Defaults or DMP or both?

daffodil5

sourcrates said:

I`m a tad confused as I`ve just realised this is not your thread @daffodil15.

What`s happened to @LucySpudnik ?

Sorry I'm new here, have I posted on someone else's thread, I do apologise. I've been reading so many posts on here to try to make sense of it all and get some answers and support, it's all a bit overwhelming and confusing.

Rob5342

If you start with Payplan now then you are likely to get payment arrangement markers which stay on your credit report for 6 years after the debt is cleared. If you completely ignore them forever then they will default meaning they will drop.off your credit report after 6 years, and then will then get sold or assigned to a debt collector, and eventually will probably end up with legal.action being taken against you. What you ideally want is something in between those two - stop paying so they default and end up being sold to a debt collector, then start paying the debt collector to keep them happy and hopefully clear the debt with a reduced settlement offer at some point down the line. 

LucySpudnik

daffodil5 said:

sourcrates said:

I`m a tad confused as I`ve just realised this is not your thread @daffodil15.

What`s happened to @LucySpudnik ?

Sorry I'm new here, have I posted on someone else's thread, I do apologise. I've been reading so many posts on here to try to make sense of it all and get some answers and support, it's all a bit overwhelming and confusing.

It’s fine @daffodil15 you’re asking the questions I would be doing. Seems we may be in a similar situation. It’s scary letting things go to default isn’t it?

Rob5342

daffodil5 said:

RAS said:

You can write to the creditors specifying you preferred means of communication. They'll need to write to you to deal with the legal stuff, but otherwise you can choose which method you want. 

Sorry for all these questions but am I also right in thinking that if I enter into a DMP now with Payplan, that the interest will continue to be added, won't be frozen, the debt will not default and my credit file affected for a lot longer? So any payments I make will not reduce the debt because of interest?

There is no guarantee but most creditors would freeze the interest so you would get the debt paid off eventually. At some point later the debts may default anyway, depending on how helpful/difficult the lenders want to be. Barclaycard froze interest for me and defaulted me 3 months later, Virgin put me on a payment arrangement and still wouldn't default me for 18 months when I stopped paying. You can't predict exactly how it will pan out, but by defaulting first you give yourself the best chance of minimising what you pay and minimising the length of time your credit report is harmed for.

sourcrates

daffodil5 said:

sourcrates said:

I`m a tad confused as I`ve just realised this is not your thread @daffodil15.

What`s happened to @LucySpudnik ?

Sorry I'm new here, have I posted on someone else's thread, I do apologise. I've been reading so many posts on here to try to make sense of it all and get some answers and support, it's all a bit overwhelming and confusing.

That`s ok, I just didn`t want the OP to be left with unanswered questions, not a problem.

daffodil5

LucySpudnik said:

daffodil5 said:

sourcrates said:

I`m a tad confused as I`ve just realised this is not your thread @daffodil15.

What`s happened to @LucySpudnik ?

Sorry I'm new here, have I posted on someone else's thread, I do apologise. I've been reading so many posts on here to try to make sense of it all and get some answers and support, it's all a bit overwhelming and confusing.

It’s fine @daffodil15 you’re asking the questions I would be doing. Seems we may be in a similar situation. It’s scary letting things go to default isn’t it?

Thanks for your understanding, we do seem to be in a similar situation don't we? At least we know we aren't alone in this, and the support on here is incredible! Yes it is rather scary defaulting, I'm finding it difficult to get out of the 'must always pay' mentality, how about you? I was hoping that going with Payplan would take pressure off but reading all this about defaults and markers being placed on my credit report, I'm now thinking I'll put Payplan off when they call on Monday morning, not sure what to say or if I should tell them that I have decided to not go with a DMP yet, as they'll probably ask why? I'm guessing that saying I am waiting for defaults won't go down too well 🤦
I am maybe overthinking this, as I don't have to please PayPlan 🤣 Hopefully they'll retain my information on file so when I'm ready I can go back to them to set up the DMP once the defaults have happened? 

LucySpudnik

@daffodil5 I totally understand all of those anxieties and feelings. It is counterintuitive to default but it seems like it might lead to a better longer term position credit wise. 

I assume we set up the DMP once the debts have defaulted, I’m sure someone will correct us? 

Good luck tomorrow with Payplan