Interest before defaults

Luckystar0112

Hello,

I am looking at starting a self managed DMP, and I just have one(possibly silly)question. 
When I stop making payments to my credit cards, after a month or two, the interest will take me over my credit limit. Is this normal to happen? 

Thank you in advance.

Grumpelstiltskin

You shouldn't be making payments before the debt has defaulted.

sourcrates

Your mindset really has to change once you decide that debt management is going to be the solution to your debt issues.

Going forward you need to forget about credit limits, minimum payments, there is just the debt balance to pay, that`s it.

You will be breaking the terms of your credit agreement by non payment of the debt, in order to usher in defaults, so non of what you currently adhere too will matter.

Once defaulted the debt will be frozen, the lender will then decide what to do with it, and you will be written too by whoever ends up with it.

Interest added during the default process can usually be offset by settlement offers later on down the line.

ManyWays

Yes, you will go over the limit, this will affect your credit score. But this doesnt matter if you are going into a self managed DMP as you WANT a default to be added to your credit record as soon as possible. 

Luckystar0112

Thank you, I just had this awful thought that by going over my credit limit this would be looked on way worse than just not paying my monthly statement. 

13thlegion

Luckystar0112 said:

Thank you, I just had this awful thought that by going over my credit limit this would be looked on way worse than just not paying my monthly statement. 

Just to be clear. How they look on you doesn't matter. You are ending your relationship with credit for at least 6 years. It's a tough way to learn to live within your means but long term you won't need to rely on credit again.

You wouldn't care about the opinion of a former romantic partner. Why would a creditor be any more important?