Pushing For Default

happy2017

Hi all,
Hope someone can provide some advice please.

A couple of months ago I decided to move away from using Step Change who I used from 2019 until March this year.  I've decided to self manage my own debts.

Now all other creditors had defaulted me but Shop Direct had marked as Arrangement on my credit file.

Since managing my own debt all my creditors accepted the continuation of the payments that I was making through Step Change as my income and expenditures remain the same, they sould receive the payment directly from me and not via Step Change.

When I spoke with Littlewoods they said because I'm no longer with Step Change that they request the full balance of £900 or they will default my account.  Naturally I don't want this to happen.

The advisor went away to speak with her manager and came back and asked if my circumstances were going to change over the next few months, i said yes I'm due a bonus of £2k at the end of June, they said they can agree to me making the payments of £6 per month which is what i was making through Step Change and for me to call them back at the end of May to discuss how much i can afford to pay out the £2k bonus against the £900.

Now since then I've got issues with my car which are going to cost hundreds, I also just been informed my fixed term contract is going to come to an end at the end of June so will be out for a job.

I've got no idea what to do, I'm really worried about not having a job but also stressed that a default will hit my credit report when all others are due to drop off in 2025.

Any ideas please?, thank you.

MorningcoffeeIV

Ask them to backdate a default.

happy2017

Spoke to littlewoods yesterday.

Informed about my job coming to an end next month and my bonus will need to be used to live on.

She said the £5 can not be accepted as they have had the account on debt management for 4 years and that they are not able to tell me what an acceptable payment is.

Told the advisor i just dont feel like they are willing to help.

They advised to go back to stepchange but ive moved away from them to manage my own debts and all creditors apart from littlewoods have accepted my previous offers.

Can i go back to StepChange and just put the Littlewoods through them? its going to be a mess.

The advisor raised a complaint so will see where it leads to.

MorningcoffeeIV

happy2017 said:

She said the £5 can not be accepted as they have had the account on debt management for 4 years and that they are not able to tell me what an acceptable payment is.
happy2017 said:

 they said they can agree to me making the payments of £6 per month 

Can you afford the £6 they agreed to?

happy2017

Hi, yes i can afford it, but she was concerned because my job was coming to an end.  told her im trying best to get another job etc.

sourcrates

happy2017 said:

Hi, yes i can afford it, but she was concerned because my job was coming to an end.  told her im trying best to get another job etc.

Stop paying Littlewoods, they have a terrible reputation when it comes to managing overdue accounts.

If you stop paying, the debt will be passed over to there "in house" collections team, who are a bit more flexible.

If they are still not willing to be of help, wait until they sell the debt, debt purchasing companies are the most flexible in terms of what they will accept monthly, which is basically anything that is affordable. 

happy2017

sourcrates said:

happy2017 said:

Hi, yes i can afford it, but she was concerned because my job was coming to an end.  told her im trying best to get another job etc.

Stop paying Littlewoods, they have a terrible reputation when it comes to managing overdue accounts.

If you stop paying, the debt will be passed over to there "in house" collections team, who are a bit more flexible.

If they are still not willing to be of help, wait until they sell the debt, debt purchasing companies are the most flexible in terms of what they will accept monthly, which is basically anything that is affordable. 

thanks for the advice, my concern is that they will add a default to my credit file which i would be gutted about.

sourcrates

happy2017 said:

sourcrates said:

happy2017 said:

Hi, yes i can afford it, but she was concerned because my job was coming to an end.  told her im trying best to get another job etc.

Stop paying Littlewoods, they have a terrible reputation when it comes to managing overdue accounts.

If you stop paying, the debt will be passed over to there "in house" collections team, who are a bit more flexible.

If they are still not willing to be of help, wait until they sell the debt, debt purchasing companies are the most flexible in terms of what they will accept monthly, which is basically anything that is affordable. 

thanks for the advice, my concern is that they will add a default to my credit file which i would be gutted about.

Ah, unfortunately there will always be a down side, however your arrangement to pay markers will still be there for 6 years after you finish repaying the debt, defaults show for a fixed 6 year period only.

Rob5342

I'd let it default so you have a fixed date when you willl have a clean credit report rather than perpetually pushing that date further into the future with an arrangement to pay. You could then complain and ask them to backdate the default, saying they should have defaulted you when you started your debt mabafement plan.

Ideally you should have stopped paying them all at the beginning and only started when the defaulted. I made the same mistake but it's worth pointing that out for others who may just be starting.