DMP mutual support thread part 13 !!

rachy185

rachy185 said:

Hi everyone, just looking for advice really! As far as I've read i understand you need to let your accounts default before arranging a dmp to shorten the time the info is on the credit file. I have currently around 43k debt (5 credit cards and 1 loan) I currently pay around £840 a month on all these accounts. Currently they are 0% on the credit cards apart from a recent transaction i did, so I will be charged on £2900 I think roughly its 28% apr a year. I've done a soa in the past, it shows I have around £350 towards debt. 


I'm worried about stopping the payments to build up the emergency fund, I know it takes time for accounts to default and for the debt to be sold on. I'm worried about the in-between time, the letters and debt collectors turning up. I do want to pay this debt but its unmanageable and will spiral out of control once the 0% ends as early as feb 22. I would just like some of people's experiences and how they dealt with waiting to default. Will the debt collectors take belongings? Or will there enough time whilst waiting for defaults for arrangement plans to be set up?


How did you allocate money to the accounts, I'm thinking across the 6 accounts £50 towards each but I can't see it being enough and with the high debt its going to take forever to pay.

Also whilst waiting for the defaults am I right in thinking that there will added charges for no payments and with my debt being 0% will they start adding interest as I've broken the contract? So essentially I could end up owing a hell of alot more by the time the accounts default?!

Do ccjs happen with regards to credit cards or is that council tax etc? I'm up to date with all the priority debt and will ensure they are always.

I have a million questions but I just can't think straight at the min, I have had a good read but I just need that push to start. I've never missed a payment and its really scary thinking about it.


Thankyou in advance 

Sorry another question... if money transfers have recently been taken out would this cause any issues?

Hols2021

rachy185 said:

Hi everyone, just looking for advice really! As far as I've read i understand you need to let your accounts default before arranging a dmp to shorten the time the info is on the credit file. I have currently around 43k debt (5 credit cards and 1 loan) I currently pay around £840 a month on all these accounts. Currently they are 0% on the credit cards apart from a recent transaction i did, so I will be charged on £2900 I think roughly its 28% apr a year. I've done a soa in the past, it shows I have around £350 towards debt. 


I'm worried about stopping the payments to build up the emergency fund, I know it takes time for accounts to default and for the debt to be sold on. I'm worried about the in-between time, the letters and debt collectors turning up. I do want to pay this debt but its unmanageable and will spiral out of control once the 0% ends as early as feb 22. I would just like some of people's experiences and how they dealt with waiting to default. Will the debt collectors take belongings? Or will there enough time whilst waiting for defaults for arrangement plans to be set up?


How did you allocate money to the accounts, I'm thinking across the 6 accounts £50 towards each but I can't see it being enough and with the high debt its going to take forever to pay.

Also whilst waiting for the defaults am I right in thinking that there will added charges for no payments and with my debt being 0% will they start adding interest as I've broken the contract? So essentially I could end up owing a hell of alot more by the time the accounts default?!

Do ccjs happen with regards to credit cards or is that council tax etc? I'm up to date with all the priority debt and will ensure they are always.

I have a million questions but I just can't think straight at the min, I have had a good read but I just need that push to start. I've never missed a payment and its really scary thinking about it.


Thankyou in advance 

Hi Rachy185,

My husband and i have around £65k of debt between us which was totally unmangeable and so in Feb we decided to stop making payments to all our debts. We've been trying to get an emergency fund behind us but it's really hard with all the increases in bills. We have been 6 months without making payments and none of my debts have defaulted yet which is really frustrating as i just want to set up payment plans. My husbands loan has defaulted and that is the only one so far so we sent up a payment plan with the loan provider last week for £10 and they were very helpful with it.

Some of my debts so far are with Moorcroft and Arvato, i've had lots of calls and letters from them, they keep saying my debt has defaulted but it hasn't as there is nothing on my CF and i've not received any letters either. I'm finding the process confusing to be honest as some of the compaines my debts are with will send a letter saying this is a Default notice and you need to pay x amount then at the bottom it says if you do not contact us we may issue a default? I think i have asked about CCJS on here but i think you can get them for loans and CC but have been advised on here that this is way down the road and only happens in a small percentage of debts and you are given a chance to make a payment plan up before it gets to that stage. Sourcrates has been extremely helpful so hopefully he'll be able to tell you properly.

Hols2021

Hi everyone just looking for a bit of advice myself with the Default process. It's been 6 months since we made payments but the credit companies haven't issued defaults just constant letters, texts and calls asking us to contact them to make a payment plan up, i don't want to do this as i don't want an AP marker on my credit file. Do i write to the comapnies asking them to default me or just hang off? It's an extremely slow process and just want to make sure i am doing things correctly?

rachy185

Hols2021 said:

rachy185 said:

Hi everyone, just looking for advice really! As far as I've read i understand you need to let your accounts default before arranging a dmp to shorten the time the info is on the credit file. I have currently around 43k debt (5 credit cards and 1 loan) I currently pay around £840 a month on all these accounts. Currently they are 0% on the credit cards apart from a recent transaction i did, so I will be charged on £2900 I think roughly its 28% apr a year. I've done a soa in the past, it shows I have around £350 towards debt. 


