Unable to pay back Debt

babayaga96

@kimwp Yes, it does actually. But I will try to manage without it. I have to pay for my sins 

babayaga96

Hello everyone,

I want to take a decision regarding everything on Monday. I would appreciate if I can get your final POA advice on what are my next steps. 

1) Regarding unsecured debt - Default and DMP through Stepchange?
2) Car HP Loan - Send an email letter clearly exercising my right for voluntary termination and see where it takes me. 

Please let me know your thoughts. 

Thank you

fatbelly

Yes to (2), provided you have not already defaulted.

On (1), separate the two parts. Stop paying now, save an emergency fund and generally get your house in order. Do a dmp when the defaults have come through

RAS

I'd suggest that you need to do as fatbelly suggests, but you need to look at three components of (1) if you intend staying in the UK.

Save for an emergency fund, immediately.
Save for your visa renewal, and NHS, fees over the time left until you renew, put that in an instant access ISA.
Start repayments as debts default.

Andyjflet

Quick word of warning, once you start the VT process it is not reversible, I'm in the industry and lots of things have to be put into place, including inspection and collection of the car etc. Any damage outside of the BVRLA fair wear and tear guidelines will be charged to you, including tyre damage and all must be legal tread depth, alloy wheel damage, dents and scratches, rips in interior. Its always best to present the vehicle in its best condition to avoid unnecessary costs.  

fatbelly

I agree with Andy above. You are going to be left with a debt, two if you count the insurance.

It's a case of minimising it. Don't forget you can/should argue the figure. The link I gave earlier referred to Legal Beagle advice re taking photos to show it is in 'reasonable' condition for its age and I just checked that the link to that advice still works. It does.

https://legalbeagles.info/forums/forum/legal-forums/motoring-parking/vehicle-finance-and-issues/77730-a-guide-to-voluntary-termination-your-rights?77612-How-to-Voluntary-Terminate-a-HP-Agreement-*UPDATED*=

babayaga96

@Andyjflet There are few damages. Engine Malfunction Light due to carbon build up, minor tyre chips and alloys scarped from the kerbs. Do you suggest I do not opt for VT now? 

Does StepChange DMP not cover this HP loan?


@fatbelly The file on the link is not opening for some reason. 

fatbelly

babayaga96 said:

@fatbelly The file on the link is not opening for some reason. 

It works if you login/register

sourcrates

babayaga96 said:

@Andyjflet There are few damages. Engine Malfunction Light due to carbon build up, minor tyre chips and alloys scarped from the kerbs. Do you suggest I do not opt for VT now? 

Does StepChange DMP not cover this HP loan?


@fatbelly The file on the link is not opening for some reason. 

Yes, once you hand the car back, any debt remaining is treated as just another unsecured, non priority debt, simple as that.

babayaga96

How long does the DMP last? And why is the StepChange guy saying it is better not to default and opt for DMP straight away because if you keep up your payments towards the DMP then your credit score will increase whereas if you default then it will be prominent black mark on your credit profile. 

I am due to decide tomorrow as a whole what needs to be done.