DMP mutual support thread part 13 !!

Headabovethewater

Last card has finally defaulted and the latest correspondence states a certain date to contact them by, or they will sell on to a company - just wondering should I wait for this as down the line I hope to offer f&f settlements? The card is barclaycard has anyone had experience of them offering settlement or is debt company more promising? Many thanks.

sourcrates

Headabovethewater said:

Last card has finally defaulted and the latest correspondence states a certain date to contact them by, or they will sell on to a company - just wondering should I wait for this as down the line I hope to offer f&f settlements? The card is barclaycard has anyone had experience of them offering settlement or is debt company more promising? Many thanks.

Barclaycard will offload the debt to a debt purchasing company such as Lowell or Cabot or one of the dozen or so other companies out there, discounts often appear further into the process, there is no set timeframe for them to offer settlement figures.

Nothing stopping you asking at some point though, normally the longer a repayment plan may be, the more offers you may get.

SurvivalMode

Hi. I'm new to this forum and it's been great reading through loads of posts from people in a similar position to me! 

I'm in the process of beginning a self-managed dmp and have a few queries, but one in particular regarding my overdraft and mortgage account with the same bank...
I have an overdraft with Halifax, who are also my mortgage provider. (I have set up a new basic account elsewhere and my salary will go into that account going forward). I have taken a covid payment holiday, partially to try and boost my emergency fund situation. If I stop paying my overdraft account, is it possible they will revoke the holiday? I want my non-secured debts to default asap, so I intend to stop paying money into this account, but don't want to upset the payment holiday on my mortgage!

Any advice would be greatly appreciated.

Penguin_

So I am part way through my DMP & have 5 years to run on it though I am trying everything I can to get this done quicker. My mortgage is ending it's fixed rate deal so I will be looking at moving onto another product & with interest rates lower than my current deal, I should save a fair bit a month which I will be putting onto my DMP payment. This should bring down the time to clear the DMP quicker.

Obviously I have a few defaults on the old credit file, what happens to these when they are paid off as they will be paid off in full, via the DMP, as opposed to partially paid. 

Suseka97

SurvivalMode said:

I'm in the process of beginning a self-managed dmp and have a few queries, but one in particular regarding my overdraft and mortgage account with the same bank...
I have an overdraft with Halifax, who are also my mortgage provider. (I have set up a new basic account elsewhere and my salary will go into that account going forward). I have taken a covid payment holiday, partially to try and boost my emergency fund situation. If I stop paying my overdraft account, is it possible they will revoke the holiday? I want my non-secured debts to default asap, so I intend to stop paying money into this account, but don't want to upset the payment holiday on my mortgage!

This wouldn't be the way I would approach this, unless there is more to the payment holiday than putting money towards your emergency fund.   

Your Hfx overdraft will form part of your DMP, along with the remaining creditors and the best way to build that EF is to stop making payment to your non priority debts and start building that fund using the monies you would have ordinarily paid towards them.  If you hold back on setting up the DMP for a minimum of 3-6 months (longer if necessary) that's the best strategy for building up the EF and pushing those defaults.

Suseka97

Penguin_ said:

So I am part way through my DMP & have 5 years to run on it though I am trying everything I can to get this done quicker. My mortgage is ending it's fixed rate deal so I will be looking at moving onto another product & with interest rates lower than my current deal, I should save a fair bit a month which I will be putting onto my DMP payment. This should bring down the time to clear the DMP quicker.

Obviously I have a few defaults on the old credit file, what happens to these when they are paid off as they will be paid off in full, via the DMP, as opposed to partially paid. 

Defaults remain on your credit file for 6 years from the date the default was applied, regardless of whether they are paid in full, or partially (via an F&F) or if monies remain outstanding and the DMP is still running.

