Submitting Budget & Payment Offers via letter or Credito

fresh77

I’m new to all this and working on sending my budget and offers of payment. Speaking to my creditors, several of them seem to want me to submit my income and expenses via their own forms or in one case via their app. What’s the best thing to do - I really just wanted to send out identical paperwork to all creditors in one fell swoop rather than mess around with a million different formats. But is the sending off of letters now outmoded? Any advice on this? 

Grumpelstiltskin

OK More details please.

Have your debts defaulted?

Have you stopped paying them ?

Have you requested CCAs if appropriate?

sourcrates

If your considering debt management, its best practice to let all your accounts default, you do this by non payment, and save those payments into an emergency fund, then just set up payment arrangements with the debt collectors who get assigned to your accounts later on after default (preferably).

Setting up arrangements prior to default doesn't encourage the stopping of all interest like a default does, you also risk arrangement to pay markers, which stay on file  6 years after you repay the debt.

Much simpler and much less complicated after your debts default.

fresh77

Thanks for this! So I was mistaken in thinking I have to contact the creditors to tell them my situ, unless I want to go down the arranged payment route? But it looks like that clears less quickly from your credit report than an actual default? 

In that case I don’t need to do anything other than not pay?? And then let the debt collection agencies chase me?

fresh77

They haven’t defaulted yet - I was under the impression stupidly that I needed to be in contact with the creditors to arrange lower payments/inform them of my situ… but it seems I just need to not pay? 

I have stopped paying them.. 
haven’t requested CCA’s yet.. 

RAS

The debts appear to be with the original creditors, so little point in doing CCAs at this stage, unless they are very old accounts.

Just stop paying and don't engage. That should encourage them to default the accounts quicker. You'll then have a future date when your credit record is repaired. And it'll be sooner than if you get Arrangement to Pay markers, unless you pay that debt off quickly.

You need an emergency fund as you won't have credit cards to fall back on. Open an ISA, stash what you can after paying essential bills whilst waiting for the defaults.

fresh77

Got ya…. So I disengage, get the accounts to default and THEN (?) I get in touch to arrange payments..?

sourcrates

fresh77 said:

Got ya…. So I disengage, get the accounts to default and THEN (?) I get in touch to arrange payments..?

Whoever owns your accounts will write too you after they default.

A variety of things can then happen so see who writes to you.