DMP or not…..ND person ….

NDperson3

My friend was posting for me but she said it was suggested I should do myself. I am autistic and adhd (late diagnosed) and let my finances spiral out fo control after a well paid job and now I’ve been gradually trying to build my income back up.

I am thinking of going on to a DMP but finding it very overwhelming as I struggle to make calls and do admin tasks….. so want to make sure it’s the right thing…

CURRENT SITUATION

Income

I will be earning approximately £1300, and after my bills would have approximately £200 left over. This is me showing some expenses as more…in the next year I am going to increase my income by an additional £1000 through a business I have, which I’ve put on hold as I need to focus on regular income coming in at moment 

Debts

£12k Virgin - sold to debt collectors

£18k MBNA - payment arrangement for 3 months

£6500 PayPal - payment arrangement- token amount 

£6000 Santander - payment arrangement- token amount

£1500 - Aqua - defaulted 

£1500 - Cap1 - defaulted 

£11k - Barclaycard- payment arrangement - £30 pm

£4500 Barclays overdraft

PAYMENTS BEING MADE 

Credit file showing and payments being made:

PayPal is showing as default - £6191 - paying £1pm

Santander is showing a delinquent- £6351 - AP £1 pm

Virgin money  (2 accounts) £4872 + £6397 - is showing a delinquent - sold to credit collection companies 

Aqua is actually £2590 - as open 

Barclaycard is delinquent - paying £30 a month 

Cap1 - delinquent - pay £10pm

MBNA (2 accounts) -£6884 + £10778 delinquent - came up with an arrangement to pay £70 pm in total for both, and review in 3 months 

I Was embarrassed to show as I lost job and used to earn £40000 a year and would have been easier to pay this off before…

QUESTIONS

So should I make the payment arrangement but they stay on record for longer - 6 years after been paid?

Whereas with default does it stay ONLY 6 years if I pay within that time ? 

I’m looking to go with PayPlan….

I want to get a mortgage in 6 years time…..having paid these off in that time period and is the reason for thinking of going for a DMP…..

 Thank you in advance. I may need clarification on a some matters and may need further clarity….

thelibrarian11

Hi, someone is going to arrive soon with some brilliant advice. You will get better advice if you post a full statement of affairs with your full outgoings and everything.

In the meantime, hello, I'm autistic as well, and I definitely struggle with debt because of it. I also have 2 income streams, one employment and one freelance.

I do know one answer - yes with a default the whole debt disappears off your credit record although you still have to pay it.

RAS

NDperson3 said:

So should I make the payment arrangement but they stay on record for longer - 6 years after been paid?

There are two types of arrangement to pay. 

An Arrangement to Pay is an agreement with your credit provider to pay less than the minimum made before the debt has defaulted. There is no requirement for the creditor to halt interest or fees.

If you continue to make this reduced payment, the lender can continue to put AP markers on your credit record until the debt is paid. And then the marker remains on your credit record for another 6 years. 

In practice most creditors now issue a default after a few years but your credit record will be damaged a lot longer.

For the other type of arrangement to pay see below.

Whereas with default does it stay ONLY 6 years if I pay within that time ?

A default stays on your credit file for 6 years after it is issue, whether you pay another penny against the debt or clear it. Then it drops off, so you know from the default date, when the debt will drop off your credit record.

Interest and fees should be halted when the default is issued.

Once a default is issued, it is wise to arrange payments towards your debt if you have surplus income. This generally staves off legal action which would cost the creditor a lot of money and ends up with them receiving the same income as you are offering. 

Given how tiny your Aqua and Cap1 debts are, if your spare income really is £200 you should only be offering them £5 maximum per month. 

And putting the rest into an emergency fund.

"Should" doesn't really come into it. Stepchange, PayPlan have different rules, a lot of people on this forum who've been or are in debt think there are more efficient ways of clearing debt.

The only thing you should do is understand the rules and consequences of the different options. And make an informed decision.

From your post, it looks like a lot has been lost in translation. I've tried to explain the differences above

In the short term, May be could you check whether CAP (Christians Against Poverty) or possibly a charity working with autism and or ADHD has a debt advisor near you? They may offer face to face support.

You may find it easier to talk directly to someone about an issue until you fully understand it and then talk about the next issue? Or not, you know how you work best.

And they will be able to explain more clearly what the current status of each debt is.

Superkitten76

Hi, late (currently undiagnosed) ADHD and autism also, some similar debts to you - impulse spending is a tough gig! 

