DMP mutual support thread part 13 !!

sourcrates

Sounds like its been defaulted, credit files can take time to update, keep checking your file.

Are the two companies chasing separate debts ?

movingforward2022

miamispice said:

Hello,

I’m new here, and I just wanted to clarify a few general things, if someone’s got a bit of time to reply I’d appreciate it. Sorry for going over the very basics

I’m going to go down the route of self-managed DMP. I’ve sorted out a new basic bank account already and I’m just putting my initial holding letters together now.

My queries are about what to do once I’ve sent the holding letters. If I’ve understood the posts on here, some of you have done one or more of the following things – am I right?

1.       Stopped making your payments until you’ve put an emergency fund together

2.       Stopped making your payments with a view to getting a default registered ASAP

3.       Made an affordable token payment to each creditor

And it seems from what you guys are saying on here that, although I might get a lot of letters asking for payments etc, I’m not in any danger of getting into any more trouble because I’m basically saying to the creditors ‘I’m having problems, I’m making a plan to sort this all out, and I’ll keep in touch.’?? And providing I keep them informed and make a reasonable offer when I’m ready then I’m doing this correctly?

A massive thank you to everyone for putting up so much advice on here. You people are all so nice to each other and I feel so much better about the mess I’ve made for myself after having read a lot of your stories.

Good luck to everyone.

I haven’t issued holding notices, or token payments.  I’ve just gone silent awaiting the default letters.  

Not sure if it’s totally the right approach, but I did read sending holding letters can drag the application of the default out.  I know I can’t “catch up” and affordable payments will see me clear in around 5 years.  So I want the default applied as quickly as possible. Whilst I don’t want any new debt, it would be good to have options to move at the end of my mortgage in 10 years if I want too.

I’ve used the in between time to either replace broken essential stuff in the home (fridge being one!) or to clear some of the smaller debts so I’ll be dealing with less companies.

I’m sure someone who really knows what they are doing will be along and advise. 

miamispice

movingforward2022 said:

miamispice said:

Hello,

I’m new here, and I just wanted to clarify a few general things, if someone’s got a bit of time to reply I’d appreciate it. Sorry for going over the very basics

I’m going to go down the route of self-managed DMP. I’ve sorted out a new basic bank account already and I’m just putting my initial holding letters together now.

My queries are about what to do once I’ve sent the holding letters. If I’ve understood the posts on here, some of you have done one or more of the following things – am I right?

1.       Stopped making your payments until you’ve put an emergency fund together

2.       Stopped making your payments with a view to getting a default registered ASAP

3.       Made an affordable token payment to each creditor

And it seems from what you guys are saying on here that, although I might get a lot of letters asking for payments etc, I’m not in any danger of getting into any more trouble because I’m basically saying to the creditors ‘I’m having problems, I’m making a plan to sort this all out, and I’ll keep in touch.’?? And providing I keep them informed and make a reasonable offer when I’m ready then I’m doing this correctly?

A massive thank you to everyone for putting up so much advice on here. You people are all so nice to each other and I feel so much better about the mess I’ve made for myself after having read a lot of your stories.

Good luck to everyone.

I haven’t issued holding notices, or token payments.  I’ve just gone silent awaiting the default letters.  

Not sure if it’s totally the right approach, but I did read sending holding letters can drag the application of the default out.  I know I can’t “catch up” and affordable payments will see me clear in around 5 years.  So I want the default applied as quickly as possible. Whilst I don’t want any new debt, it would be good to have options to move at the end of my mortgage in 10 years if I want too.

I’ve used the in between time to either replace broken essential stuff in the home (fridge being one!) or to clear some of the smaller debts so I’ll be dealing with less companies.

I’m sure someone who really knows what they are doing will be along and advise. 

Thanks for your comments. I’m actually thinking I’ll do what you’ve done, at least to start with. Stop payments and wait for it all to start happening, meantime just get cracking on my emergency fund. I might in a month or two send letters asking them all to freeze interest but continue to pay nothing until the defaults happen, hopefully sooner rather than later. 

Good luck to you and well done for doing what you’re doing. 

uonsjc31

sourcrates said:

Sounds like its been defaulted, credit files can take time to update, keep checking your file.

