How long after stopping paying do I have to save an emergency fund

Gewakefie

Hi guys quite daunting for me at the moment as I have 25k debt and I have stopped payments just this month. My question is how many months do I have before I should set up a dmp? I want to save an emergency fund, I was thinking like 3 months that will let me save about a grand. 

I’m a bit worried about it all now like the letters the calls, and I don’t want to get a ccj but I’m unsure how long approximately I have, I also have like 10 different creditors which is scaring me too 

Grumpelstiltskin

OK  Block all numbers you get calls, texts and E Mails from.

How long have you got? How long is a piece of string.

You don't even think about making payments until the debts have defaulted and passed on to debt buyers. Some default in weeks some can take 18 months to default.

Forget CCJs at the moment, they don't just appear out of thin air, if a company thinks about a CCJ, it will be after the default and they have to go through the legal process which starts with them sending you a letter before claim ( this is why we tell you to  open all letters you receive by snail mail )

Stop worrying and concentrate on getting a budget you can live with and saving your emergency fund.

sourcrates

Debts have to default before legal action can be taken, make that your baseline.

Anything else doesn`t matter does it, they can ring, send letters etc, but no enforcement action can take place until the debt defaults, it really pays to know how the process works instead of over estimating creditor powers.

Gewakefie

Ok guys thank you, I will keep an eye on the post, also some of the best about 8k of it is already on a payment arrangement with Lowell and has been for years and salary finance but I’ve stopped paying both of those for now and have asked for breathing space, now I can’t see these defaults anywhere on my credit file the Lowell one may have dropped off as that best is over 6 years old but salary finance I pay way less that the contractual payment have been for a couple of years but can’t see a default anywhere but anyhow what would I do about these while I’m waiting for others to default should I just not pay them or offer token payments as I’m worried about these 2 as they quite old, hope that makes sense and thank you for the replies 

Grumpelstiltskin

Stop paying everything and wait until someone does something.

sourcrates

Gewakefie said:

 now I can’t see these defaults anywhere on my credit file the Lowell one may have dropped off as that best is over 6 years old 

 I’m worried about these 2 as they quite old, hope that makes sense and thank you for the replies 

If the debts are old, send CCA requests, as they may not be able to produce the correct legal paperwork for them.

Gewakefie

sourcrates said:

Gewakefie said:

 now I can’t see these defaults anywhere on my credit file the Lowell one may have dropped off as that best is over 6 years old 

 I’m worried about these 2 as they quite old, hope that makes sense and thank you for the replies 

If the debts are old, send CCA requests, as they may not be able to produce the correct legal paperwork for them.

I think salary finance will cost the loan was with them originally? First taken out like 4 years ago Lowell I can give it a go but I wouldn’t know what’s correct and what isn’t ? 

sourcrates

Gewakefie said:

sourcrates said:

Gewakefie said:

 now I can’t see these defaults anywhere on my credit file the Lowell one may have dropped off as that best is over 6 years old 

 I’m worried about these 2 as they quite old, hope that makes sense and thank you for the replies 

If the debts are old, send CCA requests, as they may not be able to produce the correct legal paperwork for them.

I think salary finance will cost the loan was with them originally? First taken out like 4 years ago Lowell I can give it a go but I wouldn’t know what’s correct and what isn’t ? 

Perhaps not, but we might, and they might not be able to comply at all, which would mean you could just walk away........

Rob5342

Remember you can pay what you like, so you could start off with a small repayment and then increase it when your emergency fund has been built up a bit. 

enthusiasticsaver

I would wait until they default before making any payments. In the meantime just save as much as possible as you will have no access to credit.