DMP mutual support thread part 13 !!

DebtHurricane

Usually when a DMP is running they’ll mark it as AP (arrangement to pay) and don’t default you. Usually they think they’re ‘helping’ or being considerate but a default is better if it’s going to take a while to pay off. I have just had the FOS uphold a complaint about a lender refusing to default me. 

Moveslikeagger

Hi all. I have not posted on this forum for a long time but thought I would share my experience to any newcomers who like me were extremely scared and apprehensive to enter a DMP. Firstly there is nothing to be scared about! It took a year to get all my accounts defaulted. I did not pay a penny until my debts were defaulted and sold on. This helped me build up an emergency fund! Then I only paid back what I could afford. I went self managed from the start and took control of my finances. Due to having a baby recently and my wife not working I have dropped to token payments and DCA’s have all been fine with it. Once my wife goes back to work I will up the payments again. My advice is not to overthink things. Nobody will threaten you and nobody will come knocking on your door. Keep in touch with creditors and let them know your situation and you’ll be surprised they are actually ok. And please listen to the regulars on this forum. Sourcrates, suseka and January I would like to thank you for all your advice, it’s genuinely made my life so much better. From sleepless nights about how I will pay my minimum payments I now don’t even think about money. Remember only pay what you can afford and don’t stress, you are in control and  it’s only money! Good luck everyone 

Suseka97

#Moveslikeagger - good to hear that you got things sorted and no longer stress and worry about your financial situation.  That, to me, is the most important aspect of taking control, whether by going self-managed or by using the services of one of the debt charities.  You are on the button with your comment about only paying what you can afford, that's the cruz of a successful DMP and the beauty of an informal arrangement is that you can vary the payments depending on what is happening at any given time.

Most creditors these days are much more clued up on DMPs, but they will still insist that not defaulting is better for the individual, whereas we know that's just not so.  But I'm pleased to see that many now hold off jumping into a DMP and wait until their accounts default, that way all interest and charges stop and you can then sit back and watch those outstanding balances go down.  It's a great feeling

Blackberrypie_3

sourcrates said:

I think you are way over thinking this, and driving too fast, and too far down the road with the statutory demand.
Things don’t happen that quickly, and why would a creditor pay £680 to make you bankrupt when you have no assets to repay them with ?

Bankruptcy only works in those circumstances if you have significant assets that would make payment of the fee worthwhile, you have non, so what would be the point ?

Seriously, you must think these things through logically, it’s never going to happen, the loan will be just fine in the DMP with all your other non priority debts.

There are people on these forums with over 100 grand of debt, where loans of 20/30k have gone into debt management, it’s not a problem.

Thank you so much, Sourcrates! I really needed that. I was thinking of the worst case scenarios and I know I should just take it one step at a time. 

Appreciate all the help and advice on this forum. 

Stanton14

DebtHurricane said:

Usually when a DMP is running they’ll mark it as AP (arrangement to pay) and don’t default you. Usually they think they’re ‘helping’ or being considerate but a default is better if it’s going to take a while to pay off. I have just had the FOS uphold a complaint about a lender refusing to default me. 

Can you request that they default you or do I need to stop my DMP and go self managed?

Moveslikeagger

I think you can request a default. But I think the quickest way to get a default is to stop paying. I waited until all my accounts were defaulted before I started paying anything again. 

sunshinevicky

Hi all.... so I received a notice of default about 2 months ago and I ignored it as waiting for the default.... I have now received a letter which states termination of contract. It goes on to say I must pay the full amount or they may take legal action/sell debt on. Is this now a formal default? Should I now send in my income and expenditure and offer of payment? TIA :-)

sourcrates

sunshinevicky said:

Hi all.... so I received a notice of default about 2 months ago and I ignored it as waiting for the default.... I have now received a letter which states termination of contract. It goes on to say I must pay the full amount or they may take legal action/sell debt on. Is this now a formal default? Should I now send in my income and expenditure and offer of payment? TIA :-)

keep checking your credit file.
There are two kinds of default.
The first is when you default on your credit payments, as a result of this, a default is then placed on your credit file.
Wait until it shows on your file, otherwise it’s all for nothing.

sunshinevicky

Does anyone know if the CRA have a set date in the middle he when they update or do you just have to keep looking throughout the month? TIA

sunshinevicky

Sorry predictive text.... that should say a set date in the month!!!!