New member debt advice

[dannilcrook]

Hi all,

I've been reading through some of the threads on your forum and I'm blown away by the support and advice being offered on here. I'm hoping someone might be able to point me in the right direct about tackling my own debts so I can start getting some way towards getting a mortgage.

I've been with Step Change on a DMP for a few years now and here are my debts?:

DMP start date: March 2020

Debt 1 Account: RBS overdraft (Moorcroft)
Still with RBS, managed by Moorcroft
Commencement date: 12 July 2001
Approx balance: £2385
Last payment date 15th Jan 2022
step change? Yes
Default date: February 28, 2021

Debt 2 Account: Newday Ltd Amazon
Credit Card still with Newday
Commencement date: 6 August 2019
Approx balance: £460
Last payment date: 15th Jan 2022
step change? Yes
No default

Debt 3 Account: Newday Ltd Marbles
Credit Card still with Newday
Commencement date: 17th March 2019
Approx balance: £322
Last payment date: 15th Jan 2022
step change? Yes
No default

Debt 4 Account: Capital One
Credit Card still with Capital One
Commencement date: 19th Feb 2018
Approx balance: £547
Last payment date: 15th Jan 2022
step change? Yes
Default date: April 20, 2020

Debt 5 Account: RBS Credit Card (The Zinc Group)
Credit Card still with RBS, managed by The Zinc Group
Commencement date: 24th Jan 2018
Approx balance: £885
Last payment date: 15th Jan 2022
step change? Yes
Default date: September 3, 2020

Debt 6 Account: Paypal (Moorcroft)
Credit Card still with PayPal, managed by Moorcroft
Commencement date: 25th Feb 2018
Approx balance: £948
Last payment date: 15th Jan 2022
step change? Yes
Default date: June 21, 2021

Debt 7 Account: Vanquis
Credit Card still with Vanquis
Commencement date: 21st June 2019
Approx balance: £357
Last payment date: 15th Jan 2022
step change? Yes
No default

Debt 8 Account: PRA Group (was Halifax)
Credit Card not with Halifax
Commencement date: 20th Jan 2011
Approx balance: £1875
Last payment date: 15th Jan 2022
step change? Yes
Default date: June 1, 2020

Debt 9 Account: RBS loan (Moorcroft)
Loan still with RBS, managed by Moorcroft)
Commencement date: 19th April 2018
Approx balance: £7711
Last payment date: 15th Jan 2022
step change? Yes
Default date: October 31, 2020

Debt 10 Account: Next Directory
Credit account still with/or not
Commencement date: 13th March 2018
Approx balance: £261
Last payment date: 15th Jan 2022
step change? Yes
Default date: September 12, 2021

Debt 11 Account: Shop Direct (Moorcroft)
Credit account still with Shop Direct
Commencement date: 15th July 2010
Approx balance: £1296
Last payment date: 15th Jan 2022
step change? Yes
No default

For commencement dates I put when the accounts were opened, is that right? It's such a hefty list - quite embarrassed but I've recently got diagnosed with ADHD which may go some way to explaining my erratic spending, along with a traumatic divorce.

Thanks in advance for taking the time to look over.

Kind regards,

Danni

[The Tech Clerk]

If a creditor hasn't done proper affordability checks, they may give you a loan that's larger than you need, or that you can't afford to pay back. ... Lending money without properly checking affordability is known as irresponsible lending.

Irresponsible Lending & Affordability Checks. StepChange

Suspect this area on lending may be helpful for you to understand, (depends on income and situation)??

[dannilcrook]

If a creditor hasn't done proper affordability checks, they may give you a loan that's larger than you need, or that you can't afford to pay back. ... Lending money without properly checking affordability is known as irresponsible lending.

Irresponsible Lending & Affordability Checks. StepChange

Suspect this area on lending may be helpful for you to understand, (depends on income and situation)??

Thank you! To give a bit of understanding of circumstances, we are a blended family of 6 with myself earning low 20k and my partner now earning high 40k. When we moved in together in 2017 we were on much lower incomes and it was quite costly (with some frivolity thrown in I'm sure). Getting the RBS loan I think put the final nail in which is why I ended up on the DMP. I now pay £381 per month with Step Change as well as paying £200 car finance (not on the DMP) which is manageable but sometimes challenging on expensive months. As it stands they *should* be paid off in 2025 but wondering if there are better options out there or just to crack on? I've got defaults on the accounts but no CCJs currently.

Thanks again for your help ?

[The Tech Clerk]

well some maybe suspect ie credit cards? shop direct/capital one/next/RBS overdraft ( would need specialist help there)?

will ask Colin G Quinn to pop in here for thoughts??

