Debt Help

Rob5342

I manage mine and there really is nothing to it, I just pay what I want in the same way I do to my savings account etc. I've done it both ways and I'd say doing it yourself is easier as you don't have the extra burden of trying to keep whatever DMP provider you are using happy.

ad2

Thanks all. Apart from making sure you have enough money available to live, how does the repayment amount get set/agreed for each provider?

sourcrates

ad2 said:

Thanks all. Apart from making sure you have enough money available to live, how does the repayment amount get set/agreed for each provider?

You budget properly, and what is left is your disposable income for creditor repayments.

fatbelly

sourcrates said:

ad2 said:

Thanks all. Apart from making sure you have enough money available to live, how does the repayment amount get set/agreed for each provider?

You budget properly, and what is left is your disposable income for creditor repayments.

Which you allocate pro-rata to your nonpriority creditors

ad2

Thank you. In terms of debt recovery, are we likely to get bailiffs turning up at the door if we default but organise a DMP with each creditor? It is a stressful situation for us and my wife has epilepsy, so do not want to trigger further stress on her.

Also, with your credit report I understand this is registered for 6 years from the Default, does this stay on there until the debt has fully paid off or just the 6 years?

Grumpelstiltskin

ad2 said:

Thank you. In terms of debt recovery, are we likely to get bailiffs turning up at the door if we default but organise a DMP with each creditor? It is a stressful situation for us and my wife has epilepsy, so do not want to trigger further stress on her.

Also, with your credit report I understand this is registered for 6 years from the Default, does this stay on there until the debt has fully paid off or just the 6 years?

It is possible you could  get a door knocker but not bailiffs, but they have no authority  and you usually do get information that they may call, you just tell creditor you will not deal with them and not to call.

Default disappears after 6 years whether or not debt has been cleared.

RAS

Bailiffs are vanishingly rare for consumer debt.

You may get letters telling you someone will visit but Resolvecall and their ilk have as much power as next door's cat. Just tell them not to call by and refuse to speak to anyone.

You will get calls, text etc. Tell the creditors to communicate in writing only. Because there are certain letters they have to send by post. So read the mail once a week and file it unless it is a letter before action. That needs attention, so come here promptly.

But if you set up a payment when they register the default, they are unlikely to bother, unless you owe a credit union. Why waste money on court fees when they are already getting paid? 

Once the debt is properly defaulted, it falls off your credit record in 6 years, even if you still owe money. And by that stage you may be getting offers to settle for a substantial discount.

Rob5342

Original creditors usually just sell the debt on instead of taking any legal action. The purchaser would first have to go to court and and get a CCJ against you, and then if you didn't pay that they would have to go back to the court to appoint a bailiff. In nearly all cases as long as they are getting something from you then they wouldn't even bother trying to get a CCJ in the first place. The thing to remember is that they buy debts at a small fraction of their value with the intention of making a return over a few years. If they are going to spend time and money on legal action then they are much more likely to do that for a debt where nothing has been paid than one where money is rolling in for no effort (and where they know a CCJ would probably only result in them getting the same payments anyway). Nothing can ever be ruled out completely, but in the vast majority of cases as long as something is being paid it all goes smoothly.

As mentioned the default drops off after six years which is why we recommend defaulting before starting a DMP. The alternative is to set up a payment arrangement with the creditor but they stay on your credit report for 6 years after the debt has been cleared, potentially much longer.

ad2

Hi. A few of the debts are starting to default. PayPal has already defaulted (can see on credit report) but I have not been contacted yet, apart from the usual daily calls I am getting. Should you wait for someone to get in contact or should I just contact them to start making a payment?

Grumpelstiltskin

Wait for someone to get in touch, I hope you are managing to save for your emergency fund and possible settlements.