Default and DMP Plan thoughts

burgervanman

Yep in a fairly Ok ISA, bank accounts all not attached to anywhere that debt is owed to.

One savings for emergency, another for car and general savings goals.

I'm trying to ensure I have at least 3months full outgoings in emergency first.

Spritz

https://forums.moneysavingexpert.com/discussion/comment/81929448#Comment_81929448

Nice job mate, I’m right behind you, 33k debt one loan and 3 CCs(biggest is NatWest loan £17.5k and Aqua CC £10k). This month will be my first month of missed payments, already transferred my income to a Revolut account and in the coming days I’ll transfer over all essentials DDs. I would like to ask you, have you setup token standing orders to creditors after they defaulted your accounts or before? Do we have to just stay silent with them from the first missed payment until default and after default we contact them to make monthly token payments? Oh and what exactly is token payments? 😂 Thank you in advance and hope it works well for you

burgervanman

https://forums.moneysavingexpert.com/discussion/comment/81929885#Comment_81929885

I'm far from an expert, Sourcrates and RAS have helped with advice immensely. My plan is stay silent till they default then once on credit rating, contact them to offer payment via Standing order. Token payments to me personally just seem like a dead end if you can afford sensible repayments or want it cleared fast. More for those who can't afford sensible repayments and in alot worse situations. Alot of people do that but it just seems to draw out the whole debt repayment process to me. I want to be debt free by the time my defaults vanish off my credit rating. Feel free to correct me anyone. I've used chatgpt, put my debts in and how much I owe for each and how much I can afford a month overall then asked it to do a weighted payment scheme for each based on how much each debt is. Basically what stepchange would do anyway. I intend to repay everything but without the interest, given the defaults (cards, loan interest varies).

I changed from Barclays to Lloyds then forgot about my bloody Halifax debt being linked. Worked out ok as switched to Nationwide after and got the 175 transfer bonus lol

charliesdaddy

Just thought I'd check in to see how it's going. Sent you a message btw…

burgervanman

https://forums.moneysavingexpert.com/discussion/comment/81983586#Comment_81983586

Probs a good time for an update, I have received all Default letters this month for my 5 loans, all of which default in May at some point.

Only had one card default letter, Pulse (newday) which is this month as well.

Barclays OD, I convinced them to Default my Overdraft early. Rare apparently but otherwise they allow 180 days from the date you are £70 over your overdraft (a bit weird)

MBNA/Halifax seem far more chilled and have just frozen my interest without me asking saying 'They'll give me time' (Which I dont want).

I am sending Affordability complaints to Zopa and MBNA but I don't want to delay defaults so just waiting until they are on my credit rating showing as Defaulted. (This are ready with bank statements to go)

I've worked out all my pro rata payments based on what I can afford for everntually when the debt gets sold.

Debt is slow, but I'm assuming this will happen in the next couple of months (Cabot/PRA etc).

When that happens, theyll be getting an email (or letter) which I've got ready explaining this.

I have a separate Chase current account where the DMP money will go in the 2nd of every month and on the 5th the collectors will all get their Standing Orders off me.

If they aren't happy with amounts tough. They will be reasonable amounts, not micky take so hopefully they will just accept.

All in theory! so we shall see.

I have a fairly decent emergency fund now, so I'll basically keep piling into that until each debt gradually comes through.

I don't intend avoiding any of them as I don't want a CCJ risk. Luckily all creditors are mainstream.

My wife has gone down the Stepchange route as her main debt is to a credit union, Planesaver. So far its going well and her debt is alot less than mine.

If it helps anyone I have Nationwide Wage/Joint accounts for Bills, Monzo for Day to Day and Chase for DMP/Online Purchasing. Non linked to any debts

I've never been bothered on the phone as I block all non-contact list numbers, I just review them daily for any important ones. As mentioned family, kids schools etc are in my contacts.

For letters, I keep them all in a ring binder incase with all poly pockets listing acc numbers

Big excel sheet tracking all correspondence, amounts and dates.

Trying to document everything for anyone in future in a similar situation.

Temptation to spend above my means is fading which is good. No longer having credit makes you question purchases more.

I've uninstalled ebay and facebook marketplace off my phone as these were my weaknesses.

charliesdaddy

Sounds like really good progress. I think I'm around 2 months behind you, so expect some defaults over the summer. I'm 2 months behind on most payments now, so waiting for that to be 3 months +

ManyWays

Your wife can look at an affordability complaint against the CU.

burgervanman

https://forums.moneysavingexpert.com/discussion/comment/81983752#Comment_81983752

We will have a look into this, thanks for the info.

Diaz09

At 43 with nearly two decades of debt behind you, I'd honestly be tempted to take the same route - the psychological benefit of knowing there's a definite end point can't be underestimated. Just make sure you've got a rock-solid budget in place first because once you start this process, there's no going back to affordable monthly payments if your circumstances change. The discipline you'll need to stick to reduced payments will serve you well when you're debt-free and focusing on that pension pot.

burgervanman

https://forums.moneysavingexpert.com/discussion/comment/81983762#Comment_81983762

Well noted thanks.