DMP mutual support thread part 13 !!

19ryanh93

Suseka97 said:

19ryanh93 said:

Suseka97 said:

Thanks for the reply

Should I send them a letter saying I will not be making payments towards the debts before i just stop?

No reason why not to - you can say something along the lines of that you will be focussing on paying your enforceable debts.  Keep it short and stop the payments.

Ok I’ll write a letter tomorrow. It’s been 3 months now and nothing. I’m only paying token payments at the moment. 

Knowing my luck they’ll send the CCAs to me within weeks of me sending a letter. 

Moving forward into the future and to F&Fs can that still be done even if I’m not paying due to not making a payment?

Suseka97

19ryanh93 said:

Suseka97 said:

19ryanh93 said:

Suseka97 said:

Thanks for the reply

Should I send them a letter saying I will not be making payments towards the debts before i just stop?

No reason why not to - you can say something along the lines of that you will be focussing on paying your enforceable debts.  Keep it short and stop the payments.

Ok I’ll write a letter tomorrow. It’s been 3 months now and nothing. I’m only paying token payments at the moment. 

Knowing my luck they’ll send the CCAs to me within weeks of me sending a letter. 

Moving forward into the future and to F&Fs can that still be done even if I’m not paying due to not making a payment?

Yes,  but it does depend on how long since the UE was reported and the DCA involved.  So the first thing to do is to stop making token payments, these are pointless and stop the debt moving into 'statue barred territory'.  So to explain, some DCA's are pretty stubborn when it comes to F&Fs and others are more amenable.  I've had 2 x UE's with PRA and they are offering 60% discount on one and only 20% discount on the other.  These debts have been UE for close to 3 years now.  I've stopped engaging with them for a good 2 years now and all I get are statements from time to time.  It's a waiting game and one you need to be prepared for.

debtfreeme2021

Hi 👋 So I’ve bit the bullet and called of my creditors today following engaging with step change initially back in May I’m trying to climb out of my debt hole. Halifax have offered me 90 days breathing space but will need to pay minimum payment plus some after 3 months so whilst feels appealing to get a bit of a breather I’m not in a position to then overpay after 3 months and maintain the minimum . The next option was closing the account and referring to collections who may arrange a payment plan. This was the first of 6 cc I need to work through. Tesco agreed a monthly amount with no default on my credit file. So my question is this do I go back to step change and start a DMP or continue working with my creditors . Either way it feels like a default on my credit file will apply but unsure which is better ?? Any help or advice would be much appreciated , just about keeping my head above water but relying on credit to get by . Thanks 

Moveslikeagger

debtfreemw2021.
The quickest way to pay your debts is to get them all defaulted. I would recommend not paying anything for a few months until they are all defaulted and interest free and then communicate with whoever owns them and start a payment plan. Your credit file will be shot to pieces either way. 

sourcrates

Moveslikeagger said:

debtfreemw2021.
The quickest way to pay your debts is to get them all defaulted. I would recommend not paying anything for a few months until they are all defaulted and interest free and then communicate with whoever owns them and start a payment plan. Your credit file will be shot to pieces either way. 

Agreed, stay off the phone, you`ll only get short term options from them, each will want you to adhere to there own terms, its just more hoop jumping.

Stop paying, and follow the above advice.

debtfreeme2021

@sourcrates @Moveslikeagger thanks for responding. I’m scared to death having been on track with payments and struggling to get by, interest just killing me. So would you avoid calling Halifax at the end of 30 days ?? Do I just cancel direct debits ?? And wait ?? Do I pay anything or just stop . Thanks again 

sourcrates

debtfreeme2021 said:

@sourcrates @Moveslikeagger thanks for responding. I’m scared to death having been on track with payments and struggling to get by, interest just killing me. So would you avoid calling Halifax at the end of 30 days ?? Do I just cancel direct debits ?? And wait ?? Do I pay anything or just stop . Thanks again 

Ignore them, cancel all non priority payments, save your emergency fund, give it six months, the debts will likely have been defaulted  and sold by then, if not, wait until they are, then see who writes to you, what is there to be scared of, a few phone calls ?, block the number, a series of debt collection template letters sent out by the thousands ? read and recycle them, that`s all that will happen, nothing to worry about at all.

The only way to stop interest permanently is to default on the debts, the reasoning behind this is that any interest charged before default, is offset by part settlement offers further down the line.

Its all a game, and you have to know how to play it to your advantage, otherwise you stay under their control, instead of being in control yourself.

In case your worrying unnecessarily about legal action, original creditors virtually never do this, debts are almost always passed on to debt collectors first, who have no more power than you or I do, then after a period of time, they get recalled, and then sold, usually.

You need to wait until you get a letter from a debt purchasing company, such as Lowell/Cabot/PRA Group/Arrow Global names such as these, who will have bought your debts, that is the time to make offers and deals, not before.

Lots to learn I grant you, and yes it goes against the grain, but you have to know how to use the system to your advantage, and this is the way to do it.

debtfreeme2021

@sourcrates maybe too much of “can’t pay we will take it away”. Worries about the impact on my partner , family , home etc . Have 6 credit cards and a loan plus a catalogue debt. Don’t know which way to turn . The loan is with Tesco who I have managed to agree a payment plan with and the interest is frozen too . Don’t want to rock the boat with them as they have been supportive so don’t want to default on the loan with just a year to go. The other cc’s and catalogue are mostly causing the issue . Would you default some or all . I can’t thank you guys enough I haven’t talked to anyone about my situation until this week with Halifax . I started with them after Tesco had been so helpful . I was blind sided thinking they might all help me find a way out .

Moveslikeagger

I have 7 debts all defaulted. A few have been sold and some are with the original creditor. All managed by moorcroft or wescot. I have been paying monthly for nearly 2 years now. Remember none of these have the power to enter your home. They would need to get a CCJ first through the courts. This process takes years and the majority of debts never get to this stage. Once defaulted just keep communicating with whoever is managing the debts and you will find they are easy to deal with. Far easier than the original creditors. I had the same worries as you and trust me I worry far less now than I did when I started!

debtfreeme2021

@Moveslikeagger thank you for sharing . I’ve took a big step tonight and cancelled 3 direct debits for the credit cards eeeeeeek !!! A have a mortgage , credit card and bank account with the same bank not sure defaulting on this credit card would be appropriate as may impact my bank account/mortgage ? How do you know who has the power to enter into your home . I’ve read back through some of the posts many more to go but I’ve seen reference to unenforceable- is this usual of credit card debt ??