I also struggle with the phone calls so can give you advice based on my experience, whether its 'correct' others may be better placed to advise! My understanding from what I have read is that defaults have a shorter impact than arrangements to pay, so this is the route I went. I also wanted to ensure it was harder for me to access credit to try and curb the impulse spending too and try to live within my means more. 

I stopped all direct debits in September last year, cancelled direct debits and moved my bank account from Natwest to Santander and ignored all calls and texts waiting for defaults. I actively avoided making any calls, and I used emails and live chat to get contact details to manage in writing when I needed to contact companies, so far no one has refused this. I find it easier as I can write an email more easily and I also have records of what was said. 

My defaults didn't really start until maybe January and some have still not defaulted yet, but I haven't had any really scary letters and I just ignore all calls from numbers I don't recognise. 

I  made unaffordable complaints with all of my debts using the template from Debt Camel -  Updraft x 2 and Zopa  they upheld, so these have been defaulted but removed from my file. Zopa have been OK to communicate with and have just about set up a payment plan now for bare minimum. Updraft passed to AC, but passed the incorrect amounts over as they haven't removed the interest - I sent the unaffordable letter outcome to ACI and they have passed it back to Updraft and we're waiting for correction, but they are slow and rubbish and I just get daily WhatsApp and messages from Updraft saying I have missed payments - I just ignore until ACI will come back with correct details. I have a claim with the Ombudsman for Natwest loan and credit card as unaffordable as they rejected, which may or may not get removed from my file (only the loan has defaulted so far), and my Barclaycard (old egg card been open 20 plus years) once defaulted and passed to PRA debt collection I requested the CCA again using template letters from Debt Camel, which they are currently looking into, so may be unenforceable.

So that has just left me actively dealing with with 2 x MBNA, 1 halifax card and paypal still to default, Next account I have set up a payment plan via email - they were super helpful after default and arranged all by email.

I was going to go with Stepchange, but in the end from posting on here I think I've got better advice and outcomes than if I had just done a DMP with stepchange, and it hasn't taken too much organisation, although I have hyperfocused on it at times so that has helped!

So far its been less stressful than I thought, I do try to open all letters and quickly check there is nothing important to note even though its not a strength, but then I do tend to pile them up and go through all in one go when I am feeling more organised and only keep the defaults etc

I hope this has helped

ManyWays

ND and debt advice isnt simple. Many people with ND find face to face advice difficult as the amount of information can be difficult to handle, especially if there are attention, communications or sensory difficulties as well.  For some people this is better on the phone, but for others it is even harder. You can now set up a DMP with StepChange or Payplan without talking to them if you prefer.

The downside of doing it yourself is the amount of contact from creditors and the amount of organisation required, especially in the first year. Only you know if you can easily cope with that. 

NDperson3

RAS said:

NDperson3 said:

So should I make the payment arrangement but they stay on record for longer - 6 years after been paid?

There are two types of arrangement to pay. 

An Arrangement to Pay is an agreement with your credit provider to pay less than the minimum made before the debt has defaulted. There is no requirement for the creditor to halt interest or fees.

If you continue to make this reduced payment, the lender can continue to put AP markers on your credit record until the debt is paid. And then the marker remains on your credit record for another 6 years. 

In practice most creditors now issue a default after a few years but your credit record will be damaged a lot longer.

For the other type of arrangement to pay see below.

Whereas with default does it stay ONLY 6 years if I pay within that time ?

A default stays on your credit file for 6 years after it is issue, whether you pay another penny against the debt or clear it. Then it drops off, so you know from the default date, when the debt will drop off your credit record.

Interest and fees should be halted when the default is issued.

Once a default is issued, it is wise to arrange payments towards your debt if you have surplus income. This generally staves off legal action which would cost the creditor a lot of money and ends up with them receiving the same income as you are offering. 

Given how tiny your Aqua and Cap1 debts are, if your spare income really is £200 you should only be offering them £5 maximum per month. 

And putting the rest into an emergency fund.

"Should" doesn't really come into it. Stepchange, PayPlan have different rules, a lot of people on this forum who've been or are in debt think there are more efficient ways of clearing debt.

The only thing you should do is understand the rules and consequences of the different options. And make an informed decision.

From your post, it looks like a lot has been lost in translation. I've tried to explain the differences above

In the short term, May be could you check whether CAP (Christians Against Poverty) or possibly a charity working with autism and or ADHD has a debt advisor near you? They may offer face to face support.

