Debt Help

Anon_09

Hi all,

I made a post not long ago regarding my situation. I have since taken the advice from the forumites and started my debt management…

At the moment it’s DIY, I haven’t spoken to Stepchange or any other DMP providers.

I am wondering what next step I should take?

I have cancelled the direct debit to the loan and credit card companies, I have received a few emails and texts about ‘missed payments’ etc. so I presume this is in the process of all now defaulting.

What would be my best next steps? 

Thank you

Starfish75789

For me I started to live by my budget
Make sure you are saving an emergency fund and really start to get your SOA correct - I found this the challenging part as bills kept coming that id forgotten about.

Ignore letters, emails, texts, calls but keep an eye on your credit report - I received default notices in the post but they still didn't actually default me until 3/4 months later.

Once a default appeared on my credit report Id been trying to stick to my budget for a while so I knew what I could afford.
I started to send payments to the ones which had defaulted and as more defaulted I did the same. Since I've done that all communications seem's to have calmed down.

Rob5342

Just wait for them to default. Once each one has then someone will start writing to you about payment, and then you can start making payment to whoever that is. While you are waiting put some money into an emergency fund to cover anything unexpected.

You can use Stepchange to make the payments if you want, but to be honest they just complicate the whole process and its much easier to just manage it yourself. 

sourcrates

You do nothing basically, you should try and save as much as you can, make certain the budget you set yourself is a workable one, you will get letters and calls, and this may continue for some time.

The default letter, when it comes, will say something along the lines of:

This is a default notice pursuant to sec 87(1) consumer credit act, it will go on to list the actions required to avoid your account defaulting, and the possible consequences of not rectifying the breach to your account, all standard stuff, but required to be sent by law.

You just file that away, and wait until the debt shows as in default on your credit file, at some point after that, whoever is engaged to collect that debt will contact you.

This process will be repeated for all your debts.

Anon_09

Thank you everyone!

really feel like a weight has been lifted off my shoulders, I think I’m going to manage it myself.

Am I right in saying that they will take a token £1 payment for now until I save up an emergency fund?

Thanks all

2021rdsunshine

Anon_09 said:

Thank you everyone!

really feel like a weight has been lifted off my shoulders, I think I’m going to manage it myself.

Am I right in saying that they will take a token £1 payment for now until I save up an emergency fund?

Thanks all

No , you don’t pay any token payment for now, that will probably delay the creditor applying default. As said by Sourcrates, you do nothing until the creditor defaults you and default is showing on credit file 

RAS

Making token payments will likely result in AP markers which affect your credit record longer than defaults,

You want defaults, as quickly as possible given how sl.....ow the debt industry works. Anything from 3-18 months. 

Put your entire payment budget into an emergency fund, preferably in an interest bearing account. Then radio silence. Ideally remove phone and email contact details now, and ask only to be written to. Ignore all letters other than the one before the default is issued (by law it demands repayment of the whole sum).

Only once the default is issued, do you set up payment. 

sourcrates

Anon_09 said:

Thank you everyone!

Am I right in saying that they will take a token £1 payment for now until I save up an emergency fund?

No, you don`t pay anything at all, anything other than this strategy just delays the default process.