Self managed DMP - newbie

RAS

Wait a couple of weeks in case they sell the debt or assign to a debt collector. They'll write.

PalmSprings2024

Thanks everyone. I now have my default from AMEX too (this is the one I’m worried about). Now I have my default I’m planning on phoning them to discuss a repayment plan is this the right thing to do or should I wait for further letters? I’m aware AMEX can be a bit trickier to deal with so wondering if I need to approach this differently 

Grumpelstiltskin

Do not phone any of your creditors, you don't discuss any repayment plan you work out  what you can pay them and you set up a standing order.

PalmSprings2024

Ideal thanks - do you know how I find out the bank details for the standing order? Should I also write to them confirming what I will be paying?

sourcrates

Wait until you are written too!!

You don`t know what Amex will do with the debt, they may sell it, they may assign it to a collector, they may do something else, don`t be hasty, wait until you are written too.

PalmSprings2024

Hello everyone - a big thank you for all your comments on this. I have a quick question on defaults and remortgaging - is it likely in 6 years when the defaults drop off that I will be able to remortgage? I am planning a product transfer in 2026 but is it the case that a new mortgage/remortgaging won’t be possible until all defaults are paid off even if it is 6 years ago and they’ve dropped off? Just a bit confused by this point! Many thanks 

Grumpelstiltskin

No problems remortgaging with your current mortgage provider, no credit check.

If you want to move to a different provider you will need to contact a mortgage broker.

PalmSprings2024

Thanks @Grumpelstiltskin in terms of re mortgaging say in 2031 if I fix for another 5 years in 2026 if the defaults have dropped off my file but aren’t fully paid off will likely have an impact? Or given the fact they will be 6 years old by then will it not matter? Thanks again 

sourcrates

PalmSprings2024 said:

Thanks @Grumpelstiltskin in terms of re mortgaging say in 2031 if I fix for another 5 years in 2026 if the defaults have dropped off my file but aren’t fully paid off will likely have an impact? Or given the fact they will be 6 years old by then will it not matter? Thanks again 

Although the defaults will have gone, any payments you are making to these debts will still be visible in your bank statements, so the only questions will be on affordability.

PalmSprings2024

@sourcrates thank you so much for your invaluable advice. Can I please check if what Novuna are saying is correct? My account defaulted back in November and I am trying to set up a payment plan and they have advised that “arrears will continue to accumulate” whilst I am in the payment plan. I had understood that once defaulted further arrears and charges cease? Just want to make sure before responding.

Many thanks