I will save you all the time reading my “head burried in the sand” post. While waiting for my account to be approved I wrote a lengthy first post detailing my plan for an Iva thinking this was the way to go, speaking to Iva.org, however after doing some sums I could have this fully paid off within 5 years, filled in the online form for stepchange, did the same with pay plan and spoke on the phone, a DMP is the way forward.
51,000 debt, 4 credit cards, all within 6-10,000 balance, 6 loans, from £648-£3200, and PayPal credit at £4000. All opened within last 7 years
I was going to go through PayPlan straight away, went through my finances with them and £1280 priority debts, approx £1000 (slightly inflated to allow a bit extra for savings/leisure) towards groceries, fuel, other expenses etc, leaving approx £750 per month to pay towards credit, this is the figure Payplan would be using. However after lots of reading on this forum, I’m thinking of letting my debts default and going self managed, while waiting for defaults, I am hoping I could bank £1000 per month while waiting for defaults and potentially get good settlement offers to pay some of the smaller loan off straight away. My current account has no affiliation with any debts, no overdraft etc.
Plan of action
- set up second account with monza for saving - DONE
- Cancel direct debits - in progress
- Awaiting default notice
- Aim to get settlement offers from smaller loans / start paying payments to creditors/DCA
- Does this plan look ok? I’m sure the answer to this is yes.
- I still cancel and default on credit cards still on 0%?
- To confirm - no contact with creditors until a default is on credit file. Email lender/DCA that I am setting up a DMP with pro rata payment they will be receiving, ask for payment details to set up standing order. Do I have to supply income and outgoings to them?
- All Categories
- 341.7K Banking & Borrowing
- 249.6K Reduce Debt & Boost Income
- 449K Spending & Discounts
- 233.8K Work, Benefits & Business
- 605.7K Mortgages, Homes & Bills
- 172.3K Life & Family
- 246.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.8K Discuss & Feedback
- 15.1K Coronavirus Support Boards