To default, or not?

Startledbylife

I've been reading posts and see that when going on a DMP it's better to default first, especially If it's going to be long term. 
I understand the logic, but my question is, if I know I can pay off all my credit cards/loan in 6-12 months, but have no money right now to keep up with payments, then is it still better to not pay at all and wait to default, or to arrange a DMP or token payment.
I would really appreciate your thoughts

Floss

How will you be paying them off? Is it by remortgaging, as it isn't generally advised to pay unsecured debt with secured debt...

Startledbylife

Floss said:

How will you be paying them off? Is it by remortgaging, as it isn't generally advised to pay unsecured debt with secured debt...

I'm waiting on a divorce settlement which was supposed to be the end of this month, its the 2nd time the sale has fallen through. Now i have no idea how much longer it will take.

I am also looking into remortgaging just to give me a bit of relief in the short term then using the divorce money to pay off some mortgage later. I've already been declined twice though from morgage lenders so I doubt it's even possible. 

I've run out of options and just don't know what's the least worst thing to do

Floss

Defaults stay on your file for 6 years. Arrangements to pay stay on it for 6 years after the debt is paid.

Maybe contact your creditors, ask for 60 days breathing space, see how things are in a couple of weeks and make your decision then? 

Also consider finding out whether you should get any interim payment from your ex, in light of their sale falling through (and maybe find out why it fell through, if that's the second time...)

Startledbylife

Floss said:

Defaults stay on your file for 6 years. Arrangements to pay stay on it for 6 years after the debt is paid.

Maybe contact your creditors, ask for 60 days breathing space, see how things are in a couple of weeks and make your decision then? 

Also consider finding out whether you should get any interim payment from your ex, in light of their sale falling through (and maybe find out why it fell through, if that's the second time...)

Thanks for your reply. What went wrong with the house sale happened further down in the chain and wasn't his fault to be fair. He does want to sell as he is also struggling with his mortgage payments.

I understand that for someone who expects to be in debt long term its best to get defaults, but as its likely I can clear it in less than a year, am I right in thinking it won't make much difference, and perhaps agreements to pay, with debts fully cleared will look slightly better for future lending? (I've no idea really)

I thought breathing space also showed on the credit file? If so, then isn't that just delaying the inevitable?

If a DMP is the best option now, I don't know whether to go through stepchange, or just call the creditors myself (9 of them!) to explain the situation and arrange a payment plan, or to just stop paying in the hope that they default the debts quickly?

Also would it look any better on my credit file to miss some of them but keep up with the ones I can manage, or to have them all on payment plans?

I want to do the least damaging thing but I'm not sure if any of that would make any difference.

Floss

 Startledbylife said:

Floss said:

Defaults stay on your file for 6 years. Arrangements to pay stay on it for 6 years after the debt is paid.

Maybe contact your creditors, ask for 60 days breathing space, see how things are in a couple of weeks and make your decision then? 

Also consider finding out whether you should get any interim payment from your ex, in light of their sale falling through (and maybe find out why it fell through, if that's the second time...)

Thanks for your reply. What went wrong with the house sale happened further down in the chain and wasn't his fault to be fair. He does want to sell as he is also struggling with his mortgage payments.

I understand that for someone who expects to be in debt long term its best to get defaults, but as its likely I can clear it in less than a year, am I right in thinking it won't make much difference, and perhaps agreements to pay, with debts fully cleared will look slightly better for future lending? (I've no idea really)

I thought breathing space also showed on the credit file? If so, then isn't that just delaying the inevitable?

If a DMP is the best option now, I don't know whether to go through stepchange, or just call the creditors myself (9 of them!) to explain the situation and arrange a payment plan, or to just stop paying in the hope that they default the debts quickly?

Also would it look any better on my credit file to miss some of them but keep up with the ones I can manage, or to have them all on payment plans?

I want to do the least damaging thing but I'm not sure if any of that would make any difference.

Arrangements to pay are probably worse than defaults, as they will stay on your record for over 6 years.

Stepchange, PayPal or National Debt line can arrange for Breathing Space, have a look at this:
https://nationaldebtline.org/fact-sheet-library/breathing-space-ew/