Self managed DMP - newbie

Rob5342

Debts often get sold when they have defaulted and they get bought for a small fraction of their value by companies looking to make a profit. They can take legal action if they wish, but in general they will focus on the ones thst aren't paying, rather than the ones thar have payments coming in where they could double their money in a year or two by doing nothing. 

PalmSprings2024

Thanks everyone. In your experiences do debt collectors still come to the door and when in the process does this usually happen?

Grumpelstiltskin

It is possible you could get a visit from Resolvecall, they usually send you notice of their visit.

They are not bailiffs they have no more rights than the milkman, so if and it is a big if they do turn up you just don't answer the door, shout through the window to tell them to go away,.

\\no problem

sourcrates

PalmSprings2024 said:

Thanks everyone. In your experiences do debt collectors still come to the door and when in the process does this usually happen?

By far the majority work out of call centres these days, there are still one or two old style collection companies that knock on doors, Resolvecall is one of them, as mentioned above, there are others, but they tend to work only in cities or large urban areas, where a few dozen clients can be visited in a day, to make it financially worthwhile.

If you live in the sticks then a doorstep visit is quite unlikely.

But no matter where they work from, debt collection is just a job, same as a bus driver or shop worker, one has no more status, or grants you any more power, than the other does.

You can choose to engage with or ignore there efforts to contact you.

PalmSprings2024

Thanks everyone - the one I am worried about is my overdraft and my loan with Santander. Does anyone have experience with Santander and how quickly they default? Many thanks

Grumpelstiltskin

You should never have a current account with a bank or group you owe money to.

You mentioned HSBC in your first post now you say Santander, you do realize they can take money from your account?

sourcrates

Agree with the above, never bank where you have debts, they can use the right of set off, and under certain conditions, take money to repay any debt you may owe to them, from any other bank account within that banking group, so be aware of that.

PalmSprings2024

Hi - my joint account is with HSBC but personal account (salary paid into this) is with Santander and I just transfer over into the joint account each month. I have opened up an unconnected basic account on the advice received here and have changed my salary to be paid into this one. Just curious to see if anyone had experience with Santander? Many thanks 

PalmSprings2024

Thanks everyone for the advice! Can I please check whether it is generally best to wait for debts to default before writing to my creditors or should I write to them now and ask them to freeze interest? 

Rob5342

Wait for them to default, the default will drop off 6 years after it was applied. If you ask them to freeze interest they will try and "help" you which could mean they delay defaultng you and put arrangement to pay markers on the account which stay on for six years after they were applied. That could be the difference between having a clean credit record in 6 years vs 11+ years.

Also you the sooner they default the sooner they might get sold to a debt collector who would be open to reduced settlement offers further down the line.