DMP mutual support thread part 13 !!

debtfreeme2021

@Moveslikeagger defaulting them all seems to be the way forward then in terms of fairness.

sourcrates

Moveslikeagger said:

@Moveslikeagger do you see self managed as a direct agreement with each creditor so more flexible?? Therefore if I go down the route of self managed I can still manage some of the debts and default on others ???

Im not sure where you stand on this. If you did get a CCJ (granted thats very unlikely) the court would ask you to treat all your creditors fairly and pay a fair amount to each one. Sourcrates is the person to answer in more detail

To clarify, debt management is (currently) an informal debt arrangement, which has no real rules or guidelines, however, the debt charities will set up a free arrangement for you, the only criteria being, all unsecured, non essential debts should be included, and each creditor gets an equal slice of the pie, usually pro rata, in return the companies usually stop interest and charges, but that is not always the case..

There are also fee charging companies that do exactly the same thing, but charge you upfront, and on a monthly basis, these, obviously, should be avoided.

Then there is what we term "self management" this basically means you make individual arrangements with each of your creditors, you can pick and choose how to run it, as there are no rules on this, if you wish to leave one account open, you can do, its your DMP, you run it how you wish.

Contrary to popular belief, the other creditors won`t know what the other is being paid, self management gives you much more control over what is happening, and would always be my first choice.

Moveslikeagger

Thanks Sourcrates. 

Best advice I can give anyone new is listen to what the regulars here say. It seems scary but honestly it’s not bad once you get the ball rolling. 

funny_bunny

sourcrates said:

Moveslikeagger said:

@Moveslikeagger do you see self managed as a direct agreement with each creditor so more flexible?? Therefore if I go down the route of self managed I can still manage some of the debts and default on others ???

Im not sure where you stand on this. If you did get a CCJ (granted thats very unlikely) the court would ask you to treat all your creditors fairly and pay a fair amount to each one. Sourcrates is the person to answer in more detail

To clarify, debt management is (currently) an informal debt arrangement, which has no real rules or guidelines, however, the debt charities will set up a free arrangement for you, the only criteria being, all unsecured, non essential debts should be included, and each creditor gets an equal slice of the pie, usually pro rata, in return the companies usually stop interest and charges, but that is not always the case..

There are also fee charging companies that do exactly the same thing, but charge you upfront, and on a monthly basis, these, obviously, should be avoided.

Then there is what we term "self management" this basically means you make individual arrangements with each of your creditors, you can pick and choose how to run it, as there are no rules on this, if you wish to leave one account open, you can do, its your DMP, you run it how you wish.

Contrary to popular belief, the other creditors won`t know what the other is being paid, self management gives you much more control over what is happening, and would always be my first choice.

Best advice I've seen regarding any confusion about DMP so far.

If a creditor ask for my bank statement to verify my income/expenditure at any stage of DMP, what would be the ideal response in your opinion or am I obliged to provide one?

Moveslikeagger

Funny bunny - no your not obliged to provided anything. As sourcrates has said it is an informal agreement. You are in control and do not have to do anything your not happy with 

Moveslikeagger

Just to say I have had a DMP for 2 years now and have never provided any bank statements. Only my income and expenditure 

debtfreeme2021

@ sourcrates thank you for clarifying it really does help and thanks to all this week for the advice it really has helped me to see some light . I’ve just got to work through the detail now . 

funny_bunny

Moveslikeagger said:

Just to say I have had a DMP for 2 years now and have never provided any bank statements. Only my income and expenditure 

Thank you, much appreciate the advice.

When a debt sold to another DCA that you were already paying, do you have to renegotiate the repayment terms? 

19ryanh93

Suseka97 said:

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.

Thanks for the advice. Appreciate it. 

When they’ve sent you offers have you asked for them or have they just randomly sent them? 

Just curious for the future. 

Moveslikeagger

funny_bunny said:

Moveslikeagger said:

Just to say I have had a DMP for 2 years now and have never provided any bank statements. Only my income and expenditure 

Thank you, much appreciate the advice.

When a debt sold to another DCA that you were already paying, do you have to renegotiate the repayment terms? 

Some of my debts were bought by a company called intrum but I continued paying the same amount at the time they were bought. Most collectors will have a review every 6 months so you will have to send them an updated income and expenditure form anyway. Don’t worry about things like that. Take it step by step. Concentrate on getting your debts defaulted by not paying anything. It might take a few months. One of my debts (with Tesco) took a year. In the meantime build up an emergency fund.