DMP advice

ManyWays

I have tried Google and can not find the page that statement is on.

But that statement does not say there is only a 12% (or 10-20%) chance of a defaulted debt being taken to court if no payment arrangement is in place.

You have to have some idea of how many people set up payment arrangements, DMPs or token payments after a default, as it is much much less likely they will be taken to court.

Also there are well over 100,000 people going into insolvency each year, and all their debts will have defaults added but no CCJ will happen after insolvency.

If someone gets a default and does not set up a payments arrangement or go insolvent, I think there is a much larger chance of being taken to court for a CCJ than 12%.

sourcrates

I also can`t now find that page either, it did originate from 2019, so possibly removed or updated now.

I have edited my post to remove that information.

flamingo22

so my plan is to stop paying my debts this month, the thought of it makes me feel sick and anxious.

Jobs for the week are to give payroll my details for my other bank account, change my email address and phone numbers with the debts.

I know I'm doing the right thing for me, but at the same time, it feels so wrong.

flamingo22

And I feel disappointed in myself that it's come to this.

13thlegion

https://forums.moneysavingexpert.com/discussion/comment/82131480#Comment_82131480

This is a natural feeling and shared by many of us when we hit this culmination point. It can feel like the worst. What I can promise you is this is the worst, it is all upwards now.

It does not mean you are a failure. It does not make you less a person. Quite the opposite. You are taking control of your finances. It's like a really messy room. At the start it feels impossible, and the first actions feel like just moving rubbish around without seeing the carpet/light at the end. It took time to create the present, and it will take time to create the future.

Be proud of yourself for understanding the situation. Be proud that you are taking the best proactive course to change it.

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/82131479#Comment_82131479

You shouldn't feel that way at all, what you should be feeling is liberation, liberation from the credit bubble.

All banks work on the principle of "fractional reserve banking" you were lent money the lender never actually had, and were charged interest on that money, thus creating them profit, you and millions like you are conned into this system every year.

Guilt is what they should be feeling, not you!!

This is why when you default, they can afford to sell your debt at a mere fraction of its face value, and write the rest off to tax, the actual debt is worthless in their eyes, it only becomes profitable again when the company that buys it looks to obtain the full balance from you.

flamingo22

https://forums.moneysavingexpert.com/discussion/comment/82131844#Comment_82131844

Thank you, I feel like I'm going to have a neon sign above my head saying 'this one doesn't pay her debts' 🥴

flamingo22

Thank you 🙂

flamingo22

So I've changed my bank account that my wage gets paid into. I'm currently transferring my direct debits (manually) I'm struggling to press the 'cancel direct debits' on my debts, I know I need to do it. And then I need to update my contact details with the lenders (fake number, new email address) and then wait.

That's it for now isn't it?

fluffyowl

I would not feel guilty at all. I was in debt 2002 because of an overdraft that I took out when I was a university student and the interest rate was 19% now all interest to 24% despite the fact that the base rate is much lower you’ve paid interest and now you aren’t going to pay any and that is fair.