I'm worried about stopping the payments to build up the emergency fund, I know it takes time for accounts to default and for the debt to be sold on. I'm worried about the in-between time, the letters and debt collectors turning up. I do want to pay this debt but its unmanageable and will spiral out of control once the 0% ends as early as feb 22. I would just like some of people's experiences and how they dealt with waiting to default. Will the debt collectors take belongings? Or will there enough time whilst waiting for defaults for arrangement plans to be set up?


How did you allocate money to the accounts, I'm thinking across the 6 accounts £50 towards each but I can't see it being enough and with the high debt its going to take forever to pay.

Also whilst waiting for the defaults am I right in thinking that there will added charges for no payments and with my debt being 0% will they start adding interest as I've broken the contract? So essentially I could end up owing a hell of alot more by the time the accounts default?!

Do ccjs happen with regards to credit cards or is that council tax etc? I'm up to date with all the priority debt and will ensure they are always.

I have a million questions but I just can't think straight at the min, I have had a good read but I just need that push to start. I've never missed a payment and its really scary thinking about it.


Thankyou in advance 

Hi Rachy185,

My husband and i have around £65k of debt between us which was totally unmangeable and so in Feb we decided to stop making payments to all our debts. We've been trying to get an emergency fund behind us but it's really hard with all the increases in bills. We have been 6 months without making payments and none of my debts have defaulted yet which is really frustrating as i just want to set up payment plans. My husbands loan has defaulted and that is the only one so far so we sent up a payment plan with the loan provider last week for £10 and they were very helpful with it.

Some of my debts so far are with Moorcroft and Arvato, i've had lots of calls and letters from them, they keep saying my debt has defaulted but it hasn't as there is nothing on my CF and i've not received any letters either. I'm finding the process confusing to be honest as some of the compaines my debts are with will send a letter saying this is a Default notice and you need to pay x amount then at the bottom it says if you do not contact us we may issue a default? I think i have asked about CCJS on here but i think you can get them for loans and CC but have been advised on here that this is way down the road and only happens in a small percentage of debts and you are given a chance to make a payment plan up before it gets to that stage. Sourcrates has been extremely helpful so hopefully he'll be able to tell you properly.

Thankyou for your reply, this is what scares me as its such a long process but I want to do it right. It would be so much easier if they just default quickly and we can get on to re paying but seems they like to mess about. Are you doing dmp yourself of with a company? 

Hols2021

rachy185 said:

Hols2021 said:

rachy185 said:

Hi everyone, just looking for advice really! As far as I've read i understand you need to let your accounts default before arranging a dmp to shorten the time the info is on the credit file. I have currently around 43k debt (5 credit cards and 1 loan) I currently pay around £840 a month on all these accounts. Currently they are 0% on the credit cards apart from a recent transaction i did, so I will be charged on £2900 I think roughly its 28% apr a year. I've done a soa in the past, it shows I have around £350 towards debt. 


I'm worried about stopping the payments to build up the emergency fund, I know it takes time for accounts to default and for the debt to be sold on. I'm worried about the in-between time, the letters and debt collectors turning up. I do want to pay this debt but its unmanageable and will spiral out of control once the 0% ends as early as feb 22. I would just like some of people's experiences and how they dealt with waiting to default. Will the debt collectors take belongings? Or will there enough time whilst waiting for defaults for arrangement plans to be set up?


How did you allocate money to the accounts, I'm thinking across the 6 accounts £50 towards each but I can't see it being enough and with the high debt its going to take forever to pay.

Also whilst waiting for the defaults am I right in thinking that there will added charges for no payments and with my debt being 0% will they start adding interest as I've broken the contract? So essentially I could end up owing a hell of alot more by the time the accounts default?!

Do ccjs happen with regards to credit cards or is that council tax etc? I'm up to date with all the priority debt and will ensure they are always.

I have a million questions but I just can't think straight at the min, I have had a good read but I just need that push to start. I've never missed a payment and its really scary thinking about it.


Thankyou in advance 

Hi Rachy185,

My husband and i have around £65k of debt between us which was totally unmangeable and so in Feb we decided to stop making payments to all our debts. We've been trying to get an emergency fund behind us but it's really hard with all the increases in bills. We have been 6 months without making payments and none of my debts have defaulted yet which is really frustrating as i just want to set up payment plans. My husbands loan has defaulted and that is the only one so far so we sent up a payment plan with the loan provider last week for £10 and they were very helpful with it.

