Stepchange DMP

sourcrates

ForwardisForward said:

Morning, more questions....



Next, do you start a DMP once the first creditor has defaulted you because you presumably can't pick and choose who you pay, you need to treat them all the same?

Finally, how do I respond to letters when I'm paying nothing. I know how to when paying just what I can afford but when I'm not even sending a pound, how do I explain that?

Hope you all have a good day.

Debt management requires you to think outside the box, defaults may take a while in the current climate, so its up to you to follow events closely, and choose the best time to start repayments, ideally once all your creditors have defaulted you, but most likely after the majority have.

You don`t have to treat any of them fairly until you actually start a DMP, beforehand anything goes.

You don`t appear to grasp what defaulting actually means, in essence, it means that the relationship between you the borrower, and them, the lender, has irretrievably broken down, the agreement between you has been breeched, and you have failed to rectify that breech, so your relationship is effectively at an end.

The lender will likely sell or assign the debt to a 3rd party, so any future DMP will not be with the original creditor, so it doesn't matter what or how often they write to you, you have no further dealings with that creditor.

When you do eventually start debt management, it will be with the new owners of your debts, in the majority of cases, or soon will be with the rest of them, so you don`t have to explain anything to your previous lenders, you just sit tight, and allow the collection process to go on in the background, you basically ignore them until defaulted, not advice a debt charity would give to you, granted, but good solid advice from those who have walked in your shoes beforehand.

ForwardisForward

Thank you everyone for helping me out. 

I am learning as I go as we all do and I believe I understand what default means, I was talking about the early days when I am saving my emergency fund and am just not paying with no explanation, should I tell them why? - but I see from your advice that I just sit tight and await the defaults and then start a DMP when the fund has built and some debts have defaulted.

On reflection I will have to do the admin myself on switching accounts because I am concerned Barclays will reinstate the Barclaycard DD and I obviously don't want them to know where I have gone to!

Thanks for the links - that is very helpful - I am also getting used to navigating this website so I appreciate that.