Time for DMP or Wait it Out?

[DNW]

Despite quite a number of our creditors having UE accounts, I can't hide from the fact that a fair amount are enforceable.

Barclays --------- Loan - July 09 - £14278 - Default
Egg ------------- CC - July 02 - £6722 - In Arrears
Egg ------------- CC - Jan 07 - £5706 - In Arrears
MBNA ----------- CC - Dec 06 - £8700 - In Arrears
Mint ------------- CC - Dec 03 --- £2700 - In Arrears (DN Rec'd)
Santander ------ -CC - Jan 07 --- £1510 - In Arrears (DN Rec'd)

................. Natwest --------- OD - N/A - £2180 - In Arrears

They have all been paid token payments of £1 a month for almost a year now - and most have remained relatively quiet since the initial burst of initial DCA/threats which is partly why I've not progressed any to a formal DMP yet.

We've been saving every spare penny we can so that in the longer term we can make reduced F&F offers however I'm now wondering whether we should perhaps move these onto a self managed DMP signed off through CASHflow. Financially we could increase payments from £1 a month to something slightly more meaningful (although we'd be looking at something crazy like a 15/20 year plan), but this would also mean that we'd not have the cash available to be able to save hardly anything towards the eventual F&Fs.

I'd really welcome some thoughts as what to do with this - carry on saving the money ourselves while creditors aren't hassling for increased payments, or start paying them a slightly more realistic amount in the hope that they don't take further action in the near future.

Thoughts?

[BBoo]

Re: Time for DMP or Wait it Out?

pm heading your way!

[SaltnVinegar]

Re: Time for DMP or Wait it Out?

Hmmmmmm its a tricksy one!

Trouble is you could open a tin of worms, because they may think they can come after you for more. Trouble is while you still keeping making a one pound payment, then the debts are not going to go SB either.

I would look at starting a DMP, but just don't start them with your creditors until they start knocking. OFT guidelines state that creditors should give you some breathing space if you inform them that you are seeking advice with dealing with your debts.

So if they start hounding you again, you can inform them that you are seeking professional advice with your debts, are looking on going on a DMP, and you will contact them within 30 days (which is the amount of time they are meant to give you).

You can then write to them with your proposal, and then make the pro-rata'd payment for that specific creditor.

This will still give you some time to save some money for F&F

Best
SnV

[BBoo]

Re: Time for DMP or Wait it Out?

Not sure I agree with that if you're suggesting what I think -ie- making pro rata payments when the creditor starts chasing for it, but waiting for that moment.

The reason for this is I think you'd have a difficult job persuading creditors to accept your DMP proposal when they can see from your credit file a payment arrangement has been in place for a length of time with another creditor.

I know they don't all search CRF's, but some do, and most do after a period of 6 or so months when they review your payments.

I think there's other better ways to buy breathing time, but I've pm'd the OP, so enough for here.

[SaltnVinegar]

Re: Time for DMP or Wait it Out?

Not sure I agree with that if you're suggesting what I think -ie- making pro rata payments when the creditor starts chasing for it, but waiting for that moment.

The reason for this is I think you'd have a difficult job persuading creditors to accept your DMP proposal when they can see from your credit file a payment arrangement has been in place for a length of time with another creditor.

I know they don't all search CRF's, but some do, and most do after a period of 6 or so months when they review your payments.

I think there's other better ways to buy breathing time, but I've pm'd the OP, so enough for here.

But how is that any different if a creditor searches the OP's credit file and see that the OP hasn't been making payments at all to creditors because an account is UE? They are NOT going to make that distinction between the OP not making payments because it may be UE, or if they are just not on a DMP.

If there are better options can you please share rather than send a PM to the OP where we cannot all benefit from seeing those options? (Unless the reason for the PM is there is personal information that is not for open forum).

I do not agree either that because you have sent the OP a PM, that this 'should be enough for now', moderator or not. AAD is an open forum right and the OP should benefit from experience and views of all its members?


Best
SnV

[BBoo]

Re: Time for DMP or Wait it Out?

24th March 2012 08:18BBoo
Hi SnV,

Just posted a long reply and lost it. It basically said a mod's opinion carries In my opinion no more weight than yours, so I'm glad you posted. Also said I will post what I want, and stop when I want. I don't mean that in any way confrontationally.

