DMP mutual support thread part 13 !!

NE2023

sourcrates said:

NE2023 said:

Hi, I am new here and just need some help. I have decided to go into a DMP with stepchange but before I do I have done some research and have seen that people recommend getting defaults before entering. This month I have not paid my creditors and and now receiving calls and texts from various creditors. 

Do I need to contact them before going into the dmp to tell them that I am entering a dmp, or just keep quiet until I do enter? I am just scared of them taking things further e.g CCJ, any help would be greatly appreciated, thanks 

Welcome to the thread @NE2023

First off, have a good read of this thread, I know its a long one, but all the answers to any question you could ever think of are contained within it.

Forget CCJ`s, they are only a possibility a lot further down the line than you are now.
We do recommend getting defaulted first, however that is becoming harder due to FCA regulation on treating customers in debt fairly, and unless your fully "au faix" with the pro`s and con`s of the process involved, it can be a long drag.

Basically if your going the Stepchange route, try and save a reasonable emergency fund up first, and budget an amount to keep adding to that monthly, then let Stepchange do their thing, normally accounts will default anyway once the contractual payments stop, and if they don`t, then you complain.

This is likely the best advice to give someone just stating out in debt management in the current climate.

As you become more informed, there may be the possibility of full and final settlements later on at some point, and maybe self management, but as a newbie, you are best starting out the Stepchange way.

They will contact your creditors for you, there`s no harm in you telling them as well, but don`t expect things to happen quickly, debt collection is quite a long, drawn out thing, nothing happens quickly.

Thank you so much for the advice, it is just a scary process as I’ve never done this before. I have most of my debts with nationwide who I’ve heard can be quite aggressive with this, is there any truth to it? 

sourcrates

NE2023 said:

Thank you so much for the advice, it is just a scary process as I’ve never done this before. I have most of my debts with nationwide who I’ve heard can be quite aggressive with this, is there any truth to it? 

Then you need to be moving your banking to a bank with whom you have no debt, that`s your first job.

All creditors follow the same debt collection guidelines, the only difference is how the guidance is interpreted.

You should not worry about how creditors will react, they all use a similar debt collection process, its quite likely the ones who own your debts now, won`t be the ones you deal with going forward, as debts are sold or assigned to collectors as a matter of norm.

Non of that should be a concern to you, debt management is a well trodden path, creditors/debt collectors are well used to it, and normally things run very smoothly, should not be scary at all, its just a process you implement, nothing more than that really.

NE2023

sourcrates said:

NE2023 said:

Thank you so much for the advice, it is just a scary process as I’ve never done this before. I have most of my debts with nationwide who I’ve heard can be quite aggressive with this, is there any truth to it? 

Then you need to be moving your banking to a bank with whom you have no debt, that`s your first job.

All creditors follow the same debt collection guidelines, the only difference is how the guidance is interpreted.

You should not worry about how creditors will react, they all use a similar debt collection process, its quite likely the ones who own your debts now, won`t be the ones you deal with going forward, as debts are sold or assigned to collectors as a matter of norm.

Non of that should be a concern to you, debt management is a well trodden path, creditors/debt collectors are well used to it, and normally things run very smoothly, should not be scary at all, its just a process you implement, nothing more than that really.

Thank you very much for the advice, I have opened a new bank account. Thanks for the reassurance!

NE2023

Hi , just got a follow up question. I got a letter today from nationwide regarding my loan. It was a formal demand for payment of arrears, is something to worry about or should I just continue saving what I can before entering a dmp with stepchange? I haven’t contacted any creditors yet

thanks in advance ! 

Sly72

NE2023 said:

Hi , just got a follow up question. I got a letter today from nationwide regarding my loan. It was a formal demand for payment of arrears, is something to worry about or should I just continue saving what I can before entering a dmp with stepchange? I haven’t contacted any creditors yet

thanks in advance ! 

If you have stopped paying then getting these letters will become the norm, plus phone calls etc.

NE2023

Sly72 said:

NE2023 said:

Hi , just got a follow up question. I got a letter today from nationwide regarding my loan. It was a formal demand for payment of arrears, is something to worry about or should I just continue saving what I can before entering a dmp with stepchange? I haven’t contacted any creditors yet

thanks in advance ! 

If you have stopped paying then getting these letters will become the norm, plus phone calls etc.

Yeah understand that, I’m just wondering if I need to act on anything at all or just leave it until I enter the dmp. Thanks 

stu12345_2

I have always wondered that part about them creditors adding interest and charges on whilst you ignore their letters and dont pay and wait till default, then default stops interest, then you start making payments.

. cos i went from the very start with stepchange, yes i had to start paying right away, but for some reason the creditors stopped all interest, late fees instantly even before the defaults, which came around 2 to 8 months whilst on the stepchange DMP.

was told stepchange would ask creditors to stop all interest and charges, which actually happened

But you have to weigh up the cost of interest and late payments fees if you dont pay ( until they default) and dont go with eg stepchange and go it alone versus the monthly payment to each creditor if you go via stepchange( and late fees and interest stop instantly).

e g lets say each creditor hit you with £12 late fee plus say £20 of interest, versus a £20 DMP payment with stepchange( with no interest and late fees)( where your debt balance is actually reducing)

lillypoo

My two creditors stopped all interest and charges as soon as I missed one payment ...without me even asking.

stu12345_2

lillypoo said:

My two creditors stopped all interest and charges as soon as I missed one payment ...without me even asking.

it be great if they never added interest when you are paying normally. but when you read your terms and conditions , it does state the late payment penalty fee and the interest rate per month, its only  that interest, late fees, will stop when you default.

my question is, how long can you leave paying them AFTER you have defaulted, not before you have defaulted.

sourcrates

stu12345_2 said:

lillypoo said:

My two creditors stopped all interest and charges as soon as I missed one payment ...without me even asking.

it be great if they never added interest when you are paying normally. but when you read your terms and conditions , it does state the late payment penalty fee and the interest rate per month, its only  that interest, late fees, will stop when you default.

my question is, how long can you leave paying them AFTER you have defaulted, not before you have defaulted.

Stu,
Your question has already been answered, there is no set timeframe, the process of collection activity and the selling of debts has been covered in quite some depth in a lot of your posts, as well as countless others on this forum.

You know what happens, letters, calls etc etc, are the norm, then it could be debt collection, or debt sale, its more or less a standard process all creditors will go through.