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Hi people 

 

my story is probably the same as many thousands around the uk.

 

Before covid, I was living comfortably. Working unlimited overtime. Nice cars etc. Since covid struck my carpets been cut be best part of 2-3k a month due to loss of wages and overtime. My basic salary alone has been cut by 700 a month 

 

this leave me in a position where I have exhausted all payment holidays available to me by all my lenders. I’ve had full 6 months. I’m at the point now to break. I work for a uk airline and work has been stagnant as we aren’t flying 

 

so my debt is as follows 

bmwfs 765 pm

vauxhaull finance 286pm

mbna credit card 270pm total 13700

natwest credit card 170pm total 6700

Virgin credit card 125pm total 5000

omni capital 56pm total 2500

ikano bank 127pm total 5000

 

obvs I have the like of my mortgage and stuff and utility bills but above are my main debts. If I had have held of 6 weeks I wouldn’t have needed another car due to lockdown. But back then I had a nice surplus of money and lived for the day.

 

I’ve been on the phone to mbna to try and sort it and I have been through income and outcome and they said the only option is to either earn more money or reduce something to be able to go on a short term plan for a few months or long term would be default route. not entirely sure what’s best. I have been winging it for so long but I can’t take another year of it. It’s been over a year now.

 

im thinking if I take the default route, do I still pay the accounts off, do I just default on everything in one go and then not pay anything back cos then in 6 years the account will be off my record. If I pay after a default it just strings out the 6 years and may never clear my file 

 

any thoughts or advice appreciated. I have a few days to decide 

 

I can’t just offload the bmw which would be nice cos the negative equity is about 10k at trade in and 15k to the Vt point 

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Well the bottom line is how important is your clean credit file to you ? Because whatever you decide unless you maintain full payments on the debts you will be defaulted....whatever payment plan you agree.

 

Andy

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as long as all your debts are still with the original creditors

use the pro rata letter to everyone thats in the debt collection section of our library.

 

drop 'em all down to a few £10's each, that will free up money to pay the car, best you keep that at its correct level IMHO.

don't go paying anyone else anything more than above thus ensuring your PRIORITY debts that can threaten the roof over your head, comfortably can be paid, mortgage/ctax/gas/electric.

 

dont forget hidden things like tv subscriptions and expensive £PCM mobile contracts, dump them and use things like giffgaff payg and  firesticks .

 

dx

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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Yes that’s what I was aware off. I’m thinking long term. If I took the hit now with the defaults it will be done and dusted in 6 years. It’s a unique situation many people are facing due hardship from covid. 
 

if I default and then set a payment plan up it just carries on on my file like it did about 14 years ago. It took me a while to get it sorted. But now I’m out of choice I think. If I have one default or 5 defaults if ya get me 

 

do you have to pay a defaulted account or can that only be from a ccj? Cos setting up a payment admits liability with regards statue barring 

 

I’m already into my Vodafone contract as when I do work it provides me worldwide cover for when I’m flying. 
 

i did an income and outcome expenditure with mbna earlier. I said at first about paying less but that will still have the same effect as either a long term or short term plan and put me in default 🤷‍♂️ 

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Well that's your choice whether to pay anything...once defaulted the damage is done.....payment or no payment...the only thing with making a payment arrangement as you state you  delay limitations and it may delay them in assigning the debts to DCAs...its very rare for an original creditor to instigate litigation.....but if it falls into the hands of a litigious DCA....they will certainly issue a court claim....providing they have all the correct paperwork.

 

 

.

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Even making a minimum agreed payment plan (Arrangement to Pay) will starve off a default marker short term but having a AP marker on your file is worse than a full default.....a default marker will drop away after 6 years (5 Scotland)...AP markers can hang around like a bad smell for decades.

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Yes that’s what my suspicions were. Either way both are bad just ones more bad than the other 

 

That’s what my worry would be. But equally is there any benefit of paying a debt once it’s defaulted if it’s just gonna drag on

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Do you own property or renting....have you considered a DRO (debt relief order) ?

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Just now, Topham said:

That’s what my worry would be. But equally is there any benefit of paying a debt once it’s defaulted if it’s just gonna drag on

 

My personal opinion is no.....they have already trashed your credit file...the only possible further consequence is them issuing a court claim then trying to execute it with Bailiff enforcement.

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No I’ve not considered one of them 

 

is that like an IVA or something 

 

we have a mortgage on our property 

 

Then the debt just has thousands of pounds of fees and court costs added??

 

Just goggles a DRO and I have assets over 1k and my credit card debt is more than 20k

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DROs are only available to renters.....so scratch that. Do not even consider an IVA.

 

Most court claims for debts are under 10K and therefore small claims track,,costs are restricted.Debts over 10K are Fast Track and then there is a risk of expensive costs...but not many DCAs go near Fast Track...the fee is too expensive to issue.

 

 

.

 

 

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This is what I would do in your situation.....work out what must be paid priority.

 

Get a folder for each of the others and maintain a paper trail....date you stopped payment...date you defaulted...retain a copy of the default notice which they must serve you. Try to print the last years statements for each account and retain in their file. 

 

Then send each creditor you have opted to stop payment a section 77/78 request (CCA request)...this is a legal request for each agreement that they must respond and comply with in 12 + 2 days...if they fail to reply they are in default and unable to enforce the agreement on.

 

Retain every letter received (and envelope) and file in the appropriate folder.

 

The next stage will be debt Assignment...they will sell of your debts to a DCA for 20p in the £1...once if any debts are assigned again they must send you a Notice of assignment ...again file this in the appropriate folder. Be prepared for a deluge of letters chasing and phone calls.

 

Now the clock starts ticking for 6 years.....but thats way ahead and you can come back for further advice if and when.

 

Regards

 

Andy

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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

 

If you want advice on your Topic please PM me a link to your thread

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