In a DMP, can i only make decent token payments for months, then make offers.

stu12345_2

little update looking at our debts on stepchange site.it seems Barclaycard sold our debts to a company called PRA group.

sourcrates

stu12345_2 said:

little update looking at our debts on stepchange site.it seems Barclaycard sold our debts to a company called PRA group.

DCA - Debt Collection Agency.

Once a debt defaults, the balance is frozen, no further interest or charges can be added, before default, interest and charges are only stopped if the creditor agrees to it.

You don`t need to ask for creditor addresses, once you have stopped payments, they will, eventually get around to writing to you, so that way you know who owns what, and who to pay, try not to make things any more complicated than they need be, things do not move very fast in the world of debt collection, keeping things simple tends to work best.

stu12345_2

thanks also found out RBS bank.my bank I use have sold everything to moorcroft.hence RBS can't make a wages grab on my account.in the future 

Rob5342

stu12345_2 said:

I didn't mean stepchange can find individuals on these threads.i meant stepchange could read and say to themselves hey we are making mistakes as a debt company or perhaps we should do things a different way 

They'll know full well that there are different ways for people to handle debt, but they'll have a bit of a conflict of interests if they encourage people not to pay the people they get their funding from.

I found them very useful as a stepping stone. Im self managing now and have one debt I'm not paying as it's unenforceable, but if it hadn't have been for them I might not have taken that first step towards tackling my debts.

I was very anxious when I first started but I now feel.in total control and have just one debt I pay an amount that suits me towards.

Rob5342

stu12345_2 said:

thanks also found out RBS bank.my bank I use have sold everything to moorcroft.hence RBS can't make a wages grab on my account.in the future 

Are you sure they sold it rather than using Moorcroft as a collector? I didn't think Moorcroft bought debts.

stu12345_2

oh dear.also noticed there is one RBS debt that hasn't been sold on.wifes RBS credit card.cos the min payment is £13 as her balance is only £1200. mines was much higher.
but she pays £26 via the stepchange payment that is obviously going to stop.it also states a £12 charge if it defaults.but RBS stopped all interest charges since going on a DMP. 

bcs7

To be fair to StepChange I think they need to be seen as a mediator between debtors and creditors. They’re trying to come to a middle ground where debtors can pay what they can afford over 5 years and a smaller overall debt and creditors get as much as they can even though it won’t be the full amount.

I think you need to concentrate on the following:

1) Cancel the DMP with StepChange.
2) Setup a new account with a bank you don’t owe money to.
3) Reduce your payments to the minimum on all debts. If they ask why just say circumstances have changed and this is all you can now afford.
4) Start saving a fund for F&F offers
5) Send CCAs out so if any are currently unenforceable you don’t need to worry about them for now, maybe never.
6) Any that are still enforceable start making offers once you get enough money to do so. Start with the smallest debts and maybe offer 20%. They could say no but then just keep paying the minimums and they’ll likely make you offers you can accept or decline. As time goes on they may start lowering the offers.

stu12345_2

thanks.did stage 1 last night. if I save enough for f and f offers.i can only do one creditior at a time.stsrt with smallest. but if I clear one at a time.do I up my monthly payments to the others as I will have more money to contribute to them.or do I not tell the other creditors I have paid off some and still keep the same monthly payments to them .
plus I won't be doing stage 3 until stage 5 has confirmed they are enforceable.no more payments.no matter how small until confirmation.

bcs7

I wouldn’t up the monthly payments.
As each debt is cleared you’ll be able to put those payments into the fund which can go towards the next F&F and so on.

Rob5342

You are in control so you set your own tactics. If your plan is to clear them with full and final offers on all of them then it would probably make more sense to to save the extra money for making offers. All you have to tell any of them is what you'll be paying them.