Looking for a little guidance to start my journey towards becoming debt-free.

IRunFar

Thanks so much again everyone! As always, such wise advice. I was wondering what others think about @DankVielen's suggestion of sending a brief holding line like the one below. Would it help to keep the wolves from the door, or should I continue to sit it out:

Dear Sir/Madam

Re: Account 123456

Due to a massive change of circumstances that I can't imagine changing in the foreseeable future, I will no longer be making any payments to the above account.

Yours faithfully

A Debtor"

ManyWays

Personally I would either not contact at all, or contact and say something sensible. Why would any creditor get that letter and think thats OK? 

RAS

Just keep quiet until the defaults are in. Then take advice on each creditor, some are harder then others.

Rob5342

I'd just keep quiet until you get those nice defaults. You want them to give up on you and contacting them can only prompt them to try and "help" you which will just slow everything down.

sourcrates

Agreed, silence is golden, just allow the default process to develop, no need for theatrics of any kind.

tigergambit

IRunFar said:

Thanks so much again everyone! As always, such wise advice. I was wondering what others think about @DankVielen's suggestion of sending a brief holding line like the one below. Would it help to keep the wolves from the door, or should I continue to sit it out:

Dear Sir/Madam

Re: Account 123456

Due to a massive change of circumstances that I can't imagine changing in the foreseeable future, I will no longer be making any payments to the above account.

Yours faithfully

A Debtor"

I know you feel you should be doing something but there's no need. Just sit tight and wait for the defaults.

You can use something like this later if required but it's their move, keep your power dry.

RAS

IRunFar

We suggest that you do to things simultaneously:

Get defaults on your debts as soon as possible, so that your creditors stop charging fees and interest. That also means your credit record gets repaired in 6-7 years rather than 7-15 years or more. 

Use the money you are not paying towards debt to set up a decent emergency fund, so that you can cope better with set backs once you start paying back your creditors, if that is your plan. It takes a lot of the stress of living hand to mouth out your life going forward and nothing's going to boost your financial confidence like being able to buy the new freezer or pay the big car repair bill without getting more credit.  

Every time you communicate with your creditors at this stage, you delay the date when they decide to issue the default letter. Nothing important can happen until that letter is issued, so communication is generally fruitless.

Use the time to learn more about the debt collection process, live with your budget and refine it if need be, look for a decent instant access interest bearing account (ISA?) for your emergency account. Sort out pots or another account for annual spends so birthdays and holidays can be funded. And research utilities etc to find better buys. 

IRunFar

You guys are all amazing! Thank you for the latest advice. It's hard to ignore them, but I'd stand firm until the time is right. Thanks again!