How long before a default starts to have less of an effect?

[Deleted User]

The original debt is marked as zero as it has been sold on to the DCA.

As you have been paying the debt you are acknowledging it, therefore there is no chance to "write it off".

At the end of the day, you still owe the money - by all means put in your own offer of settlement but they are not obliged to accept it.

"Money Saving" doesn't mean getting out of dodge with debts.

A_DMP_Vetereran

Stepchange are not strict with anything, the budget forms are straightforward and frankly they dont give bad advice because they are a charity and are all about helping you - not making money from your situation. Myself and thousands of others who have used them to become debt free have nothing but praise for them.

Whatever decisions/actions stepchange have made have been entirely driven by your answers to their questions and actions you have taken to get the DMP up and running.

You cant blame people who have tried to help you (for free) for your current situation caused by your debts and - despite what you say - your inability to pay them properly at the time you approached them. You just wouldn't enter into a DMP if everything was hunky dory!

Part of recovering from debt issues is knowing who was at fault - and in 99.9recurring% of cases it's yourself.

sourcrates

neo1607 wrote: »

To be honest I can't actually remember the reason I contacted them in the first place

Then as luck would have it less than a month after everything defaulted I got a new job that went from 12k a year to £23k a year.

One of life's lessons though, they will eventually start to fade from my record.

Funny thing luck isnt it, without it, where would we be.


The advice stepchange gave you was probebly correct for your circumstances at the time, no one could of predicted a doubling of your salary a month down the line, now could they !!


I think its a case of sour grapes on your part knowing what you know now.
It would be much simpler just saying that instead of introducing the bad advice senario.

Dandytf

I allowed the full six years from one default.
That was as I was declined car finance a year or two after default was applied.
Though since dmp year with much more than a single default, I have certainly found the negative effect has in some respect been less than original date applied.
All is not amazingly well credit wise, this is where my understanding fails me.
E.g. I cannot get accepted for store finance such as tech/high st tech shops or Argos/very are some examples.
I have though for different circumstances purchased three car credit finance agreements since multiple defaults eventually were applied since entering dmp upto 5or6 years earlier.

A_DMP_Vetereran

A decent broker will get you a mortgage. So focus on getting debt free rather than worrying about stuff you can't change. What's done is done now. Defaults aren't the end of the world - especially when satisfied and money has been handled well since

Dandytf

A_DMP_Vetereran wrote: »

A decent broker will get you a mortgage. So focus on getting debt free rather than worrying about stuff you can't change. What's done is done now. Defaults aren't the end of the world - especially when satisfied and money has been handled well since

It's the up to 6 years which can be the limiting factor.

A_DMP_Vetereran

Aye it's not ideal but not the end of the world.

I have 3 defaults, many many late payment markers and have managed to remortgage my house during my DMP via a broker. The interest rate isn't great admittedly but I'm just saying it's certainly no showstopper - just an inconvenience

System

neo1607 wrote: »

To be honest I can't actually remember the reason I contacted them in the first place as I was managing alright with all my accounts at the time but I do remember them being really strict with filling out budget sheets and they somehow kept calculating that I was spending more a month than I actually earned which wasn't the case

Really it is because most people, if not pretty much everyone, forgets the odd quid here and there that goes out the door and they grossly underestimate what they spend on things like shopping etc, remembering what they spend in Asda but forgetting some or all of the odd bits and bobs they buy in between the big weekly shop.

neo1607

A_DMP_Vetereran wrote: »

Aye it's not ideal but not the end of the world.

I have 3 defaults, many many late payment markers and have managed to remortgage my house during my DMP via a broker. The interest rate isn't great admittedly but I'm just saying it's certainly no showstopper - just an inconvenience

That's encouraging to hear. I did speak to a mortgage advisor shortly after I defaulted and he did advise me at the time when I get to Year 3 then I should be open to some mid-range rates. Hopefully he was right. Then after I hit year 6 and they are off my rating I can hopefully remortgage at a better rate :-)