DMP mutual support thread part 13 !!

bon007

Ok I misunderstood but that is clear . Just got to wait then until the debt is sold . So the best thing to do is ignore until this is sold on .

jwil

bon007 said:

Ok I misunderstood but that is clear . Just got to wait then until the debt is sold . So the best thing to do is ignore until this is sold on .

Its worth bearing in mind that not all debts will be sold on.  I had two that remained with the original creditor the whole time. They were still defaulted, and you'll be able to see the defaults on your credit file.  

Brave_Up

Just thought I would share my experience so far for anyone who is thinking of going self managed.  Thanks to all of the advice on here I decided to take control.  I used the NEDCAB website which made things so easy as they produce letters to send to the creditors. I sent a letter first to let each creditor know that I was going self managed and I would contact them with an I & E with notification of what I would be paying them.  They all contacted me, by post, to say they were putting my account on hold.  Last month I then sent my proposals. Three have contacted to say they agree and that they will review in 12 months.  All accounts have defaulted.  I have 1more account to get back to me but I'm not expecting any issues.  The creditors have been accepting and easy to deal with so far.  No one has asked for proof of anything that I have put down as expenditures.  This is going to be a long process, so far, going self managed has been straight forward.

wingingit99

Hi,

I've been trying to sort out my finances for the last 2 years, but the debt just isn't going down very much and if it carries on this way it will take 30+ years to clear 

I have a mortgage (on a good 3 year fixed rate) and don't have any priority debts. I've also always religiously paid the minimum on everything, but have got to the point where to meet the debt payments I have very little money left and so have ended up using credit cards for essentials and going round in circles!

I think I need to sacrifice my credit score (I always worried about remortgaging in the future) and begin the DMP route. Initial enquiries with StepChange suggested this would be the best thing to do and it could be paid off in 4.5 years.

Having read through the posts on here my action plan so far is ...

1. Switch main bank account over to different provider where there are no debts held
2. Pay off a few very little debts (under £100)
3. Stop paying all other unsecured debts (contact companies to let them know of financial difficulties)
4. Start putting aside an emergency fund
5. Close old credit cards / credit accounts with £0 balances
6. Wait for defaults to show on credit report
7. Start DMP
8. Pay off debts via DMP and actually stick to months budget

Does this look like it will work? I'm trying not to jump into this too quickly which is my usual style!

Brave_Up

Good morning Wingingit99, 

You sound like you have a good plan.  4.5 years is not bad considering it is going to take you over 30 if you keep going the way you are going.  And going by my past experience of robbing Peter to pay Paul by using CC you just end up with more spiralling debt!!!!

 WAIT PATIENTLY for defaults to be logged and decide if you are going to go down the self managed or stepchange route.  Then get a realistic budget sorted.  Nedcab is great as when you fill in your I&E they give you amounts for each thing that are considered reasonable ( I found this bit hard as I was so scared of leaving myself too tight, and believe me I don't live an extravagant lifestyle, but I didn't have CC as a safety net which I have had for years- which of course is not the way to go).  These suggested amounts mostly fell in with what I pay out anyway but it just gave me reassurance before I contacted creditors, yes I know- we are in control but I think DMP is a process that you have to get your head round.  I think put in a higher amount in 1 expense but I just explained why it was a little higher and there was no issue.

It is going to take me 14 years to pay my debt off at what I am currently proposing to pay.  Things are tight and the cost of living is shooting up ( but if it gets too much I will just have to contact creditors about my new level of expenses).  I honestly feel so much better.  I started this process over a year ago.  I have not used CC since before then.  I have just got through my second Christmas by having paid for everything by sticking to my budget, saving and being sensible and it feels amazing.  I have had over a year where my debt has come down a little rather than rising and it has made me feel so much better.

This site is great as you can read though it and get many answers-people do have the same worries and questions.  If you still don't fully understand you can ask.  But as you can see for yourself you are not on your own.  So many people are on this journey. 

Good luck with getting started and enjoy watching your debt go down rather than up 😊

debtfreeme2021

Hello all . Patiently awaiting my defaults 2/6 have so far communicated that my accounts are closed and a default will be registered. Received a letter from one of my creditors today to say they are going to register the default which will stay on my credit file beyond 6 years??? Have you come across this before?? 

In addition one of my other debts has now been passed to Wescot , they have text to say they have tried to ring me and to call them urgently. I haven’t written to them yet as the default has not appeared on my credit file. How would you approach engaging with them ? At what point do I send my I&E?? Thanks in advance 

Cpfc1234

Afternoon all. Just after a bit of advice. Of the 5 creditors I have I received a default notice from virgin and also an email saying my debt passed to moorcroft by natwest. However clearscore is not registering defaults just arrears. Do I contact them now or wait a little longer. Many thanks in advance 

sourcrates

Cpfc1234 said:

Afternoon all. Just after a bit of advice. Of the 5 creditors I have I received a default notice from virgin and also an email saying my debt passed to moorcroft by natwest. However clearscore is not registering defaults just arrears. Do I contact them now or wait a little longer. Many thanks in advance 

Do you contact who for what ???

Is it defaults you are waiting for ?

If so, credit files take a while to be updated some times, give it a couple of months, wait until you actually see that its defaulted.

debtfreeme2021

Evening all . After some advice on next steps. Tesco have now issued a default however not yet visible on my credit file. The most recent communication from them is a letter today that they have now passed to Wescot who will act on their behalf as debt collection agent. Wescot have been calling (automated service messages received) I’m going to write to them and request correspondence in writing only. 

At what point should I send over my I&E ? Should I send this at the same trims as the above letter ? 

Thanks in advance 

kevoxshockwave

Hi all, could anyone please advise? 
I have started to be unable to pay my debts (4 credit cards, 2 loans, 2 overdrafts, total monthly payment over £1000 pcm and this is paying the minimum on the CCs)
I have gone into arrears on all the accounts. 

I am thinking of a DMP. Am I right in thinking it is best to keep not paying my payments, let thm all go to default, and THEN set up a DMP? Also, should I contact my creditors to tell them I  am in financial trouble, or ignore them? Finally, I should avoid any "arrangement" that they offer? 

This is what i have picked up from this thread, but I may be mistaken! Any advice is appreciated.