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Ask a CCCS counsellor a question

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  • munkiemunkie81
    munkiemunkie81 Posts: 6,326 Forumite
    SunnyMoneyTree - Have you tried freecycle? In my local one there is a guy just from the kindness of his heart who refurbs PC's regulary for those in need, Maybe there is some in your edition that does the same. :) Worth a try.

    Sudi - I did mine all online.
    Hey, Soul Sister
  • sunnymoneytree
    sunnymoneytree Posts: 17 Forumite
    Thanks munkiemunkie and sorry to hear of your troubles. Hope you get some good ideas on here. I'll definitely try freecycle, had forgotten about that. Take it step by step x (Am trying to take my own advice!)
  • CCCS_Matthew
    CCCS_Matthew Posts: 922 Organisation Representative
    Part of the Furniture Combo Breaker
    aodhansmum wrote: »
    Coownership Re-mortgage with bad credit
    Hi

    I am in serious need of some advice. I bought my house in Feb 2008 for 195,000 as part of the shared ownership scheme. I got a 100% mortgage on my share of 40% of the property (£78000). The house is no longer worth this amount. We'll now be coming to the end of our fixed rate and the rate will go up to something like 7.5%. Although we do not necessarily need to remortgage, I'm afraid that we will not be able to afford the payments when they go up.

    We also started a DMP with payplan about 6 months ago which means my credit score has dropped from 900 to 250. I realise that that alone will prevent us from getting another mortgage but what I want to find out is what my next step should be. I think I have another 6 months or so before the deal ends and I'm hoping my credit rating will have improved by then.

    Should I get the property revalued now by coownership? I'm a bit clueless when it comes to mortgages and deposits. When the property is valued is the deposit the % of the value of the property or the mortgage that we need? (as we only own 40%)

    Any advice would be appreciated. I know I'm in a ridiculous situation with my debt but that's why we started the dmp to make a conscious effort to get rid of it once and for all.

    Hi there, thanks for getting in touch.

    I would say given the circumstances you’ve got 3 possible options:

    Option 1: Stay with your current mortgage provider when your current deals ends and go on to their standard variable rate. It would be worth calling them now to see what their SVR is, and how much that would affect your payments. Bear in mind that if interest rates go back up again in the long run, so will your payments. If payments on the SVR increase what you’re paying now, you’re surplus for debt repayments will go down, so you would need to discuss this with Payplan to see whether the DMP is still realistic at a reduced amount.

    Option 2: See whether you can get another mortgage deal with another company. This maybe difficult if the value of your home is less than what it was when you got the property, particularly if you got 100% mortgage. It’s widely reported that 100% mortgages are now not existent so this may rule this option out completely. It’s also unlikely that your credit score will increase as any creditor that has defaulted your accounts will stay on there for 6 years.

    Option 3: If staying with your existing provider isn’t a realistic option due to cost, and you have no ability of getting a better deal elsewhere you may need to consider whether you can afford to keep living in the house.

    I’d suggest you probably need to discuss your issue with Payplan so they can talk you through what they would suggest as best advice.

    Hope this helps,
    Matthew.
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • CCCS_Matthew
    CCCS_Matthew Posts: 922 Organisation Representative
    Part of the Furniture Combo Breaker
    sarahb7538 wrote: »
    Hi

    How long does it normally take to hear from the CCCS once you have forwarded all the info they need?

    Thanks

    Hi there.

    If you're referring to the process of setting up a DMP, it's normally about a week or so once you've sent back the documentation. This may vary depending on how busy we are, but we look to start the DMP for the 1st of the following month. So depending on when you had your appointment/used Debt Remedy, this should give you an indication of timescales.

