DMP, defaults and mortgage renewals.

DFWB_23

Hi 

First time poster, lurking solidly for last few monts.  Have £34,000  of credit card debt over 5 cards. Have been mostly getting on "ok" for last 20 years, mostly bouncing on 0% offers, never missed a payment or been late.  All 0% offers seem to have stopped though Tesco and Virgin have offered for 10 months both are virtually maxed so I couldnt use it.  Also considered looking into getting the money on mortgage to pay over 6 years, but this felt too dangerous. Im still making payments on time to all cards but now all cards are at least 25% one at 30% im barely making all payments and having nothing left. 

1.Is the current best process to let the defaults happen then arrange DMP? having not missed any payments in decades this bit i find scary.

2 The biggest debt is Halifax Credit card at £9,000.  I have a mortgage with Halifax for the last 8 years. The five year fixed rate ends January 2027, if im in the middle of a DMP is this going to have an adverse effect? I'm not looking to shop elsewhere and thinking that ive read on here seems they may not credit check, but worry that it may flag up.  The mortgage is joint wit hmy wife who has virtually no debt.

Apologies if this isnt clear, took a while to post, also the tone seems blase where nothing could be further from the truth.  I'll probably have a lot more questions just those two for now before I take the plunge

RAS

OK. 

The mortgage, you'll be able to renew via the provider's site 3-6 months before renewal and select the best option without a credit check, folk here have done it twice. Your consumer debt has nothing to do with secured debt.

Do you have any other joint account with your wife

ManyWays

Also considered looking into getting the money on mortgage to pay over 6 years, but this felt too dangerous. 
Good instinct, securing credit card debt should be avoided!

Is the current best process to let the defaults happen then arrange DMP?
Probably, if you could post a Statement of Affairs (SOA) https://www.stoozing.com/soa.php people may be able suggest some other things as well 

having not missed any payments in decades this bit i find scary.
everyone does! But it works, if you have any creditors that could be difficult (most arent) then we will see them on your SOA.

The five year fixed rate ends January 2027, if im in the middle of a DMP is this going to have an adverse effect
Not if you only want a new fix, Halifax wont even check your credit record (assuming you arent in arrears of course)

DFWB_23

ManyWays thanks for those points.  Will complete and post SOA asap, just want to get it exact.  The cards i'll be defaulting would be  Halifax at £9000, Creation £6485, Virgin 7608, Tesco $7608 and Barclays £1,744.  Any of those likley to be difficult at first glance? 

DFWB_23

Yes one joint account , First direct, but don't really use it

RAS

DFWB_23 said:

Yes one joint account , First direct, but don't really use it

If that account is up to date, you need to close it. Or pay off any small debt and close, in order to protect your partner's credit record. 

Sharing a joint account with you will damage their credit rating.

sourcrates

DFWB_23 said:

ManyWays thanks for those points.  Will complete and post SOA asap, just want to get it exact.  The cards i'll be defaulting would be  Halifax at £9000, Creation £6485, Virgin 7608, Tesco $7608 and Barclays £1,744.  Any of those likley to be difficult at first glance? 

All mostly mainstream lenders, they should all follow a similar course of action, collection letters, eventual default, sale of debt or assignment to a collector, the usual stuff.

You will find most lenders follow very similar patterns of debt collection, not much to worry about there.

Rob5342

To echo the above comments, I have four defaults on my credit report and I switched to a new deal with Santander with no trouble at all. It took about two minutes on their online banking.

Everyone should default you eventually. Barclays were great with me and defaulted very quickly, Virgin made things very difficult and didn't default me for 18 months or so.