Default all?

kittencuties

Thank you so much for both of your advises.

It is very helpful.

I think for now I just stop payments for 4 months and see what settlements I can agree with different creditors one by one. Default or not at least that gives me 6 years to clear everything and the way I look at it is that in 6 years time I will not have any of these creditors as i will settle them one by one by that time. 

I guess once the 6 years have ended I will then rebuild my credit again and hopefully 2-3 years later I will be in a very good position.

The direct debits are a rat race because I can never save up to settle them out and will forever be in this cycle so I rather choose to default but pay everything off one by one. 

Does any of you know what happens to my PCP finance? I have never missed a payment and never will but I’m planning to part exchange the car and get something for at least 6 years so I have the car sorted for the duration of the defaults at least if that makes sense. Do they do credit checks on a part exchange or because you have been with the car finance company for years they just part exchange and offer a similar monthly payment on another car? 

stu12345_2

they will credit check. why don't you use the money you're not paying your creditors and buy a used car cash, I did that  from eBay two years ago. 

it was car finance over the last 30 years that got me into lack of savings and then also run up debt on credit cards.

then you have even more money per month to save, with no car payments 

not having a car payment per month is lovely 

kittencuties

Good idea i’m going to take your advise and save up to buy a car cash. It will give me even more monthly allowance to save up and pay off creditors slowly. 

I am a little worried about letting everything default in case they take me to court. Once creditors register a default I guess they will just want to find a way which I can settle the outstanding balance rather than taking me to court if i know i can’t pay right? 

stu12345_2

if it comes to that point just offer them a repayment schedule that suits them in your letter before action.but by that point you may have saved up enough to clear it Instead