Your views and questions.

Moderators: TalbotWoods, JaneClack

By neilb1980
#269073 Hi everyone,

I've been on a DMP for around 2-3 years now. I'm now down to 2 creditiors from 6 when i orignially started it!!

I have debts with Santander and Barclaycard currently outstanding still, the santander is around the £5k mark and Barclaycard £3300.

I have reduced my monthly DMP payment from £155 when i had the 6 now down to £66 per month for the two currently outstanding. The problem i have is the other debts sold it on but Santander and Barclaycard havent, there happy with the payments i'm paying currently. And have no intensions of selling it on, so for the past 4 months i have paid token payments of £1 each and they havent said anything. I even phoned them to ask for a balance etc and nothing was said to me!!

I want this gone now but ive got 3k to pay them off but there not accepting the £1500 each i have offered. But all my old debts which are now paid off, which i agreed and settled with a F&F when i offered them it.

What should i do next continue with the token payments until such time they get fed up with it or just continue to pay £66 for ever....!!!! :-(

Thanks,
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By DuffNCustard
#269083 There is not a lot you can do to force their hand and either sell the debt on or accept your f&f. It is possible that eventually they will obtain a CCJ to enforce the debts - but again who knows its a big if.

Now you say that you have a few K and that you have reduced the amount you pay via your DMP?

Sounds to me like you are trying to welch on your debt - I was fortunate I paid all my debts back via a DMP administered by one of the debt charities. Others have struggled for years and are still paying back their debts - your post leaves a bad taste in my mouth.

You should pay your debts.
By nomlas
#269103 I am sorry D&C but I do not agree, neilb has been paying for quite some time and I feel he/she has every right to try to obtain a low F&F if possible. I have, as many on here have, reduced payments to assume the upper hand with creditors and you can be sure that the totals refered to in the initial post are made up to a large degree by charges and interest.

neilb, If you have no assets I would continue to pay the token £1 PM and try to make them either sell the debt on or accept your offer, if you have none you are in a very good position. If however you do then you would need to be more careful as they might go for a CCJ with a view to obtain a Charging Order. If you own your house I would reduce the payments little by little. Just my view. Regards. -- nomlas
By neilb1980
#269253 Thanks Nomlas, at least someone knew where i was coming from.

When i orignally came on this site years ago i was scared, skint and feeling a failure. Then i stumbled across 'Chandjay' posts and from then i have played the game like he has and it's worked very well for me to date.

I have no assets whatsoever so i am in a good situation really. But of course if i would have a mortgage i'd pay back every last bean including the vast amounts of interest they have wacked on.

'DuffNcustard', i havent got a problem at all paying back my debts, but what i do have a problem with is most of the outstanding balances to date is now made up of INTEREST. So for that reason alone i will not be paying them back the full balances outstanding.

I have a bad credit rating now like everyone else on here so there is no incentive for people to pay the money back that we all OWE including there stupid APR interest they wacked on top.

I called Payplan with regards to what schemes there are out there for people like us to finally get a mortgage in the future and i was told i would need to put a MINIMUM down of 40% so say I find a house for £140k i'd need to find £56,000 yeah right that would take years! So i have made the decision that we will continue in our council house which is already decorated and maintained very well and just extend on the property and continue to give my wife and kids the life style we all deserve! I'm not going back to the old ways of working all month just to give it to the banks and not my family. So duffNcustard I may have to agree to disagree with you there.

Thanks,

Neil.
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By DuffNCustard
#269303 Hmmm - I was rather vitriolic.........


Taking a view of the longer term - nobody will get a mortgage unless they have a perfect credit rating BUT banks don't make money by not lending and I wager you a penny to a pound of chinese excretement that 6 or so years from now things are going to be a whole lot different

so you have time on your side and on the basis that after 6 years the slate is wiped clean have you considered a DRO or an IVA? That would get shot of your debt no problem.

