers that flagged up. It didn’t say which provider they were I would have to work it out from the balances but I have a feeling. 

TheWickerMan

I stopped all payments from 01 December and had initially stated that I plan to start a DMP from 01 May. EF building hasn't gone quite as well as I'd hoped, so currently plan is to start DMP from 01 June. I'm assuming 1 additional month shouldn't make much of a difference? None of them have defaulted yet anyway and I'm not replying to correspondence.

Anyway, my main question is how long does setting up the DMP with Stepchange tend to realistically take from beginning to end, assuming I complete my side of things promptly? If I want payments to start from 01 June, should I start the process beginning of May or even earlier? 

Many thanks