General idea about where to take things (DMP)

[SaltnVinegar]

Re: General idea about where to take things (DMP)

Hi Linnite

Welcome to AAD!

Just thought I'd add to this thread as someone who was on a DMP 4 years ago (self managed though not Stepchange, or CCCS as they were known back then), but then decided enough was enough, basically as a result of the actions of creditors despite having agreements with them.

I started my DMP back in 2010, and after 2 years of payments and hassle stopping payments to all of them, and CCA'd the lot, so just thought I'd tell you about my experience, and answer some of your questions through the thread.

The only reason to pay is if I thought they would try for a CCJ and/or charges against our home.

Being on a DMP and making payments is no guarantee that a creditor will not try for a CCJ or a CO on your home - did Stepchange not tell you that?

Personal experience - with TWO payments left on her DMP my wife received court papers from one particular creditor. By the time the acknowledgement of service had been filed, and a court date set, she had paid off the debt and was shafted with court costs (but as paid no CCJ). For good measure the creditor recorded a default with the CRA's further screwing her credit file for at least another 3 years (despite 4 years of payments).

Also what's the history been like on overdrafts? Have they tended to be enforceable?

Niddy has sent you the link to the O/D section so have a read through and I also suggest reading the relevant section of the Consumer Credit Act referred to so you understand the technicalities of the argument used, rather than blindly sending out templates.

Again my experience - I have two O/D's (one with Lloyds and another with Santander), both with unauthorized limits, and I am running circles around them with this at the moment. The drones in their collections departments just do not understand what is being asked of them or the requirements of the Act. I have been in a stalemate with them for 4 years now.

Barclays never defaulted it like ALL the others, it's AP. If it was proved unenforceable I am sure they would make it their business to sh*t all over our credit file for as long as they could. Defaulting it now woud do it for 6 years.

£3500 saved vs a big step towards getting a decent credit record, a tougher decision than some might think???

They already are sh*tt1ng all over your credit file by recording AP markers. I would almost guarantee that at the end of your DMP they will record a Default anyway. Look at things this way, start saving and put the money aside you are paying on your DMP as a 'slush fund' for making F&F offers. I would almost guarantee that in the long run you will pay less getting creditors to accept offers when paying nothing, than sending them monthly payments over years.

My experience is that I'm in much more control over my creditors than I ever was on a DMP, and I have received less hassle. Yes there is a risk of a court claim, but there is also a risk of a court claim when on a DMP (refer to our experience above!). You're in good hands here, and in the very unlikely even that a court claim is received, there are still possibilities of keeping things out of court and coming to a settlement (seach the forum for Tomlin Order).

I would also ask, have you actually been receiving balance statements from your CREDITORS (not Stepchange)? It is not unheard of for Stepchange to send people statements showing reducing balances, and then at the 'end' of the DMP creditors to turn round and state that a balance is still outstanding due to interest and charges not being frozen.

I'll watch out for your UE diary and very best of luck with your journey.

SnV

[MrsD]

Re: General idea about where to take things (DMP)

Feel free to close the thread, have done the diary, have also emailed StepChange tonight to basically end the DMP.

Ta!

-linnite

good luck, you just need to keep on top of the letters and we will keep you right, it can be done (we're 4 years in) and you can get your life back and start to keep some of your money. Remember to cancel the DD for stepchange and be aware that some of the balances may well be more than stepchange are showing as they just assume that interest has stopped on their online tool, we've had some folks get orrible shocks with this.

we'll leave the thread open, it's a useful Q&A for other newbies, well done you asked a lot of good questions and we're happy to answer them in full

[ken100464]

Re: General idea about where to take things (DMP)

Linnite

Niddy is so right about the trailing AP's. We are in the place 5 years down from the mess where everything defaulted besides a Halifax Card. Because we were paying reduced payments to it.

Next year all the defaults fall off the file but there will be three years of AP's still sitting there. 6 Years ago we thought exactly the same as you. Now we very much know Halifax were busy screwing us over while we still maintained reduced payments to them. Would have been much better to get the pain over with. It also removes another stick they use to keep the pressure on us without telling us exactly how Niddy explains it. Because of course they dont tell you this bit.

[linnite]

Re: General idea about where to take things (DMP)

Feel free to close the thread, have done the diary, have also emailed StepChange tonight to basically end the DMP.

Ta!

-linnite

[linnite]

Re: General idea about where to take things (DMP)

Hello linnite and to AAD.

It's good to see you asking loads of questions because we've got loads of answers for you.

You seem to be in a similar situation to most of us when we joined the forum and all our lives have improved as a result.

Good luck with your journey and we're all right behind you

Thanks!

[PlanB]

Re: General idea about where to take things (DMP)

Hello linnite and to AAD.

It's good to see you asking loads of questions because we've got loads of answers for you.

You seem to be in a similar situation to most of us when we joined the forum and all our lives have improved as a result.

Good luck with your journey and we're all right behind you

[Never-In-Doubt]

Re: General idea about where to take things (DMP)

Right g'nite all

[Never-In-Doubt]

Re: General idea about where to take things (DMP)

Ahhhhh forget that then lol.

We're discussing it now on another thread. You will not get a mortgage whilst this negativity is sustained on your credit report. Your only real option is your current provider sadly. But still 6yrs is better than 10+ years.

--> http://forums.all-about-debt.co.uk/s...942-Bt-default

[linnite]

Re: General idea about where to take things (DMP)

with respect we aren't here to help encourage new debt

Yes a good point. Would like the flexibility on house/mortgage moves and the like in the future but I always thought we'd one day have enough equity to achieve that. No immediate need for credit in all fairness.

[Never-In-Doubt]

Re: General idea about where to take things (DMP)

Simple equation. One default - you suffered a blip over 3-9 months.

Or 10+ years AP's shows sustained financial hardship.

Who would you lend to, of the two examples?

Theres your answer. It is risk based.

[Never-In-Doubt]

Re: General idea about where to take things (DMP)

A default is only bad for around 3 years. Visit defaults section and read my guides lol.

Its all covered but with respect we aren't here to help encourage new debt so whilst there's £30k outstanding I'd bite the hand that offered a 6yr default. One default won't be as bad as 10+ years of AP's. No. Guaranteed.

[linnite]

Re: General idea about where to take things (DMP)

the AP's will stay for 6 years (trailing history) AFTER you pay it off in another 5+ years so technically a 6yr default now trumps 11yrs of AP's.

Unless a default is viewed much worse by lenders, do you know if that's the case?

- - - Updated - - -

I need bed. Back tmw - have a think & fire away any questions.

Where I should be.

I really appreciate your help.

-linnite

[Never-In-Doubt]

Re: General idea about where to take things (DMP)

I need bed. Back tmw - have a think & fire away any questions.

[Never-In-Doubt]

Re: General idea about where to take things (DMP)

Barclays never defaulted it like ALL the others, it's AP. If it was proved unenforceable I am sure they would make it their business to sh*t all over our credit file for as long as they could. Defaulting it now woud do it for 6 years.

£3500 saved vs a big step towards getting a decent credit record, a tougher decision than some might think???

the AP's will stay for 6 years (trailing history) AFTER you pay it off in another 5+ years so technically a 6yr default now trumps 11yrs of AP's.

[Never-In-Doubt]

Re: General idea about where to take things (DMP)

Does that mean that there are scanarios where post Apr 07 debts are unenforceable? Or is it more of an opening gambit for some other strategy?

both