Urgent Debt Advice

RAS

No. 

Any contact delays issue of defaults.

You will be looking for discounts on settlement, down the line.

If you want to reduce interest, make affordability claims against any debt where limits increased repeatedly, or you took them out after your finances were a mess. Expect an initial refusal but take them further. Interest and fees are refunded if you win, and they often stop reporting on your credit record.

Go over to Debt Camel for affordability claims. It doesn't matter that you may not have been wise in retrospect, the lender should have declined. 

Grumpelstiltskin

Callum1510 we have explained to you before you are trying to rush and with debts that just doesn't work.

Slow down, as RAS explained in the previous post, you have to go about things in the correct order at the correct time. The general rule is don't contact your creditors as it usually at least slows things down and can easily make things worse. 

I know you want the debt gone as soon as possible but it just doesn't happen quickly.

ManyWays

Interest is "capped" on payday loans at the amount you borrowed, so they can't escalate indefinitely. 
I agree that affordability complaints sound promising for most of your lenders, with the possible exception of the cheap virgin loan. 

Callum1510

Hey guys thanks for the advice so far. I have received my first default notice now. Do I now wait for the debt to be passed to a debt collection? Or do I arrange a payment plan myself direct with lender? I plan to do a self managed plan for all my debts. 

Also once the debt defaults on credit file I believe it is 6 years it stays on. What happens to the debt if I have not paid it off within that 6 years? Does it just stay on there until it’s all paid off? How does it work? 

Thanks for your help 

Grumpelstiltskin

The default will disappear from your credit file in 6 years even if you never pay a penny towards it so no problem there.

Hold on until you hear something else about the defaulted debt. I have not read back so do CCA requests and affordability complaints come in anywhere?

RedFraggle

Is it actually a default notice as it seems a bit quick if you only recently stopped paying? It may just be "a letter". If you post what the wording is, or a picture of it with personal details blocked out, others can advise what the letter actually is. 

RAS

Have you had a letter telling you to repay the entire sum of they will terminate the legal agreement? Have you checked all three CRAs?

Callum1510

RAS said:

Have you had a letter telling you to repay the entire sum of they will terminate the legal agreement? Have you checked all three CRAs?

Hey thanks everyone for response..no I’ve not had this they have just said I have defaulted on my payment terms. None of them are showing defaulted on any of the 3 credit reference agencies yet so I guess I just wait still? In the meantime I have done affordability complaints and still waiting to hear back.

i have had many many calls and text about my missed payments on the multiple loans and credit cards and offers for payment holidays etc. I have not responded to any of them and not answered any calls..is this the right thing to do? I don’t see any point talking to them as I want them to default me? Please let me know if I am doing right thing thanks 

Callum1510

Thanks all see above ref your comments. Appreciate all your help 

sourcrates

A default notice is issued under sec 87(1) of the consumer credit act.

There will be no doubt as to what it is, as it will ask you for the outstanding arrears to be repaid within 14 days to remedy the breach to the terms and conditions of your account, otherwise a default will be registered on your credit file. 

It will also go on to list the possible consequences of non payment.

So your current strategy is fine, no point in talking to your lenders whatsoever, you want defaults, the fastest way to get them is to do nothing and say nothing, remember, your debt will likely be sold, so you may not be repaying your current creditors, it may be the new companies who buy them.

Once defaulted, its very important to wait until you are written too, them make your payment arrangements.