AP or default?

Scarlet_to_Black

Just wanted some opinions on whether I do AP on a small Next Directory account (£210). It’s heading along the default route but I’ve not even had the notice yet. 

I’ve got 4 x NatWest accounts (with the Ombusdman as just the £13k final loan considered unaffordable by investigator), a Lloyds CC, (which was after the £13k loan was considered unaffordable so may try affordability complaint with that), a Sainsbury’s loan and PayPal credit. All have defaulted in April/May/June, totalling £42k. 

I’ve not started paying any of these yet. I’m only really being chased constantly by Adventis for the Sainsbury’s loan but default only hit my credit report a few days ago, registered in June. I need to get organised and work out a repayment plan for them all very soon (I’ll work out amount but not planning to pay NW with Moorcroft as I’ll wait until Ombudsman decision). 

I’m was thinking if I do an AP on the tiny Next balance even £20 a month. So would be paid in 10 months. But then that isn’t going to come off my credit report until 6 years after it’s settled, so April 2032. All the others will disappear by June 2031. So this would be daft.  Then I thought, just throw everything at it for a few months and get rid totally asap, so it doesn’t default at all, but then that’s probably daft too?! Leaves me a bit skint to just get rid of one small balance just to save a default, which I guess should happen by September. 

I keep going round in circles in my head so some sense would be great 👍 Is it a case of one more default is pointless trying to stop, as it will hopefully have defaulted by September anyway? I think in my head the fact I’ll have 4 creditors to deal with rather than 5 is appealing but probably pointless?!

fatbelly

The question is - Do you have £210 saved to pay off the debt? The answer appears to be no, even though you have not been paying any of your debts for a few months. So treat it the same as the others.

The bigger problem is that if your surplus income is 0-£20 per month then a dmp is not going to work on £42k of debt, although I appreciate that the end figure might be less after the complaints.

However, a DRO would work, and that's a better reason to treat them all the same at this point.

Is there a reason why you wouldn't qualify?

Edit: just trawled through some of your other threads and I think you are a homeowner with other assets and in theory have more than £75 surplus each month. So forget my DRO comments.

 I do think that you need one master thread with your soa on it, maybe in the diaries section 

ManyWays

With 7 defaults, there is no reason to stretch to avoid an eighth. 
You need an emergency fund, dont leave yourself skint trying to pay Next

Scarlet_to_Black

fatbelly said:

The question is - Do you have £210 saved to pay off the debt? The answer appears to be no, even though you have not been paying any of your debts for a few months. So treat it the same as the others.

The bigger problem is that if your surplus income is 0-£20 per month then a dmp is not going to work on £42k of debt, although I appreciate that the end figure might be less after the complaints.

However, a DRO would work, and that's a better reason to treat them all the same at this point.

Is there a reason why you wouldn't qualify?

Edit: just trawled through some of your other threads and I think you are a homeowner with other assets and in theory have more than £75 surplus each month. So forget my DRO comments.

 I do think that you need one master thread with your soa on it, maybe in the diaries section 

I will do an SOA asap. I haven’t added to my emergency fund, and that’s worrying. I do have surplus monthly but I’m still really struggling, having given up alcohol 112 days ago (!); my ADHD symptoms are raging, so although I’m more mindful in spending, I’m still probably over committing more than I should. I’m waiting for psych assessment and hopefully meds, because my symptoms massively affect my life, particularly since menopause. 

Thanks for your observations. I’ll let the Next take its course. 🙏

fatbelly

If you get a proper assessment, and a specialist who will support you, I think you can start asking for total write-offs.

If you start one master thread, I will try to spot it, and subscribe

For now, stick to the original plan

Scarlet_to_Black

fatbelly said:

If you get a proper assessment, and a specialist who will support you, I think you can start asking for total write-offs.

If you start one master thread, I will try to spot it, and subscribe

For now, stick to the original plan

I didn’t know that!! Thank you 🙏 

I’ll set up a diary thread when I work out what I’m doing. Really appreciate the support 🥰