Is a DMP my best option?

SBS_88

Thank you for your replies. 

I think with everyone's help I've got a handle on what I need to do and I think I'll actually end up self managing.  

One last question, one of my debts is an old overdraft from a joint account with my ex husband. I don't want to put a blemish on his finances so I don't want this to go into default. When I enquired with SC they said this had to be included unless I/we could find a way to pay it back before the DMP begins. Is there a way around this? I don't want to default on that account whilst it's in joint names. It's more my debt than his so I can't really ask him to pay it. 

sourcrates

You can remove yourself from the account I believe, you will have to speak to your bank.

kimwp

Might be worth checking if you need to remove any financial links to your ex if you don't want him affected by your financial situation.

Zzzz_2

Suseka97 said:

The only effective way to achieve defaults is to stop paying anything until they do.  So it's important you don't rush into setting up the DMP until your accounts are defaulted.  Some may do so quickly, whereas others may not - there is no rhyme nor reason as to why.  Some creditors think they are helping by not defaulting and others know that it means your credit file will be impacted for far longer, and so play silly beggars.

It will feel a bit strange to stop paying altogether, but if you have looked at the DMP thread you'll have seen posts where people are already in a DMP and struggling to get a creditor to default them.  You will also see that it can take many months before a creditor applies the default, so its a case of waiting it out.  Once done you can set up the DMP and just sit back and let things run along.

Wow, just what I've been looking for.

I guess most people rushed to DMP thinking they are doing themsevles a favour until they realise it's too late and begging the lenders to default them so that marker could disappear in 6 years (England), but lenders keep them hanging!!!

EssexHebridean

Whatever you decide to do regarding the DMP (and yes, once the accounts have defaulted I'd be inclined to agree that it looks by far the most manageable way forwards for you) you might want to put together your current SOA (Statement of Affairs) also. It's a good exercise to run through, and sharing it here means you will get lots of well-practised eyes over it some of whom may well spot savings that are possible that you have missed. Even for someone who has lower debt, or no debt at all, keeping an eye on the budget regularly is good practise, and an SOA is a great way of doing that! 

funny_bunny

Didn't post on a new post as thought my question is kind of similar.

I have few credit cards, managing ok with monthly repayments. Couple of them are on interest free offer and I'm hoping to get them pay off before the offer expire.

However, two CCs (HSBC, MBNA - £16k total balance) are now on high interest and I'm struggling with minimum payments and really not sure if I could carry on like this with them for long. I tried more interest free but was declined. 

Ideally I would start talking to HSBC/MBNA but wondering should l let them default then start talking to them either through SC/CAB? 

Sorry this may sound a dumb question but I really don't know the best way to approach. Would like to know others experience dealing with individual creditors?

DMP is not my favourite option as my other CCs are manageable.

fatbelly

funny_bunny said:

Didn't post on a new post as thought my question is kind of similar.

I have few credit cards, managing ok with monthly repayments. Couple of them are on interest free offer and I'm hoping to get them pay off before the offer expire.

However, two CCs (HSBC, MBNA - £16k total balance) are now on high interest and I'm struggling with minimum payments and really not sure if I could carry on like this with them for long. I tried more interest free but was declined. 

Ideally I would start talking to HSBC/MBNA but wondering should l let them default then start talking to them either through SC/CAB? 

Sorry this may sound a dumb question but I really don't know the best way to approach. Would like to know others experience dealing with individual creditors?

DMP is not my favourite option as my other CCs are manageable.

Could it be that you're struggling to pay the minimum payments on HSBC/MBNA because you're trying to overpay the other two. Really you should be overpaying the highest interest card.

Is there a reason why you are now being declined for new offers? Do you mean declined through an eligibility checker? Have you tried asking HSBC/MBNA if they have any offers for you?

If things are really tight the best thing to do is start a new thread and post a statement of affairs

https://www.lemonfool.co.uk/financecalculators/soa.php

SBS_88

Following on from my earlier posts, I cancelled my direct debits. All of my debts are credit cards and store cards with the exception of a £1200 loan from Lendable which was taken out in the last few months as I was foolishly trying to handle my other debts by taking on even more credit. I have received the email below today: 

"This is to confirm that as you took the loan out recently - unless you can provide us with documentary proof that you have had a significant and unforeseen change in your financial circumstances that was outside your control, we will expect payments to be made on time and in line with your contract with us.

If you are not able to provide us with evidence as requested above and you do not meet your payments we will have no option but to take the appropriate recovery action.

Therefore if you believe that you have had a material change in your circumstances beyond your control it is, therefore, essential that you provide us with proof immediately."

Can anyone advise me on this? It has got me in a panic.

fatbelly

It's just a standard letter from a second-rate lender. You'll get a few of them, then they'll sell the account to a debt buyer. Nothing to worry about

sourcrates

They are scared to death you will stop paying, and if you do, they will write and ask you to pay it, they may even ring or text you as well.

That is a basic translation of the contents of the email.

All bluster, usual process as fatbelly describes above, will apply.