Am I best saving cash rather than in the bank

glasstable

I am going to save an emergency fund whilst I await the defaults but am I best saving this as cash rather than in the bank? The banks I am now using are not affiliated with my debts.

Also my pcp ends in 2029 - I need a car for work so plan on saving the balloon payment which is £9K - around £220 a month. Should I withdraw this in cash too?

If you set up a DMP or arrangement to pay after a debt has defaulted, does this affect the length of time on your credit file? Does offering an arrangement to pay reset the statue barred clock? Also do I wait for all debt to be defaulted before setting up a DMP?

If someone comes to the door, does sending a letter telling them you’ll only deal with them in writing reset the statue barred clock?

Does affordability complaints reset the statue barred clock?

Should I get my affordability complaints in now or do they delay the defaults?

Debts are £35K - 11 credit cards (4 from same provider, 2 from same provider, another 2 from same lender), and 2 unsecured personal loans.

Rob5342

Why would you want to? You'd be giving yourself extra hassle, losing interest and increasing the risk of it getting stolen. If you save it with a bank you don't owe money to there is no risk of losing it due to the right of set off.

An arrangement to pay stays on your credit report for 6 years after the debt is paid off, but a default stays for 6 years after it was applied. You are much better off getting a default as it will harm your credit report for much less time.

If you manage the dmp yourself you can start paying each debt as it defaults.

RAS

Get yourself a cash ISA for the tax protection, with a provider not linked to any of your creditors. Just keep stashing money in there.

Grumpelstiltskin

If you don't want a savings account in a bank look at a building society.

sourcrates

The ONLY things that will re-set the limitation period is either payment or written acknowledgement of the debt by the debtor, nothing else.

Affordability complaints/letters to creditors, may well count as acknowledgement, but that should not be your over riding concern, you should get them sent ASAP as strict time limits apply to the complaints process, but be aware that payment arrangements may be the end result.

You need to decide whether to let accounts default first, or for them to be subject to affordability complaints with possible payment arrangements stemming from that.

ManyWays

An account will not become statute barred if you are making any payments to it. You should not be hoping this will apply to any debts you have recently defaulted on, it is really only an issue for debts that you defaulted about 4 years ago. I suggest you forget about this as a realistic option.

glasstable

Thanks all.

For accounts that have always been 0% then paid off and 0% offers utilised again I take it there is no point raising affordability complaints? Even if they were offered when debts were already big?

I will put in complaints to other companies this weekend.

Does complaining delay/stop default? Does it remove missed payments/negative markers from credit file (if upheld)?

I am hoping to save a wee fund for settlement in the next couple of years - if a debt defaults then is settled, does it still drop off credit files 6 years from default date or is it 6 years from settlement date?

ManyWays

For accounts that have always been 0% then paid off and 0% offers utilised again I take it there is no point raising affordability complaints? Even if they were offered when debts were already big?
It does not sound as though you have paid any interest to be refunded?

Does complaining delay/stop default?
The problem is, you can not tell when a debt will default if you do not make a complaint, so it is hard to be sure. It can be harder to win a complaint about older debts, so i think the general suggestion here is to complain sooner rather than later.

Does it remove missed payments/negative markers from credit file (if upheld)?
Some lenders delete the entire record; some remove negative marks; some say they will remove negative marks when the debt is settled.

if a debt defaults then is settled, does it still drop off credit files 6 years from default date or is it 6 years from settlement date?
6 years from the default date, a partial settlement does not prolong this