Self-managed dmp… do I need to give my budget to lenders?

violetacat

Hi all,

Long-time lurker here! Lots of great advice on these threads which have helped massively on this journey.

Long story short - I am 26 and £27,000 in debt as a result of bad money management through uni, trying to keep up with an unaffordable lifestyle and wanting to furnish our house exactly how I wanted it. I have no excuses and am quite embarrassed by it all. I have 8 loans and 5 credit cards plus an overdraft. 1 loan and 2 credit cards are up to date.

Anyway, in January I stopped all DDs to my creditors (bar the 2 that are still up to date) and am currently going through the process of all of the calls and letters which I am ignoring. I have also saved an emergency fund which I will continue to add to.

Now I am starting to get some defaults through (some debts have also already been passed on), I am organising standing orders. For the most part, these are small payments due to the high number of creditors that I have and my employment changing in 3 months time. When I have contacted the appropriate lenders, all have asked me to complete an income and expenditures form - do I have to do this? Cabot backed down straight away when I told them no and accepted my payment amount. Zopa and Moorcroft are insisting that I complete this. My standing orders are all set up and ready to go when I get paid, will they just accept this?

Thanks in advance for your help!

Grumpelstiltskin

No you don't have to give them your budget, they can't insist.

They have 2 choices when they get  your payment, keep it or send it back to you. What do you think they will do?

RAS

Are you absolutely sure that your creditors have recorded defaults? What does your credit record state?

As most creditors warn you that you have defaulted on your payments promptly.

It takes several months, often a year or more, for them to send the warning letter demanding repayment of the entire sum. And even if they follow up advising that they have terminated the financial relationship, it can take several months for that to appear on your credit record.

violetacat

RAS said:

Are you absolutely sure that your creditors have recorded defaults? What does your credit record state?

As most creditors warn you that you have defaulted on your payments promptly.

It takes several months, often a year or more, for them to send the warning letter demanding repayment of the entire sum. And even if they follow up advising that they have terminated the financial relationship, it can take several months for that to appear on your credit record.

Yes, I definitely have at least three defaults - had letters informing me of this and they are showing on my credit file.

violetacat

Grumpelstiltskin said:

No you don't have to give them your budget, they can't insist.

They have 2 choices when they get  your payment, keep it or send it back to you. What do you think they will do?

I thought this would be the case but just wanted to double check! Thank you.

gwynlas

I self managed my plan and was faced with this request every year but refused telling them I had other creditors and I had worked out what I could afford to pay. They all relucantly agreed to accept my payments as offerred but would keep it under review which they did annually