Self managed DMP help

Woolywelsh

We do yes. Sorry to ask but why? This doesn't come into the equation does it?

Woolywelsh

We do yes. Does this come into the equation at all?

RAS

If lender know that someone is on benefits and has zero assets, they may not chase even if nothing is paid. To get blood out of a stone, you need a stone.

If they can see you have assets, they will expect something to be paid back.

On_a_mission_

Your monthly budget of £300 seems about in line with mine in terms of % of total, and mine have been accepted without any issues so think you’ll be fine. 

To know how much I was offering I added it all up then worked out each outstanding debt as a % of the total so they all got an equal share. Just waiting for two more to default now (I have a lot of creditors!!). What I would say though is a couple of them asked for income and expenditure and a breakdown of other debts so I just sent them my workings out and it was all good.

The advice on here has been absolutely fantastic for me and I’ve breezed through the whole process so I’m sure you will too - if you’re worried or confused about something just ask, the people on here are so knowledgeable and really put your mind at ease.

Happy to share my offer template letter if helpful (although think I got it from one of the debt charity websites initially).

All the best.

sourcrates

Woolywelsh said:

We do yes. Sorry to ask but why? This doesn't come into the equation does it?

There is a slim chance that if you have not reached a payment arrangement, a creditor may take legal action against you, and apply for a charging order at the same time.

Now that`s not to say you will lose your home, far from it, as long as the judgement is paid, the lender cannot enforce it any further, so usually they just sit on the deeds, creditors can use them as a guarantee of payment you see.

On a jointly owned home it would only be a restriction anyway.

Don`t worry, these are quite rare, but its wise to be aware of such things as homeowners.

Woolywelsh

So my wife is on board with the whole thing, which is good news. Next step is to stop payments. Also does it matter how old the debt is. One is a few months old that's all. 

I bank with Lloyds. Would MBNA have access to my Lloyds bank account to view statements ect? 

What credit score site is most accurate to keep me updated with my defaults. I currently use clear score?

Also I have a overdraft on my account. If I switched bank would this default like the other debt. How does that work? 

Thanks

RAS

A couple of quick replies. credit scores are am American thing, not used in the UK. Transunion, Equifax and Experian are CRAs. Even they can take a couple of months to update.

You need a bank account that no relationship with any banking group to whom you owe money, and to avoid joint accounts. If you mean that you have a negative balance on your Lloyds account you need a new one, basic accounts don't need credit checks. Monzo also are popular because they have just been fined for poor assessment of new applicants so might he tighter than previously.

The Lloyds OD will eventually default like other accounts but can take longer.

Woolywelsh

Thank you.
Just on the joint account. Why is this?

RAS

Any debt situation affects your credit records and if one party having a joint account has a poor credit record, that damages the other party's credit record as well. Mortgages are an issue but the biggest impact is with joint consumer credit accounts.

Creditors can chase both parties for a joint account, so if one party underpays, they'll demand the other party makes good the deficit, and failure to do so damages the other party's credit record. Even if it's only late payments that get made up later.

Woolywelsh

Thank you for clearing that up. I can easily get out of a joint account. It's only used as a central hub to pay bills. 
My concern now is the joint mortgage, I really don't want to destroy her credit as that's not fair on her and why should she suffer. If I defaulted on all my accounts how bad can it affect her credit if we are financially linked via the mortgage!