DMP mutual support thread part 13 !!

DebtHurricane

sourcrates said:

There is a tendency these days for creditors to sell on non defaulted debts to debt purchasing companies, who then operate them as "live" accounts, this is perectly legal, and above board.

The problem can be how your file is marked by these companies, but the real problem is that there are no set in stone rules on this, only guidence to follow.

JD Willaims will not default you now that the debt has been sold on, making a complaint, and going to the FOS will waste about 6 months, and they will most likely find in the creditors favour anyway.

Your efforts should be concentrated on getting the debt paid down, your credit file will, eventually heal itself, and you should be in no rush to obtain further credit, as it typically leads to a rinse and repeat senario that follows you for most of your life.

Thanks. Still not sure if I should set up a StepChange dmp of a small amount and save for F&F’s on the side or whether to just pay £300+ a month on a dmp

gbrm

Evening all,
I've had a DMP for 18 months now and have got my debts down from £26K to £19K
I have just had some inheritance. About £10K. I'd like to pay off all of my debts as quickly as I can.
What is the likelihood and how do I go about negotiating a settlement? Is there any chance I could pay off all £19K with settlements down to £10K...?
I have debts with:

•  HSBC (combined loan and overdraft)
• PRA Group (Who took over my MBNA Credit Debt)
• Intrum UK (Who took over my Virgin Credit Debt)

Any help would be much appreciated.

Cheers,
GBRM

vicki84

Hi 
Is it worth finding out if companies have CCAs early or is it best to wait until you can offer a full and final settlement in a few years time?

natlie

Thanks for everyone here for the help, my DMP is now set up and starts on the 1st July. I have a small EF and I'm now just waiting for my SC password and acceptance from my creditors. I am hoping this will be straightforward as my payments have only dropped by £400 over 7 creditors. 
Nat

sunshinevicky

Hi all.... me again! So I’m started to feel more positive about getting DMP started (although my emotions go from positive to just plain scared throughout the day!) but all letters sent to creditors and received few emails to say direct debit has been cancelled so I guess I’m on the path now! I’m thinking about going SM after reading all through this post as I feel I am organised enough to do this!

But my question.... I will have paid off my bank CC (nationwide) next month as my plan is to stop payments for 3-6 months to Pay it off, build EF and hope for some defaults! My question is can I then leave my bank account as it is? It had an overdraft attached to it but I’ve not been in the overdraft for over 4 months and don’t plan on using it. I would like to keep the account as then don’t have to have any awkward conversations with work or tell hubby (for numerous reasons he doesn’t know about my debt and I want to keep it this way.... we have always kept finances totally separate).
thanks again guys x

sourcrates

Sunshinevicky, if the account has no debt on it, you can do as you see fit.

sunshinevicky

Me again! Sorry! So as I expected I’m starting to receive some correspondence from creditors after they received my initial letter this week. I’m the letter (used template from NEDCAB website) to say I am in financial difficulty and I will be stopping payments for 3-6 months and I will be in touch with an I&E and offer of payments in due course. 

Very and Littlewoods have emailed today asking me to call.... should I ring or write again or do I just leave it? I’m not sure when I should actually send in my I&E and offer of payment? I am wanting to build an EF and wasn’t sure if I should wait for default before sending? 

I’m really sorry to be a pain with the questions! 

sourcrates

They will always respond by asking you to call them, its the number one automatic responce from a creditor.

I would just leave it alone, let defaults happen, let debts be sold on, save your EM, monitor the post, don`t go looking for their approval every 5 mins, sort your plan out in your head, and just stick to it.

Then, when you are ready, gather together the letters from whoever is writing to you, and send them a copy of your payment proposal, and your budget, outline what you can pay and when, tell them contact in writing only, ask for their payment details, although to be fair, most DCA`s have that info in their letters anyway, then start your regular payments, make your payment affordable, don`t offer too much, remember, you can manipulate your budget to whatever you choose, it does not have to reflect your exact spending.

The idea behind self management is to pay a small sum monthly, whilst saving a settlement fund (after your EM) as debt companies will always be open to settlement offers of some kind, so a year or two down the line, you may be able to settle each account as and when funds become available.

sunshinevicky

sourcrates said:

They will always respond by asking you to call them, its the number one automatic responce from a creditor.

I would just leave it alone, let defaults happen, let debts be sold on, save your EM, monitor the post, don`t go looking for their approval every 5 mins, sort your plan out in your head, and just stick to it.

Then, when you are ready, gather together the letters from whoever is writing to you, and send them a copy of your payment proposal, and your budget, outline what you can pay and when, tell them contact in writing only, ask for their payment details, although to be fair, most DCA`s have that info in their letters anyway, then start your regular payments, make your payment affordable, don`t offer too much, remember, you can manipulate your budget to whatever you choose, it does not have to reflect your exact spending.

The idea behind self management is to pay a small sum monthly, whilst saving a settlement fund (after your EM) as debt companies will always be open to settlement offers of some kind, so a year or two down the line, you may be able to settle each account as and when funds become available.

Sourcrates...... just thank you!!! Again! You are always able to help me see the light at the end of this scary and long tunnel and help turn my anxious worries into still scared but more positive thoughts .... thank you 💗

sourcrates

Vicky,

Its only money at the end of the day, and all non priorty debt too, i find the more you know about a creditor/debt collector, and their debt collection process, the easier it is to deal with them, knowledge is power, it can leave you feeling a little scared when your up against big international banks etc, but there are ways and means of dealing with such things, basically they will do what they have to do, and so must you.

Good luck, we`re always here for advice remember.