Questions on self-managed DMP

yellowdog1

I've been reading posts on here for months and they have been very helpful. I just wanted to check I was doing the right thing right now.

I realised in September that I couldn't keep up with my payments any longer, a combination of credit cards and a loan with Lendable and Updraft. I stopped paying Lendable in October and stopped the others in November/December. Unfortunately my income halved at the same time, so I couldn't save an emergency fund.

5 of the debts have defaulted and I plan to start paying a token monthly payment to those debt collectors now. Am I right in that I just set up a standing order? I don't need to contact them and say what I plan to pay? It is only a token payment as that's all I can afford for now.

ACI are very persistent (the Updraft loan) but I haven't had a default notice yet and no default has been registered (Updraft said in Feb if I didn't pay they would do that, but haven't yet). Should I contact ACI and say until a default is registered I won't make payments? They keep threatening passing it to their legal people, which I know they can't do without a default.

Paypal is showing as a default on my credit file but I haven't had a default notice - not a hard copy one, but fairly sure that none of their emails was one either.

And then, one that has yet to default is Amex. Am I right in that they might go straight to legal action, or will they pass to a debt collector first? I thought I'd read that they are a bit heavier handed than others.

I plan to do irresponsible lending claims with Lendable, Updraft and Sainsburys (now Natwest - who increased my credit card from £3k to £11.5k when I only ever made minimum payments) and I will try asking HSBC for the credit agreement for the credit card as it was maybe 20 years ago so they might not have it.

Thank you!

ManyWays

I will try asking HSBC for the credit agreement for the credit card as it was maybe 20 years ago so they might not have it.

I suggest doing this NOW because the government is trying to change the law to stop this.

Also make all the affordability complaints now. These get much harder if the debt started over 6 years ago and there is nothing to be gained by delaying.

Are you buying or renting? How large are your total debts?

Unfortunately my income halved at the same time, so I couldn't save an emergency fund.

What is your plan to clear these debts? Affordability complaints just reduce the balances. The CCA route is being removed. If you can not save up money for settlement offers, where does this leave you?

yellowdog1

https://forums.moneysavingexpert.com/discussion/comment/82053158#Comment_82053158

Thanks, and sorry for the delay in replying. I couldn't log back in.

I own my house. Total unsecured debts are £61k. Mortgage is £90k (about £180k equity in the house - house rich, money poor!).

I don't have a long term plan at the moment. Will have to see how it goes and hopefully try and save up for settlement offers in the future. I do have the possibility for a sum of money in about 5 years (early pension) that could be used. But, I am resigned to be paying this off for a long time.

ManyWays

I suggest you do the affordability complaints now and then in a year if the affordability complaints have not helped much, consider the option of an IVA. With that much debt, this is a serious option, and MUCH better than accessing your pension early.