DMP mutual support thread part 13 !!

Debtbegone2022

Hi Everyone

I have a debt with drafty that I received a default for and then setup a payment plan.

On my credit file there are 3 markings with ‘D’ for the default for 3 months now I have setup a plan they have changed to an ‘A’ arrangement to pay. Is this correct? Should these be staying as a ‘D’ has the the debt has defaulted?

Thanks

Hols2021

Bowmonster said:

Hi everyone,
New here and need some advice/moral support. I have about £35k debt, my financial situation job wise etc plus cost of living has become a complete mess and I can't get anywhere near affording payments any more. REALLY don't want to enter into an IVA - they seem like horror stories every time I read about them. Looking to set up a DMP. But it would be extremely minimal payments at the mo and looking like forever to pay off. What do others pay per month and how long are your DMPs currently looking at running? I think I could only afford a max of about £100 per month at the mo. So depressing.

Hi, we are in a similar position to you, my husband and I have a huge amount of debt and it all caught up with us last year. Lots of sleepless nights as I’m a worrier and panic about things esp something happening to our house. After reading lots of stories on here and taking advice from here too we decided to go self managed. We stopped making payments last March, let all the debt default and have now set up payment plans. I have about £29k and am paying £85 a month my husband has more than me and is paying £110. We’re not rushing to clear it all as it’s going to be on our file now for 6 years but once we are in a better position we will try and get some settlements. I hope that helps and gives you some peace of mind….

Bowmonster

Hols2021 said:

Bowmonster said:

Hi everyone,
New here and need some advice/moral support. I have about £35k debt, my financial situation job wise etc plus cost of living has become a complete mess and I can't get anywhere near affording payments any more. REALLY don't want to enter into an IVA - they seem like horror stories every time I read about them. Looking to set up a DMP. But it would be extremely minimal payments at the mo and looking like forever to pay off. What do others pay per month and how long are your DMPs currently looking at running? I think I could only afford a max of about £100 per month at the mo. So depressing.

Hi, we are in a similar position to you, my husband and I have a huge amount of debt and it all caught up with us last year. Lots of sleepless nights as I’m a worrier and panic about things esp something happening to our house. After reading lots of stories on here and taking advice from here too we decided to go self managed. We stopped making payments last March, let all the debt default and have now set up payment plans. I have about £29k and am paying £85 a month my husband has more than me and is paying £110. We’re not rushing to clear it all as it’s going to be on our file now for 6 years but once we are in a better position we will try and get some settlements. I hope that helps and gives you some peace of mind….

Hi, than you sooooo much for this!!! That's really reassuring. Yes I know the worrying and sleepless nights very well!!

sourcrates

Debtbegone2022 said:

Hi Everyone

I have a debt with drafty that I received a default for and then setup a payment plan.

On my credit file there are 3 markings with ‘D’ for the default for 3 months now I have setup a plan they have changed to an ‘A’ arrangement to pay. Is this correct? Should these be staying as a ‘D’ has the the debt has defaulted?

Thanks

Does it clearly show the date of default ?

Are you sure they were not default sums in arrears previously ?

Debtbegone2022

sourcrates said:

Debtbegone2022 said:

Hi Everyone

I have a debt with drafty that I received a default for and then setup a payment plan.

On my credit file there are 3 markings with ‘D’ for the default for 3 months now I have setup a plan they have changed to an ‘A’ arrangement to pay. Is this correct? Should these be staying as a ‘D’ has the the debt has defaulted?

Thanks

Does it clearly show the date of default ?

Are you sure they were not default sums in arrears previously ?

The below is from my credit file, with a default date of July 2022;

sourcrates

Well then you have the evidence to make a complaint about the way they are controlling your data.

Once a default is registered, your file should continue to reflect that for the full 6 years.

Marking it as an arrangement to pay is unacceptable, and a complaint should be made.

Debtbegone2022

sourcrates said:

Well then you have the evidence to make a complaint about they way they are controlling your date.

Once a default is registered, your file should continue to reflect that for the full 6 years.

Marking it as an arrangement to pay is unacceptable, and a complaint should be made.

Thank you, I will send them a complaint.

DaisyDMP

Hi!  After a few months of trying to keep things together we have filled in our details with Stepchange and ready to get our dmp going but haven’t submitted it yet.

Does anyone know the typical time from submitting the dmp info online to making their first Stepchange payment?

Also, does anyone have experience of missing payments on large loans prior to entering a dmp? We would like to miss a month or two of debt payments to build an emergency fund (our payments are currently so high it wouldn’t take long) but not sure if it’s the best plan when our loan is £25k? 

sourcrates

DaisyDMP said:

Hi!  After a few months of trying to keep things together we have filled in our details with Stepchange and ready to get our dmp going but haven’t submitted it yet.

Does anyone know the typical time from submitting the dmp info online to making their first Stepchange payment?

Also, does anyone have experience of missing payments on large loans prior to entering a dmp? We would like to miss a month or two of debt payments to build an emergency fund (our payments are currently so high it wouldn’t take long) but not sure if it’s the best plan when our loan is £25k? 

Absolutely miss some payments, get that emergency fund nice and topped up.

Missing payments prior to entering debt management is really an essential part of the process, it lets creditors know you are struggling, it gives you time to save an emergency fund up, plus it also starts the defaulting process, which will mean all interest and charges will stop, and your credit file will have a clear 6 year window to repair itself.

You start your DMP when you are good and ready, typically takes around a month or so, but take your time here, debt collection takes a very long time, nothing happens quickly, it can take many months, years even to chase debts, so get yourself organised first.

You will of course need a new, clean bank account with a provider you have no debt with, that`s a basic first step in the dance.

DaisyDMP

Thank you for the advice! We didn’t know whether to be more hesitant with the loan but it sounds like nothing will happen in a few months regardless of the loan amount.

We have a Monzo account set up ready so will start cancelling the direct debits now and get the ball rolling.