Are the two companies chasing separate debts ?

Hi @sourcrates

Yes they are two debts with different companies, both operated by Newday.

I am sending letters to them in any case. No update to credit file but will keep an eye out.

Is there a template you know of so I can send letters to them? Telling them I will pay £x amount initially

Thanks again for your input!

debtfreeme2021

Afternoon all

Ive been patiently awaiting my defaults since I stopped payments in September. I’ve now received my first letter which reads a bit like this … 

We recently sent you a Default Notice (not registered on credit file yet) you are now required to pay the full loan balance. If you pay now you will pay less interest. If you pay before x you’ll pay less interest, if you pay after we will need to recalculate. If you don’t pay by x , your account will be reported as a default. 

Obviously this is what I’ve been waiting for.

Additionally we may (I note not will as per @sourcrates previous advice.

The first two I think I was expecting but the latter is the one that’s tipped me over the edge.
Is this standard wording? 

pass your account to a debt collection agency

sell your account to a purchaser 

take court action to recover the balance outstanding . This could include a County Court Judgement (CCJ) or a charge or inhibition on your property if you are a homeowner , or an attachment/ arrest of earnings where the court grants permission to deduct funds directly from your salary. 

Thanks in advance 

sourcrates

debtfreeme2021 said:

Afternoon all

Ive been patiently awaiting my defaults since I stopped payments in September. I’ve now received my first letter which reads a bit like this … 

We recently sent you a Default Notice (not registered on credit file yet) you are now required to pay the full loan balance. If you pay now you will pay less interest. If you pay before x you’ll pay less interest, if you pay after we will need to recalculate. If you don’t pay by x , your account will be reported as a default. 

Obviously this is what I’ve been waiting for.

Additionally we may (I note not will as per @sourcrates previous advice.

The first two I think I was expecting but the latter is the one that’s tipped me over the edge.
Is this standard wording? 

pass your account to a debt collection agency

sell your account to a purchaser 

take court action to recover the balance outstanding . This could include a County Court Judgement (CCJ) or a charge or inhibition on your property if you are a homeowner , or an attachment/ arrest of earnings where the court grants permission to deduct funds directly from your salary. 

Thanks in advance 

Just bog standard wording, as said many times before, they have those options to choose from, and the default notice has to make you aware of all potential consequences.

The vast majority of the time, the debt is either sold, or passed to a debt collector.

Every now and again, the creditor may choose to go to court, more of a token gesture really, they can`t do it with every account that defaults, there are simply far too many, which is why we have a debt collection industry.

The stats read something like this, the last figures I could find, I think they were from 2019, so the figures may have risen a little, less than 10% of defaulted debts ever get to court, its about 9% actually, so 91% of defaulted accounts never see a court room, if you base your risk assessment on those figures, you should be fine, you can never say never, but I`d take those odds.

sourcrates

uonsjc31 said:

sourcrates said:

Sounds like its been defaulted, credit files can take time to update, keep checking your file.

Are the two companies chasing separate debts ?

Hi @sourcrates

Yes they are two debts with different companies, both operated by Newday.

I am sending letters to them in any case. No update to credit file but will keep an eye out.

Is there a template you know of so I can send letters to them? Telling them I will pay £x amount initially

Thanks again for your input!

Don`t need a template, just write what you want to say.

aquafish_2

Currently paying £300 through stepchange to my creditors (debts of £30k)..however, it looks like i'll need to start taking on more bills at home.  Is it easy to drop down to £1 a month for all creditors?  How do I go about this?

debtfreeme2021

@sourcrates thank you this is most helpful 

sourcrates

aquafish_2 said:

Currently paying £300 through stepchange to my creditors (debts of £30k)..however, it looks like i'll need to start taking on more bills at home.  Is it easy to drop down to £1 a month for all creditors?  How do I go about this?

Dear Creditors,

My financial circumstances have worsened of late, partly due to the all round rise in the cost of living, and especially because of the rise in energy prices.

This means that, for the time being, I will have to reduce my non essential expenditure, therefore I will be dropping my DMP payments to just a token amount of £1 per month, per creditor, from this month onwards.

I will keep you updated on my financial circumstances, and should anything change, I will let you know.

Regards

aquafish_2