Moving direct debts to a different account for them to default

Rob5342

Please ask about anything that you are unsure about. It can seem vey daunting at first but lots of us have been through the process and it really is very straight forward. Nothing i was worried about actually happened and now I just eish that I'd got on with yhe whle thing sooner.

Your credit record will take a hit but nothing elae is likely to happen, and the stress will all disappear very quickly as you will have a sustainable budget. 

newbegin23

Rob5342 said:

Please ask about anything that you are unsure about. It can seem vey daunting at first but lots of us have been through the process and it really is very straight forward. Nothing i was worried about actually happened and now I just eish that I'd got on with yhe whle thing sooner.

Your credit record will take a hit but nothing elae is likely to happen, and the stress will all disappear very quickly as you will have a sustainable budget. 

Thank you, you’ve been really helpful, should I cancel my direct debts on my loans? Or just make sure the account is empty so they can’t take the payments? 

Feels really naughty that I won’t be paying buti should be able to build a big emergency fund.

also do I ignore everyone and every correspondence until I see a letter saying they will be defaulting my accounts?

Rob5342

If you intend to get defaults then just ignore all correspondence until you get one. You should get a default notice laying out what you need to do to avoid a default, and when you don't do that you should get the default. Cancel the direct debits completely and then you can just use the account as normal.

Don't think of it as being naughty. You are in this situation and you just have to act in the way that deals with it best.It won't be long until you have got on top of it and are on helping others who are just starting out.

newbegin23

Rob5342 said:

If you intend to get defaults then just ignore all correspondence until you get one. You should get a default notice laying out what you need to do to avoid a default, and when you don't do that you should get the default. Cancel the direct debits completely and then you can just use the account as normal.

Don't think of it as being naughty. You are in this situation and you just have to act in the way that deals with it best.It won't be long until you have got on top of it and are on helping others who are just starting out.

I’m so silly I moved my broadband, phone bill and car insurance etc.. to another account thinking that was easier when all I had to do was cancel the loan direct debts lol I’ll get onto that this morning. 

Sorry to be a pain keeping going on, I just want to try and get as much info as possible. I think I’m most worried about seeing debt recovery letters. Would they come after the default or before, like bailiff letters? 

I can’t wait to start taking back control of my finances and my life. It’s been like a downward spiral and I couldn’t see no way up. But having read some of these threads I feel there could be a way out of all this. Not being able to get credit would help so much as it’s been become a bit of an addiction. Possibly being able to help others and giving my experience like yourself would be a great feeling

Grumpy_chap

Before starting on the path to default, has the OP prepared a Statement of Affairs and sought comment on making matters manageable?  The debt free wannabe area of this forum has knowledgeable contributors.

newbegin23

Grumpy_chap said:

Before starting on the path to default, has the OP prepared a Statement of Affairs and sought comment on making matters manageable?  The debt free wannabe area of this forum has knowledgeable contributors.

So many abbreviations in these threads lol what does OP mean? No I haven’t spoke or approached anyone creditors or debt management my anxiety can’t handle it all

kimwp

newbegin23 said:

Grumpy_chap said:

Before starting on the path to default, has the OP prepared a Statement of Affairs and sought comment on making matters manageable?  The debt free wannabe area of this forum has knowledgeable contributors.

So many abbreviations in these threads lol what does OP mean? No I haven’t spoke or approached anyone creditors or debt management my anxiety can’t handle it all

OP means original poster - the person who started the thread, in this case - you
Statement of Affairs is a summary of your financial situation. (Link in my signature to a template). Grumpy chap is suggesting that before you start trying to get defaults, you review your finances (SOA), with the help of the people in this debt free wannabe board. We sometimes find that people think they need to default, but actually could just cut back on some expenses. It's a good idea to do an SOA regardless, to understand what your expenses are and how much you can afford to give your creditor's each month.

You don't need to share it here, but it is a good idea to get some help with it. Look at your spends over the last year ideally (but a few months is a good start), fill in the SOA and click format for MSE before copy and pasting it on this thread if you want an experienced set of eyes taking a look.

Rob5342

OP means original poater, ie you as you started the thread. The statement of affairs might be worth posting, that just lays out your financial position so people can advise on the best course of action. 

newbegin23

kimwp said:

newbegin23 said:

Grumpy_chap said:

Before starting on the path to default, has the OP prepared a Statement of Affairs and sought comment on making matters manageable?  The debt free wannabe area of this forum has knowledgeable contributors.

So many abbreviations in these threads lol what does OP mean? No I haven’t spoke or approached anyone creditors or debt management my anxiety can’t handle it all

OP means original poster - the person who started the thread, in this case - you
Statement of Affairs is a summary of your financial situation. (Link in my signature to a template). Grumpy chap is suggesting that before you start trying to get defaults, you review your finances (SOA), with the help of the people in this debt free wannabe board. We sometimes find that people think they need to default, but actually could just cut back on some expenses. It's a good idea to do an SOA regardless, to understand what your expenses are and how much you can afford to give your creditor's each month.

You don't need to share it here, but it is a good idea to get some help with it. Look at your spends over the last year ideally (but a few months is a good start), fill in the SOA and click format for MSE before copy and pasting it on this thread if you want an experienced set of eyes taking a look.

Haha I’ve just looked all the abbreviations up I’m learning fast lol

I sat down with my partner and went through our budget planner and everything I owe my partner wanted to cry, they already has a DMP in place and I’ve been getting in more of a pickle financially the last year trying to cover everything. I now don’t have enough to get through the month. My partner wants me to go straight into a DMP hence why I’ve been researching on here and see that letting your loans default first, they are worried as it’s their property they will lose but I’m not down as an owner. I don’t have any assets. 

I just feel overload with all sorts of different information I don’t know where to start 

Rob5342

Only your property could be included in any action and even then it's extremely unlikely if you are making payments. 

There are lots of things that could happen in theory but they are a long way down the line and is you make payments you'll get nowhere near them. Original creditors normally just sell the debts on instead ot taking legal action. The companies that buy them do it as an investment, they buy them at a small fraction of the debts value with the intention of making a return over a few years. Even if you make what seems like small payments that can be a nice little esrnet for them so they have little incentive to spend time and money on legal action which would probably only result in them getting to the same paymentz anyway.