Timing of a DMP

Silly_Sausage28

Hey, I recently applied for a DMP through StepChange on my roughly 40k worth of debt. On review of lots of online forums I cancelled the DMP and stopped paying all my creditors while I wait to default.

I’ve got a few questions though,

1. As I started the DMP process I’ve had a few of my creditors say to me that they have been contacted by StepChange etc etc. as they now won’t be getting that money, will they unmark it as promised to pay (or whatever the name is, it’s slipped my mind) which stays on my credit score longer and send me into default?
   
2. 2 of my credit cards have sent me a letter saying they are closing my account and when I get confirmation letter in a couple days I’ll get 2 months before default notice. What do I do in regards to timing because if these two default in 2 months and other things don’t default for another few months, what is the risk of these 2 taking me to court? It’s all very confusing.
   
3. When is the best time to start the DMP? How do I make sure I’ve defaulted on everything and can I just add debts to my DMP with StepChange as and when they default? I’d really like to cap this at 6 more years of a sad credit score instead of any longer.
   

Just a note that I have seen people saying don’t do a DMP with StepChange, manage it yourself etc but I am autistic and have adhd so I’m struggling to manage all my debts as it currently is so the perk of using StepChange is that they do it all for me I just pay them and update my budget etc. I could really do with simplifying everything down for me so I don’t end up in trouble with the courts so for me I think using a company is a better shout than trying to do it on my own, I’ve not got anyone who can help me manage it either.

Thanks in advance, I really am out of my depth here!

fatbelly

Court action is unlikely. Those creditors who do use it have 6 years to start a claim so don't worry about that.

They should not apply an Arrangement to Pay marker unless there is actually an arrangement which as things stand there isn't.

So take your time, save an emergency fund and start your dmp when you feel it is right

ManyWays

can I just add debts to my DMP with StepChange as and when they default?
No, you need to choose the time to switch to a DMP for all of your debts. You can wait for all defaults, some people think that ios safest. But it can prolong the stress, so another option is to get a DMP after another months and them make complaints if they don't default you in a another few months.

Do you have an overdraft going into the DMP? Overdrafts are often the slowest to deafult, you have to stop any money being added to the account and stop using the account.

RAS

OK, can we just check a few things that you've not mentioned but need sorting whether you use Stepchange now or later?

Can you check which banking group the bank into which your income is paid, please. Do you owe money to any other bank in that group?

Whilst you wait for defaults, you need to save the money you aren't using for essential living costs into a savings account. Do you have one set up?

How much were Stepchange asking you to pay monthly. That needs to go into your savings account. So when something breaks down you don't need a credit card.

Has anyone explained why we recommend waiting for defaults? If your creditors make arrangements, you get AP markers. These stay on your credit record for 6 years after the debt is paid off. Defaults leave in 6 years even if you still owe money.

And interest and fees are frozen when defaults are issued.

sourcrates

Try not to overthink things, its been said many times, but nothing moves fast in the world of debt collection, so take your time, don`t get stressed out, and allow accounts to default naturally, then when you are ready, get stepchange involved again, don`t worry about what your lenders might think, your just an account number to them, nothing more.