Dmp and defaults

azmilligan71

I am starting a dmp and the first payment goes through 1st March. I have already had a closure letter from main creditor bank of Scotland for the 2 loans and 2 credit cards. They have stopped charging interest and will close in 2 months and pass to another company. The 2 credit cards are being defaulted. Haven’t heard from tesco for other loan. A store card has also gone to NCO. Is this all going in the right direction. The defaults scare me…..

Anony_mous2024

I have had a DMP and it all sounds normal. It is scary but not as scary as having lots of out of control debts that are spiralling in interest. You will feel in control.

MorningcoffeeIV

azmilligan71 said:

The defaults scare me…..

The defaults are great news. Without them, your credit history would be shot for eternity.

This way, you know there is an end in sight.

Rob5342

Defaults are good, you have a fixed date when the debts will stop off your credit report. They are a normal part of a DMP, get them behind you then you can look forward to the day when they drop off.

sourcrates

azmilligan71 said:

I am starting a dmp and the first payment goes through 1st March. Is this all going in the right direction. The defaults scare me…..

Standard legal wording is all it is, what is there to be scared about?

You have taken steps to rectify your debt issues, that is a positive move.

Lets imagine for a moment your worst fears are realised, and legal action was taken, you get a CCJ on your credit file, and you repay the debt at an affordable amount set by the court, what`s scary about that?

Its natural to worry about the unknown, but honestly you have nothing to fear from this process.

sparks_2023

There is no need to be scared of defaults. They happen and then you realise that life goes on as normal.

My first default is now over a year old. 6 years has become under 5 and falling....