Self DMP - first steps

jurrasic359

Creditor	Debt Amount (£)	Monthly Payment (£)	Months to Pay Off
Plata	19,000	194.80	97.5 (≈ 8.1 years)
Zopa (6745)	6,745	69.16	97.5
Zopa (2457)	2,457	25.19	97.5
Argos	900	9.23	97.5
Very	1,900	19.48	97.5
Next	1,400	14.35	97.6
Fluid	1,953	20.02	97.6
Capital One	6,319	64.79	97.5
Barclaycard	4,603	47.19	97.5
Lendable	820	8.41	97.5
Zopa (1542)	1,542	15.81	97.5
Zopa (1128)	1,128	11.57	97.5

Can someone give me advice on the amounts above? I’ve worked these out just based on £500 a month for repayments. My SOA says I have about £770 left for debt repayments but am I tied to that, or am I right to give myself a little bit of flexibility? 

Any help on repayment amounts (when it gets to that stage after defaults etc) would be welcomed! Also if I stop paying end of Jan I can start putting my normal payments into an emergency fund - how much should I be aiming for here? 

jurrasic359

Creditor	Debt Amount (£)	Monthly Payment (£)	Months to Pay Off
Plata	19,000	194.80	97.5 (≈ 8.1 years)
Zopa (6745)	6,745	69.16	97.5
Zopa (2457)	2,457	25.19	97.5
Argos	900	9.23	97.5
Very	1,900	19.48	97.5
Next	1,400	14.35	97.6
Fluid	1,953	20.02	97.6
Capital One	6,319	64.79	97.5
Barclaycard	4,603	47.19	97.5
Lendable	820	8.41	97.5
Zopa (1542)	1,542	15.81	97.5
Zopa (1128)	1,128	11.57	97.5

I am going to default the above accounts this month. I am hoping to self manage a DMP after reading on here and debt camel for a few months. 

Can someone give me advice on the repayment amounts above? I’ve worked these out just based on £500 a month for repayments. My SOA says I have about £770 left for debt repayments but am I tied to that, or am I right to give myself a little bit of flexibility? 

Any help on repayment amounts (when it gets to that stage after defaults etc) would be welcomed! Also if I stop paying end of Jan I can start putting my normal monthly payments (that now won’t be going out) into an emergency fund - how much should I be aiming for here? 

Grumpelstiltskin

Don't start worrying about debt repayments at the moment, they don't all default at the same time some can take over 1 year to default.

You need to workout an affordable budget and put as much as you can into your emergency fund. An instant savings account or ISA is the way to go. Try and look at 3 months expenses now and when you have that you can go for more.

ManyWays

As @Grumpelstiltskin says, its best not to pay anything at the start if you want them to default quickly.

Could we see your SOA? You want a budget that is VERY comfortable to live on without any further borrowing. £770 may be a lot too much.

Have you also read up about affordability complaints? With any luck some of those balances may come down by the time you start paying

Grumpelstiltskin

Please stick to one thread.

Self DMP - first steps - Page 2 — MoneySavingExpert Forum

jurrasic359

Sorry - is there a way to delete this one? 

RAS

just as @sourcrates to merge?

fatbelly

Sounds ok to me. 8 years is a long time for a dmp but by saving on the side you can reduce the term

jurrasic359

I have received the below - my first default notice via the app with Fluid? I think I just ignore this an wait for them to sell my debt on but I just wanted to double check :)

“We are sending you this default notice pursuant to section 87(1) of the Consumer Credit Act 1974 because the section 'How much do you have to pay each month?' in your credit agreement states that you must make at least the contractual minimum payment each month. You have not made payments totalling £121.44, and these payments remain overdue.

What you need to pay and when
You must pay £121.44 by no later than 11th April 2026, using one of the ways shown overleaf. If the action required by this notice is taken before the date shown, the action below will not be taken in respect of the breach. If you do not take the action required by this notice before the date shown, then the further action set out below may be taken against you.

What will happen if I don’t pay before the date shown?

We’ll send you a letter letting you know that we are terminating your credit agreement with us and your full account balance of £3,799.64 will become payable.

You will not be able to use your card to make any transactions, such as purchases or cash withdrawals.

We will also cancel any regular payments set up on this account.

If we terminate your credit agreement, we may sell your account to a third party which may bring legal action against you to recover the outstanding balance plus their legal costs.”

Rob5342

That's telling you want you need to do to avoid getting a default, as you want one just keep ignoring them until they default and close the account. After it has actually defaulted you can start thinking about repaying. They might keep hold of it, they mgiht assign it to someone else to collect or they might sell it on, either way wait until someone starts asking for payment and then engage with them.