DMP mutual support thread part 13 !!

sourcrates

kevoxshockwave said:

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.

I moved your original thread to the DFW forum, where you have had responses.

It can be found here -

New to debt, please help — MoneySavingExpert Forum

kevoxshockwave

sourcrates said:

kevoxshockwave said:

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.

I moved your original thread to the DFW forum, where you have had responses.

It can be found here -

New to debt, please help — MoneySavingExpert Forum

ok thank you 

BooBoo77

I’ve just had two letters from Moorcroft telling me my accounts (that I’m waiting to default before starting my DMP) have been passed to their Home Collection Department and they may call round. Has anyone actually had one of these visits? I’m trying to work out if it’s just a ploy or actual likelihood.  It is making me really nervous. I was ok avoiding phone calls and scanning letters while I waited for defaults before starting my DMP but the idea of someone embarrassing me on my doorstep in earshot of neighbours is horrifying. Is there anything I can do. Thanks 

sourcrates

BooBoo77 said:

I’ve just had two letters from Moorcroft telling me my accounts (that I’m waiting to default before starting my DMP) have been passed to their Home Collection Department and they may call round. Has anyone actually had one of these visits? I’m trying to work out if it’s just a ploy or actual likelihood.  It is making me really nervous. I was ok avoiding phone calls and scanning letters while I waited for defaults before starting my DMP but the idea of someone embarrassing me on my doorstep in earshot of neighbours is horrifying. Is there anything I can do. Thanks 

Yes, don`t answer the door.

Everything a debt collector says or does, is designed for one purpose, and one purpose only, to get you to contact them.

Not many DCA`s knock on doors these days, those that do usually only operate in towns/cities, where they can visit a number of clients at once, remember they are just self employed folk, out to earn a crust, they are not bailiffs, they have no more power than next doors cat, you don`t have to answer the door to them, you don`t have to do anything.

My advice would be to send either a letter or an email, telling them your intentions, that you are waiting for your account to default, tell them why if you like, and that you won`t be entering into any correspondence about it until that happens, so any knocks at the door will be ignored.

Don`t be afraid of them, what are they going to do ??? tell them your intentions, be honest, debt collection is 99% bluff 1% bravado, average call centre worker employed by Moorcroft is approx. 19 years old, scary stuff.

HelenM05

Vaninja said:

HelenM05 said:

Hi, we've been paying our debts through a DMP with SC for about 11 years. The debts started off at a massive  £116,000 and to date we have paid over £85,000 back leaving approximately £35,000 to pay. We have managed to raise approximately 50% of the outstanding amount and sent F&F settlement offer letters to the existing debt companies. We thought that give we have paid back such a large amount and never missed a payment during the 11 years of the DMP that these companies would be happy to accept settlement offers but this is not the case. The only company playing ball is Cabot, PRA group and Idem securities don't want to know. Is it worth sending CCA requests to idem and PRA? The PRA accounts were egg cards taken out before 2003.  If they can't produce the cca,s can we refuse to pay them anymore if they won't agree on a f&f settlement?  No sarcasm please I'm asking for advise from people with similar experiences and I know that these companies are not obliged to accept full and final settlements. TIA 🙂

Hi Helen. What has your experience been like with Cabot.  Im in a similar siutation. I've started the ball rolling with Cabolt, they have offered 75%.

Sorry for the delay. I've not been on here for a while. They have offered 75% off the debt which we are considering as it is a good deal. However, with the cost of living so high we might try and get a bigger reduction, the gas and electric bill is increasing by 1200 per year from April. At the end of the day we need to think of ourselves and we need some savings for the future in case of emergencies.

19ryanh93

So after sending a few CCA requests. None of them supplied them, usual letter saying we can’t get it in the 12 days blah blah blah. 

Get a letter on Sunday from PRA with a lot of paperwork thought here we go they’ve managed to get it, how wrong I was. Instead they send me copies of all the statements from the Credit Card. 

What is the point in wasting the paper?

Newmum92

Mortgage rate switch….

I still have another 9 months left on my current rate with Barclays. If 2 of my debts are with Barclays including OD and CC, will this affect my ability to switch online to another fixed deal? 🤯 dreading the prospect of a variable rate atm with all the increases going on. 

thanks everyone. 

Suseka97

Newmum92 said:

Mortgage rate switch….

I still have another 9 months left on my current rate with Barclays. If 2 of my debts are with Barclays including OD and CC, will this affect my ability to switch online to another fixed deal? 🤯 dreading the prospect of a variable rate atm with all the increases going on. 

thanks everyone. 

Usually an online 'switch' doesn't require a hard search on your credit file so you should be okay.  You'll need to keep the terms of your mortgage deal the same (meaning, don't try to extend or reduce the years left) and just pick a new fixed rate. 

PrettyWoman

Here’s an update now I am two months in to the process.

I have 9 debts spread across 6 creditors and have missed two consecutive payments on most of them, the others will be missed by the end of the month.

I have ignored all phone calls, texts and app notifications, I’ve basically gone radio silent.

I have an expanding file with a tab for each account and I am opening, logging and filing all paperwork. To date I have received six Notices of Arrears, all six have requested I pay my arrears and then continue to make payments on time.

Two of my accounts have notified me that if I miss seven consecutive payments then they will default my account, at least I now have a timescale on those ones.

My debt is now increasing as I am not making any payments and missed payment charges are being added, I really do hope that this is offset by discounts later down the line but will just have to wait and see!

So far nothing terribly scary has happened other than my husbands snoring getting so bad I’ve decided to move into our spare room. Consequently I have had to buy a bed but with 20% discount at Argos I managed it out of my salary so my EF has remained intact.

I have prepared an income and expenditure for when I start my DMP, I’m keeping it up to date as I am using this time to monitor my spending so it is realistic and accurate.

That’s it for now, still hoping to be debt free in six years, it looks impossible at the moment but I like a challenge 😉

sourcrates

PrettyWoman said:

Two of my accounts have notified me that if I miss seven consecutive payments then they will default my account, at least I now have a timescale on those ones.

My debt is now increasing as I am not making any payments and missed payment charges are being added, I really do hope that this is offset by discounts later down the line but will just have to wait and see!

That`s something new, with regard to there default process.

Your debt will increase with interest and late payment fee`s etc, but once defaulted the balance will be frozen, and at some point down the line, it should be possible to partially settle accounts, with the savings you make far more than what was originally added in charges.

Good luck.