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Move from SC to Self Managed DMP?

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Move from SC to Self Managed DMP?

edited 30 November -1 at 12:00AM in Debt-Free Wannabe
4 replies 289 views
catgotmytonguecatgotmytongue Forumite
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edited 30 November -1 at 12:00AM in Debt-Free Wannabe
I have decided to get a grip on my debt. My SC DMP will have me debt free by 2033 and this is not a position I want to be in for so many years. I decided to firstly go down the CCA route first and my biggest two debts have already replied saying the debts are unenforceable. They are already Defaulted and due to drop off my credit report in 2023. If I stop paying, what will be reported on my Credit File? Will it still drop off in 2023? Is there any further action they can take?

In terms of my SC DMP I want to go self managed as I can pay the smallest debts in full, these aren't defaulted. Would I be better to stay with SC until I get all of my CCA replies? Otherwise I can see myself getting in a muddle. Then should I pay the smaller ones if still enforceable. If not, as they are not defaulted, will missed payment markers be added to my Credit File? Then with the remaining debts go self managed.

Grateful for any advice.

Replies

  • sourcratessourcrates Forumite, Board Guide
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    Defaults stay on your file for 6 years regardless of what may happen.
    Unenforceable debts usually get put on the back burner, but will still be reported as default until they drop off your credit file.

    You can choose what you want to do in self management, if you can pay the smaller debts off without them defaulting all well and good.

    It’s really up to you how you run things.
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  • Willing2LearnWilling2Learn Forumite
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    I have decided to get a grip on my debt. My SC DMP will have me debt free by 2033 and this is not a position I want to be in for so many years. I decided to firstly go down the CCA route first and my biggest two debts have already replied saying the debts are unenforceable. They are already Defaulted and due to drop off my credit report in 2023. If I stop paying, what will be reported on my Credit File? Will it still drop off in 2023? Is there any further action they can take?
    They cannot take any enforcement action whilst the account remains unenforceable. The account will continue to be marked as defaulted on your credit file, before being automatically removed in 2023 (six years after the default date)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • OK that's great thanks. I'm now clear about the unenforceable defaulted debts. I can stop paying and concentrate on clearing the enforceable ones.

    I will go Self Managed then. Does this take long to sort out as I usually pay SC on the 1st of each month.
  • Suseka97Suseka97 Forumite
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    You have time to switch now and stop the 1st Feb deduction being taken. All you need to do is download, or copy, the details on file for all your current debts (balances, references, debt owner etc.) and then simply message, call or email SC to tell them of your intention. It's all really straightforward.

    The next step will be to write to your creditors and let them know that from x date you'll be self-managing and assuming you've sent off all the relevant CCA requests - they should have put collection on hold anyway (although they don't always do that). You can then clear those smaller debts as planned and focus on the enforceable ones once you know the position.
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