There is a better way here if you have the resources. That's all I'll say, but believe me it's with the best interests of the OP at heart. I believe as strongly as you that everything possible should be on the forum and out in the open. :-)

[DNW]

Re: Time for DMP or Wait it Out?

I'm still pondering on this.. I've got my DMP all set and ready to go, I just need to say the word and it'll be signed off. It'll be a self managed plan but signed off by a Cashflow advisor, so will carry a little more weight than a completely self managed DMP.

But I still don't know whether I should continue to lay low with £1 token payments until creditors start hassling, or whether to beat them to it by entering a more formal arrangement now.

On the one hand, making the token payments is pretty pointless as none of the debts will ever become SB, £1 a month won't stop a creditor taking legal enforcement action and the debts will never be paid off.

On the other hand, £1 a month seems to be keeping the wolves at bay (only one creditor (so far) has asked for any kind of review - and I've hopefully delayed any imminent action being taken by them by informing them I was seeking expert advice with my debts and would re-contact them in due course).

The longer term idea with these enforceable debts, is to drag them out for as long as possible so that the OCs sell off the debts thereby giving us a much better chance of low F&F being accepted.

I'd still appreciate any other thoughts/input as I'm going round in circles with it in my head and it's driving me more than a little insane not knowing which way to play this

[MrsD]

Re: Time for DMP or Wait it Out?

if you can get away with token pounds, then token pounds is the way i'd go. Put the difference in the bank and build some savings (or under the bed which might be the better option) are you sure you're ready to give up blagging?

[BBoo]

Re: Time for DMP or Wait it Out?

Who is pestering and how much is it for?

[DNW]

Re: Time for DMP or Wait it Out?

I've never blagged any of these, as soon as the agreements came back (mostly very quickly) as enforceable, I carried on with tokens as they all froze interest and mostly left me alone (once the initial flurry of DCA letters and doorstep threats were dealt with).

Saving the difference is exactly what we're doing at the moment in readiness for the eventual F&Fs, but will they ever sell the debts on/accept low F&Fs whilst they're receiving the tokens?

I wonder if I'm trying to sprint this enforceable marathon while I should still only be warming up

[DNW]

Re: Time for DMP or Wait it Out?

Who is pestering and how much is it for?

It's only Mint asking for a review, they're not actually hassling yet but I suspect they're going to be hassling soon if I keep putting off their request for review!

[PlanB]

Re: Time for DMP or Wait it Out?

Let me add to your confusion with my thoughts

The most important lesson I've learnt from this site is that debt is an emotional issue It's only money but somehow the DCAs get under our skin and we start to stop thinking rationally Then along comes Niddy and knocks us into shape just in the nick of time when we're about to crack under the pressure

I'm wondering whether your recent 'incident' with HSBC is quite understandably causing you to lose your nerve. Court papers are very sobering and maybe you're worried there'll be more arriving on your mat. Says who eh ?

So looking at the history you've got creditors accepting £1 token payments even on enforceable stuff. Sounds good to me. You've also got a DMP lined up to kick in as soon as you press the start button. That sounds good to me too. Seems like Mr DMP Guy has had a busy couple of weeks

Now you want to make a decision as to which way to jump. Fair enough. But do you actually need to make that decision now is the question DMP vs Token Payments is what you're looking at. Either way those debts will not get SB whether you pay £1 or £1,000 each month. The ones getting £1 may well be happy to settle for a F & F as the years go by even if they haven't sold you on to a debt purchaser.

If it was me I would stick with the 'status quo' and 'not rock the boat' on the basis of 'if it ain't broke don't fix it' and any other cliches I can think of

Also bare in mind you know these debts are enforceable but does the creditor or their daft DCA

[PlanB]

Re: Time for DMP or Wait it Out?

In other words, why upset the apple cart?

Could there be any more cliches

[BBoo]

Re: Time for DMP or Wait it Out?

What can Mint do? You've got a perfectly good CFS to hit them with if they get silly.

If it was me, I'd keep paying token payments for now. You can always choose to kick in Cashflow whenever you want; you can't decide to go back to token payments once you've embarked on a DMP without risking trouble.

[jon1965]

Re: Time for DMP or Wait it Out?

I can understand the need to pay off as much as you can but then I put my rational head on and think why the hell give em more than you have to. Now personally I can not save money so I could never get enough to offer a F&F but if you can then stick with it and keep paying tokens then do it.

Thats my confusing post