DMP mutual support thread part 13 !!

rachmc

Hi Everyone,

I'm new to the DFW forum so please forgive me for my questions! I've recently got to the point where debt is a problem and paying the minimum payments isn't the best as my household income has decreased. I completed the Step Change documentation online and it was great to see the position I'm in all in one place. I am a spreadsheet warrior but this was good for me to complete it. Step Change's main option for me was a DMP and after looking at this page, I'd prefer to do the Citizen's Advice route of self-managing like many of you have done. I've downloaded the financial statement, holding letters and offer letters already and I have made a few creditors offers that have been accepted. 

Now, my main question is (and I know it's probably been asked before) is it best to let debts default before sending holding letters and offer letters? I've read that if you let them default and then make an offer to pay, it will be on your credit report for 6 years only and if I make an offer to pay and it is agreed before defaulting, it is on for the length of the agreement plus 6 years. Have I read that right? I do want to come to an agreement with my creditors and get paying ASAP but if defaulting is the quickest way off my credit report, I'd rather do that. I'm in my early 30s with no kids and renting so if I'm looking at getting on the housing ladder in the future, I'd love to go down the quickest route of resolving this mess.

Thanks in advance for any advice you lovely humans can offer

Suseka97

rachmc said:

........Now, my main question is (and I know it's probably been asked before) is it best to let debts default before sending holding letters and offer letters? I've read that if you let them default and then make an offer to pay, it will be on your credit report for 6 years only and if I make an offer to pay and it is agreed before defaulting, it is on for the length of the agreement plus 6 years. Have I read that right? I do want to come to an agreement with my creditors and get paying ASAP but if defaulting is the quickest way off my credit report, I'd rather do that. I'm in my early 30s with no kids and renting so if I'm looking at getting on the housing ladder in the future, I'd love to go down the quickest route of resolving this mess.
Thanks in advance for any advice you lovely humans can offer

That's pretty much it in a nutshell.  Unfortunately, all too often people jump in too quickly and find that their creditors are more than happy to keep them on an arrangement to pay indefinitely.  That puts AP or AR markers on your file and the account will stay there for 6 years on from the date it is finally settled.  

So, follow your train of thought and don't set up any arrangements until they have defaulted the account/s.

rachmc

Suseka97 said:

That's pretty much it in a nutshell.  Unfortunately, all too often people jump in too quickly and find that their creditors are more than happy to keep them on an arrangement to pay indefinitely.  That puts AP or AR markers on your file and the account will stay there for 6 years on from the date it is finally settled.  

So, follow your train of thought and don't set up any arrangements until they have defaulted the account/s.

Thank you so much for your quick response @Suseka97 that's a massive help. The ones I've set up already are ones that I could probably pay off from the 'fund' I'll be keeping to one side from the overbudgeting and 'emergency fund' I've added in to the income/expenditure so I'm fine with that. I've set up a new bank account which has no link to my creditors, switched my salary to be paid in to that and followed some of the other fantastic advice I've seen in here so far.

Thank you again!

alxofn1

Does anyone have any advice on what to do with PAYPAL who sold off my debt to Moorcroft - I believe the only credit report (Credit Karma showing Transunion) that shows PayPal still seems to indicate that my credit account with PayPal is active despite them selling off the debt to Moorcroft in February (or at least that is when the payments started to go to them). I am not quite sure who to contact about this? Maybe contacting PayPal to close my account would be in order? Any advice welcome please and thanks as always.

sourcrates

alxofn1 said:

Does anyone have any advice on what to do with PAYPAL who sold off my debt to Moorcroft - I believe the only credit report (Credit Karma showing Transunion) that shows PayPal still seems to indicate that my credit account with PayPal is active despite them selling off the debt to Moorcroft in February (or at least that is when the payments started to go to them). I am not quite sure who to contact about this? Maybe contacting PayPal to close my account would be in order? Any advice welcome please and thanks as always.

Moorcroft both buy debts, and manage them for their clients, have you had it in writing that they have bought your debt ?

You can`t close an account with an outstanding balance, even if that account has been sold, because it will likely be defaulted and closed or frozen already.

You simply pay whoever is writing to you, I assume that would be Moorcroft.

mrjoshua88

Hey everyone. So I’ve been following the advice on here and waiting for my debts to default, it’s now been 7 months of missed payments and doesn’t look like they’re any closer to being defaulted. Is this usual? Just annoys me that the balances are still going up even though it’s fairly obvious I have no intention of paying them.

ditty1234

Hi just a quick question - so my debt w HS8C finally defaulted a while back, and both accounts are now with their repayment service - I pay them a microscopic amount every month and do make extra payments on top of that as it is a balance that is small enough to actually get rid off in a reasonable timeframe. They have sent a letter from the repayment office that they want to review my circumstances - do I have to call them, or do I just continue paying? Just checking? 
Any experience with how long it takes HS8C to sell on debt once it has gone to their repayment service office?

sourcrates

ditty1234 said:

Hi just a quick question - so my debt w HS8C finally defaulted a while back, and both accounts are now with their repayment service - I pay them a microscopic amount every month and do make extra payments on top of that as it is a balance that is small enough to actually get rid off in a reasonable timeframe. They have sent a letter from the repayment office that they want to review my circumstances - do I have to call them, or do I just continue paying? Just checking? 
Any experience with how long it takes HS8C to sell on debt once it has gone to their repayment service office?

It will be sold a whole lot quicker if you cease all payments.

Cpfc1234

So that's it. Safe bank switch to complete on the 27th, holding letters to be sent once complete and then the debt free journey begins. All the reading of this forum has helped me get my eggs in order and do it! When and if the the defaults come ill decide whether or not to use stepchange or self manage dmp! Best get saving. Cheers for the info so far

andrar

mrjoshua88 said:

Hey everyone. So I’ve been following the advice on here and waiting for my debts to default, it’s now been 7 months of missed payments and doesn’t look like they’re any closer to being defaulted. Is this usual? Just annoys me that the balances are still going up even though it’s fairly obvious I have no intention of paying them.

Yep me too! Although I’m not that far yet, I'm on about month 3-4 and still no defaults. Currently ignoring letters and calls at the mo, think that’s the right thing to do?!