DMP mutual support thread part 13 !!

sourcrates

Diana_Prince said:

Hi,

I'm due to start a DMP with Stepchange on 01/12 and I KNOW it's the best thing for me, I have £21k of debt, am single, live with my mother and only earn £22,000.  So my debts were taking up about £900 of my wages!  However I'm just having wobble!  I've received a letter from MBNA saying that they are going to put a default on my account in February.  I was trying to avoid this as have never missed a payment but am struggling so much that I needed to do something!  Can they do this if they've agreed to the DMP?

Thank you in advance.

Diana you need to do your DMP homework.

You need to forget the financial world you once knew if your entering debt mangement.

In a DMP, defaults are good, all interest and charges stop, and you have a clear knowledge that in 6 years time the negative information will drop off your credit file.

The alternative to that is arrangement to pay markers, which stay on your file for 6 years after you have cleared the debt, so potentially 12 years or more in total.

You say you havent missed a payment yet, which starts alarm bells ringing with me, its best practice to allow all your accounts to default first, this is usually acheived by non payment, then start debt mangement, sounds like your jumping in the deep end here far too quickly, I also don`t think your fully aware of all the implications of debt management, or are in the least bit prepared for them judgeing by your reaction to a standard default notice letter.

I think you really need to read up on the best way to deal with your debts, theres tons of information within this thread.

andythe_cab

I've got closed accounts on my credit report,haven't paid them,when will they fall off my credit report?

Suseka97

andythe_cab said:

I've got closed accounts on my credit report,haven't paid them,when will they fall off my credit report?

Do these 'closed accounts have default dates applied, or AP/AR markers?   Or are they just straight forward closed accounts?  

andythe_cab

No markers on them,think some defaulted after 6 years &others been sold on,i asked for CCAs on some but I've lost track a bit tbh 

ditty1234

Just a quick question - on the one hand it doesn't matter as things does take their turn, but I now have 6 defaults on my credit report - on 4 credit balances - it counts every time they're sold.  I find that extremely annoying, but does it actually make any difference?

Diana_Prince

sourcrates said:

Diana you need to do your DMP homework.

You need to forget the financial world you once knew if your entering debt mangement.

In a DMP, defaults are good, all interest and charges stop, and you have a clear knowledge that in 6 years time the negative information will drop off your credit file.

The alternative to that is arrangement to pay markers, which stay on your file for 6 years after you have cleared the debt, so potentially 12 years or more in total.

You say you havent missed a payment yet, which starts alarm bells ringing with me, its best practice to allow all your accounts to default first, this is usually acheived by non payment, then start debt mangement, sounds like your jumping in the deep end here far too quickly, I also don`t think your fully aware of all the implications of debt management, or are in the least bit prepared for them judgeing by your reaction to a standard default notice letter.

I think you really need to read up on the best way to deal with your debts, theres tons of information within this thread.

Thank you for your reply.  I was on a DMP but it was over 15 years ago and at that time I had defaulted a lot and the companies I dealt with all told me I should have avoided this.  I have gone to several different places for advice (including stepchange who the DMP is with).  I first started looking at this a year ago, but thought I could manage with my side hustle, but unfortunately due to Covid that has gone now, fortuantely I work for the NHS so my full-time job is secure.  I have only managed to keep up with payments as I have sold what I could and depleted my minimal savings and had family buy food for me etc. 

I thought any defaults were bad regardless so apologies for not researching this as thoroughly as I should have - my head is all over the place at the moment, but thank you for taking the time to reply.

sourcrates

ditty1234 said:

Just a quick question - on the one hand it doesn't matter as things does take their turn, but I now have 6 defaults on my credit report - on 4 credit balances - it counts every time they're sold.  I find that extremely annoying, but does it actually make any difference?

No, is the short answer.
Every time a debt is sold, the new owners take over reporting on your file, if it’s defaulted, they just update that status monthly.
Old default entry should show as a zero balance, new one should show outstanding balance.
Both should still show original default date.

Brave_Up

I am looking a bit of guidance.  I have 4 debts amounting to 29000.  I have stopped paying these for about 6 months.  I think 2 have defaulted.  3 has been passed on to other companies and 1 is still hanging in there without defaulting.  Should I contact hbsc to get them to default or leave it another couple of months? Also when I look on my credit file 2 of the accounts have completely disappeared and are not showing the amount I owe from these in my outstanding debt, does anyone have any idea why?  I have contacted sc who have advised online that I should do a dmp for 14 years.  Is this normal.  The amount is manageable and will give me a little bit of money each month. 

Suseka97

andythe_cab said:

No markers on them,think some defaulted after 6 years &others been sold on,i asked for CCAs on some but I've lost track a bit tbh 

Basically accounts drop off your credit file/s either 6 years from the date they were registered with a default (whether there is a balance outstanding or not), or 6 years from the date they were settled (that's when no default has been applied).

Suseka97

ditty1234 said:

Just a quick question - on the one hand it doesn't matter as things does take their turn, but I now have 6 defaults on my credit report - on 4 credit balances - it counts every time they're sold.  I find that extremely annoying, but does it actually make any difference?

When my defaulted debts were sold on, the entry on credit files was updated to show the new 'owner' of the debt.  I never had duplicate entries showing the original creditor and the DCA for the same debt.  I'd would take that up with the OC or previous DCA.