[Still Waving]

Hi

It would be useful to know when each individual account was formally Defaulted by the creditor, and when did you enter into the DMP. Debts will stay on your Credit Reference Account for 6 years from when the default is entered, so could affect your ability to get a mortgage. If they were to be shown as 'Satisfied', ie you have paid them off, this might work in your favour when it comes to a mortgage application.

[Still Waving]

For commencement dates I put when the accounts were opened, is that right?

Yes.

[dannilcrook]

Hi

It would be useful to know when each individual account was formally Defaulted by the creditor, and when did you enter into the DMP. Debts will stay on your Credit Reference Account for 6 years from when the default is entered, so could affect your ability to get a mortgage. If they were to be shown as 'Satisfied', ie you have paid them off, this might work in your favour when it comes to a mortgage application.

Sadly I think I'm quite a while away from being able to get a mortgage as even though I'm on the DMP, I'm still getting defaults each month for the RBS overdraft, Halifax Credit card (PRA Group), RBS Credit card, PayPal, Next, Capital One and RBS Loan.

[Still Waving]

Sadly I think I'm quite a while away from being able to get a mortgage as even though I'm on the DMP, I'm still getting defaults each month for the RBS overdraft, Halifax Credit card (PRA Group), RBS Credit card, PayPal, Next, Capital One and RBS Loan.

Dates?

[dannilcrook]

Dates?

First defaults

RBS overdraft: March 2021
Halifax CC: September 2020
RBS CC: October 2020
PayPal: June 2021
Next: September 2021
Capital One: April 2020
Newday Marbles: November 2020

[The Tech Clerk]

First defaults

RBS overdraft: March 2021
Halifax CC: September 2020
RBS CC: October 2020
PayPal: June 2021
Next: September 2021
Capital One: April 2020
Newday Marbles: November 2020

insert these dates into each diary for easy reference

[Still Waving]

I think much is going to depend on your priorities. You said in post #1 that you are looking to get a mortgage at some point. You have also said that your DMP should be paid off in 2025.

I am a little confused by your timelines: You have not answered as to when your DMP started, but I am assuming that it was late 2019 at the earliest. Can you clarify the start date of the DMP?

According to the dates you provided in post #9, the debts will show on your Credit Reference File variously until 2026 and 2027. If you clear the DMP as you anticipate, the debts should be marked as satisfied from 2025. It seems to me that any other course of action (ie non-payment and challenging the debts) will mean the debts showing as outstanding for up to a further two years.

Other forum members may take a different view.

[dannilcrook]

insert these dates into each diary for easy reference

Thank you, I've now added these in

[dannilcrook]

I think much is going to depend on your priorities. You said in post #1 that you are looking to get a mortgage at some point. You have also said that your DMP should be paid off in 2025.

I am a little confused by your timelines: You have not answered as to when your DMP started, but I am assuming that it was late 2019 at the earliest. Can you clarify the start date of the DMP?

According to the dates you provided in post #9, the debts will show on your Credit Reference File variously until 2026 and 2027. If you clear the DMP as you anticipate, the debts should be marked as satisfied from 2025. It seems to me that any other course of action (ie non-payment and challenging the debts) will mean the debts showing as outstanding for up to a further two years.

Other forum members may take a different view.

My priority is to get my credit rating to a good enough point as soon as possible to enable us to get a mortgage or at least start to save for one.

My DMP started March 2020 which I decided to take out as although I was scraping by with payments it simply wasn't leaving me much leftover to have a reasonable quality life for our children. It was so stressful.

Thank you for clarifying regarding the defaults. I'm just wondering if I continue to get monthly defaults as I am at the moment with a few of my creditors, will it be 5/6 years from the date of the last default when my credit will be cleaner (assuming the debts are paid off by then, which they should be?)

[The Tech Clerk]

CRA record details for companies to see for 5 years (Scotland) 6 years england/wales. usually will reappraise lending towards the end of that time (if no further adverse entries.

[The Tech Clerk]

trouble with mortgages people in similar circumstances rush into mortgages too early they cannot get mainstream ones only expensive ones, later down line tends to get so expensive that things fail? happens all too often.

even main stream lenders in some cases get away with increasing fro 1.0% to 4.2% and the government do nothing about it as in our case, eventually downsized and paid off and bought outright a smaller (Needs) property. (I too had a heart attack in later years = wages cut by £200+ per weeks hours from 48+hrs to 16 hours through employer not listening to doctors who stated get back to normal.