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Hi, 

 

I'm new to this forum and hoping for some advice!

 

I have various overdraft, credit card and loan debts, which are all a bit of a mess:

 

Barclaycard (2 cards) = £14,000 (1 card suspended, but not in arrears)

Lloyds CC= £3,800

Tesco CC = £3700

Natwest CC = £650

Natwest Loan £17,000

Natwest OD = £1,400

Halifax OD = £1,500

 

Currently, I have not missed any payments, but I'm reaching a point where these debts are becoming unmanageable. I have just about kept up with repayments but now all 0% have ended and minimum payments are increasing making it impossible. 

 

I am considering a debt management plan... Reading through other people's experiences, dmp's seem to have mixed opinions and I'm also unsure if I should use a company like Step Change or Payplan whether I'd do better approaching the various creditors myself.

 

My wife also has debts, but much less (approx £10k and up to date, but struggling). Is it prudent for us to both start a dmp, or will that effect our long term plans if/when we want to remortgage/move down the line? (i know it'll be 6 years after default before these will disappear from our files).

 

As it stands, my min payments next month are approaching £1k, which is absurd. What kind of level of min payment would I expect to pay in a dmp?

 

Also, there seems to be a lot of advice on obtaining CCA's. At what point should I be asking for these, or is this something best left until the debts are inevitably sold on?

 

Sorry for the multiple questions!

 

Thanks in advance,

 

A

 

 

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Hi 1983 and welcome to CAG

 

Bear with us as it gets quieter here over the weekend.

 

CCA requests will not be appropriate for the bank account overdrafts.

 

Before further suggestions are made about CCA requests from the creditors, can you give us approx opening dates for each of the 5 CC a/c's and the bank loan a/c.

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yep.

 

if all these are still owned/with the original creditors and you are not paying any powerless DCA's 

then little point in any CCA requests at this stage unless any (non OD A/C's) are say pre 2000 opening.

 

our pro rata letters are the way to go

you'll find those in the debt collection section of our library.

 

get any income payments on going or otherwise moved into a parachute A/c.

 

it is most probable that whatever you do most A/c's will be defaulted once this is done if not already.

bearing in mine your wish to re mortgage or move in a future, it is most probable that the quicker you do default , the earlier a DN will be registered thus the earlier these will not show following their 6th birthday. this might involve you thinking about stopping all payments now ensuring this does happen, then resuming payment under a pro rata scheme self administered , once this happens.

 

just be aware that no DMP providers will ever question enforceability, should that be relevant. 

 

 

  • Thanks 1

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Thanks for the quick replies and advice!

 

I need to check the dates of these cc's, but i'd estimate:

 

Bcard1 - 2001

Bcard2 - 2007/8

Lloyds - 2015

Tesco - 2016

Natwest - 2003

 

The loan was taken out in 2019.

 

Regarding enforceability - this is part of the reason I want to manage any plan myself - I don't want to be cash cowed.

 

I will open a parachute account this weekend, outside the RBS group and move dd's to this account! 

 

Seems scary to just stop making payments, but I agree, the sooner the defaults are applied to my file the better. 

 

I haven't taken advantage of the covid payment holiday on the loan, but i assume that would be fruitless for the same reasons - can Natwest insist I take this to avoid defaulting the account

 

Thanks

 

A

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just be aware that some DD's give their takers the chance to get what they want when they want

standing orders and or manual BACS transfers might be better.

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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IMHO i would never have a DD setup for any consumer credit debt.

they are not a priority, like mortgage/rent/CTAX/Gas/Electric.

 

this gives you a bit more work to do, but it ensures there is always money for the priority things that can threaten the roof over your head or it's the necessary home utils needed with one.

 

it's also worthy to note that somethings that are unconscious priorities (though NOT!) like mobiles/phone/digital tv and broadband etc DD's often contribute to the real priorities not being paid. careful management of those needs to be exercised, like moving their payment dates to after the priorities are deal with in your calendar, or vice versa move the priorities to before those come out.

 

it is stunningly amazing how many families fall into priority bill debts by blindly pay these 'mentally essential luxury gadget' bills and are in total ignorance of the effect they have upon their available funds as 'they can't live without them'.

  • Thanks 1

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Hi guys.

 

Ok - so since I was last here I have set up a new basic bank account, which my salary and priority dd's will come out of from March.

 

Just wanted an opinion on a couple of thoughts I've had -

 

1) I have just agreed with my mortgage provider a 3 month covid payment holiday, which will help for the short term - however, I have an overdraft is with this bank. Am I causing a problem if I contact them now about my financial situation, or should I leave it until the holiday ends?

 

2) My salary has recently come down, which is a contributing factor to my plight - However, my income over the last few months will not reflect this. On my budget sheet, I have put in the new ongoing i and e. 

Is my bank likely to turn down my request of freezing interest etc. on this basis? They can see what has been coming in and going out. I'm concerned they'll think I've been creative with my income sheet?!

Or can I simply refer to this new situation in the pro-rata letters?

 

Thanks again.

 

A

 

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Put money away for the mortgage beginning now. So you have a good buffer when things restart

 

as for the OD follow the pro rata route but if they wont help you then drop them to £1pcm (letter 2).

 

stop worrying about what the banks might think of your offer.

Its your money..take control.

 

  • Thanks 1

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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  • 2 weeks later...

Hi guys. Having spent a few days reading countless threads in this forum, I’ve decided to just stop all payments in these unsecured debts in the hope it leads to quicker defaults.


I’ve started an emergency fund which I hope to build up considerably over the next few months by withholding all payments (unsecured).

 

I’ve created letters to send to creditors with my pro-rata offers ready to go. However, I get the impression I might be better off holding onto these until I’ve missed a couple of payments (again trying to expedite defaults). 
 

Does this seem like a good plan, or am

i overcomplicating it all?!

Edited by a1983
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Default markers are best rather than AP (arrangement to pay) markers ...at what speed they will issue default notices will vary...but as each company write and inform.....create a file for each and retain all paperwork....especially the DN.

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We could do with some help from you.

PLEASE HELP US TO KEEP THIS SITE RUNNING EVERY POUND DONATED WILL HELP US TO KEEP HELPING OTHERS

 

 Have we helped you ...?         Please Donate button to the Consumer Action Group The National Consumer Service

 

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