Starting DMP

Rob5342

peteuk said:

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,

I'd say it's better to ignore the creditors completely and have no contact with them at all to try and get defaults as soon as possible. The sooner they default the sooner they will drop off the credit report, and the sooner they will be passed to debt collectors who will be more open to partial settlement offers.

Heisenberg01

Didn't make the cut off point for changing bank account for salary this month, so will be going forward next month.

Jyst a bit worried about my biggest creditor, (Halifax)

I will have overdraft of £1600

Personal loan £7000

Credit card  £4000

Almost half of entire debt.

No arrears yet, but given the  amounts, arnt they, or whoever they sell debt to ikely to go the court route, due to the amount?

fatbelly

No. Halifax are probably the least litigious out there.

It's usually some stupid sub-prime lender who is first to court action

RAS

Get that new basic bank account sorted, next week. The sooner you can transfer your income the better.

Heisenberg01

RAS said:

Get that new basic bank account sorted, next week. The sooner you can transfer your income the better.

All sorted, I have a starling account I've never really used.

I have to time this well if I don't my salary is gone to the overdraft.

sourcrates

Heisenberg01 said:

Didn't make the cut off point for changing bank account for salary this month, so will be going forward next month.

Jyst a bit worried about my biggest creditor, (Halifax)

I will have overdraft of £1600

Personal loan £7000

Credit card  £4000

Almost half of entire debt.

No arrears yet, but given the  amounts, arnt they, or whoever they sell debt to ikely to go the court route, due to the amount?

Surprisingly it`s usually the opposite, it`s normally the debt with the lowest amount that can get litigious.

For example, most large mortgage shortfall debts, that can total several hundred thousand pounds, won`t get chased as much as a £100 payday loan debt will be.

This is mainly because the chances of someone having several hundred thousand pounds stuffed under a mattress somewhere is very unlikely, however finding a hundred quid there may be a distinct possibility.

I`m not saying it always happens this way, but as a rule of thumb, the more debt to a particular lender you have, the less collection activity there will be, as they know it`s likely a complete waste of time.

Beck50

Hi All, update on my situation, more letters stating that if I do not get in touch by for example 4th December they'll have to pass my details onto a debt collection company, some missed calls and odd email asking for me to get in touch, so am now thinking of starting my DMP with Stepchange, I'm at the point of having to upload and prove income and creditors accounts numbers etc, would still rather wait for defaults but as mentioned in earlier updates  I could do without the grief what with family issues etc, as always I appreciate everyone's comments.

Rob5342

Beck50 said:

Hi All, update on my situation, more letters stating that if I do not get in touch by for example 4th December they'll have to pass my details onto a debt collection company, some missed calls and odd email asking for me to get in touch, so am now thinking of starting my DMP with Stepchange, I'm at the point of having to upload and prove income and creditors accounts numbers etc, would still rather wait for defaults but as mentioned in earlier updates  I could do without the grief what with family issues etc, as always I appreciate everyone's comments.

That's normal and to be expected if you are wanting to get defaults. If you start the DMP soon you might save some of what you see as grief now, but when it gets towards the end of the DMP it will take longer for your credit report to improve. It's really down to you to decide which is more important for your situation.

Remember that being on a DMP won't prevent your debt from being sold to a debt collector, I didn't wait for defaults and Barclaycard sold my debt to PRA within a few months of the DMP starting. It's nothing to be concerned about though, the payments just got sent to PRA instead and that was that.

fatbelly

Beck50 said:

Hi All, update on my situation, more letters stating that if I do not get in touch by for example 4th December they'll have to pass my details onto a debt collection company, some missed calls and odd email asking for me to get in touch, so am now thinking of starting my DMP with Stepchange, I'm at the point of having to upload and prove income and creditors accounts numbers etc, would still rather wait for defaults but as mentioned in earlier updates  I could do without the grief what with family issues etc, as always I appreciate everyone's comments.

DCA letters are standard - nothing to worry about or to make you change your plans.

Contact stepchange when you are ready

Beck50

Natwest keep sending emails and letters about getting in contact with them by certain dates, and others by letters, am I best still to keep ignoring them or should I make contact, not yet set my DMP just at the stage of uploading proof of income etc, but are tempted to bide my time and see what happens or is this not advisable, I do want to start paying everyone but would rather have defaults, also do defaults state time lines on them?