Unable to pay back Debt

Humdinger1

@babayaga96 I'm interested but not an expert.   @fatbelly, @kimwp @Rob5342 and @sourcrates will have much more relevant views than I do.  I am cheering you on though.  Love Humdinger xx 

tigergambit

babayaga96 said:

@Humdinger1 @fatbelly @kimwp @Rob5342 As different creditors will default me at different times, is there a way I can request them to default me now? 

After defaulting how do arrange for a DMP especially if I default at different times?

You work out what your total available payment is, divide it in two, put one half into an emergency / settlement fund and pay the other half to creditors pro rata* as they default. You don't negotiate, you just tell them how much you can afford.

* You work out what percentage of your debt is held by each creditor and pay that proportion to the relevant creditor once they default. If you have only had one creditor default you still only pay them the percentage as otherwise you'd be forever calculating and amending payments.

sourcrates

Yes, as above, as each debt defaults, wait until you are written too about each account, as different companies have different ways of dealing with bad debts.

Some will stay "in house", some will be sold, some will be assigned to debt collectors, whatever they do, you will be written too with instructions on who to pay.

babayaga96

@ManyWays I received a latter from the car finance company today which says notice of sums in arrears (NOSIA). Is it better I send the VT email right away?

ManyWays

You need to decide whether a VT or handing back the car will be better; National Debtline on 0808 808 4000 can talk you through the options here

babayaga96

What is the difference between VT and Handing back the car? What would be the implications on either?

Andyjflet

ManyWays said:

The car - was this HP or PCP and how long ago did it start? If you don't need it, ending the finance is probably very sensible but you may have other options excect a VT

PCP is still HP, just with a GFV at the end.