DMP mutual support thread part 13 !!

sourcrates

[Deleted User] said:

Hi,

I recently entered into a DMP (made 1st payment in December).

Barclaycard is one of the creditors I am in debt with. They've accepted the DMP and have frozen interest. They've been very quick off the mark in terms of telling me I've underpaid and that I'll be issued a default notice, followed by another letter informing me I've got until the 10th Feb to rearrange minimum payments or they'll register the default etc. These letters arrived all in the same week... assume because of the DMP, they're moving quick with it.

The letter then goes on to say once the default is registered, they'll request payment for the full balance and if I can't/don't do this, further action may be taken.

I owe £6000.

I've read a lot of information on the forum, so I'm aware these letters are standard and I'm trying to not let it worry me.

I just wondered for anyone else who defaulted with Barclaycard what the process was like following the default - how did they handle your debt? Does the DMP remain in place?

This will be my first default (of 8 that I expect throughout the process), so I'm just trying to understand what's next!

Thank you in advance for the advice .

Its quite common for debts to be sold or assigned to debt collectors after default.

Original creditors don`t have the time or resources to deal with bad debts so they simply off load the debt to someone else.

Is it stepchange managing your DMP?

You will be written too if your debt is sold, just pass that info on to stepchange, and they will alter who they pay, if your doing it yourself, the same applies really.

Expect this to happen with all your accounts.

Further action is a term used to describe the sale or assignment of your debt to a 3rd party, not legal action, that won`t happen as long as your in a DMP.

hjbp81

Hi all

I'm currently waiting for defaults and in the process of setting up a DMP (3 months arrears, no defaults yet) - one of my creditors has stated that they have frozen the outstanding balance on my loan, but that outstanding balance (£11k) includes the interest calculated over the entire loan term, 5 years. Is this grounds for a complaint? When the loan defaults, will the amount due revert back to the outstanding principal amount (£6.5k)? Thanks.

flyingscotsman67

Hi,

I have been following this thread for some time, and the advice has been exceptional. Thank you. We have large unsecured debts, accounting for 77% of our combined wages. We have lived in debt for a while and never missed a payment (something we are addressing and getting serious about). We can afford our monthly payments, and I estimate it will take us four years to clear the debt, as we are just now. Because of my level of debt, I have limited 0% offers, so I am paying more interest than I would want, but even there, we are bringing those debts down slowly.

I won't lie, the option of a self-managed DMP is attractive to hammer the debts quicker and more economically (I have paid a fortune in interest over the years—all my responsibility). However, I am struck by Sourcrates comments that only 12% of people face court action, and it tends to be the people with high individual debts with their own homes. I have high individual debts on some credit cards, 15k+, and I have a £80k mortgage on a £400k house, so I feel that this is likely to bring me into that 12% category.

So my question is, do you think I have understood correctly that I have a high chance of falling in the 12% category? If court action did proceed, what are the next steps?  CCJ/legal expenses? I expect I should buckle myself in for the long haul and accept that I will pay interest until the balances come down and 0% i available—probably 12–18 months—but I would appreciate the forum views. I really appreciate any help you can provide.

Penguin_

Just a quick one, which credit report provider(s) show when a default was registered/opened?

sourcrates

Penguin_ said:

Just a quick one, which credit report provider(s) show when a default was registered/opened?

Any or all of them.

It depends which ones your creditors report too.

sourcrates

flyingscotsman67 said:

Hi,

I have been following this thread for some time, and the advice has been exceptional. Thank you. We have large unsecured debts, accounting for 77% of our combined wages. We have lived in debt for a while and never missed a payment (something we are addressing and getting serious about). We can afford our monthly payments, and I estimate it will take us four years to clear the debt, as we are just now. Because of my level of debt, I have limited 0% offers, so I am paying more interest than I would want, but even there, we are bringing those debts down slowly.

I won't lie, the option of a self-managed DMP is attractive to hammer the debts quicker and more economically (I have paid a fortune in interest over the years—all my responsibility). However, I am struck by Sourcrates comments that only 12% of people face court action, and it tends to be the people with high individual debts with their own homes. I have high individual debts on some credit cards, 15k+, and I have a £80k mortgage on a £400k house, so I feel that this is likely to bring me into that 12% category.

So my question is, do you think I have understood correctly that I have a high chance of falling in the 12% category? If court action did proceed, what are the next steps?  CCJ/legal expenses? I expect I should buckle myself in for the long haul and accept that I will pay interest until the balances come down and 0% i available—probably 12–18 months—but I would appreciate the forum views. I really appreciate any help you can provide.

Actually it tends to be those who ignore debt purchasing companies mainly.

Although if you have a high balance, and a lot of equity in a property, a creditor may try to secure that debt against it, but only in rare cases does that happen, and your strategy should not be based on that assumption alone.

By far the vast majority of DMP`s run smoothly with no further action at all.

Penguin_

sourcrates said:

Penguin_ said:

Just a quick one, which credit report provider(s) show when a default was registered/opened?

Any or all of them.

It depends which ones your creditors report too.

Thanks, have managed to find them on Credit Karma. 3 of the 4 defaults on my file will drop off this year, 2 of which should go away in May as the dates are in April 2018.

Hoping this will make getting a new mortgage easier next year.

Jasebroke4abit

Hi Everyone.  I have been reading all of these forums for the last week or so and it’s really helping me to get started on this journey. 

Thanks for all the useful information and making me not feel so alone through this tough time in my life. 

I have 52k of debt with 6 credit cards and 1 loan with my current bank. 

I own a house worth 300k with 200k mortgage and secured loan of 40k all in my name. (These I can manage easily). 

I have a Mrs and our 2 kids living with us. 

My 0% period for my cards are coming to the end and I’m terrified as I can’t move the money anymore. 

I’ve been speaking to stepchange and will be going ahead with a DMP for £266 a month for 16 years. I know that’s a long time but I’ll save and clear it all with settlements hopefully within 5 years. 

I’ve not started my DMP yet as I’m confused about defaulting, not defaulting, payment markers etc.

So my questions are: 

step change don’t seem keen on me defaulting before starting my plan. Why? 

I have 7 creditors, what if most default and some don’t? When do I start my plan? 

And how long after ignoring a default will I start getting into deeper trouble? 

I worried if I wait for all to default I’ll end up with balliffs at my door. I have a nice car and some valuable things in my house such as TVs etc which we obviously need. 

I’m also worried if the debt gets sold before I start my DMP will the new debt collector accept my DMP? 

When is best to cancel my direct debits? 

And do I need to phone each creditor to let them know I’m dealing with stepchange or will that put an agreement to pay marker on my account? 

I’ve never missed a payment in my life so this is terrifying and don’t feel right. 

Sorry for all the questions! 

It’s taken me a couple of weeks to build up the courage to write on here. 

Thanks in advance for any advice 

sourcrates

All your questions have been answered 100 times over, it really is best to rummage through the history of this thread, a very long read granted, but it will answer all your questions.

Jasebroke4abit

sourcrates said:

All your questions have been answered 100 times over, it really is best to rummage through the history of this thread, a very long read granted, but it will answer all your questions.

Hi. I’ve read quite a lot and on other forums. 

There’s 518 pages to search through!

The main question which I can’t find the answer for is:

How long after ignoring a default will I start getting into deeper trouble?

And what if 6 out of 7 Default?

 Surely 2 minutes of your time wouldn’t go a miss. I appreciate you’re busy but I cant seem to find those answers