Some of my debts so far are with Moorcroft and Arvato, i've had lots of calls and letters from them, they keep saying my debt has defaulted but it hasn't as there is nothing on my CF and i've not received any letters either. I'm finding the process confusing to be honest as some of the compaines my debts are with will send a letter saying this is a Default notice and you need to pay x amount then at the bottom it says if you do not contact us we may issue a default? I think i have asked about CCJS on here but i think you can get them for loans and CC but have been advised on here that this is way down the road and only happens in a small percentage of debts and you are given a chance to make a payment plan up before it gets to that stage. Sourcrates has been extremely helpful so hopefully he'll be able to tell you properly.

Thankyou for your reply, this is what scares me as its such a long process but I want to do it right. It would be so much easier if they just default quickly and we can get on to re paying but seems they like to mess about. Are you doing dmp yourself of with a company? 

I know, it's quite frustrating the time it takes. I am a worrier so it's been quite stressful trying to ignore the calls and text etc. We are trying to do it ourselves. Some our CC have been giving us 30 days breathing space without us asking so this has been adding time onto the process too, this has happened a few times now

sourcrates

The problem is that some creditors default sooner than others, as FCA guidance is against defaulting too early, which is why there are such delays.

It`s a case of waiting Unfortunatly, the collection process does take a very long time, by all means write and tell the creditor you are wanting the accounts to be defaulted, so you can move forward, don`t be afraid to tell them your plans.

Hopefully this will all be in the past soon, as a regulated Debt Management Plan is to be launched in the near future, no exact date as yet, but it will be like the Scottish equivalent they currently have, where all your debts are frozen, no further interest is added, and you get legal protection.

It`s on its way, just don`t know when.

Hols2021

Hi Sourcrates, thanks for your reply, I’m in Scotland do you mean the DPP? We had looked into that but have to go through a debt adviser to arrange that as you can’t do it yourself here. We preferred to try it ourselves so decided to go for the DMP. I will email my creditors and ask them to default my account. 

EnglishRoseJane

Hi everyone, 

Newbie here....

I have contacted Step Change today and they have advised my best plan of action regarding my 23k sole debts is a dmp. I have filled everything in and applied for breathing space, as I am on medication for anxiety and depression. This has been confirmed for 60 days.
Step change have said they are now processing my application and will be in contact in around 5 days. 
They have agreed that I will be making the £1 token payments to each of my 9 creditors for the time being. I have set up the direct debit details for this in a new bank account that I opened yesterday. They have advised that they will give me 10 days notice for the £9 payment. 

I have started cancelling direct debits in my N8tionwide bank account. I have a personal loan with them for around £6k. The payment was due to come out today. My credit history has always bene immaculate so today is my first ever missed payment. 
I am worried as although this was a sole loan for just myself, me and the husband have 2 other joint accounts with N8tionwide for our bills and spending. I am so worried they will take the payment from our joint account. My husband does not know about this loan or the dmp. I would be in serious trouble if they did this. Is it wise to remove myself from the joint accounts with N8tionwide?I can make an excuse to my Hubby that I did it accidently when I moved over to St8rling bank. I know its not right to not tell my Husband, but my mental health would not cope with the backlash. 

I will also be starting an emergency fund. The step change website is brilliant and the adviser on the phone was so lovely. She even offered me extra mental health support and advised me to contact MIND. 

Do I need to do anything else. I believe I don't have to contact my creditors? Is that right? I suppose I will know more when Step change have finished looking at my application. 

Already it feels like a weight is lifting. Fingers crossed it goes plain sailing 

tinkerbell73

Hi everyone 

I am a long time dmp holder  with PayPlan all debts defaulted, and are all over 15 years old and I pay monthly  £161 to PayPlan.  

I am now wondering about cca requests - should I try them and see what comes back ? Have decided to manage my dmp myself this year and need to research the options. Defaulted accounts can’t be reinstated on my credit record can  they ?

 Several are offering 25%  discount but if I can drop payments if cca aren’t forth coming I could save most of what I’m currently paying for some lump sum settlements and finally get clear. 

I’ve paid around £23k with about £15k  to go while being a single parent so never really had headspace to think,about it before. Kids are now settled and independent and I want to clear the rest somehow it’s been soo long. The dmp saved my life but I need to see an end to it.

Any advise much appreciated 

sourcrates

tinkerbell73 said:

Hi everyone 

I am a long time dmp holder  with PayPlan all debts defaulted, and are all over 15 years old and I pay monthly  £161 to PayPlan.  

I am now wondering about cca requests - should I try them and see what comes back ? Have decided to manage my dmp myself this year and need to research the options. Defaulted accounts can’t be reinstated on my credit record can  they ?

 Several are offering 25%  discount but if I can drop payments if cca aren’t forth coming I could save most of what I’m currently paying for some lump sum settlements and finally get clear. 

I’ve paid around £23k with about £15k  to go while being a single parent so never really had headspace to think,about it before. Kids are now settled and independent and I want to clear the rest somehow it’s been soo long. The dmp saved my life but I need to see an end to it.

Any advise much appreciated 

Yes by all means send CCA`s, its pretty much par for the course when going it alone.

No, defaulted accounts cannot re-appear on your file once they have dropped off, not under any circumstances.