Cancelling DMP and dealing with DCAs

Fluffysocks23

Ill try to keep this short and sweet!!

Currently in a DMP, with a debt free date of 3+ years- if i stick to the agreed arrangement.

So i have 10+ creditors i owe money to, with just short of 20k debt.

Some of these debts have been passed to DCA, and ive recently been reading about CCA agreements.

Im just wondering what route to go down to become debt free (and hopefully pay less than owed)

Heres my plans i need advice on.

Plan A- stick to the DMP and be debt free in 3+ years.

Plan B- Keep on the DMP and Work 70+ hours overtime every month for the next 12 months and be debt free by this time next year.  

Plan C- Work extra hours, pay of the debts which are with the initial creditors, and issue the DCAs with a CCA (and pay them a token payment until i request a CCA from them) - heres where im unsure if i will have to cancel my DMP due to obviously settling preferred debts first.

Plan D- Cancel the DMP, apply for 60 days breathing space,Work extra hours, offer creditors who hold the original debts full and final settlements, and pay token payments to the DCAs

Most the creditors have defaulted me already in the last 12 months.
(one of which has defaulted me twice in a three month period for the same debt- so im currently dealing with this)

Sorry for the long post im at a loss currently, ive had my head in the sand but i really want to turn my life around so i can get a mortgage in the next few years.

Dont know if i need to add this but ive not CCJs, nothing worth repossings, and ive also issues a few companys with complaints via resolver for irresponable lending/unfair intrest rates.

Any advice is helpful 

Thankyou

PS sorry wasnt short or sweet afterall!

Fluffysocks23

Sorry, my grammar isn't the best the title is supposed to say DMP*, apologise there are lots of mistakes throughout the thread too!

Floss

Who is your DMP with?

Fluffysocks23

StepchangeFloss said:

Who is your DMP with?

Stepchange

Rob5342

I think you'll just have to play it by ear really.

I'd make CCA requests to them all, go self managed, reduce the payments to then and put the difference into a settlement fund. Once you have determined which are enforceable and you have enough in your settlement fund try and settlement offer, it that doesn't work try someone else. When one is accepted then put the associated monthly payment into the settlement fund ready for the next one. If you are making good progress and want to speed it up a bit then consider working extra hours, but don't take it too fast and pay more than you need to.

Fluffysocks23

Rob5342 said:

I think you'll just have to play it by ear really.

I'd make CCA requests to them all, go self managed, reduce the payments to then and put the difference into a settlement fund. Once you have determined which are enforceable and you have enough in your settlement fund try and settlement offer, it that doesn't work try someone else. When one is accepted then put the associated monthly payment into the settlement fund ready for the next one. If you are making good progress and want to speed it up a bit then consider working extra hours, but don't take it too fast and pay more than you need to.

Thanks for your reply. 

Do you think I should do a CCA requests on the ones that are with the original lender? - as I know they’re enforceable? 

Sorry I’m new to the CCA.
is it worth when I cancel my DMP to set up the 60 days breathing space?? 

stu12345_2

breathing space can only be set up via a debt advisor such as stepchange who then apply to the insolvency service on your behalf.
. and how do you know the debts with original lenders are enforceable without seeing the credit agreements which they may or may not have on their records.
only by applying for CCA requests will they prove it to you.
yes, normally when debts are sold on there is a better chance that the cca can't be found. but do a CCA letter to all debts except overdraft debt.

Rob5342

Fluffysocks23 said:

Rob5342 said:

I think you'll just have to play it by ear really.

I'd make CCA requests to them all, go self managed, reduce the payments to then and put the difference into a settlement fund. Once you have determined which are enforceable and you have enough in your settlement fund try and settlement offer, it that doesn't work try someone else. When one is accepted then put the associated monthly payment into the settlement fund ready for the next one. If you are making good progress and want to speed it up a bit then consider working extra hours, but don't take it too fast and pay more than you need to.

Thanks for your reply. 

Do you think I should do a CCA requests on the ones that are with the original lender? - as I know they’re enforceable? 

Sorry I’m new to the CCA.
is it worth when I cancel my DMP to set up the 60 days breathing space?? 

How do you know they are enforceable if they haven't already provided the CCA? Personally I'd wait until they the debt had been with a DCA for 6 months before requesting the CCA, as they are less likely to be produced once the debt has been sold. 

Fluffysocks23

stu12345_2 said:

breathing space can only be set up via a debt advisor such as stepchange who then apply to the insolvency service on your behalf.
. and how do you know the debts with original lenders are enforceable without seeing the credit agreements which they may or may not have on their records.
only by applying for CCA requests will they prove it to you.
yes, normally when debts are sold on there is a better chance that the cca can't be found. but do a CCA letter to all debts except overdraft debt.

I thought that when you apply for a credit card/loan you sort of sign an agreement which is the CCA. 

Ok, so I will request a CCA from all the creditors and include a £1 postal order. Should I inform them prior to sending it that this is what I’m going to do? Also whilst waiting for them to reply should I stop payments or pay a token payment? I thought if I do so I will enter into breathing space to stop the interest whilst waiting for a reply 

fatbelly

Stepchange seem to do Breathing Space for everyone as a knee-jerk reaction.

They were a big supporter of the proposals so I suppose they feel honour-bound to use it (shame they don't feel the same about DROs)

But tactically in most cases you don't need it, it's slghtly counterproductive and as you can only have one per year you've just wasted it.

Where I have seen it be useful is to slow down an imminent eviction.

In your situation I'd familiarise yourself with Debt Camel's recent article

https://forums.moneysavingexpert.com/discussion/6485732/7-ways-to-speed-up-a-dmp-so-it-finishes-sooner#latest

Fluffysocks23

fatbelly said:

Stepchange seem to do Breathing Space for everyone as a knee-jerk reaction.

They were a big supporter of the proposals so I suppose they feel honour-bound to use it (shame they don't feel the same about DROs)

But tactically in most cases you don't need it, it's slghtly counterproductive and as you can only have one per year you've just wasted it.

Where I have seen it be useful is to slow down an imminent eviction.

I intially wanted to enter a DRO, as that came as one of my options over a year ago, however there was minimal information that they support it. It was almost like there was a broken link to proceed. However I’ve changed jobs so my disposable income has now increased so I cannot qualify for it now hence entering into a DMP