You may find it easier to talk directly to someone about an issue until you fully understand it and then talk about the next issue? Or not, you know how you work best.

And they will be able to explain more clearly what the current status of each debt is.

RAS said:

NDperson3 said:

So should I make the payment arrangement but they stay on record for longer - 6 years after been paid?

There are two types of arrangement to pay. 

An Arrangement to Pay is an agreement with your credit provider to pay less than the minimum made before the debt has defaulted. There is no requirement for the creditor to halt interest or fees.

If you continue to make this reduced payment, the lender can continue to put AP markers on your credit record until the debt is paid. And then the marker remains on your credit record for another 6 years. 

In practice most creditors now issue a default after a few years but your credit record will be damaged a lot longer.

For the other type of arrangement to pay see below.

Whereas with default does it stay ONLY 6 years if I pay within that time ?

A default stays on your credit file for 6 years after it is issue, whether you pay another penny against the debt or clear it. Then it drops off, so you know from the default date, when the debt will drop off your credit record.

Interest and fees should be halted when the default is issued.

Once a default is issued, it is wise to arrange payments towards your debt if you have surplus income. This generally staves off legal action which would cost the creditor a lot of money and ends up with them receiving the same income as you are offering. 

Given how tiny your Aqua and Cap1 debts are, if your spare income really is £200 you should only be offering them £5 maximum per month. 

And putting the rest into an emergency fund.

"Should" doesn't really come into it. Stepchange, PayPlan have different rules, a lot of people on this forum who've been or are in debt think there are more efficient ways of clearing debt.

The only thing you should do is understand the rules and consequences of the different options. And make an informed decision.

From your post, it looks like a lot has been lost in translation. I've tried to explain the differences above

In the short term, May be could you check whether CAP (Christians Against Poverty) or possibly a charity working with autism and or ADHD has a debt advisor near you? They may offer face to face support.

You may find it easier to talk directly to someone about an issue until you fully understand it and then talk about the next issue? Or not, you know how you work best.

And they will be able to explain more clearly what the current status of each debt is.

Thank you for this. I am better via messages then face to face, but you explained this very clearly above. 

Given other peoples experience I would be better off waiting for them all to default rather than using PayPlan. They offered me to pay £150 a month and meant I wouldn’t have to manage all these accounts myself. That was less stressful. I just want to find the best way to pay these off and set myself a 6 year plan to do so that I can look at getting a mortgage…

if I default and they go to credit agencies I could do the same with them? Rather than go to PayPlan? 

NDperson3

Superkitten76 said:

Hi, late (currently undiagnosed) ADHD and autism also, some similar debts to you - impulse spending is a tough gig! 

I also struggle with the phone calls so can give you advice based on my experience, whether its 'correct' others may be better placed to advise! My understanding from what I have read is that defaults have a shorter impact than arrangements to pay, so this is the route I went. I also wanted to ensure it was harder for me to access credit to try and curb the impulse spending too and try to live within my means more. 

I stopped all direct debits in September last year, cancelled direct debits and moved my bank account from Natwest to Santander and ignored all calls and texts waiting for defaults. I actively avoided making any calls, and I used emails and live chat to get contact details to manage in writing when I needed to contact companies, so far no one has refused this. I find it easier as I can write an email more easily and I also have records of what was said. 

My defaults didn't really start until maybe January and some have still not defaulted yet, but I haven't had any really scary letters and I just ignore all calls from numbers I don't recognise. 

I  made unaffordable complaints with all of my debts using the template from Debt Camel -  Updraft x 2 and Zopa  they upheld, so these have been defaulted but removed from my file. Zopa have been OK to communicate with and have just about set up a payment plan now for bare minimum. Updraft passed to AC, but passed the incorrect amounts over as they haven't removed the interest - I sent the unaffordable letter outcome to ACI and they have passed it back to Updraft and we're waiting for correction, but they are slow and rubbish and I just get daily WhatsApp and messages from Updraft saying I have missed payments - I just ignore until ACI will come back with correct details. I have a claim with the Ombudsman for Natwest loan and credit card as unaffordable as they rejected, which may or may not get removed from my file (only the loan has defaulted so far), and my Barclaycard (old egg card been open 20 plus years) once defaulted and passed to PRA debt collection I requested the CCA again using template letters from Debt Camel, which they are currently looking into, so may be unenforceable.

