DMP mutual support thread part 13 !!

debtfreeme2021

@Suseka97 thanks for the link will take a look . In terms of budget I’m trying to get the balance of both but everything is so much more expensive these days so what you think you need you always need a bit more and keep getting caught short . 

Suseka97

debtfreeme2021 said:

@Suseka97 thanks for the link will take a look . In terms of budget I’m trying to get the balance of both but everything is so much more expensive these days so what you think you need you always need a bit more and keep getting caught short . 

The way to look at it is that if you set your budget too tight, then it'll likely fail and/or you'll end up constantly thinking about the debt.  What you need to do is set it so that you can pay all the necessary bills and live comfortably, but not extravagantly to the detriment of clearing the debts so you can eventually be debt-free.  Make sure you build up an emergency funds for those unexpected bills, which will undoubtedly come along and ideally you want to get all your debts defaulted before you set up a plan, which gives you the time to build that EF.  

Suseka97

bon007 said:

Hi 
I am in the process of setting up a DMP . I have started the process by stopping my payments. As I understand by reading through the forum you now wait for your accounts to default . I have 6 creditors in total and these are all unsecured as they are credit cards . My question is do I wait  for every account to default before I contact SC ? What happens if 4 out of the 6 default do I still wait or do I set up payments for the defaulted accounts . Now I have stopped the payment would I send a letter stating I am in financial difficulty and I will be in touch once the situation is clearer ? Sorry for the questions but I am a beginner and I am determined to get this right . 

Firstly, you do need those accounts to be defaulted and so its best to hold out setting up your DMP until they have been.  If you want to start paying some who default before others who don't, then you'll have to go self-managed.  Just wait and see what happens first, you may find they all default in the next 3 - 6 months and you can then decide which way you want to go.

Suseka97

Cooperblue43 said:

Hi, I’m new and looking for some advice before starting my dmp.
 I have some smaller debts which I could clear but using the remaining credit on my credit card. So then its the same debt but not against so many different companies. Stepchange said it makes no difference to them but I’m wondering if it’s a good idea or to proceed with it all as it is. ?? 

Any help would be great 

thanks 

Marie 

It really doesn't make any difference, as SC have said, its a mindset thing - would you prefer to have fewer creditors?   If it were me I wouldn't bother, but it does depend on how small those smaller debts are.  If just a few hundred, then it might be worthwhile knocking those ones off.

bon007

Hi 

Once you wait for your accounts to default do they inform you in writing that the account is  now defaulted ?  Or do I keep checking my credit file if so which one is easy to use ? 

sourcrates

bon007 said:

Hi 

Once you wait for your accounts to default do they inform you in writing that the account is  now defaulted ?  Or do I keep checking my credit file if so which one is easy to use ? 

You will receive a "Default notice" in the post, this must be provided by the creditor, in order to comply with the consumer credit act.
It will look, and read, like a very official document, it will state that the breach on your account must be reminded within 14 days (they will give you a date to comply by) the letter will go on to list the potential penalties for non compliance, such as your ability to obtain further credit, negative information on your credit file, your account may be passed to a debt collector, and the possibility of legal action.

Just keep in mind, these are all things the creditor could do, not will do.

99% of the time, if full payment of the breach is not made by the due date, your account will either be sent to debt collection, or sold to a debt purchaser.

Whatever happens, the default notice, should just be read, and then filed, no action is required on your part, as you want the account to default, its fairly typical of posters to come on hear in sheer panic after receiving a default notice, due to the official wording of the document, wanting full repayment or else, its all standard wording, and in effect just means the debt will default if you don`t pay it, and will then most likely be sold on.

bon007

Thank you so much for the reply that really helps.

bluebell_on_track

Hi folks. Me again. Sorry but I have another question. I realised that I entered my DMP with step change too quickly and should have let my accounts default first. I am now doing this self managed. If I have an Ap on my accounts, can they then be defaulted? If so, will the original AP date start the 6 years or will the countdown then start from the default date? 

Thank you in advance. 

Moveslikeagger

The debts can be defaulted at anytime if your not paying the original full monthly amount. I believe defaults can be backdated but it can be difficult to get the company to do it. I would just stop paying until they are defaulted. 

Suseka97

bluebell_on_track said:

Hi folks. Me again. Sorry but I have another question. I realised that I entered my DMP with step change too quickly and should have let my accounts default first. I am now doing this self managed. If I have an Ap on my accounts, can they then be defaulted? If so, will the original AP date start the 6 years or will the countdown then start from the default date? 

Thank you in advance. 

As you surmise, the 6 year countdown can only begin once a default is applied.