    Hope this helps,
    Matthew.
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • CCCS_Matthew
    CCCS_Matthew Posts: 922 Organisation Representative
    Part of the Furniture Combo Breaker
    wendiwobble wrote: »
    Hi there
    I really need some advice if you could help me
    I would be ever so grateful.
    My other half left me last yr. The mortgage was on repayment interest only (so it was cheaper due to the fact we'd had a baby and I went back to work only part time). We'd just had a mortgage payment holiday ( maternity).
    I sold my house to buy this one with him. I paid the deposit. I paid him 25k to pay off his debts so we could start again. I also paid 11k towards his car, and house improvements. I have no money left apart from
    I have three ISA's each with £50 in them.
    The mortgage has 16 and half years remaining. There is an unsecured loan attached as it is a Northern Rock mortgage this has a different arrangement. My ex is getting married this November - he has not paid towards the mortgage since MARCH. He is also being very evasive with the CSA.
    I have been makinghalf the payments for the mortgage since April 1st. My arrangement comes to an end in two months. They will not allow me to have any more time. I will have to move out with my daughter I feel before Christmas.
    I intend to go back North to be near my parents in my home town. I have no family and few friends here to stay. I do have my job which I shall also have to hand in my notice.
    The house is worth £100k, the mortgage is £125. The unsecured loan on top is £29
    I have £6k on my credit card
    I believe bankruptcy is the best option as I do not see why I should pay again (he has had enough money from me, when the shortfall from the house is assessed it will be as a JOINT loan - if he dies in the future - I will cop for the lot and be financially tied to him for life!!!! I see repossession is imminent?)
    IS bankruptcy my best option?
    Do I sell all my furniture on ebay?? and possessions??
    I have been advised to go bankrupt after I move, I WILL NEED MY EX'S permission to hand in the keys (voluntary surrender). If he does not agree I shall send him the keys and tell him the house is his problem!
    CAB told me to do this months ago (FEB)
    The local council would not house me due to me making myself homeless.
    If I go bankrupt what are the implications? Will my bank allow me to keep the ISA's?
    Will i be able to continue to use ebay?
    Can I get a sky subscription?
    Can I get a pay as you go broadband dongle?
    I am truly scared and the thought of living in my mum's spare room (she does not really want us there and neither does her partner- my dad's house is overcrowded - 9 living in a 3 bedroom house)
    If you could advise me I would be so grateful

    Thanks
    Wendi

    Hi Wendi, sorry to hear about your situation. I’ve tried to answer the majority of your questions below:
    • If you were to go bankrupt, your liability would be taken away from any shortfall from the property, as well as any other credit debts. Your ex would be responsible for any joint debts including a shortfall on the assumption that he isn’t looking at going bankrupt himself.
    • You could sell your possessions should you wish to, but you need to be aware that the official receiver may expect you to use the proceeds to go towards your creditors assuming the money wasn’t used to fund living costs or other priorities.

    You would not be forced to sell your furniture, I assume the reason you ask is because you are wary of walking away from a fully furnished property when you have no need for the majority of the furniture if you live with your Mum?
    • If you decide to go bankrupt but cannot surrender the property, you could include the house within your bankruptcy petition and allow the OR to deal with it.
    • It’s unlikely you will be able to keep the ISA’s, particularly if there is money in them.
    • You will be able to continue using eBay (I assume it’s for personal use, and you’re not running a money making business?)
    • Getting a Sky subscription after bankruptcy would be down to Sky’s discretion subject to a credit check. The OR may request you cancel an existing subscription as it’s often considered as a luxury.
    • I would have thought a PAYG internet dongle would be fairly easy to obtain even within a bankruptcy.

    Hope this helps!
    Matthew.
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • CCCS_Alan
    CCCS_Alan Posts: 282 Organisation Representative
    HelpToBeDebtFree wrote: »
    I'm thinking of doing a DMP through CCCS, but I've got a couple of quick questions...

    I'm employed and most of the debt is in my name, but my wife has also built up some debt in her name. She is self-employed (a director of a Ltd. Company), can we do a joint DMP and lump all of debts together? Will this affect her ability to be a company director?

    Also, one of our loans is with Zopa and we recently missed a payment. They were very quick to threaten legal action and said that if we were late paying again then they would pass the debt onto a debt collection agency for the full amount plus charges!

    And my final question is, we can just about afford the outgoings, but when some unexpected expense crops up we miss payments. Would a DMP last the full 6 years the CCCS website says it will take to pay off our loans?

    Thanks!

    Hi HelpToBeDebtFree

    A joint DMP could be a possibility and would not affect her ability to be a company director.