You'll continue in your council house and when the time works for you just exercise your right to buy. Ten years from now you could be buying it - with your discount. That discount is well worth cash (deposit/equity?) plenty of room to 'negotiate'.
By nomlas
#269313 I beg to differ again D&C, and I assure you I am not looking for confrontation. A DRO would only apply if neilb is in a very restricted financial situation and that does not appear to be the case. An IVA , in his possition, would be madness IMO. Without assets why would he wish to take on a binding agreement?

neilb:--You are realistic IMO and in your situation I would not give them an inch. Tell them, in no uncertain terms, that you are prepared to pay them a nominal fee, and no more, until they accept your terms. You have NO ASSETS and you have children, there is almost no chance that they will take you to court. Even if they did, your past record of payments would, almost certainly result in The Judge looking dimly on their actions.

At the end of the day you could not possibly be worse off by taking them on and dictating your own terms. Again, just my opinion. Regards -- nomlas
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By DuffNCustard
#269323 Here's my line of thought how to get rid of the debt and buy a house- assuming that a mortgage would be required at some point in the future.

Credit reference is already shot to bits so an expedient way of getting rid of the debt and mindful of the fact that the creditors are not showing any signs of taking the initiative, go for IVA 5 years on and slate is clean.

With debt gone then build up the reserves to buy council house - with tenants discount finding 30% plus deposit could be 'do-able' - this discount is a very useful ££££ asset to leverag. The credit reference would be clean by that time and the banks are likely to be lending again.

Sure you could just pay them the nominal £1 a month - I'm not saying otherwise, but doing so would mean that the debt is forever showing on the credit reference making a mortgage virtually impossible even in a couple of years.
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By JaneClack
#269343 I agree with D&C (although Mrs Duff is better than the vision of a gynae op I now can see)!

If Neil can only afford £66 then I am sure his budget would easily lose the £17 he would need to do a debt relief order as his debts seem less than £15,000 and I do not get the impression he is driving around in an expensive car - if he has more than £66, it may be that the creditors have an inkling of this and thus are not selling the debt on or defaulting it which is usually when interest and charges are frozen.

Even someone with a squeaky clean credit rating and no defaults and not a large amount of unsecured debt - because mortgage lenders take that into account too - is highly unlikely to get more than 85% loan to value so one will always need to save. Thus getting rid of the debt in a year - albeit staying on one's credit file for six years and using the years to save up for a deposit might not be such a bad idea. Bankruptcy is more expensive and there would be an income payments arrangement if the surplus was more than£50 or so with a basic family - but again sits on the credit file for six years.

An IVA does not seem to be a go-er here as the level of debt is too small.

Yes, he has no assets so can pay what he likes but the period of time just goes on and on and the fact he mentioned originally about trying to buy a house was what provoked my reply.
By nomlas
#269413 I am sorry but it seemed to me that neilb was not looking to buy a house and did not mention a mortgage in his initial post, rather he mentioned it in passing in his subsequent one and the implication I drew was that he had given up on ever buying.

It looks like a DRO could well be the answer, I had thought that as he has what seems a decent income he would not be accepted but on reading Sarah`s post I think he might well be, if so go for it neilb, all your problems, except for a bad credit rating for a few years, would be over. Good luck with whatever you decide. -- nomlas
By neilb1980
#270293 Update to my situation.

After three months of reduced payments £1 each to both my creditiors. I contacted Payplan and they referred me to the settlement team as i tried contacting my creditors myself but they wouldn't deal directly with myself.

I received a call yesterday from the settlement team and they contacted Barclaycard with the balance was £3450 and bearing in mind there had my account in collections for sometime now they took an offer of £1600 (Full and Final). So just over 50% which now means i have one creditior left Santander which the same department called them and they cannot locate my account.

So i dont know where i stand with them but going back to January this year i owed a total of £18,500 now it stands at £5,000 (Which will wait until a Full and Final is offered).

Just wanted to say thanks for all the advice i have received over the past 2-3 years it's made me have my life back and if i can offer one bit of advice and that is if like me you have NO ASSETS you are in control of the situation and going on a DMP is worth while.

I never thought i'd be nearly debt free within 2-3 years but i am. And i urg anyone debating weather a DMP is the way forward i think it is.

But i'm unsure weather i will be able to obtain credit in the future? (Dont worry i have now learned how to be sensible with money since having to live on a budget)

Can anyone offer advice to me about now trying to re-build my credit rating so i can think about obtaining a Mortgage within the next 5 years or so???

Thanks,