So that has just left me actively dealing with with 2 x MBNA, 1 halifax card and paypal still to default, Next account I have set up a payment plan via email - they were super helpful after default and arranged all by email.

I was going to go with Stepchange, but in the end from posting on here I think I've got better advice and outcomes than if I had just done a DMP with stepchange, and it hasn't taken too much organisation, although I have hyperfocused on it at times so that has helped!

So far its been less stressful than I thought, I do try to open all letters and quickly check there is nothing important to note even though its not a strength, but then I do tend to pile them up and go through all in one go when I am feeling more organised and only keep the defaults etc

I hope this has helped

Thank you a lot of the abbreviations you mentioned I didn’t understand so not sure what you mean exactly…. So I can’t completely understand what you’re referring to. 

Did you write complaints referring to your autism/ adhd diagnosis. I wonder would that impact later being able to get a mortgage which is what I need to do…..

NDperson3

RAS said:

NDperson3 said:

So should I make the payment arrangement but they stay on record for longer - 6 years after been paid?

There are two types of arrangement to pay. 

An Arrangement to Pay is an agreement with your credit provider to pay less than the minimum made before the debt has defaulted. There is no requirement for the creditor to halt interest or fees.

If you continue to make this reduced payment, the lender can continue to put AP markers on your credit record until the debt is paid. And then the marker remains on your credit record for another 6 years. 

In practice most creditors now issue a default after a few years but your credit record will be damaged a lot longer.

For the other type of arrangement to pay see below.

Whereas with default does it stay ONLY 6 years if I pay within that time ?

A default stays on your credit file for 6 years after it is issue, whether you pay another penny against the debt or clear it. Then it drops off, so you know from the default date, when the debt will drop off your credit record.

Interest and fees should be halted when the default is issued.

Once a default is issued, it is wise to arrange payments towards your debt if you have surplus income. This generally staves off legal action which would cost the creditor a lot of money and ends up with them receiving the same income as you are offering. 

Given how tiny your Aqua and Cap1 debts are, if your spare income really is £200 you should only be offering them £5 maximum per month. 

And putting the rest into an emergency fund.

"Should" doesn't really come into it. Stepchange, PayPlan have different rules, a lot of people on this forum who've been or are in debt think there are more efficient ways of clearing debt.

The only thing you should do is understand the rules and consequences of the different options. And make an informed decision.

From your post, it looks like a lot has been lost in translation. I've tried to explain the differences above

In the short term, May be could you check whether CAP (Christians Against Poverty) or possibly a charity working with autism and or ADHD has a debt advisor near you? They may offer face to face support.

You may find it easier to talk directly to someone about an issue until you fully understand it and then talk about the next issue? Or not, you know how you work best.

And they will be able to explain more clearly what the current status of each debt is.

I agree a lot has been lost in translation. I agree need to know the rules and what would be the best way forward.

i have received default this morning on the Santander. 

I find it hard doing face to face which is reason I prefer on here as less judgement. I can’t handle seeing people’s look on their face…..

RAS to be frank I think it would make my life easier to do with PayPlan, as I’m a director for a limited company StepChange said they can’t help me. 

But then I’m torn given what you said above should I wait for all to default and come up with a payment plan with each other them…. 

What exact information do you need from me, as I know you’re trying to help, and I just want to sort this out…. Spiralling quite a bit and doing over phone or face to face is too much. Took me a lot to message on here. I buried head in sand about this before so want to get control of it…..

RAS

Thanks for explaining your needs.

What means of communication do you positively want to use? Because you can tell your creditors only to use those communication methods, other than snail mail. The important information has to be sent by letter, by law

Obviously you hate phone calls and you need never initiate a call or answer. Are you OK with texts? If you'd prefer email and chatbot, write to the creditors telling them to remove your phone number from their details about you. If you want to add information about your diagnoses. It may take a few weeks for them to update.

Good news on the Santander front.

My concern from your earlier thread and above is that sometimes you are setting your repayment to high. Based on £150 per month, pay Aqua £3.75. Since you are paying £1 to Cap 1 and Santander, stick with that for now and concentrate on putting spare money into a savings account.

I'm going to leave that for now but will post again later today.

Superkitten76

NDperson3 said:

Superkitten76 said:

Hi, late (currently undiagnosed) ADHD and autism also, some similar debts to you - impulse spending is a tough gig! 

I also struggle with the phone calls so can give you advice based on my experience, whether its 'correct' others may be better placed to advise! My understanding from what I have read is that defaults have a shorter impact than arrangements to pay, so this is the route I went. I also wanted to ensure it was harder for me to access credit to try and curb the impulse spending too and try to live within my means more. 

