Self managed DMP

sourcrates

Anubis1311 said:

Thank you. My only hesitation is the sheer number of defaulted accounts I’ll have. I can pretty much kiss goodbye to ever getting a mortgage with 20 defaults on my credit report. Is there a maximum number of defaults you can have if applying for a mortgage down the road? 

Which is why you want them to default you sooner, rather than later, as that gives you a clear 6 year window to a clean credit file, honestly with that many lenders on your file affordability would have been an issue anyway.

Rob5342

It's best just to bite the bullet and get on with it. Once defaulted they will probably be sold on to DCAs at some point who will be open to settlement offers. You can work at saving to clear them with reduced offers and then work at saving for a mortgage ready for when the defaults drop off. 

Humdinger1

So sorry @Anubis1311 to read about your first child.  No wonder you've landed here but there are experts commenting and you will fix this.   Love Humdinger 

RAS

Sorry to hear about the background to your debt. And hoping your younger child's health stays as good as possible.

Down the road, in about 6-7 years time, you'll have no defaults on your credit record and can look for a mortgage. Providing you go cold turkey and stop paying your debts ASAP. Before that time you may get the option to make reduced full and final settlements to clear the debt down earlier.
 
So sort out the new basic bank accounts, one for living costs, one as a budgeting account for things like car expenses and Christmas, and savings account for an emergency fund.

Get your income transferred to your new account and cancel all the consumer credit DDs. You need to manually transfer the utility DDs, don't switch.

And put the money you would have spent on your debts to the emergency fund.

If your wife has her own debts, it might be wise for her to post here to see if there is anything she can do to improve her situation as well?

Best of luck.

londoner2019

Good luck with everything. You've come to the right place for advice. As others have said, it's best to bite the bullet now, default on everything, and then build up an emergency fund and savings - and deal with the credit union stuff (no idea myself, but others say it should be prioritised).

Once the last one defaults, then you have six years until everything comes off your credit report and you'll have a clean slate. Sounds like a long time, but it will fly by. And who knows, you may be in a position to save for a deposit and get a mortgage.

Anubis1311

Hi, long time coming but I have received my first notice of default. It gives me until 03.03.25 before it will transfer to debt collection agencies. Am I waiting until this point to contact them to set up payment? I’m assuming notice of default isn’t quite a default yet?

thanks 

Grumpelstiltskin

Yes wait until you get a letter from the debt collection company.

I hope you have been building your emergency fund up whilst you have been waiting for defaults.

sourcrates

Anubis1311 said:

Hi, long time coming but I have received my first notice of default. It gives me until 03.03.25 before it will transfer to debt collection agencies. Am I waiting until this point to contact them to set up payment? I’m assuming notice of default isn’t quite a default yet?

thanks 

Just make certain the default gets registered on your credit file, once that happens, you are good to go.

Anubis1311

Thanks all 👍