Debt has finally caught up with me

alidai

Have you told your wife yet?

DisabledDan

andy26599 said:

(I'd estimate that my DMP term at that payment would be about 6 years, but I'd hopefully be able to shorten that as my wages increase year on year and I'd use that increase to pay off early, £1200 to mortgage, £645 to Child maintenance (which will reduce to £430 in 3 years, and then to £215 in 5 years when my two oldest hit 18 respectively) then continue to put £200 a month into savings and the budget of £900 to use for day to day stuff. 

TBH I have never understood why people are prepared to go into a DMP if it will take 6 years, unless they have a property or other assets. If it is going to take six year then why not just ghost them and disappear. I suppose you are worried about an attachment of earnings order. 

Only one of my comsumer debts went for a CCJ (as far as I am aware) and they never chased the debt unlike all the others.  I had other CCJ's but they got nothing and one or two High Court Enforcement, only one of them turned up, the other added £6k to the debt, probably to shock me into arguing.

If you can afford to service the debt then fair enough, you could juggle them with no payments until 60% off, I did have some 90% off, one was when Hoist was about to sell their business, I think another just prior to Statute Bar, but I figured they were trying to see if it was worth them getting a CCJ.  My mind was in a bad place so I just did not engage, so many websites showed the tricks the debt collectors get up to.

andy26599

Admiral the latest to send me a Default Notice. 2 down now. 

Floss

DisabledDan said:

TBH I have never understood why people are prepared to go into a DMP if it will take 6 years, unless they have a property or other assets. If it is going to take six year then why not just ghost them and disappear. I suppose you are worried about an attachment of earnings order. 

Once one has defaults, they take 6 years to drop off the credit record. If a 6-year DMP is the chosen path, why not pay one's debts & then move on?

andy26599

My 3 updraft accounts have now been given a notice of default, as well as my Barclaycard and first Direct Credit Cards. so things are coming to a point now where I'm going to have to start talking to people.

I just have Capital One and 2 Novuna accounts now to wait for.

Still unsure if I should do it all myself or get Stepchange to manage it for me for ease. 

stu12345_2

will a dmp.definately work for you in the long-term,I ask cos if you go down bankruptcy, iva or dro route, they look at payment history to creditors and see if you paid one and ignored one, hence that's preferential treatment, that's not allowed.

but if your happy with a dmp and can handle setting up standing orders,( never ever direct debits( to repay, then go ahead and do it by yourself and start payments to those that have defaulted.

but only pay them a % of the grand total you expect to pay all your creditors per month.
otherwise you will have to keep lowering your amounts to those you are paying when you decide to start adding others into paying as well 

your creditors will probably ask for an income expenditure sheet similar to one you give to a dmp debt charity.

but you can refuse and just set up standing orders on a price you choose, not the creditors nor the debt charity amounts 

andy26599

@sourcrates MyCommunity Bank have passed me on to ARC (Europe) Ltd. Is it time to get in touch with them? If so, what do I tell them as I'm still waiting for a couple of accounts to default?

fatbelly

If you are going down the self-managed dmp route then prepare a sheet showing your debts and the pro-rata amounts that will be going to each.

Obviously only send it to the ones you want to

NEDCAB has a tool here

https://nedcab.cabmoney.org.uk/dmp.asp

sourcrates

Unless the debt has defaulted, any debt collector will only be assigned to collect the arrears outstanding, nothing more.

Your lender doesn't know your plans, all they know is you are behind with your payments so will assign a collection company to get you back up to date.

Engaging with such a company will just get you back to where you started from, if you want defaults you wait until you have defaults, and then engage with the payment strategy.

andy26599

sourcrates said:

Unless the debt has defaulted, any debt collector will only be assigned to collect the arrears outstanding, nothing more.

Your lender doesn't know your plans, all they know is you are behind with your payments so will assign a collection company to get you back up to date.

Engaging with such a company will just get you back to where you started from, if you want defaults you wait until you have defaults, and then engage with the payment strategy.

I thought that I had received defaults, as I've had a couple of companies trying to get me to engage with them, I've had ARC and ACI trying to contact me thus far. However the recent letter from ARC stated that if I made a payment plan, that the lender would note this as an arrangement to pay on my credit file so I'm assuming this isn't actually defaulted yet and I'm still not talking to them.

Just a quick one, I have clearscore as a credit monitor, what does a default actually look like on their app, everything just says "In arrears" currently. Will it actually say "DEFAULTED"? also, some of my creditors aren't on there either, the Credit Union one for example.