I stopped all direct debits in September last year, cancelled direct debits and moved my bank account from Natwest to Santander and ignored all calls and texts waiting for defaults. I actively avoided making any calls, and I used emails and live chat to get contact details to manage in writing when I needed to contact companies, so far no one has refused this. I find it easier as I can write an email more easily and I also have records of what was said. 

My defaults didn't really start until maybe January and some have still not defaulted yet, but I haven't had any really scary letters and I just ignore all calls from numbers I don't recognise. 

I  made unaffordable complaints with all of my debts using the template from Debt Camel -  Updraft x 2 and Zopa  they upheld, so these have been defaulted but removed from my file. Zopa have been OK to communicate with and have just about set up a payment plan now for bare minimum. Updraft passed to AC, but passed the incorrect amounts over as they haven't removed the interest - I sent the unaffordable letter outcome to ACI and they have passed it back to Updraft and we're waiting for correction, but they are slow and rubbish and I just get daily WhatsApp and messages from Updraft saying I have missed payments - I just ignore until ACI will come back with correct details. I have a claim with the Ombudsman for Natwest loan and credit card as unaffordable as they rejected, which may or may not get removed from my file (only the loan has defaulted so far), and my Barclaycard (old egg card been open 20 plus years) once defaulted and passed to PRA debt collection I requested the CCA again using template letters from Debt Camel, which they are currently looking into, so may be unenforceable.

So that has just left me actively dealing with with 2 x MBNA, 1 halifax card and paypal still to default, Next account I have set up a payment plan via email - they were super helpful after default and arranged all by email.

I was going to go with Stepchange, but in the end from posting on here I think I've got better advice and outcomes than if I had just done a DMP with stepchange, and it hasn't taken too much organisation, although I have hyperfocused on it at times so that has helped!

So far its been less stressful than I thought, I do try to open all letters and quickly check there is nothing important to note even though its not a strength, but then I do tend to pile them up and go through all in one go when I am feeling more organised and only keep the defaults etc

I hope this has helped

Thank you a lot of the abbreviations you mentioned I didn’t understand so not sure what you mean exactly…. So I can’t completely understand what you’re referring to. 

Did you write complaints referring to your autism/ adhd diagnosis. I wonder would that impact later being able to get a mortgage which is what I need to do…..

Sorry, I can explain the abbreviations if you let me know which bits dont make sense! 

I complained on the grounds that my level of debt was clearly unsustainable and that the lenders should have made better checks given my levels of debt and the fact I was essentially just shifting debt around - updraft in particular upheld my complaint as I had 3 lons with them and they should have seen that I hadnt used the first loan to pay off debt as I had stated I would, and therefore subsequent loans just increased my level of debt. I havent made any claims about ADHD, but I have referred to it when explaining I didnt want to discuss on the phone. 

NDperson3

RAS said:

Thanks for explaining your needs.

What means of communication do you positively want to use? Because you can tell your creditors only to use those communication methods, other than snail mail. The important information has to be sent by letter, by law

Obviously you hate phone calls and you need never initiate a call or answer. Are you OK with texts? If you'd prefer email and chatbot, write to the creditors telling them to remove your phone number from their details about you. If you want to add information about your diagnoses. It may take a few weeks for them to update.

Good news on the Santander front.

My concern from your earlier thread and above is that sometimes you are setting your repayment to high. Based on £150 per month, pay Aqua £3.75. Since you are paying £1 to Cap 1 and Santander, stick with that for now and concentrate on putting spare money into a savings account.

I'm going to leave that for now but will post again later today.

Thanks RAS

its really helpful and kind of you. The thing with me I’m not consistent on making calls sometimes I’m okay and sometimes I’m not. 

i never thought before going to default and just paying as much as I can would be more beneficial than starting a DMP

What about the ones going to credit collections agencies. I presume it stays on the credit file account for 6 years and then removed?


What about the Virgin ones that have been sold to debt collection agencies? What impact would that have on my credit file?

Do delinquent files mean the same as default? As that’s showing on credit file…. How long would they stay on for?

it’s all very confusing and im trying best to find a simple solution so appreciate the support 

I just want to find a simple way to sort these out as there are so many. Makes me think I just have to push through with making phone calls….. this is where I start spiralling….

I just want a clear plan as at moment with so many accounts open it’s all too much …… :-(