Breaking away from step change, aiming Full and final settlements

calum555_2

Hello All,

i have been on a long journey with my debts. It’s getting tiring, but nearly there. Originally I owed 60k and over the last 5 years with step change I have brought this down to 20k.

i have not had it easy, I saved money until recently by staying in a house share, not very nice at 39 years old. I still run the same old beat up car and never treat myself to anything.

when Covid came along, I saw this as an opportunity to maybe use to my advantage. I did get furloughed and lost money but when not furloughed I reduced my dmp payments and saved money for full and final offers. I have a fair bit saved now although still an insignificant percentage of the total debt, but I would like to use this to bring the balance down quicker. If I could be debt free in a year that would be really nice.

so far I have reviewed exactly where I am at with all my debts in a spreadsheet. In there I record current balance, whether it is defaulted, and whether I have had a response to a CCA request. (These were sent to only the accounts with DCA’s on 1st June). I also log any mail or telephone calls.

stepchange have been fine with me reducing payments and I have been doing this for 3 months. I have not really had a backlash from the creditors either. 

So today it looks like I am close to negotiating a full and final with one creditor. And I see this as a natural time to leave step change.

my aim is to pay no more than 50% for debts with DCAS (30% if they fail to supply a CCA) and 70% with original creditors. This would see me free by around March or April 2021 - if I keep my job!

the ‘if I keep my job’ is a valid point. I work in the cruise industry which as you can imagine is a struggle. So if no full and finals get settled, at least I have a small pot of money to fall back on until I find a new job.

This forum has been an inspiration along the way, and really helped, both to choose my actions and also for an emotional pick me up.

today I want to ask a couple of things:

1. does it sound like I am going the right way? Leaving stepchange is like removing a comfort blanket! I’m confident that I am motivated enough to keep on top of things, but naturally I am nervous about this.
2. In my industry things are harsh. We are desperate to maintain cash flow. Surely the DCAs must be heading this way too? For sure the country is in a state and people are struggling, but what we have seen so far is the tip of the iceberg. I suspect that toward the end of the year, this is when it will really hit the fan! Surely the DCAs will be affected by this more seriously than other companies? Are we headed for an ideal time to negotiate extra low F &Fs? (Should I be more patient?) I am really interested to hear peoples thoughts on this.

thanks very much. If there is much interest I will continue to update you on the journey.

many thanks for reading, any advice will be gratefully accepted!

Kakiste

Is there not a middle ground where you can stay with Step change but also then offer and accept settlement figures with your creditors and then tell Step change what you've done and get them to update your plan?
I did something similar with one of my debts and Stepchange were fine with it.

calum555_2

Thanks Kakiste,
I hasn’t really considered this so it’s good to know it’s a potential option!
on the other hand I am thinking that it may be best if I don’t pay the DCAS that haven’t provided CCA. 

Also, I find it strange that stepchange seem to pay a higher proportion to DCAs than they do to original creditors. I am not sure if this is a standard occurrence or just an anomaly in my case, but it’s the first thing I would change.

Will give it some thought...

calum555_2

Just received my mail today. A CCA request has been answered by PRA group. All they have provided is a statement. To me, that says unenforceable. So I will no pay then anything until they provide this. But certainly will not be chasing them for it!
interestingly the balance is less than stepchange say.
this definitely makes me think that I would rather control the DMP myself now.

Halfwaythere

I’m in a similar situation to you. I have made settlement offers to my two defaulted debts Link and Intrum. I have also gone self managed so I can managed how my monthly payment is distributed and I am now paying a token amount to help an offer. I have also sent link Intrum and PRA groups CCAs yesterday. Can I ask how old your debts are? Especially the PRA one? Thanks 

calum555_2

Hello, debts are between 5 & 7 years old. PRA is 5 years old.
yes, Same as me by the sounds of things. I cancelled stepchange today, now calling round all creditors and they have been very polite and friendly. 

