DMP mutual support thread part 13 !!

Cpfc1234

Evening all. It has been a while as I have stopped payments in September and have received first formal notice of default to recover the debt. It says I need to pay the arrears by Feb 1st. To I contact them or do I sit tight? As its the first one I am unsure. Many Thanks in advance cheers 

sourcrates

Cpfc1234 said:

Evening all. It has been a while as I have stopped payments in September and have received first formal notice of default to recover the debt. It says I need to pay the arrears by Feb 1st. To I contact them or do I sit tight? As its the first one I am unsure. Many Thanks in advance cheers 

Your intention is to get your accounts defaulted, correct ?

The default notice you have received sets out what you should do to "avoid a default being registered".

You don`t want to avoid this, so why would you want to contact them ??
Yes, sit tight.

The default notice is a bog standard letter the creditor must send you to comply with the consumer credit act, in your case, its for information purposes only, file it and forget it.

Expect to get more of them for your other debts, if you read the exact wording it will list what "we could do", it doesn't list what we will do" does it.

Basically once the time runs out, your account will be defaulted, your relationship with the creditor will end, your account will either go to collections, or an external debt collector, or it may be sold.

Cpfc1234

sourcrates said:

Cpfc1234 said:

Evening all. It has been a while as I have stopped payments in September and have received first formal notice of default to recover the debt. It says I need to pay the arrears by Feb 1st. To I contact them or do I sit tight? As its the first one I am unsure. Many Thanks in advance cheers 

Your intention is to get your accounts defaulted, correct ?

The default notice you have received sets out what you should do to "avoid a default being registered".

You don`t want to avoid this, so why would you want to contact them ??
Yes, sit tight.

The default notice is a bog standard letter the creditor must send you to comply with the consumer credit act, in your case, its for information purposes only, file it and forget it.

Expect to get more of them for your other debts, if you read the exact wording it will list what "we could do", it doesn't list what we will do" does it.

Basically once the time runs out, your account will be defaulted, your relationship with the creditor will end, your account will either go to collections, or an external debt collector, or it may be sold.

That's brilliant I thought may be the case. As it's the first one I have received I was unsure of how to go about it. Looks like my payment journey is about to start and I am quite looking forward to getting it started. Many thanks for the advice 

bon007

Hi 

I am just trying to get my head around the defaults . So far I have had a default notice from 3 accounts. 

I have created the SOA and looked where to reduce on this .

I will now go to a Debit charity like Payplan or SC or try or go self managed but my question is if I set up a Payment Plan  with a Debt Charity would they not want to start straight away and what happens if only 3 of the accounts have defaulted . Do I wait for every single account to default before this starts .

This is the bit of the process I am struggling to get my head around ? I understand you need to make sure the account defaults but how soon do you make token/affordable  payments to them ?

Suseka97

bon007 said:

Hi 

I am just trying to get my head around the defaults . So far I have had a default notice from 3 accounts. 
..............
This is the bit of the process I am struggling to get my head around ? I understand you need to make sure the account defaults but how soon do you make token/affordable  payments to them ?

The best advice is to hold out for those defaults, however long that takes.  If you set up a DMP with one of the debt charities they will want to get you up and running pretty much asap.  Now whilst that's not a bad thing in itself, its not what you want. 

There's no point in making token payments, but a good idea to let your creditors know you are in financial difficulty and that you are working with a debt charity and will be in touch in due course.  Or words to that effect.

Too many rush into a DMP and don't achieve the defaults they want.  The debt charities can only request a creditor consider defaulting the account, but that isn't always the outcome. 

bon007

Hi Thank you for so much for your response , as you state wait for all accounts to default but what if the other accounts do not default for a few months Would  the defaulted accounts that have already got to that stage end up taking action against me ? 

Do I wait until all accounts default then contact SC or Payplan ?

bon007

The reason I ask this is I was so concerned about not having no Emergency Fund and was worried something could go wrong so I kept paying the minimum payment on one account as there was plenty of credit available for any Emergency so this has gave me time in which I now have a healthy Emergency fund of £1500 . I never accessed any of the credit available to me on this card during this time but when I stop the payments now I know this will take a few months .

Have I gone about this wrong way ? 

PrettyWoman

Good morning everybody ☺️

So yesterday I’ve taken the first step towards being debt free by cancelling all my direct debits, what a scary feeling it is as I now feel like I’m on the naughty step!

I get paid on the 14th of the month so some creditors have had January payments and some won’t receive one but it’s just the way it’s worked with my salary.

I have printed my holding letters and they are ready to be posted tomorrow, and then I understand I just sit tight and wait for the defaults.

I am signed up to credit karma so I can monitor my report and check for defaults on there.

My ultimate goal is to be debt free by the time the defaults fall off my credit report so I have 6 years plus the few months I’m waiting for defaults. I will build up my emergency fund and add to my savings for F&F settlements down the line. I suspect a couple of my accounts might not be enforceable due to the length of time since I opened them (29 years) and the fact they have changed ownership, Egg and Virgin Money went to Barclaycard and MBNA.

I will wait for defaults then check whether they are enforceable, if they are not I will use that to negotiate F&F’s while throwing more cash at the enforceable ones. The six year deadline will keep me motivated.

I have read so much on this forum that has helped get me to this point today so thank you to everybody that shares their stories. The advise is invaluable and reassuring.

I am going to self manage from the start as I want the flexibility to overpay and settle as and when I can, e.g when I get my summer bonus.

I have a folder for all the paperwork and a spreadsheet for all the figures, I will start a diary and try to put my figures in my signature but not sure how to do that yet 🙈

Have a lovely Sunday everybody!

sourcrates

bon007 said:

The reason I ask this is I was so concerned about not having no Emergency Fund and was worried something could go wrong so I kept paying the minimum payment on one account as there was plenty of credit available for any Emergency so this has gave me time in which I now have a healthy Emergency fund of £1500 . I never accessed any of the credit available to me on this card during this time but when I stop the payments now I know this will take a few months .

Have I gone about this wrong way ? 

I`ll tell you what I did, some 17 years ago now, circumstances were such, that we could no longer make min payments to our debts, our balance was a shocking £57,000 or thereabouts, I had no knowledge at that time of anything to do with debt repayment/collection anything, I was a total newbie, however I knew two things, I had a wife and child to feed for almost a month, with no money, we had stupidly kept up debt repayments at the expense of food, something you should never do, but I was like a lot of people, very scared of what would happen if I didn`t pay.

I had access to a £5000 overdraft on one bank account, I transferred the full 5k into my other account, and that then became my emergency fund, which we then used partly for food that month.
I had absolutely no qualms whatsoever doing this, we had kept up payments as long as we could, and we had to eat, in my mind there was no question I had done the right thing.

Now our circumstances got worse, and we ended up losing the house as well, a combination of accident/injury and plain bad luck, insolvency eventually played its part in this story.

If I were you, I would start paying the accounts that have defaulted you, a kind of self management if you like, work out your budget, then make payments to the defaulted debts, but save the money for the others, as and when defaults happen, you introduce payment to them.

Also be sure to keep putting something away especially for the emergency fund as well, see how things go.

bon007

Hi Sourcrates 

Thank you so much for your history it really does help as sometimes you do feel totally alone unsure which is the right way to turn for the best . Like you have said in previous posts it is such a big learning curve. I am sorry you had so much bad luck in the past but your amazing at what you do .