    Creditors such as Zopa can sell debts to collection agencies if you do not keep up with your contractual payments. A lot of the times as well these type of companies will try and scare people into paying money they don’t have with threats.

    The length of the DMP is determined by how much you owe, divided by the amount you have available each month to give the length in months of a possible DMP. As long as the creditors are willing to stop interest and charges this is the approximate time a DMP would run for.

    Regards

    CCCS_Alan
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • CCCS_Matthew
    CCCS_Matthew Posts: 922 Organisation Representative
    Part of the Furniture Combo Breaker
    Hi Emmington, thanks for posting.

    You mention that you took out an agreement for £9,000, but you don’t mention how much was repayable in total over the term. You need to take into account that although you borrowed £9,000 for the car, realistically you will pay back much more over the term considering the added interest.

    The claim of £6,500 after the car was sold for £7,500 suggests the agreement in total was around £14,000k (give or take the fact they may have added on extra handling costs for selling the car). This would seem fairly normal to me, although you need to check with the original agreement to ensure it’s in line with what you actually signed for before you raise a dispute.

    As far as the settlement offer is concerned, the reduced offer of £3,000 would be on the understanding that you pay it in one go. Such offers can be good if you’re in the position where a friend or family member could perhaps help you out to pay the money in order to settle for a lot less than what is actually owed. Unfortunately such an offer is only considered on the understanding that it’s paid in one go. The idea is that once the account is settled, the finance company can remove the debt from their books and move on, rather than it being paid back in small instalments over a lengthy period.

    Whilst I agree it seems silly they won’t accept the reduced amount over instalments, this is just the way it works as far as a settlement offer is concerned.

    Hope this helps,
    Matthew.
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • CCCS_Matthew
    CCCS_Matthew Posts: 922 Organisation Representative
    Part of the Furniture Combo Breaker
    sudi wrote: »
    Can you please tell me, if I apply for DMP online, do I need to speak to anyone on the telephone or can it all be done online?

    Thank you

    Hi there.

    In most cases you can complete Debt Remedy without having to speak to someone. However, on occasions, there maybe something that needs to be discussed before you can proceed to the advice booklet. In such cases you would be asked to call us, or if available, you could use the online chat.

    Hope this helps,
    Matthew.
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • CCCS_Alan
    CCCS_Alan Posts: 282 Organisation Representative
    sunnymoneytree wrote: »
    Hope you can help …I’m desperately confused about the best decision.
    Things keep going wrong causing a lot of problems, e.g my computer finally dying…don’t know what I can do there as need one for Uni. Have been trying for months to sort out my debt and the stress is crushing me. Didn’t know about the help on here until recently unfortunately , and CAB here is very busy….so first contacted them in March, got appointment a month later in April, then we were heading for a Debt Relief Order so letters with my financial status went out and now I have an appointment tomorrow (Tuesday 8th Sept) when we were going to put in for the DRO.
    But in the meantime I’ve been swinging wildly between the possibility of maybe paying back the money due to Gerrold Mundis’s book ‘How To Get Out of Debt….etc.’, or rejecting the idea due to seeing people on here with growing debts due to interest…and the stress that causes when they’re on a DMP trying their best.
    ALSO, my mother who knows nothing of my situation (£9653.20 owed to 3 credit cards and 2 banks)…recently asked me to begin repaying my debt to her as she is on a widow’s pension and basically needs it (£8060.00 from course fees when I couldn’t get a grant as a mature student, and a previous credit card debt combined). I have paid one month that she asked for, £22.
    I was expecting this debt to be on the sidelines for a long while longer, so mentioned it to my CAB lady but asked for it to be considered totally separate.
    So now I am thinking should I organise some sort of debt repayment plan…but how do I include my mother’s debt??!! when I didn’t put it in before? …aarg. And how can I possibly reduce the amount I pay to her when she really needs it, tho’ it is hard for me to pay. The other creditors would object?
    Help help help. I don’t know if I can handle telling mum I can’t afford to pay her this much…and why…She already understandably has a low opinion of me in this respect and makes it clear.
    Also am so overwhelmed with how to submit accurate figures for an SOA, hence none here, as my income fluctuates wildly. Did a financial statement with the CAB as taken over the whole year but even now this has changed as my seasonal wage just dropped by half, and I may be needing glasses, and have had some mad allergy with expensive prescriptions needed! Aaarg again! And if I apply for some help thru funding at Uni to help with getting a new laptop how would I write that in?

