DMP

Debtfreewannabe33

Hi all,

After letting my debts spiral over the last few years to £45k in loans and credit cards I'm finally looking at getting on top of my finances and looking at DMP's but have a couple of questions, 

1. I have a couple of loans with Zopa and am unsure what value to put in when filling in my information on stepchange, the loan amount shows on one loan as around £22k as they include the interest for the full period of the loan but the settlement fee is currently £15k, which one of these would I need to use?

2. Am I right in thinking I am best stopping all direct debits on my debts straight away and waiting for a default before starting the DMP? 

Thanks in advance and apologies if these are stupid questions. 

sourcrates

Always input the balance owing to get an accurate figure, doesn't have to be spot on.

Waiting for defaults is best, but becoming more difficult due to creditors dragging their feet due to FCA guidance to treat those in arrears fairly.

It can be a case of treating each account individually and see how it develops.

DisabledDan

Debtfreewannabe33 said:

Hi all,

After letting my debts spiral over the last few years to £45k in loans and credit cards I'm finally looking at getting on top of my finances and looking at DMP's but have a couple of questions, 

1. I have a couple of loans with Zopa and am unsure what value to put in when filling in my information on stepchange, the loan amount shows on one loan as around £22k as they include the interest for the full period of the loan but the settlement fee is currently £15k, which one of these would I need to use?

2. Am I right in thinking I am best stopping all direct debits on my debts straight away and waiting for a default before starting the DMP? 

Thanks in advance and apologies if these are stupid questions. 

Mine happened quite quickly but I think that was because I wrote to them all saying I would not be making any more payments.

I did not say anything about default, I just said that due to life changing circumstances I would be not making any more payments.

Each company has their own process, it seems to go as below with lots of offers along the way, hold out for at least 60% off.

Internal Collections / External Collections 
External Debt Specialist1
External Debt Specialist2
Default
Debt sold
Letter from new owner
External Debt Specialist03
External Debt Specialist04
External Debt Specialist05
External Debt Specialist06
External Debt Specialist07
External Debt Specialist08
External Debt Solicitors01
External Debt Solicitors02 
Debt Sold Again
External Debt Specialist09
External Debt Specialist10
External Debt Specialist11
External Debt Specialist12
External Debt Specialist13
Debt Company Sold
Debt Company Letters 1 to 20
Debt Company Sold to Closed Account 

I would not be surprised if they resurrected the debt, invented micro payments, got a CCJ at an old address, etc etc,

It is all part of their game and bit by bit, it will result in their demise.

I did not go DMP, I just stopped paying after being a mug for years.

The money they lent never existed in the first place, it is just a means for them to get permission to charge us interest, it they get the actual loan back then that is icing on the cake.