Self managed DMP - do I start repaying now?

lea

RAS said:

Have Wescot provided the account number and log-on details so that you can make a payment on-line? 

The letter from them has a Wescot reference number on the front for my account, and lists ways to pay on the reverse, which includes their account information for standing order payments etc. But no log on details and the gist of the letter is very much they want me to ring them and speak to them...

I'm unsure whether I should start paying at this point or wait longer?

lea

Rob5342 said:

The emergency fund should be just that, don't use it for non emergencies and leave yourself unable to deal with unexpected coats. You should really have a separate settlement offer fund, and only use that when your emergency fund is at a good level.

There is no rush to start repayments, if you are happy with what's in your emergency fund then you might as well start, but if you want to build it up a bit more then wait a few more months. 

I'd ideally like the emergency pot to be larger - I work as a freelancer and my current job ends in the spring, and there's no guarantee there won't be a gap between this and my next job, which means I will need to use any savings to live on if there's a time between work.....
But also very wary what will happen if I continue to ignore Wescot?
Thanks

RAS

In the short-term save most of your money towards the emergency fund. And if you wish set up a small standing order towards the Wescot debt. 

No need to talk to them, no need for income and expenditure forms. You can always cancel it if you have a gap in income, and increase it when your finances are stable.

sourcrates

Wescott are just acting on behalf of their client, if you ignore them, all that will happen short term is they will return the account to the client.

lea

sourcrates said:

Wescott are just acting on behalf of their client, if you ignore them, all that will happen short term is they will return the account to the client.

Is there any benefit to contacting Wescot to see what settlement offer they will give now, or do I keep my head down and continue to ignore their contact at this stage?

Thank you

sourcrates

lea said:

sourcrates said:

Wescott are just acting on behalf of their client, if you ignore them, all that will happen short term is they will return the account to the client.

Is there any benefit to contacting Wescot to see what settlement offer they will give now, or do I keep my head down and continue to ignore their contact at this stage?

Thank you

They will have been given certain parameters to work within, 10/15% may be acceptable, anything more will require client approval, the best deals are always achieved when a debt has been sold on, and been on the books a good while, you won`t get much off just yet.

lea

sourcrates said:

lea said:

sourcrates said:

Wescott are just acting on behalf of their client, if you ignore them, all that will happen short term is they will return the account to the client.

Is there any benefit to contacting Wescot to see what settlement offer they will give now, or do I keep my head down and continue to ignore their contact at this stage?

Thank you

They will have been given certain parameters to work within, 10/15% may be acceptable, anything more will require client approval, the best deals are always achieved when a debt has been sold on, and been on the books a good while, you won`t get much off just yet.

Thank you, I will leave it for now.Have a great weekend

lea

Hello

As we have entered a new year I've reviewed where I am with all my debts and they are as below.

I was wanting to please check if now is the time I should start paying each debtor, or should I send CCA letters first? Should I only start repaying the ones that have clearly defaulted on my credit file, or wait until they all have then start paying?

Fluid - I've received a letter from Cabot Financial advising they have purchased the debt from Fluid. The account is showing as closed on my credit file.

MBNA - a letter from Lowell saying they've purchased the debt from MBNA.The account is showing as defaulted and closed on my credit file

Virgin - a letter from Lowell saying they've purchased the debt from MBNA.The account is showing as closed on my credit file

HSBC - letter advising Wescot are handling the debt recovery on their behalf. The account is showing as defaulted and closed on my credit file

Lloyds - advised my account is closed, and they will be registering the default on my credit file and their debt recovery team will be dealing with it. Showing as 'Delinquent' on my credit file.

Next account - the debt is being handled by Brecon Debt Recovery. Showing as defaulted on my credit file

So currently the only three that have officially defaulted on my credit file are MBNA, HSBC and Next.

I've managed to save only £2k in an emergency fund - as mentioned before I freelance and my current job ends in May, and currently I don't have further work lined up (this is normal in the industry I work in, and I hope to start a new job within a month or two of finishing my current one). I'm just very wary about potentially needing this £2k to live on between jobs.

Any advice on my next steps would be greatly appreciated.

Thanks again for your help.

EssexHebridean

We usually advise that your emergency fund should be ringfenced and kept untouched other than for emergencies, and that you should once you have sufficient funds in your EF start to build a "fighting fund" ready for full and final settlements - with the expectation being that will be a fair way down the line. make sure that when you do your assessment or what you can afford to pay to the defaulted debts, that you make allowances for continuing to allocate an amount each month to building those funds. That should form part of your regular budgeting. 

sourcrates

Cabot and Lowell, will go through their standard range of letters with you over the coming months, it doesn't pay to ignore them for too long as both can be litigious if ignored, when they still think you can pay.

Wescott, just a collector, but as its defaulted, open to payments, likewise the next account.

Lloyds, once defaulted, same really.

Keeping them in the loop about your ability to pay will stop further action.