DMP advice please help!

Rob5342

Yes ignore everything until you get the defaults,while you are waiting put some money into savings to cover emergencies. Once defaulted then engage with whoever is chasing payment and start paying, there's not need to rush through, wait until they contact you instead of actively contacting them.

Grumpelstiltskin

Yes don't talk to your creditors, and in the future remember you don't discuss with them what amount you should pay, you decide the amount and just set up a standing order to pay them.

sourcrates

Basically that`s the plan, yes.

Its very likely that your debts will be sold on to 3rd parties, so the creditors you have now may not be the ones you end up paying back.

Most debt buyers have their own websites, where you can make payment arrangements and/or, one off payments, you don`t have to do a budget, but a generic one showing what you want to pay, is the best choice.

Remember, all the rules go out of the window once a debt defaults, you are not obligated to provide any details to any 3rd party, or maintain regular payments, you can do so ad hoc if you wish, you are in control from that point onwards, so whatever the question is, the answer is yes.

Rob5342

And when you do start paying make sure you do it by bank transfer or standing order so you are in control. Debt purchasers generally try and push debit card or direct debit as it gives them more control and makes it more difficult for you to change the amount.

You mention opening a dialogue but there should be no discussion involved, decide what you will be paying, inform them, set up the standing order and that's it. If they make too much fuss about wanting income and expenditure details then just make something up thst arrives at the figure you want to pay to get them off your back.

RAS

Basically, yes.

After default a few creditors keep debt in house but most either assign or sell to debt collectors. Letters about assigned debt refer to "our client".

Most assignees or buyers will send details of your account with reference numbers and how to set up payments.

Paddledebtfree

Thank you so so much everyone for your advice. You’ve really helped to calm my nerves and focus. This is totally the right path for me. Today is day 1 with most due direct debits that I cancelled being due today. I’ve been paid and transferred money into my EF and I’ve composed my affordability complaints which I’ll get sent off. Feeling in control on pay day for once!

Paddledebtfree

hi everyone….

Another question!

I want to send off affordability complaints against two of my creditors. Am I ok to do this while I am ignoring any other communication after cancelling my direct debits last week?

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/82159290#Comment_82159290

Yes of course you are, the sooner the better.

Check out the "debt camel" website for help and info on affordability complaints.

Sunbakedscobble

I have just completed a 34k DMP with payplan. I was simply not disciplined enough to do it myself, and starting that process actually got me in more debt. I loved having it run for me, best decision for me I ever made. Other than annual review, I didn't have to think about it ever again. Just enjoyed watching the amount I owed getting lower.

Paddledebtfree

https://forums.moneysavingexpert.com/discussion/comment/82162805#Comment_82162805

was the budget really strict or did you feel like it was manageable and you could cover what you needed to realistically and save an emergency fund etc? If you don’t mind me asking how many years was your DMP over?