DMP mutual support thread part 13 !!

Moveslikeagger

The credit card will default if you are not paying the minimum payment eventually so better sooner rather than later. Dont over think things. Nobody will come to your house. Regarding your other questions Sourcrates will answer them with much more knowledge than me! Listen to the people on this forum it did me the world of good!

debtfreeme2021

Thanks again lots of food for thought , so glad I joined this page . 

sourcrates

debtfreeme2021 said:

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 ?? 

No one can enter your home if you keep the door locked.

A debt collector is just a self employed soul with no more power than you or I.

Only a bailiff acting on a warrant, can theoretically enter your home, and then only if you allow them, bailiffs cannot force entry for debt to private property, they can to commercial premises, but not private.

You are seriously overthinking this stopping payment malarkey, your going 100 miles an hour, and thinking worst case scenario will apply as standard, it won`t, nothing will happen, debt management is ideal for homeowners, its actually the only thing most can do to tackle bad debts, if these pretty minor steps are freaking you out, then best you only do what you are comfortable with.

You need to understand what you are doing and why, and believe that you are doing the best for yourself here, if you have doubts, just do what you feel safe with, otherwise you`ll only end up making things worse if you don`t do things in the right order.

funny_bunny

debtfreeme2021 said:

@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 .

Just a quick question: did you check your recent credit file? Are they (Tesco) marking your monthly payment as AP? If so, then it may take much longer than a default though to drop off your credit file.

@Moveslikeagger @socrates advice are spot on. 

debtfreeme2021

@funny_bunny good point , the agreement I have made with Tesco is 56 months based on the payment agreed so less than 6 years on a default and already 3 months in . I can already see my balance going down . They were so helpful which prompted me to talk to Halifax who have offered to refer me to collections and close the account if I request. What is AP?? All new to this . Thanks for your comment 

funny_bunny

debtfreeme2021 said:

@funny_bunny good point , the agreement I have made with Tesco is 56 months based on the payment agreed so less than 6 years on a default and already 3 months in . I can already see my balance going down . They were so helpful which prompted me to talk to Halifax who have offered to refer me to collections and close the account if I request. What is AP?? All new to this . Thanks for your comment 

AP stands for Arranged Payment. As I understand, if you make a payment arrangement with your creditor, they would normally mark your credit file with AP. If you stick that arranged payment which will finish by let's say Sep 2025, then that AP marker will drop off your credit file on Sep 2031 (assuming they haven't defaulted) which is in my and many other experts view is just as bad as default. But if your account defaulted (you haven't made any arrangement with your creditor, they put account as default and mark that in your credit file, likely will be sold to a debt collection agency at one point) on 30 Sep 2021, then that Default marker will disappear  from your credit file on 30 Sep 2027. An account Defaults only once, then it gets updated on credit files but AP markers added every month and will take much longer to drop off your CRA.

MSE is an excellent space for learning, and I'm still learning.

funny_bunny

funny_bunny said:

debtfreeme2021 said:

@funny_bunny good point , the agreement I have made with Tesco is 56 months based on the payment agreed so less than 6 years on a default and already 3 months in . I can already see my balance going down . They were so helpful which prompted me to talk to Halifax who have offered to refer me to collections and close the account if I request. What is AP?? All new to this . Thanks for your comment 

AP stands for Arranged Payment. As I understand, if you make a payment arrangement with your creditor, they would normally mark your credit file with AP. If you stick that arranged payment which will finish by let's say Sep 2025, then that AP marker will drop off your credit file on Sep 2031 (assuming they haven't defaulted) which is in my and many other experts view is just as bad as default. But if your account defaulted (you haven't made any arrangement with your creditor, they put account as default and mark that in your credit file, likely will be sold to a debt collection agency at one point) on 30 Sep 2021, then that Default marker will disappear  from your credit file on 30 Sep 2027. An account Defaults only once, then it gets updated on credit files but AP markers added every month and will take much longer to drop off your CRA.

MSE is an excellent space for learning, and I'm still learning.

I have a situation with my unsecured debts that I will post in this forum for expert opinion from others at point.

I am taking my time, learning and not rushing into anything. What I have seen, many people jump into DMP then realise their mistakes. If an account is defaulted, most painful part is creditors/DCAs persistent calls/letters and people with family, mortgage etc. it's a dreadful situation but there's always hope at the end.

Moveslikeagger

I found that I had lots of calls and letters etc until my accounts defaulted. Then when I set up my monthly payments I only hear from creditors every 6 months. Also if you request to only be contacted by post or email companies are much better these days in adhering to your requests. As long as you communicate with creditors once accounts are defaulted they are actually pretty understanding and easy to deal with. 

funny_bunny

Moveslikeagger said:

I found that I had lots of calls and letters etc until my accounts defaulted. Then when I set up my monthly payments I only hear from creditors every 6 months. Also if you request to only be contacted by post or email companies are much better these days in adhering to your requests. As long as you communicate with creditors once accounts are defaulted they are actually pretty understanding and easy to deal with. 

Thanks, that sounds a little different than how it used to be when I was student many moons ago.

Now I have a family, mortgage in OH's name but I've been paying that to her account, everything nice and smooth but the spiralling debt/interests is causing occasional sleepless nights hence I keep browsing MSE whenever I have a spare min.
OH knows I have some debt but doesn't how much!!!

I am dreading....

funny_bunny

Moveslikeagger said:

I found that I had lots of calls and letters etc until my accounts defaulted. Then when I set up my monthly payments I only hear from creditors every 6 months. Also if you request to only be contacted by post or email companies are much better these days in adhering to your requests. As long as you communicate with creditors once accounts are defaulted they are actually pretty understanding and easy to deal with. 

Did you set the payments up with DCAs or the actual creditors? Did you go through SC/CAB or did that by yourself?