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Updated Debt-Free Wannabe Sticky - links to important topics, help and template letters, are here.

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Updated Debt-Free Wannabe Sticky - links to important topics, help and template letters, are here.

edited 21 February at 4:22PM in Debt-Free Wannabe
1 reply 12.9K views
sourcratessourcrates Forumite, Board Guide
21.7K posts
Tenth Anniversary 10,000 Posts Name Dropper Photogenic
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edited 21 February at 4:22PM in Debt-Free Wannabe
Debt-Free Wannabe Sticky - Please read for links to important topics and help



Hi folks :)

This is the new Debt-Free Wannabe Sticky where links to all current important threads and announcements will be kept.

Links:

Pls remember Debt-Free Wannabe's for support and help not judgement

Is your debt statute barred ? template letters here : https://forums.moneysavingexpert.com/discussion/6027755/statute-barred-debts-and-the-limitation-act#latest

Debt free ? tell us : Debt-Free Roll of Honour

Statement of affairs, an essential first step :
http://www.stoozing.com/soa.php

Debt Advice Foundation Personal debt analyser

Links to free debt help : IMPORTANT - Where to seek professional impartial advice about your debts.

Ask a stepchange debt advisor a question : Struggling with debt? Ask a stepchange debt advisor a question

Initial response to a debt you do not recognize : Letter when you know nothing about about the debt - AKA "Prove it" letter

Reclaim payday loan interest : https://forums.moneysavingexpert.com/discussion/5289150/reclaiming-money-back-from-various-payday-loan-companies#latest

Mental health responsible for your debt ? discuss here : https://forums.moneysavingexpert.com/discussion/5236715/debt-and-mental-health-how-have-your-debts-affected-you/p21


Next stop...


When you've paid off your debts your next stop depends on where you are in your life's journey..

If you have a mortgage you may want to join our Mortgage-Free Wannabe board where the aim is to post on the Mortgage-free Roll of Honour. See our Mortgage Guides and all the MFW Important Discussions.

If you want to start saving check out our Savings Guides then ask your questions on the Savings board
I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
[email protected].
Any views expressed are mine and not the official line of MoneySavingExpert.com.
For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.

Replies

  • edited 9 September at 6:49PM
    sourcratessourcrates Forumite, Board Guide
    21.7K posts
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
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    edited 9 September at 6:49PM
    Defaults
    Defaulting an account is a nessessary part of the consumer credit act, when you fail to make your contracted repayments.
    It basically freezes the debt, as it is, with no further charges or interest added, as the agreement between you has broken down, it has effectivly ended, but still leaves the balance of the debt to be repaid.

    When should a default be added to a credit record ?

    The Information Commissioner’s Office (ICO) says :

    “As a general guide, [a default may be recorded] when you are 3 months in arrears, and normally by the time you are 6 months in arrears.

    There are exceptions to this which may result in a default being recorded at a later stage, such as secured or long term loans e.g. mortgages, or if the product operates in a more flexible way e.g. current accounts, student loans, home credit.

    Those are the main guidelines, but let’s look at specific situations.

    Debt management plans and arrangements to pay

    For situations where you miss a few payments, or make reduced payments, or enter a Debt Management Plan, the “3-6 months” guidance above applies.

    If your arrears have already reached three months, then the lender can register a default, even if an arrangement to pay is then agreed or you pay the debt in full.

    Arrears will usually continue to mount up when you have an arrangement to pay or a DMP, so later a default can be added even if you are making all the payments.

    At the start of a DMP or an arrangement to pay you may not want a default – they do harm your credit file !

    But if you aren’t going to repay the debt in a few years, having a default is usually better because your credit file will clear up sooner.

    With no default date added, the record will stay until 6 years from the date the debt is finally settled which could be a long while.

    So it can often be better to have a default early in a debt management plan rather than not have one.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
This discussion has been closed.

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