Next stage of my self managed DMP

collinsona

Hello! So back in July I stopped paying all my credit card debts. They have all written to me numerous times and called me but finally now they are all defaulting and all my letters are from various debt collection companies. My question is what do I do now?! Do I write to each one stating what I intend to pay each month? I dont have to give them my income and expenditure do I? They are very persistent already as I have had multiple letters from each in a short space of time and im getting a bit overwhelmed to be honest! I must admit though I still dont feel as stressed as when I was paying all the minimum payments every month! I wish I had known to do this all sooner! I would appreciate anyone talking me through what I should do now! Thank you in advance- Amy x

2021rdsunshine

collinsona said:

Hello! So back in July I stopped paying all my credit card debts. They have all written to me numerous times and called me but finally now they are all defaulting and all my letters are from various debt collection companies. My question is what do I do now?! Do I write to each one stating what I intend to pay each month? I dont have to give them my income and expenditure do I? They are very persistent already as I have had multiple letters from each in a short space of time and im getting a bit overwhelmed to be honest! I must admit though I still dont feel as stressed as when I was paying all the minimum payments every month! I wish I had known to do this all sooner! I would appreciate anyone talking me through what I should do now! Thank you in advance- Amy x

Have you had a letter from creditors terminating your agreement? If so , default will come after. You should also check your credit files to confirm default has been applied and when so you have a clear date of when they drop off your credit files. 

If account has defaulted you can then start paying if you wish. Creditors will ask for income and expenditure  forms, you can provide one that you create to justify the amount you going to pay them if you know what I mean, that will keep them quiet . However,  you don’t have to do that at all. If you look at their letters they probably indicate their account details for payments. You just have to create a standing order from your bank account and pay them this way including your reference . They also have websites you can look at and start engaging with creditors. I have not provided anything to anyone, I just pay by standing orders the amount I’ve decided to pay and that’s enough. My creditors are happy and I already started to get offers for early settlement of debt with one of them. I hardly receive any letters or calls nowadays. 

Rob5342

I would suggest paying them less then you csn actually afford and putting the difference in a savings account. When you have enough saved you can make settlement offers, if any accept then save their payment too ready for your next try. That should mean you pay less overall.

I wouldn't bother sending income and expenditure figures to start witg, if they start making a fuss about it then just fabricate something that arrives at what you are paying to shut them up. 

sourcrates

You don`t need to write to them, nor provide them with a budget.

Each collector has a website where you can make payments, most let you set up regular payments as well, just do it that way, no hassle, no stress, as long as all have defaulted, your good to go.

ManyWays

Did you ever post a Statement of Affairs, without that, you only hear generalties from people, what happened to them or what typically happens. With a SoA we can see your real position and who your creditors are and be much more helpful, I think its worth your time to do this. 

collinsona

thank you so much for all your replies. Today I phoned moorcroft who are now handling my biggest credit card debt and I offered £10 a month which they accepted. I set it up as a direct debit but afterwards i recalled the advice on here not to do that?! Why is a direct debit not recommended? Also i asked him about a discount if i settled it in the future and he said yes they would offer a discount but only if I fill in their income and expenditure form which so far I have refused to do despite them trying to pressure me into it. Is this true?! Has anyone else been offered a discount to settle without giving income and expenditure details? The guy on phone also said that to be offered a discount they (moorcroft) would contact tesco credit card to find out what they could offer but I thought tesco credit card had just handed over my debt to moorcroft? Any advice very gratefully received! Amy x

Grumpelstiltskin

You should never phone these people, you should also never ask them if they are happy with your offer.

You should always just set up a standing order and pay them

With a standing order you are in charge, they can change a direct debit but not a standing order.

You don't have to give them income and expenditure details, he wouldn't have said that if you hadn't phoned him.

collinsona

Grumpelstiltskin said:

You should never phone these people, you should also never ask them if they are happy with your offer.

You should always just set up a standing order and pay them

With a standing order you are in charge, they can change a direct debit but not a standing order.

You don't have to give them income and expenditure details, he wouldn't have said that if you hadn't phoned him.

Thanks for your reply. I phoned them because I tried to make an offer/set something up online but it wouldnt let me do anything without first filling in an income and expenditure form! And I just wanted to get something in place. They could just change my direct debit? Does that actually happen? Should I cancel it and pay by standing order then? To be honest the amount of letters and phone calls from different debt collectors is stressing me out- they seem to be sending a letter every other day! I just wanted to stop the calls and letters 😢 amy x

Grumpelstiltskin

Yes if you can cancel the direct debit, hopefully on your account it should give details of your account number etc.

You just set the standing order up for the amount you want to pay.

Phone calls, just block every number, letters just check them in case you get a letter before action. All these things are computer generated, no human involved.

sourcrates

Moorcroft are only acting as a collector in this instance, the debt is still owned by Tesco Bank.

The best discounts only come around once your debt has been sold, at least once.

Honestly these days there is so much protection for the debtor offered by banks, the payment method you choose to use doesn't really matter, some unscrupulous payday loan companies and a few bottom feeder debt collectors used to use DD details to clear out your bank account, but that was in the past.

Now scam companies could still do that, but Moorcroft are at least a genuine DCA and you would have some comeback from it, just use what method you are most comfortable with.

EssexHebridean

A Direct Debit is a facility by which the holder of the DD mandate (in this case Moorcroft) instruct your bank to pay them some money. They set the amount.
A standing order is a facility by which you instruct your bank to pay a particular person or organisation some money. You set the amount.