Start of debt free journey

turbocat2024

Hi all

First of all wow what a forum, How have I never stumbled across this in my 20 years of debt... 

I have devoured a lot if info and you/ it has given me a lot of knowledge and confidence to get my head out of juggle town and sort out a Credit Free life.

This post knocked me for six and was the LBM for me...

 6 Years Later - An update on £100k+ Debt — MoneySavingExpert Forum

My only question at this stage is when should holding letters be sent to creditors on a self managed DMP.

I intend to start making payment once the accounts default, my ultimate goal is to rid myself of Credit Dependencies so I am in for the long haul but don't know whether I send these now as they are intended "holding letters" asking for interest to be stopped and then send the payment offer letters once the accounts default or stay silent and skip the holding letters.

Thanks

These ones:

Dear Sir/Madam

We are writing to you regarding the outstanding account - agreement number 

Unfortunately we are suffering financial difficulties and we are finding it very difficult to meet our contractual payments.

We have taken advice from Citizens Advice North East Derbyshire.

We would be grateful if you would help us make a full assessment of the current financial situation by providing us with up to date account details. It would also be appreciated if interest/charges were stopped and any recovery action suspended, pending satisfactory payment arrangements.

When we have received all up-to-date balances, we will draft a financial statement / offer and forward to you for your consideration and acceptance with an early response being appreciated.

Your assistance and co-operation would be greatly appreciated.

Yours faithfully

sourcrates

Unless your debt is with a specialist lender, such as a peer to peer lender, further action just means sending your account to a debt collector, so holding letters are a bit arbitrary really, as you want the collection process to kick into gear, that`s how you eventually get defaulted, which stops all interest anyway.

Asking them to freeze interest can result in AP markers, instead of defaults, which show on your credit file for 6 years after you finish paying off the debt, so twice as long as a default potentially.

Holding letters are designed to reduce the chances of a creditor taking legal action, now in the vast majority of cases, they don`t anyway, bad debts are simply assigned to debt collectors, or sold on to someone else.

Rob5342

If you want them to default the debts then it's best to just completely ignore them until they do. If you contact them they will probably try and "help" you which will just slow the whole process down.

turbocat2024

Question on Affordability complaints, I have 1 loan taken out a year ago, unsecured but to consolidate £25k plus interest which in hindsight now was probably unaffordable. The rest are 4 credit cards £15k each

My goal is to self manage DMP and save up for a FF Fund and hopefully clear everything in 4-6 years with 30-40% offers and then never go back into credit

So now for my question am I better to focus on the goal, would complaining about affordability back fire down the line with settlement offers ?

I think I can only complain about the loan as the Credit Cards have been shuffled around constantly on 0% BT's, there might be the odd BT fee there to claim back but I would rather focus on one thing to simplify it for me

Hope that makes sense, thanks

enthusiasticsaver

I don't think there is any harm in querying misselling due to affordability on the loan. I think you are a way off settlement offers if you haven't defaulted and asking for F and Fs further down the line is not going to be jeopardised. I would not bother with holding letters.  Just wait for the defaults. 

sourcrates

Debts will almost certainly be sold at some point in time.

So the creditors you have now, won`t be the ones you may settle with later on down the line.

So affordability complaints now, will have no bearing on settlement offers in 2/3 years time.

Use every weapon in your arsenal.

turbocat2024

Ok your right why not if it wont harm the settlements down the line. So should I wait for defaults before Affordability complaints or send them off now before defaulting.

Sorry I recall in the mega thread that Affordability Complaints and un connected to DMP/Defaults so think if my memory serves me right I have answered my own question

Cheers for all the help you give to this community life savers !

turbocat2024

Are there any risks of CIFA markers ? I got the triple lock offer with Clear Score for the loan from memory which guarantee rate, amount and approval but may or may not have accurately put down my monthly expenses or financial dependants, just wanted to loan to reduce my monthly payments, moved car finance at higher interest rate, paid off a credit card and another personal loan so moved £800 per month commitment down to £400

I am happy with just getting the Defaults and moving to DMP and saving for Settlements 4-5 years down the line just don't want to jeopardise anything  or risk getting humans to investigate so early in the process. I can see some benefit once the debt is sold and I am 3 years in asking for CCA requests. Just in the planning stage I guess

sourcrates

Don`t overthink things, debt collection is an automated process, its not the FBI, they don`t go looking for reasons why, or launching investigations, stick to your plan, all will be fine.

MEM62

turbocat2024 said:

I got the triple lock offer with Clear Score for the loan from memory which guarantee rate, amount and approval but may or may not have accurately put down my monthly expenses or financial dependants,

If you lied on the application then I do not see how you can successfully argue a complaint based on affordability.  

turbocat2024

I wouldn't have intentionally lied, but I can't remember what was already in the Clear Score app about financial dependents and I probably grossly reduced my expenditure, possibly better to just stick with the original plan, default, DMP and saving plan.

Its my fault I am in this mess not theirs...