Credit cards default

Rajsan

Hi Guys,

I have defaulted multiple credit cards totalling 25000£.zopa(3000£),natwest(9000£),halifax(2500£),llyods(3500£),Aqua(3100£),fluid(2000£).

I have missed 2payments and might be on 3/4 it goes to default. I don’t want to enter into IVA or get CCJ”s.I lost job 2months ago and struggling financially. What are my options I can pay around 200£ monthly but don’t want to enter to into DMP which it crosses more 6years to remove default entry from credit file.

once the accounts are handed over to DCA”s what are my options to negotiate with them going to court.

fatbelly

Rajsan said:

Hi Guys,

I have defaulted multiple credit cards totalling 25000£

.zopa(3000£)
,natwest(9000£),
halifax(2500£),
llyods(3500£)
,Aqua(3100£),
fluid(2000£).

I have missed 2payments and might be on 3/4 it goes to default. I don’t want to enter into IVA or get CCJ”s.I lost job 2months ago and struggling financially. What are my options I can pay around 200£ monthly but don’t want to enter to into DMP which it crosses more 6years to remove default entry from credit file.

once the accounts are handed over to DCA”s what are my options to negotiate with them going to court.

Are you asking what your options are for dealing with your debts?

If you complete a statement of affairs we will be better placed to help you

https://www.lemonfool.co.uk/financecalculators/soa.php

If you are not working it is unlikely you will have £200 available each month.

EssexHebridean

It's also highly unlikely that anyone will take you to court over defaulted credit cards - so you can probably stop stressing about that one. 

sourcrates

Rajsan said:

Hi Guys,

I have defaulted multiple credit cards totalling 25000£.zopa(3000£),natwest(9000£),halifax(2500£),llyods(3500£),Aqua(3100£),fluid(2000£).

I have missed 2payments and might be on 3/4 it goes to default. I don’t want to enter into IVA or get CCJ”s.I lost job 2months ago and struggling financially. What are my options I can pay around 200£ monthly but don’t want to enter to into DMP which it crosses more 6years to remove default entry from credit file.

once the accounts are handed over to DCA”s what are my options to negotiate with them going to court.

Well with £200 a month disposable income, the only way to not get what you don`t want, is to keep paying contractual repayments, all else is an arrangement, so I don`t know what advice you want really??.

You can only do one or the other.

EssexHebridean

Can you explain in a bit more detail what your concerns are about a DMP? 

A DMP done to "best practise" means getting defaults - your credit file is harmed for 6 years from the date of default, then the debt disappears from your file.
Not getting a DMP and failing to meet monthly payments will lead to arrangement to pay markers - these will remain on your file until 6 years after you clear the debt - so if clearing the debt takes you 5 years, that will be 11 years for the debt to disappear from your file. 

Please don't be tempted to make the minimum payments and run up more debt for general living expenses either - this is only going to make your situation worse. 

Rajsan

EssexHebridean said:

Can you explain in a bit more detail what your concerns are about a DMP? 
A DMP done to "best practise" means getting defaults - your credit file is harmed for 6 years from the date of default, then the debt disappears from your file.
Not getting a DMP and failing to meet monthly payments will lead to arrangement to pay markers - these will remain on your file until 6 years after you clear the debt - so if clearing the debt takes you 5 years, that will be 11 years for the debt to disappear from your file. 

Please don't be tempted to make the minimum payments and run up more debt for general living expenses either - this is only going to make your situation worse. 

Hi
Can you explain in a bit more detail what your concerns are about a DMP? 
1)Your creditors can still contact you. They may ask you to pay more than what you are paying through your DMP
2)Your creditors can take further action. A DMP does not protect you from county court judgments (CCJs) and other enforcement actions

Rajsan

fatbelly said:

Rajsan said:

Hi Guys,

I have defaulted multiple credit cards totalling 25000£

.zopa(3000£)
,natwest(9000£),
halifax(2500£),
llyods(3500£)
,Aqua(3100£),
fluid(2000£).

I have missed 2payments and might be on 3/4 it goes to default. I don’t want to enter into IVA or get CCJ”s.I lost job 2months ago and struggling financially. What are my options I can pay around 200£ monthly but don’t want to enter to into DMP which it crosses more 6years to remove default entry from credit file.

once the accounts are handed over to DCA”s what are my options to negotiate with them going to court.

Are you asking what your options are for dealing with your debts?

If you complete a statement of affairs we will be better placed to help you


If you are not working it is unlikely you will have £200 available each month.

Are you asking what your options are for dealing with your debts? Yes, don't want to receive CCJ's and want to get the defaults removed from credit file after 6years from the default date. How to avoid by not increasing the period and clear the debits by getting at least 70% debits written off.

Rajsan

Are you asking what your options are for dealing with your debts? Yes, don't want to receive CCJ's and want to get the defaults removed from credit file after 6years from the default date. How to avoid by not increasing the period and clear the debits by getting at least 70% debits written off.

EssexHebridean

Rajsan said:

EssexHebridean said:

Can you explain in a bit more detail what your concerns are about a DMP? 
A DMP done to "best practise" means getting defaults - your credit file is harmed for 6 years from the date of default, then the debt disappears from your file.
Not getting a DMP and failing to meet monthly payments will lead to arrangement to pay markers - these will remain on your file until 6 years after you clear the debt - so if clearing the debt takes you 5 years, that will be 11 years for the debt to disappear from your file. 

Please don't be tempted to make the minimum payments and run up more debt for general living expenses either - this is only going to make your situation worse. 

Hi
Can you explain in a bit more detail what your concerns are about a DMP? 
1)Your creditors can still contact you. They may ask you to pay more than what you are paying through your DMP
2)Your creditors can take further action. A DMP does not protect you from county court judgments (CCJs) and other enforcement actions

They can still contact you - true, however as a rule a DMP takes this to a minimum, and even when on a DMP you can still stipulate that - for example - you are not willing to discuss your situation on the telephone, and that they should only contact you in writing. You can even say “by post” if you wish! If you ask for email contact just bear in mind that there are some documents that legally they have to send in the post, so that request will only ever be able to be partially successful.

If a creditor asks you to pay more than you are paying through a DMP, you simply say no, that is all you can afford. End of story. A DMP puts you in control of the situation.

as for CCJs, it really is incredibly unusual for creditors to go that way with consumer debt. If anything being in a DMP makes it less likely, as it is always possible that the court will decree you have to pay the creditor less than you would be currently. Also remember - a court will always take your priority payments and reasonable expenditure into account before setting a payment - they cannot take what you don’t have!

Defaults ALWAYS fall off your file 6 years from the default date - it is AP markers that will linger until 6 years after you have cleared the debt. 

ManyWays

All of the creditors you have listed are normal consumer credit act lenders, so interest should be frozen in a DMP and it would be very surprising if any of them take you to court.
There is no guarantee that you can clear the debts by getting 70% written off, but most people can pay less than the full amount through affordability complaints, making partial settlement offers, or stopping paying if a debt has been sold to a debt collector that cannot produce the CCA agreement for the debt. 

sourcrates

Defaults are automatically removed from credit files after 6 years regardless of any action by yourself or your creditors, whether you pay the debts in full, partially or ignore them completely.

Most DMP`s end in settlement of some description where good savings can be made.

Legal action whilst in a DMP is almost non existent, overall only around 12% of defaulted debt ever goes to court.

Pretty good odds really.