About to begin a DMP with £53k of debt.

wildstyle2019

Hi everyone, 

Another update for you. This morning I received a response from Tesco who have said I either pay in full or set up an affordable payment plan. They have asked me to ring to set this up but I would prefer to email them. Do I simply offer what I can afford and leave it at that? What if they reject the payment I offer? The total amount I owe is £6210 and at the moment I genuinely can only really afford £10-20. Are they going to laugh in my face? 

This morning I also received the default from Santander so that's another one down. Now just waiting for the 3 from Virgin and one from MBNA. 

Grumpelstiltskin

Do not ring Tesco, set up a S O for the amount you can afford, then they have 2 choices accept what you can pay or refuse it. What do you think they will do?.

And  have Tesco defaulted you yet?  If not wait until they do.

enthusiasticsaver

I agree.  Do not contact Tesco and make payment arrangements.  Eventually it will come under the DMP but you want them to default you first. 

wildstyle2019

Sorry, I should have reiterated. Yes they have defaulted me - on the 13th March.

enthusiasticsaver

Are you planning on self managing or going through stepchange? Have you saved up an emergency fund? 

wildstyle2019

Planning to self manage and yes, I have saved up a few grand already. 

enthusiasticsaver

If they have defaulted you and you have some savings then there is nothing stopping you making payment arrangements now then. 

wildstyle2019

Thanks.  So do I literally just email them and tell them what I can afford? I don't really want to phone them so how do I find their email address? Once I have acquired their email do I just say I wish to set up a standing order for £10 a month?

enthusiasticsaver

You can do that or they may sell the debt on to debt collectors so you could wait and see whether that happens. They usually then give details of how to make payments (sometimes online) and are more open to offers. Ultimately though they have little option other than to accept what you say you can afford. 

sourcrates

Wait until your accounts go to debt collectors, they will write to you, asking you to set up a payment arrangement.

Much simpler than dealing with original creditors who are only looking to off load the debts.

Although having said that, I note that 3 of your accounts are with Virgin, who tend to sit on bad debts and do nothing with them for years in some cases, I think your plan should be to wait and see who writes to you and what they ask you to do, they may engage someone like Wescott to collect on their behalf, see what happens.