Cancelling direct debit after 1 payment

KryptonMoose

Hi all,

I'm about to cancel my direct debits for next month on my 5 debts. 1 of them I've only made 1 payment and the other 2 payments. Does this affect anything? After paying back so little, will they be more aggressive with any action?

They were both part of the borrowing to get myself out of borrowing spiral.

Many thanks

sourcrates

You are simply an account number to them, whether the loan is 2 months old or 20, collection activity is a standard process of letters and calls, varying in tone, and veiled threats, and you will be treated no better or worse than any other customer in arrears.

DisabledDan

KryptonMoose said:

Hi all,

I'm about to cancel my direct debits for next month on my 5 debts. 1 of them I've only made 1 payment and the other 2 payments. Does this affect anything? After paying back so little, will they be more aggressive with any action?

They were both part of the borrowing to get myself out of borrowing spiral.

Many thanks

In my experience and what I have seen on this forum the short number of payments might affect their attitude to whether they take legal action rather than default the debt.

e.g. https://forums.moneysavingexpert.com/discussion/6543050/new-dmp-natwest-fairfaxdrydens-advice

I totally understand your position, we are all encouraged to balance transfer our debt to another 0% card and when we can't get further credit they happily offer us an interest bearing loan.

Sourcrates is spot on in that they will have a process, first internally, then externally.

To understand their mindset consider that they invent the money on their computers and in effect have a 3% cost (call it insurance or administration), they will sell the debt for between 5% and 12%. So although they cover their costs they will not have made much profit.

Some of these Solicitors firms that only work on consumer debt do offer an alternative to lenders but it is costly, you really have no choice but to suck it and see.

Their lending practices are reviewed from time to time, also their is liquidity and returns, if you have £10k sitting on their books and they can't show payments or likelihood of payments then they may prefer to pull the plug and default the debt so they can lend to the next unsuspecting person.

If you craft a letter explaining that you are having a mental health crisis, that you got in over your head and took out these loans to pay off another loan which was never the right solution.  Then add something about a change in circumstances, a distressing family event and say you will not be paying anything to this loan for the foreseeable future.

Nothing that bad is going to happen, all letters are the same series of template letters they send to everyone, your debt will be passed to blah and later to blah blah and later referred to blah di blah for pre-legal check and so on.  It is all waffle, until there is either a letter before action or default letter telling you who they sold it to.

I could go on but I said something on this here.

https://forums.moneysavingexpert.com/discussion/comment/80847274/#Comment_80847274

stu12345_2

What's your plan to repay the debts?
 if you suddenly decide to go insolvent , the regulator won't be happy and may put restrictions on your insolvency as it is seen as reckless behaviour unless you justify it, eg sudden change of job or illness

so what method are you planning on repaying your debts , perhaps a debt management plan?

anyway, to my know , no creditor can take any legal action, eg ccj, until your debt defaults, and that's if only if they reject your repayment plan and it has defaulted to

I remember years ago taking a bike out on finance, yes an expensive push bike from Halfords, 6 weeks into the agreement , I realised I couldn't afford it, a woman from the creditor phoned me to say how dare I be so irresponsible, I look back now and laugh 

I joined that debt along with my other debts in a debt management plan, that was in 2001