Is it time for a DMP or try to ride the storm?

stu12345_2

a direct debit can be cancelled even on the day it is due out.it will appear as if  the money  has left from your bank.but it will credit back in at the end of the working day.you can do this via your online banking website menu.slide the direct debit to cancel. plus to make sure call your bank on the day and stop it.

CurlyTop11

Martico said:

Good luck @CurlyTop11, you seem to have your head screwed on and I'm sure you'll get through this. Keep us updated as things progress, won't you🤞👍

Thank you. I'm sure I will need lots more advice before getting through this!

in_need_of_direction said:

Just echoing what JCS1 said.  Even if it doesn’t preclude you from professional body membership, some employers can take a dim view.  I did 15 years in professional services firm and it would have been strongly frowned upon.  Also, are you due a significant salary uplift in the next year?

Thanks. I think I should be okay with employer as I'm pretty sure there are other staff members who have had one previously. They are an understanding employer. Am I right in thinking they wouldn't know though unless I told them? With regards to salary, I don't think I would be due a large increase, as I have had some rises along the way. Maybe a small one, but it would be more in a few years when I would be looking at something bigger.

stu12345_2 said:

a direct debit can be cancelled even on the day it is due out.it will appear as if  the money  has left from your bank.but it will credit back in at the end of the working day.you can do this via your online banking website menu.slide the direct debit to cancel. plus to make sure call your bank on the day and stop it.

Thanks. They should be cancelled for next week then.

Does anyone know if First Direct are linked to any of the companies I have debt with or am I okay to stay with them? I have read up and I can't see that they are, but I may be missing something.

stu12345_2

first direct is owned by HSBC
 here is a site that shows you who owns what--

https://www.finder.com/uk/who-owns-your-credit-card

CurlyTop11

Thanks. Had read something similar, just wanted to double check, but looks like it should be okay from that point of view.

Rob5342

Well done for facing up to it and taking action to sort things out. After years of being in debt that was the hardest thing for me, but now I've done it things have turned round completely.

CurlyTop11

Rob5342 said:

Well done for facing up to it and taking action to sort things out. After years of being in debt that was the hardest thing for me, but now I've done it things have turned round completely.

Thanks. I have put together a spreadsheet tonight with expenses I have coming up and split them between monthly amounts to save between now and then so that I know how much to put each month into a pot. It is surprising when you break it down how many things you should be saving for each month. Especially with some of the things I need to save for more quickly than I would hopefully do going forward, i.e. car insurance split the savings over 5 months, whereas going forward will be 12 months and therefore less saving each month. When you see it scheduled out, I completely see that the key is getting ahead and being on the front foot with these things.

Naomim

It's an eye opener isn't it! I make use of the Monzo pots and at one point had 17 running. I save for car repairs, insurance, Christmas, birthdays, haircuts etc long term and also use them for short term in-month use like petrol and my personal spending money for the month. It really helps having them out of my main account but not all lumped into one savings account.

Good luck. 

stu12345_2

does anyone know how long after a default does it take creditors to go down the ccj route.how many missed payments?

enthusiasticsaver

@stu12345_2 Very few unsecured creditors go down the CCJ route at all. What would be the point? It would cost them and unless they have security it rarely happens and a judgement is based on affordability. 

@CurlyTop11 I can see you have decided on a DMP which I think is your best option. If you weren’t living with your parents this would have been an issue long ago as there is no way you can afford to live independently and pay out over 50% of your wages on unsecured debt payments. The interest on a few of those will be high when 0% deals expire and even though you are only paying £200 plus grocery money to your parents you still only have £50 spare and haven’t budgeted for gifts, car costs etc. a DMP should not stop you renting although a dog might be an issue. Very few landlords allow pets. I assume those big loans were debt consolidations? 

sourcrates

stu12345_2 said:

does anyone know how long after a default does it take creditors to go down the ccj route.how many missed payments?

They don`t, that`s why we have a debt collection industry.

Can you imagine the cost of taking every debtor with a defaulted debt to court?
Not to mention the strain on the system itself, it would grind to a halt, be inundated, so instead we have debt collectors.

Original creditors just cut their losses and either assign or sell there debts to debt collectors or debt purchasing companies, its only went you ignore these people that legal action may occur.

Each case is looked at individually to determine the likelihood of payment being made after a judgement has been granted, if folk don`t have sufficient disposable income to pay, then legal action is pointless, as courts will not make unaffordable payment orders.

Less than 12% of defaulted accounts ever get to court, 88% never do.

• The average personal debt of British adults is £34,597.

It`s figures such as this that make you realise how prevalent debt is in this country, and they cannot take us all to court.