DMP mutual support thread part 13 !!

sourcrates

bluebell_on_track said:

Just a quick one. How do I get my creditor to default my account? Do I need to
make token or not pay at all? Thanks 

How long is a piece of string ?

Its not an exact science unfortunately, no payments or token payments for a while may do the trick, best way is to ignore them completely until your debt is defaulted and sold on, that`s the only sure fire way of getting there.

Obviously taking note of any correspondence that comes through the door, usually just threats of default/collection activity etc etc.

swansea_lad

Once you pay off the debt, is it difficult building up your credit rating? I owe £9000 and its due to be paid off in April 2023. 

sourcrates

swansea_lad said:

Once you pay off the debt, is it difficult building up your credit rating? I owe £9000 and its due to be paid off in April 2023. 

Your credit file heals itself with time, once all defaults/late payments etc have gone, then its just a question of paying bills on time, don`t pay late, or miss payments, personally I don`t like credit cards, but used correctly (small monthly spend, repaid in full every month) they can help build your credit history, so that may be an option.

ditty1234

On the note of rebuilding credit - I am not too fuzzed as don't want a credit card, except would be handy for travelling, but in the mean time is it worth to keep paying things like car and house insurance monthly as it is a kind of credit arrangement - to build credit? I am paying token amounts on my debt so will drop off credit score before paid out. 

Suseka97

ditty1234 said:

On the note of rebuilding credit - I am not too fuzzed as don't want a credit card, except would be handy for travelling, but in the mean time is it worth to keep paying things like car and house insurance monthly as it is a kind of credit arrangement - to build credit? I am paying token amounts on my debt so will drop off credit score before paid out. 

Really its less to do with 'building credit' as such, what you are looking to do is demonstrate, through your credit history (not score) that you are able to manage your finances appropriately.  This is only relevant when looking to borrow money, get a mortgage/remortgage or other products where a hard search would be carried out on your credit file. 

egnt

After much reading and motivation from this thread, I am about to begin a self managed DMP as I recently had to take a big drop in salary changing my job due to my health.

I will be sending my holding letters to all of my creditors tomorrow advising of my financial difficulties, asking them for up to date account details and finally asking them to remove my telephone number and only contact me by post.

However, I have already been on the phone to one of my creditors (this was before I came across this thread!) who I currently have a loan, credit card and overdraft with advising of my difficulties and they agreed to apply "breathing space" to all three of my accounts for 90 days - this 90 days comes to an end at the end of this month. Would you still send the holding letter to this creditor? If not would a different letter be better or just sit tight and wait for the default?

sourcrates

egnt said:

After much reading and motivation from this thread, I am about to begin a self managed DMP as I recently had to take a big drop in salary changing my job due to my health.

I will be sending my holding letters to all of my creditors tomorrow advising of my financial difficulties, asking them for up to date account details and finally asking them to remove my telephone number and only contact me by post.

However, I have already been on the phone to one of my creditors (this was before I came across this thread!) who I currently have a loan, credit card and overdraft with advising of my difficulties and they agreed to apply "breathing space" to all three of my accounts for 90 days - this 90 days comes to an end at the end of this month. Would you still send the holding letter to this creditor? If not would a different letter be better or just sit tight and wait for the default?

Hi,

Sorry to hear of your financial and health issues.

Lenders are required to try and help customers who fall into arrears as much as they can, its an FCA requirement, meant to benefit the customer, however, those entering debt management want their accounts defaulted quickly, so the more letters and information you send your creditor, they more they may feel obliged to "help" you, by holding your account etc.

This fly`s in the face of what you want to achieve, which is a default, the best way to get that default is to do nothing, and to say nothing, just let the usual collection process take its natural course.

By writing to, and updating the creditor, your just prolonging the time it takes for the relationship between you to sour, and for them to issue the default notice you are wanting.

moonlock

Good morning all

 I sent off a CCA request to CSL (Old Lloyds CC) they’ve come back to me with just a huge pile of statements. I am aware that, that isn’t fulfilling a CCA request. Can anyone give me advice as what to do next please?  Do I write and say you haven’t sent me everything or do nothing? 

many thanks 

sourcrates

moonlock said:

Good morning all

 I sent off a CCA request to CSL (Old Lloyds CC) they’ve come back to me with just a huge pile of statements. I am aware that, that isn’t fulfilling a CCA request. Can anyone give me advice as what to do next please?  Do I write and say you haven’t sent me everything or do nothing? 

many thanks 

Yes, you write to them and tell them what they have sent you does not constitute a correct response to your request for information under section 77 CCA.

Alongside what they have sent you, should be a copy, or reconstituted copy of your credit agreement, set out in the prescribed form, it should include your personal details, the creditors details, and the financial details, it does not require a signature to be present, and it should be a legible copy.

As they have failed to provide what you asked for, the account remains unenforceable, until they do.

movingforward2022

Afternoon

Having read lots on here, and feeling a bit overwhelmed, I’ve concluded a DMP is out only way forward.  I earn a decent salary and need to avoid more formal options to keep my job.  However, following my husbands loss of job last year and his age/health making alternative work difficult,  we simply can’t afford to live and meet minimum payments.  The last 12 months have been borrowing from Peter to pay Paul and have just made the situation worse.

My husband has attempted to go self-employed but work is now even more scarce as we head into winter.  I’m not sure how I deal with that in terms of “income”. All the debt is in my name (go figure) but he would be my dependent if it wasn’t a joint DMP. 

At the moment no accounts are in arrears, just most maxed out.  I can’t cut any more from the monthly budgets to improve the situation,  also can’t afford any sort of Christmas as it stands.  We are one emergency happening away from a significant crisis.

It goes against my inner being to just cancel all DD’s and go silent to creditors.  But it seems that is the best thing to do?  Rather than keep them in a written holding position with letter updates? 

I’m also wondering if it’s worth in the silent period continuing to pay some of the smaller accounts off as I have around £700 a month available after setting a sensible budget.  Thus reducing the amount of creditors ultimately I’m dealing with and avoiding more interest and charges on those accounts? 

Is there anywhere I can check my budget against to make sure it’s within acceptable levels btw?  The difference between CAB and other sites is quiet vast.  Also, are the CAB letter and templates reasonable to use or is there a better library? 

Sorry for the many questions.  I’m embarrassed by all of this but have worked out if I tackle this now it should all complete in around 7 years which is when our mortgage finishes.  It would be brilliant to be totally debt free by then with my own paid for roof over our heads.  Maybe we could even afford a holiday!