60k and counting...

RAS

It's entirely up to you whether you engage a debt charity to manage you DMP or DIY. Just we don't recommend any of the companies that charge to do what you can do for free.

You'll probably need to manage the first defaults anyway. Stepchange are great if you aren't confident about dealing with creditors or too anxious/overwhelmed by life.

Once the default is registered, your original creditor will write telling you if the debts kept in house, assigned to a debt collector or sold. Everything relies on computers so it's possible that a debt collector will write asking for payment before the creditor tells you. Send a Prove it letter which should retrieve the assignment/sales letter you didn't receive.

Once you confirm who has the legal right to collect, set up a SO to pay monthly. The details should be on the letter from the debt collector.

Set this a bit lower than you can afford. It's easier to maintain regular reliable payments than fluctuate if there's a crisis. That just gives them chances to bother you. Keep the extra in a separate account and make top-up payments say once a year or use to pay discounted settlements.

Beddz

https://forums.moneysavingexpert.com/discussion/comment/82103494#Comment_82103494

In regards to once the debt is sold to a debt collector do I contact them to notify Il be sending payments through SO at an amount we can sensibly afford? Or just take the details and do it without any contact

RAS

Generally, you just do it. Remember most communication is computer generated. It sends the texts and emails, schedules the robocalls, even if there is sometimes someone there to answer if you pick up. Engage and you get into a discussion.

They ask for payment, you pay. Likely to schedule a request for more money or a request for an SOA "to check you can afford what you are paying" (with the same basic intent). And an anniversary check in.

ArtyJ931

https://forums.moneysavingexpert.com/discussion/comment/82103459#Comment_82103459

the SOA option on lemon fool gives you the option to work out debt repayments so you know how much to pay each one - my intention is to set up standing orders for the set amount to each one and not engage in any negotiations or discussions.

I’m saving towards making offers on the debt further down the line too

Grumpelstiltskin

Beddz you are getting in front of yourself .First thing you need to do is to get an honest, workable SOA, you need to know what you are spending on what and you need to factor in a workable amount to save each month.

Then when you know how much you can afford to pay in total you will be in a position to work out how much to pay each creditor.

Rob5342

https://forums.moneysavingexpert.com/discussion/comment/82103459#Comment_82103459

It's up to you, Stepchange don't do anything you can't do yourself. If you are happy with their approach of splitting your available payment proportionally between your creditors than using them can save you a bit of administration, if you want to do things any other way then they just become a thorn in your side, complicating a very simple process. It's so simple doing it yourself that I wouldn't bother with StepChange personally.

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/82103545#Comment_82103545

You are a long way off that point yet, and honestly it would be unfair to bombard you with too much information all at once

There are so many variables in the debt collection game, its best to see how things pan out in your particular case, and guide you through what actually happens rather than tell you of the multitude of variations that could happen.

As a general rule, they do the chasing, not you, ignore texts/emails and phone calls, anything of importance comes in the post, debt collectors all have their own websites where payment arrangements can be made, you pay what you can afford, not what they suggest.

The world of debt collection is split between companies that buy debts, those that collect debts, and those that may combine the two, the letters they send should explain what capacity they are acting in, its important to read them very carefully, as collection letters can be very ambiguous, contain untruths, and be quite mis-leading, its all deliberately done this way, as they are designed to cause a reaction, and get you to contact them, its all geared towards that end goal.

Beddz

Long time no speak started to have notice of sum in arrears letters come through the post guessing this isn't relating to accounts defaulting yet? And just hold on and keep an eye on our credit files?

flamingo22

https://forums.moneysavingexpert.com/discussion/comment/82102913#Comment_82102913

Hi RAS what could be the issue with Hastings as I've just stopped paying them?

Beddz, have you had any issues with them so far?

Thanks

Beddz

https://forums.moneysavingexpert.com/discussion/comment/82162468#Comment_82162468

I've just had the standard letters at the moment stating we are behind on monthly payments