I am currently on a debt management plan with a third party company whom i pay £300 per month towards clearing my debts. This £300 gets split to pay off my creditors.. Just out of interest what would my creditors/debt management company do if i was to miss one of these monthly payments? What would the consequences be if i were to miss a payment?
You need to call them (the debt management company) and let them know. If this is a matter of the due date, sometimes you have the option of paying creditors directly about ten days later than your consolidated payment would be due, or making a rush payment. But if you actually need to miss a month. . .
Often it doesn’t matter at all–the creditor has to notice the missed payment and have a policy to immediately take action due to your past delinquency. But missing a payment means that the nice deal they made with your creditors has been broken by you and the creditors have the choice to cancel the agreement. Normally, they will let you make the deal again and get back on the program, but they don’t have to. Also, that won’t happen automatically. If your creditor cancels your agreement, you will not get notice, your interest rates will go up, and minimum payments and late charges will be back in the picture. You’ll have to have the debt managers make the deal with your creditors again, and the creditors could opt for different terms to the deal this time.
Well, those are pounds, so I figure your country will simply absorb it and move on. Here in the US though, we get charged around a 35$ late fee, a 35$ fee for them having to send you a fee notice, you get debt collection calls for the rest of your life at home and at work, the annual percentage rate is increased to exhorbitant amounts making it completely impossible to pay back, and we would basically be cutting our own wrists. Then, when so many people cant pay these debts back, due to the unscrupulous and predatory means with which the original contract between borrower and lender is "changed", the government will bail out the lenders, and our credit FICO score is ruined, Thus no employer will hire you, no bank will ever lend to you, and you will be homeless. Thats what the American Dream is all about anymore. BTW, KEEP CURRENT. DONT let that 300 pounds go unpaid.
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JP Morgan Chase, and Morgan Stanley, etc. etc.
You want to be declared bankrupt then? The debt management company would not necessarily do any thing but your crediters might
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they will report it to the credit company as a late payment. my suggestion to you is to keep up with the company so they don’t miss a payment or they don’t pay late. because the creditors will charge late fees that are not going to be paid by the thrid party debt management co.
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You need to call them (the debt management company) and let them know. If this is a matter of the due date, sometimes you have the option of paying creditors directly about ten days later than your consolidated payment would be due, or making a rush payment. But if you actually need to miss a month. . .
Often it doesn’t matter at all–the creditor has to notice the missed payment and have a policy to immediately take action due to your past delinquency. But missing a payment means that the nice deal they made with your creditors has been broken by you and the creditors have the choice to cancel the agreement. Normally, they will let you make the deal again and get back on the program, but they don’t have to. Also, that won’t happen automatically. If your creditor cancels your agreement, you will not get notice, your interest rates will go up, and minimum payments and late charges will be back in the picture. You’ll have to have the debt managers make the deal with your creditors again, and the creditors could opt for different terms to the deal this time.
References :