Cccs

june1970_2

Could some one please explain what ccs are?

file_wizzard

Consumer Credit Counselling Service

Basically act as a free service to those in debt and negotiate DMP’s ( Debt Management Plans ) with creditors for people who are unable to undertake the process themselves.

This enables the debtor to repay their debt over a longer period and at a manageable amount proportionate to their income and expenditure

june1970_2

thank you very much for that.

keithboy40

what happens to your credit rating once you are on a DMP. does it effect getting a mortgage

file_wizzard

keithboy40 wrote:

what happens to your credit rating once you are on a DMP. does it effect getting a mortgage

Yes Drastically

Most lenders would mark the credit file entry as "Arrangement To Pay" , this is an immediate indication to any other prospective lenders that you are unable to meet your current commitments and have entered a DMP

However if you are at the stage where you are involving CCCS / Payplan you have probably missed quite a few payments or even defaulted anyway, so the impact of an arrangement to pay mark as opposed to a series of “late” or a default makes little or no difference

Bargain_Rzl

keithboy40 wrote:

what happens to your credit rating once you are on a DMP. does it effect getting a mortgage

People enter into DMPs because they can't pay their debts, so whatever happens, your credit rating will be screwed up for 6 years (because you failed to meet the original terms and conditions of repayment of your debts).

To be honest if you've got a debt problem the last thing you should be thinking of doing is getting any more debt, i.e. a mortgage, but I'm guessing you're talking about the future. As soon as each creditor is happy (with either full payment or a "full and final" settlement of less than the owed amount) then the 6-year clock will start ticking until after 6 years the records fall off the end of your credit report.

I don't mean to sound harsh but if you were a mortgage lender, would you lend a large sum of money to somebody who's just proved (by being in a DMP) that they can't handle paying things back? The six-year window is your opportunity to "prove yourself" once again to lenders, though I appreciate it probably feels like a lifetime away.

Robert_Sterling_3

Bargain_Rzl wrote:

I don't mean to sound harsh but if you were a mortgage lender, would you lend a large sum of money to somebody who's just proved (by being in a DMP) that they can't handle paying things back?

Non status lenders would in the following exceptional circumstances.

The applicant has bought a council house at a considerable discount from its estimated value and has lived in it for several years. There is enough equity in the property to pay off all debts. Assume that the applicant would still have some equity in the house.
Give the mortgage as a series of cheques all but one of which are sent directly to creditors the remaining one to the applicant.