Starting DMP

SusieT

Beck50 said:

I haven't started my DMP as yet, but have been saving my e/fund, I keep checking my credit file but no defaults only states in arrears.
So at the moment what's happening is I'm being chased with constant phone calls, letters, texts and emails to get me to speak with them, which as yet I haven't, so don't know if I'm doing the right thing or not.

You are doing the right thing, the more you ignore them the faster you will get the defaults. If you speak to them, they now have to "help" you as much as possible which meand they will give you a payment holiday or equivilent, that only delays the default by however long it lasts. It is hard but just keep ignoring them and the prize will drop through the letter box one day

Rob5342

Beck50 said:

Thanks I very much appreciate your comments, you can feel very alone in circumstances like this and its always better to communicate with other people with the same problem.
So I'll keep trying to ignore, calls, letters and emails and wait to be defaulted.
It's just when you Google debt collecting agencies they always say don't ignore them by burying your head in the sand, they can take ccj etc etc.

Have a read of this article which explains the whole process. People often get concerned about legal action when they miss a payment, but it's really a very last resort when nothing else has worked. You aren't ignoring the debts or burying your head, you have a strategy to deal with them that will see them paid off.

https://debtcamel.co.uk/debt-stop-bailiffs/

To be fair to the lenders they don't know what your situation or intention is, it could be a short term thing where a few months leeway from them is all you need. It's an unfortunate quirk that what might seem helpful from them can atually be hugely detrimental for you.in the long run.

RAS

Well done on building up the emergency fund.

Meantime, you just need to hold your nerve. Mad as it seems, the sooner the defaults, the sooner your credit record will improve. Do you want that in 6 years is or 20 years time? 

If you cave in it's a 20 year haul, just because the creditors are trying to "help" you. So you are doing the right thing.

It may also be a good idea to keep tweaking your budget as you learn to live with it.

sourcrates

You are mixing up debt collectors, with debt purchasers.

At the moment your accounts have been sent to debt collectors to chase up.

These companies are just acting on their clients behalf, they don`t own the debts, so won`t and can`t take legal action, its like me writing to you to ask you to pay your debt to a credit card you have, the debt has nothing to do with me, so I can`t force you to do anything, same applies to these guys.

Its just the first stage of debt collection, your lenders don`t involve themselves with legal action, normally they pass accounts to the likes of those who have been contacting you.

Now if non of this bears them any fruit, then they will look to either default you, sell the debt on, or a combination of the two, its at that point, when a new owner takes over, that the process really begins.

They will go through the same old routine these other collectors have, calling you, and writing to you, its these companies that if ignored can take legal action, if they so wish.

Companies such as Arrow Global/Lowell/Cabot etc only buy debts, they don`t collect anyone else's.

Usually its defaulted debts that are sold, but they can be sold without defaulting, the current climate is to delay defaults as long as possible, which won`t help you, so why not try writing to your creditors and ask them to default you, can`t hurt now can it.

chullbulla

sourcrates said:

You are mixing up debt collectors, with debt purchasers.

At the moment your accounts have been sent to debt collectors to chase up.

These companies are just acting on their clients behalf, they don`t own the debts, so won`t and can`t take legal action, its like me writing to you to ask you to pay your debt to a credit card you have, the debt has nothing to do with me, so I can`t force you to do anything, same applies to these guys.

Its just the first stage of debt collection, your lenders don`t involve themselves with legal action, normally they pass accounts to the likes of those who have been contacting you.

Now if non of this bears them any fruit, then they will look to either default you, sell the debt on, or a combination of the two, its at that point, when a new owner takes over, that the process really begins.

They will go through the same old routine these other collectors have, calling you, and writing to you, its these companies that if ignored can take legal action, if they so wish.

Companies such as Arrow Global/Lowell/Cabot etc only buy debts, they don`t collect anyone else's.

Usually its defaulted debts that are sold, but they can be sold without defaulting, the current climate is to delay defaults as long as possible, which won`t help you, so why not try writing to your creditors and ask them to default you, can`t hurt now can it.

Is it really possible to write creditors requesting earlier default now rather later?

sourcrates

chullbulla said:

sourcrates said:

You are mixing up debt collectors, with debt purchasers.

At the moment your accounts have been sent to debt collectors to chase up.

These companies are just acting on their clients behalf, they don`t own the debts, so won`t and can`t take legal action, its like me writing to you to ask you to pay your debt to a credit card you have, the debt has nothing to do with me, so I can`t force you to do anything, same applies to these guys.

Its just the first stage of debt collection, your lenders don`t involve themselves with legal action, normally they pass accounts to the likes of those who have been contacting you.

Now if non of this bears them any fruit, then they will look to either default you, sell the debt on, or a combination of the two, its at that point, when a new owner takes over, that the process really begins.

They will go through the same old routine these other collectors have, calling you, and writing to you, its these companies that if ignored can take legal action, if they so wish.

Companies such as Arrow Global/Lowell/Cabot etc only buy debts, they don`t collect anyone else's.

Usually its defaulted debts that are sold, but they can be sold without defaulting, the current climate is to delay defaults as long as possible, which won`t help you, so why not try writing to your creditors and ask them to default you, can`t hurt now can it.

Is it really possible to write creditors requesting earlier default now rather later?

You can send a letter about anything that troubles you about how your account is being handled.
To what extent they will listen to you is anyone's guess, but it can`t possible hurt now can it.

chullbulla

But if we send a letter, it is like a contact with creditors, will it not open a gate of communication with them which further delays in getting default?
What should we write in letter when requesting defualt like reason and why don't want to start payment plan until defaulted?

sourcrates

chullbulla said:

But if we send a letter, it is like a contact with creditors, will it not open a gate of communication with them which further delays in getting default?
What should we write in letter when requesting defualt like reason and why don't want to start payment plan until defaulted?

Each lender will have their own internal policy on when to apply a default, they will apply that policy inline with FCA guidance.

If a certain lender is taking there time defaulting you, why not write to them and explain your intentions, tell them what your planning to do, why you want defaults, and how much quicker your credit file will heal when a default is applied, compared to an AP marker, explain you want to enter debt management, but also want to limit the damage to your credit history.

They have no idea why you are withholding payment, they won`t have a clue, unless you tell them why, the only legal reason to not contact a creditor is if you wish to apply the limitation act to your debt, that does not apply in this instance, its just common sense really.

chullbulla

Understand your point, I will wait  up to 6 months as just stopped paying and will write them if no default by then,

Beck50

Would you even write to the debt collection agencies that are for instance looking after my debts on behalf of the creditors?