DMP Where to go from here

TheMiscGuy596

Apologies just want to be clear - the best course of action is to deffo let this all bounce until everything defaults and only THEN begin with debt management programs and not a moment before? Thank you so much - never been through anything like this so sorry for repeating myself

sammyjammy

TheMiscGuy596 said:

Apologies just want to be clear - the best course of action is to deffo let this all bounce until everything defaults and only THEN begin with debt management programs and not a moment before? Thank you so much - never been through anything like this so sorry for repeating myself

Yes thats the way, concentrate on build an emergency fund, don't contact them, don't answer their calls, get yourself a nice spreadsheet and keep a track of things.  Come back here if you have any queries but basically cancel Direct debits, move banking to Nationwide (I think you said you don't owe them any money) wait for the default notices.

Some people find it helpful to open a Debt free diary to chat on.

Read lots of posts here about going self managed from the start and get yourself organised.

TheMiscGuy596

Hi

Following on from the above I still have a few questions if you dont mind:
1. Obviously you said let everything default when is fine. My concern is - can they start court action BEFORE defaulting? I read online that the companies can sometimes attempt to make you bankrupt? Is this common as it could affect my job?
2. When the debt defaults, do I write to the company to advise how much I can afford or do I wait for another letter to say who the debt has been sold onto or if they try to make payment arrangements etc? 
3. Do I have to give the debt collection company or collector my SOA or do I just use the pro rata figures from my spreadsheet to say I can pay x?

Eg if I worked out I can afford £80/m on a £6000 debt do I just tell them this or do i have to go through an income expenditure form?

Thanks again. I did register originally with stepchange who placed me in breathing space but stopped the DMP before it started with them so all is quiet at the mo. 

RAS

If creditors want to take legal action they need to warn you; which means a letter demanding you repay the whole debt with 14 days. Scary but legally required and they don't actually expect you to pay up.

Unless you owe HMRC, creditors are unlikely to make you bankrupt. Credit unions are more likely to try for CCJs than standard consumer debt providers.

If you engage after the debt is defaulted, most just accept it and sell on if it no longer meets their preferred profile

Rob5342

2 - its uo to you really, the important thing is that you don't pay until they have defaulted. Things move slowly in the debt management world and there is no rush to start repaying, so I'd wsit until someone starts writing to you about repayments and put the money into a savings account in the meantime.

3, Again, it's up to you really. You can just tell them what you will be paying but they often want to see an SOA, so it may be less hassle to just send them one to keep them quiet. It. doesn't have to be accurate, anything that arrives at the amount you will be paying is fine.

DCAs will often accept settlement offers on debts somewhere down the line. One strategy would be to pay less than you csn actually afford and save the difference into a savings account to use to make settlement offere with. That's what I'm doing.

There is lots that could happen in theory, but consumer debts normally just get sold to DCAs who are happy being aent the money. It's an investment for them, pay £600 for a £6000 debt, get offered £80 a month, they have their money back in 8 months and after that they are getting money for nothing. They'll have other non paying debts and ovetheada to cover of course, but if they have s small amount rolling in for a fee years they have done quite well out of you so they have little incentive to spend time and money on legal action. 

fatbelly

TheMiscGuy596 said:

Hi

Following on from the above I still have a few questions if you dont mind:
1. Obviously you said let everything default when is fine. My concern is - can they start court action BEFORE defaulting? I read online that the companies can sometimes attempt to make you bankrupt? Is this common as it could affect my job?
2. When the debt defaults, do I write to the company to advise how much I can afford or do I wait for another letter to say who the debt has been sold onto or if they try to make payment arrangements etc? 
3. Do I have to give the debt collection company or collector my SOA or do I just use the pro rata figures from my spreadsheet to say I can pay x?

Eg if I worked out I can afford £80/m on a £6000 debt do I just tell them this or do i have to go through an income expenditure form?

Thanks again. I did register originally with stepchange who placed me in breathing space but stopped the DMP before it started with them so all is quiet at the mo. 

A lot of institutions want you to believe that debt is a scary thing. Breathing Space is part of that agenda.

The previous two posters have set out the reality, which is that it is just routine, particularly with Consumer Credit Act debt.

No one rushes to court action when they have 6 years to start it. No-one goes for statutory demands, leading to bankruptcy. One firm used to do this routinely but the practice was stamped on by the Office of Fair Trading. It was a long time ago.

This area of debt is now highly regulated, which is a good thing

Debt advice of the sort given by Stepchange is highly regulated, which is mostly a good thing.

Now if anyone's listening can they highly regulate the IVA industry and private parking fines, cos it's still like the Wild West in those areas.

TheMiscGuy596

Thank you all that is very helpful - I'm just waiting for my "safe" bak account card with nationwide to arrive then will be moving everything there until it has all settled down.

Thanks again