DMP mutual support thread part 13 !!

intheblack_sheep

sourcrates said:

Leicsbob said:

If I stop paying all of my loans/CCs, and put the payments aside to build up an emergency fund as suggested (hoping the accounts will default), how does this then work when setting up a DMP? As surely then I will have those savings and they'll want me to use it all to pay off the debts? 

Who are "they" Bob?

Unless you are a bankrupt and the Official receiver is in charge of your money, then its no one else's business what money you have or what you do with it.

A debt management company such as Stepchange. Wouldn't they ask what savings and assets i have? 

sourcrates

Leicsbob said:

sourcrates said:

Leicsbob said:

If I stop paying all of my loans/CCs, and put the payments aside to build up an emergency fund as suggested (hoping the accounts will default), how does this then work when setting up a DMP? As surely then I will have those savings and they'll want me to use it all to pay off the debts? 

Who are "they" Bob?

Unless you are a bankrupt and the Official receiver is in charge of your money, then its no one else's business what money you have or what you do with it.

A debt management company such as Stepchange. Wouldn't they ask what savings and assets i have? 

Anyone can ask, you don`t have  to tell them.

Like I said, its no ones business but your own.

Why would you think you have to tow someone else`s line ??

Only a bankrupt can be forced to divulge assets.

WilliamMcBeard

Hi All,

So, I've taken the step of arranging a DMP with Pay Plan 2 days ago and am a little confused and worried. Could I ask for opinions/advice/experience if that's OK?

So debts are c.£55k and all unsecured. We do have a mortgage with one of the same lenders that a £23k loan debt is with. First up, can they touch my mortgage if my debt is with the same lender? mortgage is 100% up to date.

Secondly, have I done the right thing going with Pay Plan? As they are free to use I had read here that they were sometimes looked on more favourably by lenders.

I was under the impression I had to wait until my creditors had agreed before the plan would start. Is that not right? Reading here it seems I cancel everything with creditors in terms of payment and Pay Plan then make the payments I can afford regardless. 

This seems a risky strategy to me, but I assume is the way it has to be done? Do I not risk being defaulted and eventually taken to court? Can they not demand my money back instantly?

Apologies for the very newbie questions, and thanks to anyone who reads or has time to reply.

DebtFreeWannabe27

Looking for advice please. My zopa loans have defaulted and been sold to Cabot. They've sent letters to say they've taken on the debt, and I've just received more today saying "we need to talk to you". They've been trying to call me and i've blocked their numbers. Should I be engaging with Cabot to set up a payment plan? Or should I continue to ignore them? I'm wondering if at the very least I should make contact to request correspondence through letter only. TIA

katielouisa

Hi all 👋 
I’m new here and looking on doing a SM DMP. I’ve had a good rummage through the pages and can’t seem to find the process. I’ve cancelled the DD that I need to - there’s others but I’m happy to pay them, the ones I’ve cancelled are credit cards and a couple of loans. My debt is around 40k which doesn’t bother me too much as I’ve been able to pay it plus a lot of it is for HP goods which I’m going to continue to pay as normal.
But yeah a step by step guide would be super helpful if anyone has the time to help please? Pretty please with a cherry on top🍒 

Thanks everyone xx

sourcrates

katielouisa said:

Hi all 👋 
I’m new here and looking on doing a SM DMP. I’ve had a good rummage through the pages and can’t seem to find the process. I’ve cancelled the DD that I need to - there’s others but I’m happy to pay them, the ones I’ve cancelled are credit cards and a couple of loans. My debt is around 40k which doesn’t bother me too much as I’ve been able to pay it plus a lot of it is for HP goods which I’m going to continue to pay as normal.
But yeah a step by step guide would be super helpful if anyone has the time to help please? Pretty please with a cherry on top🍒 

Thanks everyone xx

Hi,
We have an unofficial guide here in the sticky posts, have a read through it, any specific questions will likely have already been answered in this, very long (granted) thread, but any answers you can`t find, feel free to ask.

In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions. — MoneySavingExpert Forum

sourcrates

DebtFreeWannabe27 said:

Looking for advice please. My zopa loans have defaulted and been sold to Cabot. They've sent letters to say they've taken on the debt, and I've just received more today saying "we need to talk to you". They've been trying to call me and i've blocked their numbers. Should I be engaging with Cabot to set up a payment plan? Or should I continue to ignore them? I'm wondering if at the very least I should make contact to request correspondence through letter only. TIA

Defaulted and sold to Cabot who are a major player in the debt purchasing game.

Now would be a good time to engage if your strategy is to repay your debts once defaulted.

sourcrates

WilliamMcBeard said:

Hi All,

So, I've taken the step of arranging a DMP with Pay Plan 2 days ago and am a little confused and worried. Could I ask for opinions/advice/experience if that's OK?

So debts are c.£55k and all unsecured. We do have a mortgage with one of the same lenders that a £23k loan debt is with. First up, can they touch my mortgage if my debt is with the same lender? mortgage is 100% up to date.

Secondly, have I done the right thing going with Pay Plan? As they are free to use I had read here that they were sometimes looked on more favourably by lenders.

I was under the impression I had to wait until my creditors had agreed before the plan would start. Is that not right? Reading here it seems I cancel everything with creditors in terms of payment and Pay Plan then make the payments I can afford regardless. 

This seems a risky strategy to me, but I assume is the way it has to be done? Do I not risk being defaulted and eventually taken to court? Can they not demand my money back instantly?

Apologies for the very newbie questions, and thanks to anyone who reads or has time to reply.

Apologies for the late response, this thread doesn't get much footfall.

As long as mortgage payments are up to date, there will be no issues, don`t bank where you have debts though.

You appear to have jumped straight in without much preparation, we don`t normally advise this, as its far too soon, everything should be allowed to default first, this helps in a few ways, first all interest is stopped, second, you have a clear 6 year window till your credit file clears, and third, it allows you time to save an emergency fund.

Anyway what`s done is done, PayPlan are non fee charging, so no issues there, they are no better or worse than any other free provider.

It`s immaterial whether your creditors agree to the plan or not, if they don`t agree, they will either sell your debt or assign it to a debt collector, things that are quite likely to happen anyway, so it doesn't matter what they think.

Legal action by original creditors is rare, they much prefer to use debt collectors instead, due mainly to the massive amounts of defaulted debt out there, if they all went legal, the courts would grind to a halt within hours.

Debts are either sold or assigned to debt collection companies, this is why the debt collection business is so big here.

Suseka97

Good morning DFWs and DMP warriors  

I've been absent from the MSE forum for quite a while - life issues, health issues and going back to work full-time (having taken time out from the rat race after relocating to the South West).  Anyhoo - I will endeavour to pop onto the DMP forums more regularly to help out with the newbies where I can.  

My backstory is I had circa. £90k worth of debt back in 2013, set up DMP with Stepchange, stayed in a managed plan until mid 2017 and then went self-managed (best decision I made).  Had 14 creditors at the outset, ended up with 6 main stayers that I eventually CCA'd and got 5 written off after a period of time.  I still have one stubborn debt with PRA who send me emails periodically and I've gone radio silent for about 5 years now (so the statue bar is on the horizon).  

In the main, what I want to say to any new kids on the block is... stick with it, things do get easier/better and don't be pressured by creditors or debt collectors, but do tackle your debts in a way that works for you.

Have a great day!  

sourcrates

Hey welcome back @Suseka97 nice to see you back on the boards again