Default or not to Default?

[KOWENS132]

I am currently self-managing my own DMP and most of my mainstream creditors are being helpful and supportive, this has helped me reduce my debt by £4600 in the past 2 years. I already have a default assigned by Mint from 2009 and a repayment plan in place. Capital One have defaulted me in the past few weeks and the repayment terms have been agreed. My other smaller creditors are being picked off quite quickly. Other than my mortgage my biggest debt is with Barclays Resolve Loan who had agreed to a short term repayment plan (which I have been paying) an assessment of my outgoings and 6 months to address my arrears. Now out of the blue they are threatening me with a default and want the £365 arrears addressed by the 8th November. As I still have a substantial amount of debt, which with my plan will take 5/6 years to pay would I be better off accepting that they default me and then arrange new payments with their assigned DCA? At least this will give me a target figure to work towards and I can make repayment offers that I can realistically sustain. Any help will be greatly appreciated.

[Bazooka Boo]

Not sure what types of debt you have but two names that say credit card are Mint & Cr@pone, any CC's get £1 a month, no ifs or buts.

 

You Mortgage IS your MAIN PRIORITY debt, you need to get back on top of this at all costs, because if you lose your home because of some credit card debt then you won't be in a good place at all.

 

Any secured debts, are a priority, as are rent mortgage utility bills (except for clean water) court fines everything else comes at the very bottom of the list.

[KOWENS132]

Thank you for the reply Bazooka Boo Thanks to this forum and Moneysavingexpert I feel quite comfortable in how to deal with my creditors and what is/is not acceptable practice. Although it has been a struggle I have continued to reduce my debts which are credit cards and 1 loan but Barclays have been rubbish to deal with even though I have been with them for a long time. I am making reduced payments but Barclays are still adding interest on the loan but I accept this. As I already had a default assigned this year should I just go ahead with their default,get the balance established and renegotiate a more manageable repayment plan with the DCA - I owe them £11,800

[Bazooka Boo]

Is that 11800 for the loan?

 

So when sharklays defaulted you, did they terminate the agreement or did you manage to rectify the account by the time tha said?

[KOWENS132]

£11,800 is what I currently owe with interest being added as I am paying less than the original monthly sum. Not defaulted yet - they sent me the standard you will default if you don't pay by letter. What gets my back up with Barclays is that there are so many divisions and contacts you have to deal with and it is clear they are totally unable to communicate with each other. To be honest it has got to the stage when I might accept the default just to be shot of Barclays. I have moved my main account to Lloyds anyway and just have the Barclays Loan and an un-authorised OD which will be paid off next month.

[Bazooka Boo]

OK, how much of the OD is charges? IMO and I am currently testing this theory myself with Lloyds, is that if you pay them back what you actually spent, then they will not go near a court to try and reclaim the charges.

 

Now for Sharklays Loan, if they will not stop or freeze the interest then there is no point in paying them more than £1 a month, because they are going to get fatter and greedier by adding on the interest, it defies any logic to pay a reduced amount just fro that to be swallowed up in interest.