The income and expenditure bit will be next and could be painful.

Halfwaythere

My debts are around the same time too. Keep my up to date with how you get on and I will do the same 🙂

fatbelly

my aim is to pay no more than 50% for debts with DCAS (30% if they fail to supply a CCA) and 70% with original creditors. This would see me free by around March or April 2021 - if I keep my job!

I think you're handling this well - I'd leave stepchange if you are organised enough to handle things on your own - and it sounds like you are.

There are deals to be had - there is a poster here (forgot name sorry) who settled for 12.5% early on in the pandemic.

The only comment I would make (apart from start low cos you can always go up) is that I don't know why you would want to settle unenforceable debts. They are of a lower priority than the others as the creditors have nowhere to go with them.

calum555_2

Thanks fatbelly. Very reassuring to hear.

on 2 of the  (perhaps) unenforceable ones there does not seem to be a default applied, it is simply marked as delinquent. So I need to be careful with these as I am trying to avoid future defaults. But I understand what you are saying. It’s only around 6 weeks since CCA request so will see how it goes, in the meantime I will keep squirrelling away!

calum555_2

Hi halfwaythere,
a little update for you On how my first couple of weeks being self managed have gone...
I have had some success in a short period of time.
first F&F agreed with capital one, at 51%. It’s my smallest debt but gives me hope that if I persevere there can be more savings down the line. Not so much joy with the DCAs but on the bright side, not a single one of the 4 have been able to satisfy CCA request so far and it has been 2 months. Some have sent statements, or screenshots of the account, but nothing that fully satisfies the request. So maybe I will be lucky, but I am conscious of the fact that they and the original creditors may be swamped at the moment, so maybe it will take longer than normal. But even if one of these turn out to be enforceable i will be delighted.
2nd area I have been working on is to check the Credit file and make sure all markers are accurate. I had 2 defaults that were marked 2 years later than they should have been (I really regret not letting all accounts default before commencing DMP), but they were with the same group and I sent a formal complaint. Today they called and agreed to backdate these as well as paying me 50 pounds compensation which went straight into my F&F pot!
I have another incorrect default date by Cabot that they are refusing to change, but I will not lay down on it. Ever!!!
Latest concern is that I have noticed some posts on here about AR markers, these worry me and seem to be more penal than defaults. I only have one account that this affects and I will spend tomorrow sending a complaint to see if these can be amended to a default or removed. Stupidly, I agreed to start making contractual payments on this card last week to avoid a default. I hadn’t seen an in depth credit report so did not know it was marked AR. This will be my main focus for now.
But all in all, with the small wins I have had in a short space of time, I feel confident that with perseverance I stand a good chance of improving my situation a lot quicker and with less effect on my credit file than if I had continued to go with stepchange.
so feeling like the light is at the end of the tunnel for the first time, it’s been a long 4 years or so! Can’t imagine how good it will feel to leave this burden behind me. 

Anyway, you asked me to keep you updated and I shall. I hope things are going well for you mate. Would be interested to hear any tips as like you say, I think we are at a similar stage.

Halfwaythere

Thank you for keeping me updated you sound to be doing really well. 51% is an amazing offer well done with that.

I was at 20k like you earlier when we spoke I started at 50k I’m at 16.5k at this point. 3.5k is credit accounts with original creditors who are marking my account with AR AP markers so I hope to have them paid off by November this year at latest, I am then left with my two largest debts and defaulted accounts which I am trying to settle.

Link 8.1k lowest offer I have got them down to at the moments is 20%, I’m not taking that.

Intrum 4.5k lowest offer I have got them down to is also 20% discount, which I have also refused.

Both started only offering 5% discount.

I have made another offer to both, if I get nowhere with this I am going to leave it for 6/12 months until I try again and concentrate on saving. Like you the minimum discount I will take is 50%.

I have requested CCAs but only a couple of weeks ago so not even past the 12 2 working days yet. Fingers crossed for us!