SurvivalMode

Suseka97 said:

SurvivalMode said:

I'm in the process of beginning a self-managed dmp and have a few queries, but one in particular regarding my overdraft and mortgage account with the same bank...
I have an overdraft with Halifax, who are also my mortgage provider. (I have set up a new basic account elsewhere and my salary will go into that account going forward). I have taken a covid payment holiday, partially to try and boost my emergency fund situation. If I stop paying my overdraft account, is it possible they will revoke the holiday? I want my non-secured debts to default asap, so I intend to stop paying money into this account, but don't want to upset the payment holiday on my mortgage!

This wouldn't be the way I would approach this, unless there is more to the payment holiday than putting money towards your emergency fund.   

Your Hfx overdraft will form part of your DMP, along with the remaining creditors and the best way to build that EF is to stop making payment to your non priority debts and start building that fund using the monies you would have ordinarily paid towards them.  If you hold back on setting up the DMP for a minimum of 3-6 months (longer if necessary) that's the best strategy for building up the EF and pushing those defaults.

Thanks for your reply. The payment holiday related to the mortgage account, not the overdraft. My concern is the bank cancelling the holiday as my overdraft account will very soon be in arrears. Is this a valid concern? 

Suseka97

SurvivalMode said:

Suseka97 said:

SurvivalMode said:

I'm in the process of beginning a self-managed dmp and have a few queries, but one in particular regarding my overdraft and mortgage account with the same bank...
I have an overdraft with Halifax, who are also my mortgage provider. (I have set up a new basic account elsewhere and my salary will go into that account going forward). I have taken a covid payment holiday, partially to try and boost my emergency fund situation. If I stop paying my overdraft account, is it possible they will revoke the holiday? I want my non-secured debts to default asap, so I intend to stop paying money into this account, but don't want to upset the payment holiday on my mortgage!

This wouldn't be the way I would approach this, unless there is more to the payment holiday than putting money towards your emergency fund.   

Your Hfx overdraft will form part of your DMP, along with the remaining creditors and the best way to build that EF is to stop making payment to your non priority debts and start building that fund using the monies you would have ordinarily paid towards them.  If you hold back on setting up the DMP for a minimum of 3-6 months (longer if necessary) that's the best strategy for building up the EF and pushing those defaults.

Thanks for your reply. The payment holiday related to the mortgage account, not the overdraft. My concern is the bank cancelling the holiday as my overdraft account will very soon be in arrears. Is this a valid concern? 

Yes, I understood that - my mention of the OD was simply to illustrate that effectively all your debt will be included in the DMP and if you don't repay that and save the usual debt repayments, then over the next several months you should be able to save sufficient funds in your EF to not require the payment holiday.  

As I said, for me personally I wouldn't be taking a mortgage payment holiday at the point I was going into a DMP - but your financial situation may require that.  I could see them cancelling it once things kick off with the DMP, maybe - but I guess it depends on what's written into the payment holiday offer and also how they view the reason you requested it.

I know the first set of payment holidays at the beginning of all these lockdowns were not meant to impact on your credit file, but I'm not so sure about this tranche.   Whilst your credit file is about to be trashed, for me I wouldn't want any markers against my mortgage account, but I'm an overly cautious individual

Whymeagain

Debts passed from RBoS to collectors
Self managed DMP, largest creditor by far is RBoS, to whom we owe around 30k arising from loans and overdraft.
Been paying around 300 monthly for 2 years, always been good relationship. Just been informed by my credit manager that they are passing it to Westcott or Moorcroft as we are "paying book customers". 

Does anyone know what this means in terms of how we will be treated, if we should expect legal action etc?  Or perhaps this indicates RBoS has sold the debt and the collector might be happy with less?  In short, is this good news or bad news (or same old same old?). With thanks 

debtfreegirluk

Afternoon all. I’ve had an offer from one of my creditors to “pay off” my balance with a 70% discount and the credit file will be updated to show “partially settled” with a nil balance.

Pros and cons of this?
The balance is £1128.10 and their offer to settle is £338.43.
I’m sure I read once settling as partially settled wasn’t great? I’m 4 years into the 6 years until the defaults drop off if that makes any difference.
Thanks for any advice