Self- Management DMP- Help

fatbelly

You need to work out how much surplus income you have, say £400 pm. Don't make your budget too tight

Then divide the surplus pro-rata amongst your creditors.

For example a 7k debt out of 97k total would get 7/97 x 400

There is a calculator and sample letters here

https://nedcab.cabmoney.org.uk/remedy_4.asp

loconnor89

Can anyone help, with an official link for a website for where is explains about defaulting first so it comes of the credit file in 6yrs instead to waiting until the final payment is made??

another question im really worry about.. as we have young children...

Q. At what point could we potentially get knocks at the door from debt companies?

so say we miss and miss payments, go into default, then what? do you then ring the creditor at that point as soon as we receive the default to arrange a payment we can afford? or do we wait again? what is the process from start to finish please? 

i am worrying so much, but I feel like we have no other choice at this point, we are literally using credit to pay for payments/ bills/ food 

Grumpelstiltskin

Please do as we have asked and fill in a SOA and post on here.

Stop paying all unsecured debts now.

Stop panicking, nothing terrible is going to happen when you stop paying.

Door knockers are just like double glazing salespeople, they are not bailiffs and you either don't answer the door or you just tell them not today thank you and shut the door, but they are way down the line anyway.

There is no need to panic and get upset, you have to realise you are in control not your creditors.

Grumpelstiltskin

There is this from Debt Camel about defaults.

How does a DMP affect your credit record?

sourcrates

loconnor89 said:

Can anyone help, with an official link for a website for where is explains about defaulting first so it comes of the credit file in 6yrs instead to waiting until the final payment is made??

another question im really worry about.. as we have young children...

Q. At what point could we potentially get knocks at the door from debt companies?

so say we miss and miss payments, go into default, then what? do you then ring the creditor at that point as soon as we receive the default to arrange a payment we can afford? or do we wait again? what is the process from start to finish please? 

i am worrying so much, but I feel like we have no other choice at this point, we are literally using credit to pay for payments/ bills/ food 

See the debt camel link in Grumps above post for defaults verses AP markers.

The vast majority of debt collectors work from call centres, one or two still knock on doors, but are only used by lenders to re-initiate contact between creditor and debtor, they are not something you should concern yourself with.

You will get a bunch of standard collection letters, then after some time, (up to 6/9 months) a default notice issued under sec 87(1) consumer credit act will be sent to you.

In most cases of debt management its just for information only, around a month after that the default should show on your credit file.

The lender will then decide what to do with the debt, it may be sold, it may be assigned to someone else, or they may choose to chase it themselves, either way, you will be written too, so you don`t do anything until your receive a letter informing you of each accounts status.

Debt collection is a very long drawn out process, nothing happens very fast, so no need to worry.