Self managed DMP - management issues already - scotland

[Badtimes123]

Hi Stuckfast and welcome to CAG

 

Great job starting to self-manage your debts and listing them out here, you seem proactive and that's a great trait to have when it comes to debts.

 

You don't mention your partner's income so maybe there is some flexibility there to maintain pro rata payments?

 

Personally, looking at your list vs income I would consider dropping all of them to £1 per month as per the pro rata process and stating you are having further financial difficulties. The reason I would do this is you are unlikely to clear any of them as it stands and there's little difference in £5-£1 from the creditors point of view, whereas due to the amount of accounts, that's alot of ££'s for you when multiplied. This can be saved initially with a view to perhaps making full and final settlements on the none defaulted smaller accounts in the future but at the very least give you some breathing room for now.

 

Then, at some point after the companies all default you, they are likely to sell the debt on, at which point you can challenge the DCA's to prove the accounts are enforceable - they are usually not due to how the Original Creditors (OC's) and Debt Collector Agencies (DCA's) carry out this process.

 

Have a read through the debt forum for similar situations as yourself you'll soon pick up the idea.

 

You are not alone and there's nothing to be ashamed of - you've done the right thing in reaching out here on CAG, we will help you

 

Lastly, I disagree with Yorky and do not think you should seek advice from any company that is funded by the financial institutions, advice here is free and if you're willing to learn you can absolutely do all of this yourself.

 

Don't use the phone - letter's only.

Don't complete any income and expenditure forms

You've already proven you are willing to take control, continue!

 

BT

 

Edited May 21, 2022 by Badtimes123

[Badtimes123]

Scotland - I know there are some differences when compared with England around statute barred, there may be others I'm not aware of so hopefully someone else is keeping and eye and will correct anything that is said.

 

I've plans this evening with the fam, so this may be rushed and I might miss something. Given you have so many accounts in different stages, it will be difficult to dig into each individually but the same will apply for all and we will get there

 

Priority debts are essentially anything that keeps a roof over your head. Anything consumer credit (CC, loan, store cards etc) are NOT priority debts.

 

1 hour ago, Stuckfast said:

Do you mean paying full and final on a credit card for £100 for example,

Yes, that's what I meant, but really I just mean you will have choices with some saved in the bank. It makes sense on smaller accounts that you offer F&F to clear them IF they aren't already defaulted as it will just lower the amount of communications you will start getting - BUT defaulted debts will show on your credit record and affect you whether you pay them off or not, 6 years from the default, then they will disappear (could be 5 in Scotland, not sure)

 

You're quite correct that the older the debt, the more likely the paperwork is missing, but some of mine were very new (2020/21 also) and they couldn't provide the documentation..

 

Lets start here:

 

-  lower the pro rata on all to £1 (don't provide any income & expenditure info)

-  CCA Request to each company that has bought the debt from OC (the last letter from OC will state they've been sold to xxxx)

-  get access to credit file

-  Forget your morals, they have none

 

For those debts already showing in default on your credit file and have been sold, you can stop paying entirely until you receive a complete CCA from them

 

I'll be back later

 

BT

Edited May 21, 2022 by Badtimes123

[Badtimes123]

Have you checked your credit file yet?

From my understanding, 20 defaults is no worse than 10...

 

This is what I would do Stuckfast

 

Starling bank overdraft: £400, 2019. Pro rata £14 arrangement to pay, no default. - Drop to £1 pm, wait for their move

Tesco Credit Card: £100  started 1/12/2019; defaulted 7/10/20 £5 mth - Defaulted, stop paying wait for them to sell

Virgin Credit Card: £2700 started 14/5/18; defaulted 30/3/21 £5 mth - Defaulted, stop paying wait for them to sell

Marks and Spencer Credit Card: £850 started 18/10/19; defaulted 13/1/21 £5 mth - Defaulted, stop paying wait for them to sell

Nationwide Credit Card: £1500 started 30/4/19; defaulted 28/12/20 £5 mth - - Defaulted, stop paying wait for them to sell

Barclaycard CC: £1400 (PRA group purchased it) started 25/8/18; defaulted 16/7/20 £5 mth. - Stop paying. Send PRA a CCA
Aqua Credit Card: £3900 (now with Cabot Financial) started 3/12/18;  defaulted 12/11/20 £5mth - Stop paying. Send Cabot a CCA
Aqua Loan: £1700 (now with Link Financial) started 28/9/19; defaulted 2/2/2021 £5 mth - Stop paying. Send Link a CCA

 

Monzo Loan:  £1900 October 2021 – permanent pro rata £39 agreed, not defaulted - Drop to £1 pm, wait for their move

Likely Loans: £1500 December 2021 – temp £14 pro rata, not defaulted - Drop to £1 pm, wait for their move
Monzo overdraft: varies up to £750  - temp £10 pro rata - Drop to £1 pm, wait for their move

Monzo Flex: £900 December 2021 – temp £11 pro rata - Drop to £1 pm, wait for their move
Fluid Credit Card: £1500 July 2021 (on a holiday until August) £0 - Offer £1 pm, wait for their move

Capital One Credit Card: £700 £40 mth (up to date) - Try to pay off as you are or drop to £1 pm, wait for their move
Amazon Credit card: £2450 November 2021 £75 mth (up to date) - Try to pay off as you are or drop to £1 pm, wait for their move

Next: £56 December 2021,  £5 mth (up to date) - Pay off with first months savings due to reductions in pro rate and the ones stopping being paid.

 

Thanks dx, copied that for my future reference

[Badtimes123]

Yeh that's very true dx, I figured they would sell anyway but stopping will speed this up and given the existing defaults 100% agree best to get the 6yr clock ticking

 

Just pay the Next £56 one in the first month you stop paying, might as well for £56.

 

Stuckfast, get yourself prepared to receive a forest of letters, get a separate folder for each debt, file in chronological order.

Edited May 21, 2022 by Badtimes123
folder advice

[Badtimes123]

You're very welcome SF

 

Yep it's a relief for sure! I'm almost 18 months into the 'stopping paying everyone at the same time' idea, so I know what's coming for you and it's nothing to worry about.

 

Your postman might start getting annoyed though

 

Just remember, should you ever receive a letter of claim / letter before claim DO NOT ignore it! come back here for help.

 

Over the coming months and while you're witnessing the deforestation arrive via the post, stick around CAG and read read read

[Badtimes123]

If any of that is because of me, I'm sorry

I would never intentionally misinform regarding paying not paying - I did state it was what I would do, because it is, what I did..

 

Dx's advice is just as easily doable though SF given everything said upto now about dropping to £1 pcm

[Badtimes123]

No worries, you've done the right thing reaching out for help, you're on the right road now.

 

I'll leave you in the capable hands of the site team, I'll be lurking though so do definitely keep us informed