Please can someone check my plan?

recklessmurmur

Hi everyone.

I have recieved a default notice today from Lloyds. I feel really frightened. I don't know why, it just feels really awful.

The letter says default will be applied by 10 August if I don't pay. 

Not sure what I'm looking for with this post, as I knew this would happen. Just horrible seeing it. I think I wasn't expecting it quite this soon possibly.

RAS

This is good news. In 6 years time, you can look forward to your credit record improving. Keep calm and carry on.

You may get another letter in another month or so assigning the debt elsewhere, or selling it on. Have you reviewed your SOA so you know how much you can afford to pay your creditors? And built up your emergency fund from what you've not been paying?

recklessmurmur

Yes, I have a small emergency fund (arounf £1.5k) and a plan of who I can pay what. 
Thank you. I think it just happened a bit quicker than I expected & I'm an anxious person anyway!! 

sourcrates

Its been said 100 times on the forum, a default notice has to be send to comply with regulations, yes it demands full payment, and is very "official" looking, but its just a letter, you know the drill, you were expecting it, so just file it, and carry on.

As RAS says, you need to look past that and have your plan ready to implement.

There will be more, so you now know what to expect.

RAS

recklessmurmur said:

Yes, I have a small emergency fund (arounf £1.5k) and a plan of who I can pay what. 
Thank you. I think it just happened a bit quicker than I expected & I'm an anxious person anyway!! 

Also remember that interest and fees stop on this debt, so your debt starts to stabilise.

You are doing well. Ideally you want enough to pay all essential bills for a month, or until you get UC sorted out if your job collapsed. And can replace one white good if it goes kaputt.

So make sure that you've got some money going into the emergency fund each month, even once you start making payments.

recklessmurmur

Thank you very much. 
Once a default has been applied, if Lloyds then assign a DCA to collect it, should I start payments? Or wait until it is sold? Or is it much of a muchness?

RAS

Very much of a muchness. You don't need to provide them an SOA, it should be possible to just set up a standing order on-line using the account number they give you. Do start a bit lower than your top figure so you have some negotiating room. Once all your accounts are up, you can work with your SOA and fine tune.

recklessmurmur

Hi everyone. An update. Lloyds have now defaulted me and written to say the account is closed. They have sent me a budget form, a medical questionnaire and a third party authorisation form. No mention of debt having been passed to collectors etc. It says its come from the priority recovery team. Do I need to do anything with this, please? Thank you xx

sourcrates

recklessmurmur said:

Hi everyone. An update. Lloyds have now defaulted me and written to say the account is closed. They have sent me a budget form, a medical questionnaire and a third party authorisation form. No mention of debt having been passed to collectors etc. It says its come from the priority recovery team. Do I need to do anything with this, please? Thank you xx

That`s because the debt is still with them, they are deciding what to do with it based on your answers.

What is your plan here? are you looking to pay off the balance, get it written off for health reasons, what is your strategy?

recklessmurmur

I'm looking to pay it off through a self managed DMP