Thinking of DMP, some advice needed

Worm352

Thank you all for your advise!

So my plan is to open a new account (Monzo?) and move all essential DD one by one. Of course my wage will be paid into this account as well. Then I will stop paying all the debts and wait for the first default which I expect to be Vanquis as they already send me a letter last month when I missed second payment that they will default my account if I won't pay within 14 days ( which I did so no problem) 

When first default is issued I'll start paying I'll say £50 a month and wait for another default from another creditor and so on.

Hopefully by the time they all default I'll have some funds for unexpected...

RAS

Sounds a decent strategy.

Monzo allows you to create pots. You need to create a car pot, a clothing pot, a present pot etc, and to transfer the monthly budget to the pots promptly. So when Christmas or the MOT come round, the money is sitting there, hopefully. If not, you might borrow from the holiday pot, then build them both back up afterwards.

sourcrates

Just don`t be too keen to pay after a debt defaults, there will be a period of time where the lender will be deciding what to do with the debt, sell it, assign it, or service it themselves.

In all cases, wait until you are written too asking for payment, then you can be sure you are paying the right creditor.

Worm352

Before I actually start, I thought it might be a good idea to only stop paying my personal loans which is nearly £1k a month? Let them default and go DMP with whoever buy my debt ? Is this a right thing to do ? My other credit cards and store cards are not that bad and I can definitely afford to pay them.

ManyWays

There is no advantage to doing this. Your credit record will be very poor after 3 defaults, it wont be much worse with 4 more. And defaulting gets the very high interest on Fluid and Vanquis stopped.
Defaulting on them all also means you can build up an emergency/settlement fund much faster. 

fatbelly

Your credit cards are only a small part of your debt. I don't see a problem with clearing them over the next 2-3 months.

You will need to be disciplined in how you use them and in your general budgeting. If you work together as a family in this you can be debt free in 3 years and have a clean file 3 years later.

Sometime in that period though, I suspect that £2000 car will have to be replaced

Worm352

I just stopped paying all my loans and credit cards! (over £1200 saved)... 

My question is, when I get my first default what is the best percentage I should offer them to pay a month?

My biggest payment is £575 to Barclays, should I go for 20-30%? or that's simply not enough and need to offer more?

Thank you for advise! 

Grumpelstiltskin

You are rushing again talking about paying, don't.

What you need to do is work out roughly what % of your total debt each debt is.

Then you need to work out how much in total you can afford to pay each month and pay the defaulted debt the correct % of your total payment.

You don't ask your creditors if they are happy with that amount you just pay it.

Then you are treating each creditor equally.

Worm352

Hi !

I'm just about to ignore a second payment to my creditors...

Here's my question and a bit of concern.

I'm renting a property and been asked to leave as landlord decided to sell and a new owners have some friends looking for a house so obviously they come first.

Apart from missed payments, no default as of yet but as you can imagine my credit score is already very poor due to this missed payments.

I found a new property but need to go through the credit check - will this missed payments and very poor credit be visible for agents ? I've never missed a rent payment in the past as I always say, rent comes first.

Is there a possibility of failing their reference checks?

RAS

What have they actually asked for? Most times they check for CCJs and insolvency. They can only see your credit record if you actively consent.

They may also want to see salary details. If they ask for bank statements, you could redact everything except essentials like rent and CT?

You do by the way realise that the LL can't just kick you out? Your existing tenancy just becomes a rolling tenancy when the fixed term ends and you are entitled to the same notice as before unless something more than 2 months is written in your contract. Read it.