DMP Very BNPL interest advice please

sourcrates

I wouldn’t bother, I’d just stop paying them, wait until it gets sold on, then add it to your DMP, that’s what most people do.

Willing2Learn

If family will lend you the £1,700 over four months, then that would be my preferred option. Withholding payment until they default the account and pass the account on to a DCA, would be next favourite option.

Edit: Cross-posted with sourcrates. I would tend to agree that stopping your payments to Shop Direct is a very good option.

frugaller

I also have no idea what happens with my CCs, cc co has agreed 3 months freeze, followed by 6 months once they receive the medical info (they’re sending a pack apparently). Next frozen for 30 days, pending them receiving my inc & exp sheet which has been emailed back this morning. Again, have no idea what will happen in the next weeks and months, all new to me.

frugaller

Family loan would be for the next BNPL of £140, not £1700 we’ve really messed up bad

frugaller

If we don’t pay there will be nearly 40% interest, so will be up to almost £2400, it’s scaring the life out of me.

Willing2Learn

frugaller wrote: »

Family loan would be for the next BNPL of £140, not £1700 we’ve really messed up bad

Don't be sad. I only learnt about debt when I messed up and ended up on a self-managed DMP. Things go wrong sometimes.
https://forums.moneysavingexpert.com/discussion/5897083/dmp-mutual-support-thread-part-13

There is a really good support thread on this board. It is the DMP Mutual Support thread. You should drop by and give it a read. Peoples journeys through their DMP might inspire you

And coming back to your immediate problem. I would recommend withholding payment. Force Very into defaulting the account and passing it on to a DCA.

frugaller

Thank you �� so if I stop paying and the interest jumps to £2400, what happens then? Sorry for all the questions x

Willing2Learn

Once the account has gone to a DCA you should eventually be able to negotiate a lower partial settlement figure. Once the account defaults, interest will be stopped.

frugaller

But won’t the partial settlement figure be much higher then the £1700 current amount due to 40% interest?

Also, I filled out the online questionnaire at stepchange and they said they couldn’t offer me a DMP due to negative monthly balance, and I’m not in England so can’t do their advised DRO

sourcrates

frugaller wrote: »

Thank you �� so if I stop paying and the interest jumps to £2400, what happens then? Sorry for all the questions x

It’s going to be £2400 what ever happens, if you cannot repay it at the rate very demand of you, then following the non payment option allows you to do two things, (1) save the money you would have been paying to the debt, more on that in a minute, (2) once it’s sold on, debt purchasing companies will only accept affordable payments from you.

If you have some cash saved from what you would have payed very, you can try making settlement offers on the debt, so in the long run, you could end up saving money, as debts are bought for literally pennies in the pound, so they can afford to discount heavily.