    Sorry about all the questions, hope you can make some sort of sense of it…I would so love to feel clearer in my head by tomorrow’s appointment. Part of the reason I wanted the DRO was that my course is really intense and I’m scared of not keeping track of events and correspondence with all my creditors. But would it prevent me bettering myself/my earnings due to the £50 ceiling on surplus earnings?
    Thanks if anyone replies to this.

    p.s. I’m 100% aware of everything I’ve done to create this situation, in spite of a relationship and break up causing a lot of the problems. I now keep a spending record and have not used any of my creditors accounts since my CAB meeting, and I have a new account with HSBC with no overdraft facility.

    pps. last week my wages were paid by cheque without warning as opposed to the usual paying in slip method. and my account DID go overdrawn due to direct debits and the fact that I have no cushion as yet....aaarg..think I'll get charged even tho' I rang as soon as I found out...aaarg!

    Hi Sunnymoneytree

    The CAB should be able to go through your figures help put together a budget for the DRO application. If you are able to apply for a DRO your surplus would be less than £50pcm so you could start using this to repay your mother for the money you owe her.

    If you bettered yourself in the 12 month period and your surplus exceeds the threshold, the DRO would be cancelled and your debts would still stand with the interest added. If this was the case you could then look at trying to repay your creditors with this surplus instead and still keep your mother as a priority payment.

    Good luck tomorrow.

    CCCS_Alan
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • CCCS_Matthew
    CCCS_Matthew Posts: 922 Organisation Representative
    Part of the Furniture Combo Breaker
    munkiemunkie81 wrote: »
    Hi

    I'm going through a separation with my husband and he's been very lovely and humped all the debt on my shoulders leaving him a cushy £1000 a month to spend on whatever he pleases and me and our child with £80 before food and rent because he insisted that he got to keep the house because he can afford it - of course he can while i'm still paying half the mortgage!

    Anyhoo, I have carried out the debt remedy online with you guys, got my welcome pack, my budget etc but have a few questions.

    I have prepared all my letters to creditors and have made a start on the package for CCCS.

    However some debts are still in my maiden name and at my house address rather than where i am staying now. Will this cause a problem?

    Also I do not have all statements available - but have requested them from creditors with a change of address letter. Can i send you what i do have now for you to make a start. I need the DMP to start on October the 1st because otherwise everything is going to go BOUNCE including mortgage and I dont want to go down that road!
    Have I got enough time to make that happen??

    Can you advise suitable places to open a new basic account - I tried Yorkshire bank but they cant see me for a week and I need to send my current account the DMP letter due to an overdraft and loan with them. Obviously i want to make sure my D/D come out as planned before they put a hold on my overdraft which i am living in permanently because my husband cleared it out and then opened his own account! There is still Childcare payment and a few bills to come out that need to come out. I do not have the additional money to send 'token payments' Hence my needing to pay this months as planned and then start the DMP in October sending you the 1st Month.

    Does that make sense? I have a feeling I have rambled considerably!

    Blumming typical I have to go through all of this to stay afloat when my cheating lying husband being the main cause of it all (excluding my stupidity!) and he ends up rolling in roses!!

    Editing to say thank you thank you thank you to anyone who responds!

    Hi there, in answer to your questions...
    1. It won't make a difference whether some of the debts are are in your maiden name, these can be included along side the debts in your married name.
    2. Send what paperwork you have now, and send the rest when you get it. It will speed the process up and makes the likelyhood of things being up and running by October more likely. If it doesn't happen, you need to make sure you cancel any arrangements with creditors for October to prevent the possibility of your mortgage not being paid - this is a priority.
    3. Co-op are normally considered good for a basic account (providing you don't owe them any money). The following document may help too:
    http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

    Hope this helps,
    Matthew.
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
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