Missed 1 DMP payment with stepchange

Rob5342

Yes that's what ive done. It's still a plan, just one thst you are in charge of. The beauty of thst is thst you can run it exactly how you want and change it whenever you like. It's up to you if you use Stepchange, Payplan or manage it yourself, everyone has different needs but I used Stepchange to start with and quickly found that they just made things more difficult for me. I'd keep paying the defaulted ones but maybe at a different amount depending on whaty budget said. The only problem is that as you have been on a payment plan they might take longer to default you now. Virgin were very difficult for me in that regard and took about 18 months to default me after I stopped paying. 

RAS

Court action is only possible after the debt defaults, so there's no risk from the ones who have not yet issued defaults. So keep paying the ones who have, possibly slightly less, for cost of living reasons.

It is possible that if you stop paying altogether, creditors might add interest again, but you'll clear your credit record sooner and hopefully get some decent discounts before that.

Do you have any credit unions amongst your creditors?

Black_cat_lady

It's the court process that scares me , bailiffs etc , I'm a single mum and would hate the thought of any of that . I don't care about my credit file as its already wrecked anyway   
Most the debts are for under £1000 . Although there's 11 creditors the total debt is only around £8000 . Some are only £200 etc .then a couple are for around £900 and the rest are somewhat in-between 

RAS

So pay the creditors who have defaulted. Save the rest of your spare money until the next debt defaults, then set up a monthly payment to that creditor, once they send you details.

As I explained above the creditors who haven't issued a default CAN'T even apply to a court for a CCJ. Stop worrying about something that's not possible.

What may also need looking at is your budget. Have you been trying to live so frugally that you are not making provision for things that will need funding, but if only infrequently? That sets you up fail.

Black_cat_lady

So they won't mind that I cancel with stepchange and start paying them direct ? 

Yeah been living quite tightly can't even take my son for days out etc , we survive and eat etc , but there's little left over . Even clothes etc we buy the bare minimum we need . He's just started secondary school not long ago too so uniform is pricier , trips expensive  I think I might bight the bullet and pull put of the plan with stepchange.  I need them all to default or they could start adding interest again at any time.  

Black_cat_lady

Also 1 last thing , one of my debts 118 118 loan defaulted but didn't sell it on , the money still goes to them, is that normal? The other 3 that defaulted all went to lowell or moorcroft . 

Grumpelstiltskin

Can I suggest you don't rush into setting up payments, nothing terrible will happen if you miss a couple of months.

Read this thread and complete a honest SOA  In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions. — MoneySavingExpert Forum format for MSE and copy and paste on here.

When we see your full situation we can give you the best help.

Rob5342

I'd echo Grumpelstiltskin's comments and say don't change anything for the moment. Post the SOA so people can advise on your overall situation, make sure you understand all the implications of any changes you are going to make, and then decide which approach you are going to take. Everything moves very slowly so you have plenty of time to read up on everything.

Black_cat_lady

So keep with stepchange for now and make next month's payment with them ? 

OK I will research more before changing anything . 

Thankyou everyone for your advice 

fatbelly

Black_cat_lady said:

It's the court process that scares me , bailiffs etc , I'm a single mum and would hate the thought of any of that . I don't care about my credit file as its already wrecked anyway   
Most the debts are for under £1000 . Although there's 11 creditors the total debt is only around £8000 . Some are only £200 etc .then a couple are for around £900 and the rest are somewhat in-between 

I can't see it happening for those small debts, but that's two things - the process and enforcement by bailiff.

Before the process can even start, they must send a standard letter before claim that comes with a reply form and 30-day limit. If you ever got one, we would show you how to fill in the form but I don't think it would.

You should know that there are two sorts of bailiffs- the court's own employees and the commercial firms. Any problems you see are caused by the latter, and this would tend to be used for council tax debts and non- consumer credit act debts, which is why someone asked about credit unions earlier. Can't be used for debts under £600.

If your debts are loans, credit cards, catalogues, hp, these are all consumer credit act debt and you have lots of protection.

You mentioned 118118. These high interest subprime lenders often lend to people in obvious difficulty, and this is against FCA guidance. An affordability complaint can often be financially beneficial

https://debtcamel.co.uk/refunds-large-high-cost-loans/