Should i go for DMP? Afraid of CCJ’s. HELP PLEASE!

fixmylife

I’m feeling ashamed to even write this. I’m in a debt of £68k spread across 5 Credit cards and 4 loans! Half of it is a debt consolidation loan taken more than a year ago but due to unforeseen circumstances and lack of planning, i had to use up credit cards that have been paid off already. My take home pay is £2750 and i pay £2300 towards these payments.

I’m struggling to pay other bills and needs and again relying on the credit cards that i’m paying off so not making a dent in the balance. I don’t see any way out except going for a DMP. I have seen StepChange who suggested me a DMP and also multiple threads on this forum here. I’m a homeowner but don’t pay the mortgage as my partner does. I do the monthly groceries, electricity, gas bills etc.

Help me on these please?

1. Should i wait for accounts to default before starting a DMP as it helps clear my credit file faster than agreed paymemts through DMP?

2. Will i have CCJ’s before the accounts default? I’m just not sure how this works?

3. I want to wait until all accounts default and immediately get onto a DMP. Is this a good approach?

4. My Creditors - Zopa loan, Creation loan, HSBC loan, Halifax loan, Barclaycard CC, Capital One CC, Fluid CC, M&s CC, HSBC CC. Are any of these creditors particularly difficult to deal with and do any of them push for CcJ?

I’m afraid to deal with CCJ’s or anythimg of that sort. Please help if anybody has been in a DMP and what all you had to face initially? and anything to motivate me to get out of this please.🙏 

MattMattMattUK

Can you post an SOA?
https://www.lemonfool.co.uk/financecalculators/soa.php

Grumpelstiltskin

One quick answer CCJs, unlikely and if the creditor wants to go that way it's way down the line, they can't do it before defaults so don't worry about that.

Is your current account with any banking group you owe money to? If so get a basic ( no overdraft ) account with a banking group you don't owe money to quick.

Stop paying all unsecured debts now.

Post your honest SOA ASAP then when we see the full state of affairs we can help you more.

fatbelly

That is exactly what happens with consolidation.

Those asking about remortgaging to 'pay off' debts, please take note.

Yes, stop paying. Wait for defaults.

No one just issues a ccj. There has to be a letter before claim and a court claim. They have 6 years to start the process and most never will.

All those creditors are typical nonpriority lenders

RAS

Creditors, by law , cannot even start legal action until after they register the default.

You need to start paying an affordable amount (let's see the SOA) when they send you the payment account details. You just set up a Standing Order.

Rob5342

A CCJ is just an order to pay what you can afford so it's nothing to be worried about really. If you are already paying what you can afford then it's a waste of time for anyone to go through the hassle of getting one only to get the same amount, and even if they do then you just carry on paying what you are paying already.

tigergambit

Answers:

1. Yes
2. No
3. You need to create your SOA and post it so that people here can help you decide how much you can afford to repay. You then divide this proportionally amongst your creditors and start paying each as they default. Some will take 10 weeks, some 10+ months, but no payments without the default.
4. It doesn't really matter as you are not going down the "ignore until I get a CCJ" route. As regards F&Fs you have to wait to see who they sell to.

Rob5342

While you are waiting for defaults it's a good idea to save the spare money you have to build up an emergency fund to cover anything that crops up unexpectedly. 

ManyWays

Which was the large consolidatiion loan? I am asking because someone today has just got a good result by taking an affordability compliant against Zopa to the Finanical Ombudsman and winning, see https://forums.moneysavingexpert.com/discussion/6607200/zopa-affordability-complaint-nearly-there

fixmylife

Grumpelstiltskin said:

One quick answer CCJs, unlikely and if the creditor wants to go that way it's way down the line, they can't do it before defaults so don't worry about that.

Is your current account with any banking group you owe money to? If so get a basic ( no overdraft ) account with a banking group you don't owe money to quick.

Stop paying all unsecured debts now.

Post your honest SOA ASAP then when we see the full state of affairs we can help you more.

Thank you for the suggestion! My loan is with Halifax and my salary gets paid there. Makes sense i didn’t think about it! I’ll just now apply for a Monzo account. Hope it’ll be ok if i’m able to transfer my salary all into the new account, as i get paid this friday.

fixmylife

ManyWays said:

Which was the large consolidatiion loan? I am asking because someone today has just got a good result by taking an affordability compliant against Zopa to the Finanical Ombudsman and winning, see https://forums.moneysavingexpert.com/discussion/6607200/zopa-affordability-complaint-nearly-there

The large consolidation loan of £30k is from Zopa!!! I never expected thwm to approve mine but surprisingly they did eventhough i had maxed out on all my CC’s by then. I had no idea that such affordability complaints exist. Thanks a lot as i’ve looked up debt camel now and i very much think i have the same case.