Self managed DMP - newbie

PalmSprings2024

Hoping posting here is the correct forum - been a long time lurker and have finally decided to do a self managed DMP. Have found the advice on here so helpful and reassuring. I have a couple of questions I hope people will be able to answer.

1. Has anyone had experience with negotiating payments with AMEX and how long they take to default your account? I have £15k on a credit card and have been making the minimum payments only for over 2 years. My credit limit was increased (which I stupidly accepted!) in 2021 and 2022. All I had to do was click a button to approve the increase so I’m wondering if there will be some affordability arguments here? 

2. When do the defaults drop off your account? Is it from the date of initial default or until the account is settled?

3. I have one loan with HSBC (joint account) which I will continue to pay in full so that there is no impact on my joint account (this is where the mortgage is taken from). The final payment on this is March 2027.

4. Does anyone need to know about my DMP? I will product transfer our mortgage in 2026 and have a car through a company car scheme so don’t need finance/credit checks for either of those.

5. Does anyone have experience with Updraft or Novuna Personal Finance? All my debts are with the high street banks other than these.

6. I have a house with approx £40k of equity in it (joint). Is there any likelihood of a decree (CCJ) or inhibition (charging order) - I am based in Scotland. I have a decent income (take home £2,600 per month) so could offer significant chunks to clear debts if needed.

Many thanks in advance - feel oddly relieved to be starting this journey! 

Rob5342

Defaults always drop off six years after they were applied, even if they debt is settled before then. Arrangement to pay markers stsy on for six years after the account is settled. That's why it's ts usually better to default before you start making payments om a dmp. Some lenders like to make things difficult for people by delaying defaults though 

PalmSprings2024

Thank you - that’s really helpful. Does anyone have experience with AMEX or Updraft re how quickly they are to default? Many thanks 

agentblackcat

Hi 

Also starting my journey with a self managed DMP and based in Scotland. I stopped paying updraft in Dec 2023 and they have still not defaulted my loans. They have ACI trying to collect repayment for it. However, I'm also ignoring them until updraft defaults me. 

PalmSprings2024

@agentblackcat thank you that is helpful. It feels like a really long road but good to know there are plenty other people also on this journey. Can I ask how much your debts with Updraft were for roughly? My plan is to also just ignore them until they default me. Can I also ask how frequent the calls/letters were? 

agentblackcat

Hi. 

I have not had many letters from updraft. They tried to contact me a few times through app. Phonecalls no idea,I have been ignoring all my creditors. I have a lot of debt and different creditors. My updraft debts are currently sitting at 12k between the two loans. 

Rob5342

3 - You can manage it how you like, but if you want to handle the HSBC loan the same way then it's not much effort to switch to a different bank account.

4 - I can't think of anyone you'd need to tell, for new credit they would find out themselves by doing a credit check.

I've been on a DMP for 3 years after about 11 years of debts buidling up. Things turned round literally overnight when I started it and I really feel on top of things now.

PalmSprings2024

Thanks everyone - this is so reassuring and I feel a relief already. Has anyone had experience of getting a CCJ/decree in Scotland as a result of default or are creditors generally happy to deal with payment plans once defaulted? Thanks again

sourcrates

If they are being paid, then court action is unlikely, but is a possibility, just like winning lotto is a possibility if you buy a ticket.

PalmSprings2024

Thanks everyone - very helpful. Just worried about all the letters and phone calls which will no doubt start… 

Any tips or advice from anyone who is in a self managed DMP?

Grumpelstiltskin

Block the phone numbers, never speak to them on the phone.

Open all letters but unless they are letters before action, highly unlikely, file them in the bin