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Starting DMP

Heisenberg01
Posts: 112 Forumite

Going down this route very shortly, trying to get a grip on the order in which to do things.
Get new bank account for Salary to be paid into
1. Stop paying cards and loan altogether, save cash for EF?
2 wait for debts to default on credit file, then contact stepchange and start DMP
Does this sound right?
I have a Starling account I can use going forward, gor salary etc any disadvantages with them?
Hiw long for defaults, roughly, I'm talking Halifax, Aqua,capitol one,Tesco and Barclaycard.
Many thanks
Get new bank account for Salary to be paid into
1. Stop paying cards and loan altogether, save cash for EF?
2 wait for debts to default on credit file, then contact stepchange and start DMP
Does this sound right?
I have a Starling account I can use going forward, gor salary etc any disadvantages with them?
Hiw long for defaults, roughly, I'm talking Halifax, Aqua,capitol one,Tesco and Barclaycard.
Many thanks
1
Comments
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That looks like the right order to me. My defaults took between 2-5 months to come through after I stopped making payments. Make sure you save as much as you can in the stage 1 bit- then you'll have an EF to take you through your DMP.
Good luck. I finished mine back in March- it goes much faster than you think.Bottom line;
£49k paid off
Car HP paid off
Debt Free!
Saved Escape fund and moved out.
Current focus; saving Emergency fund3 -
Kakiste said:That looks like the right order to me. My defaults took between 2-5 months to come through after I stopped making payments. Make sure you save as much as you can in the stage 1 bit- then you'll have an EF to take you through your DMP.
Good luck. I finished mine back in March- it goes much faster than you think.
I'm at about 28k, will this be too much?
I think I'll have 4/500 a month spare0 -
Heisenberg01 said:Kakiste said:That looks like the right order to me. My defaults took between 2-5 months to come through after I stopped making payments. Make sure you save as much as you can in the stage 1 bit- then you'll have an EF to take you through your DMP.
Good luck. I finished mine back in March- it goes much faster than you think.
I'm at about 28k, will this be too much?
I think I'll have 4/500 a month spare
You don`t give any details about your situation, but there are quicker ways out of debt, again, it depends on your personal circumstances as to which is the right choice.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter1 -
Snap we have similar debt and I've taken the same steps, stopped paying cancelled my loan direct debits and opened a new bank account for my salary to be paid into, breathing space finishes at the end of October and have only missed 2 payments and have received arear notices, I hope it only takes 4-5 months to get defaults but some have mentioned to expect upto 18months, let's hope we both get them sooner as I just want to move on and have something in place ,ie: a DMP up and running but again it's best to wait for defaults so it's not on my credit file as a marker would be.0
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I'm at about 28k, will this be too much?
I think I'll have 4/500 a month spareBottom line;
£49k paid off
Car HP paid off
Debt Free!
Saved Escape fund and moved out.
Current focus; saving Emergency fund1 -
What you have laid out sounds like a good plan. It's quite an odd setup as you have to ignore your creditors completely to start with to get defaults, if you start posting straightaway they treat your far worse by giving you arrangement to pay markers.I have a Starling account and they are great, without having to pay for branches they can put money into a really good app.Depending on the age of the debts you may want to ask for the CCA to see if any are unenforceable. That's probably best to do a bit further down the line when they have defaulted and are with debt collectors.0
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So likely 3/5 months before contacting DMP people?0
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Heisenberg01 said:So likely 3/5 months before contacting DMP people?
I'd say that's a reaslistic sort of time to start getting defaults. You can manage it yourself if you like, that's quite easy, then you can start paying them as they default.
0 -
Personally I wouldn’t wait for the default before contacting step change (or whoever you plan to have your DMP with)
Also contact your debtors and advice them of the situation, they may be able to stop some of the actions a non payment will cause (telephone calls, some letters) or you could make token payments whilst the DMP is set up. Equally thy may be able to freeze interest for a short period,Proud to have dealt with our debtsStarting debt 2005 £65.7K.
Current debt ZERO.DEBT FREE1 -
I started my DMP about a year ago and did it diffrently as I had not been on here first. I called Stepchange with about 38k and no default. I did 'breathing space' for a period of a month or so, in that there are no payments to make and interest is frozen. Then I sorted out moving my bank account, had been with barclays for 30 years but they were my biggest creditor. Went with Starling and its is a much better account. Was Made redundant in March so that is now my emergencey fund.
Good luck1
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