Ask a CCCS counsellor a question

CCCS_Alan

jules40 wrote: »

Hi CCS Sue
thanks for your reply i have requested info regarding DMP but think i need to change my bank to one i dont have a credit card attached to but not sure which one or what sort of account?
Jules

Hi Jules40

You would be looking to open a basic account that is not connected to any of your creditors so you are in control of your money. The accounts are basic, as no overdraft or chequebook. You would pay all your income into the account and pay your priorities first and any make payments to creditors by SO or payment slip so you are in control of how much your creditors receive each month. Below is a link to basic bank account information.

http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

Regards

CCCS_Alan

CCCS_Alan

debtfreenewbie wrote: »

I contacted a creditor with an offer of payment per month of 5.00. I included a copy of our financial statement. They have written back saying they want payslips and proof of benefit if any.
Are they entitled to do this? I consider what we sent to be adequate.

Any advice please.

Hi Debtfreenewbie

Sometimes creditors will request this as they want proof that your figures are correct, but you only need to provide what you are comfortable providing them with. Some people do send proof of income but it is down to personal choice.

Some people do not even send budgets to creditors, so you sending a budget to them is a lot more than some people ever do.

Regards

CCCS_Alan

CCCS_Alan

4littleone wrote: »

Hi,

i have three CCJ's which were added to my credit record in 2007, incurred through redundancy and one from a dodgy ex.... (but that's a whole different thread!)

I have now paid them all off with a loan from a credit union and they are marked as satisfied.

Can you tell me if this will improve my credit record or is a satisfied CCJ just as bad as an unpaid CCJ?

I'm asking because my partner and i will be moving house in a couple of years and we would like a joint mortgage (at the moment it is in his name only with a deed of trust for me). I am unsure about whether or not i would be considered to go on a mortgage then as the CCJ's will not fall off my record until 2012.

Many thanks.

Hi 4littleone

Mortgage lenders base lending on in-house qualifying criteria looking at such things like income, existing commitments to credit, credit file etc, so it’s extremely difficult to say how they would asses your eligibility for a mortgage.

The logic is that a satisfied CCJ would look better on your file than an outstanding CCJ. If your credit file is not to good, you may find high street lenders are more unwilling to lend money so you may have to approach a non high street lender for a mortgage and possibly have to also pay a slightly higher interest rate as well.

Below is a link regards credit file information.

http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

Regards

CCCS_Alan

hunnybee

CCCS_Sue wrote: »

Hi hunnybee and thank you for your email

I think the quicker you deal with your situation the better.

If you are already using credit cards for living and buying things like food and petrol every month then there is obviously a cash flow problem and you need to deal with it now before it gets worse.
Sit down together and do a budget showing all your income and expenditure.
Priorities such as rent/mortgage/utility bills/council tax food etc need to be paid first and kept up to date. Especially those massive energy bills!
Credits cards/loans/catalogues etc are non priorities and any surplus left after paying your priorities can be used to pay these. If you find there is a shortfall to make the minimum payments to each creditor then you need to make an appointment to speak to a counsellor who will advice on options to deal with your situation.

A DMP is not always the best option and is not always suitable for everyone.

If you would like to make an appointment the free helpline is 0800138 1111. Lines are open from 08.00 until 20.00 Monday to Friday.

Regards

CCCS_Sue

Hi Sue,

Thanks so much for your reply. I think you're right, we really need to face up to our problem and get to grips with it! Do you think it would be worth making token payments on our credit cards for a couple of months before taking out a DMP (we have done the online assessment on CCCS which suggested a DMP is best for us) as i am concerned about being rejected due to recent use on the card?

Also, what would happen if we were in a DMP and I needed to get a new car if hubby gets the new job? I can get a lease car through work (we both have to have cars for work). Obviously my income would change as a result of this, i.e. it would be another monthly outgoing, would our payments to the DMP change also?

One last question! We privately rent our home at the moment and have no plans to move, but if we did have to for reasons beyond our control, how would our credit rating be affected in terms of gaining approval for renting?

Thanks so much for your help!

lelebo

Hi there

I hope you can help me. I was contacted yesterday about a bill that has not been paid. I was for a very small amount of building work that a plumber who was installing a new tank for me subcontracted. I had serious concerns about the bill at the time (Jan 2006) and got two second opinions from other builders - the materials I was billed for were considerably more than used and the people I was charged for were not actually there (someone was home the whole time). I said I would pay the bill when it correctly reflected the work done otherwise I would contact Trading Standards. I have had no contact from them since May / June 2006 until this contact from a debt collection agency yesterday (almost three years later). Can they still persue this bill (I am based in Scotland) and what would be my best way of dealing with it?

Thanks in advance for your help

Lelebo

themousey27

Can anyone point me in the right direction? i want to know if virgin media are allowed to charge me £10 for a late payment and £5 non DD handling charge?

Thanks

nntbb

Hi there

My husband and I have just completed the CCCS Debt Remedy and the recommended solution for us was an IVA, but the booklet also said a DMP would be an option. The IVA option sounds scary to me because of it being legally binding and the impact it can have on other areas of your life (eg. having to check with your employer, possibly selling your car, etc). But I recognise that with an IVA our debts would be paid off in 5 years as opposed to over 8 years with the DMP option suggested in our booklet.

I was wondering if you could give me some advice about the implications of each option, as it is difficult to make a decision while it all looks so confusing.

Our joint debts are about £38k, my husband is in full time work but I am on incapacity benefit although as my health is improving I'm hoping to be able to take on part time work later in the year.

Any help would be much appreciated.
Thank you.
NP

WorriedofSurrey

Hi

I have been on your website and have been recommended a DMP. I have today applied for a new bank account and will take the next step when this arrives.

I ahve one question - we have a car loan (approx £90 per month) with about 20 months left to run. Does this have to be included in the DMP? I really need to keep the car. Please can you tell me how this works, is it classed as a secured loan?

Thanks for your help.

WoS

bobdauilda

Tried the debt remedy plan today but it said that it could offer no help as my incomings didnt even meet my priority debts. I rehashed the figures a bit but it now says I need to call the helpline as its too complex a situation to consider as a joint application! Joint debts total a jaw dropping 110k combined so I guess theres no option other than a short rope and a high tree. I have tried writing to the companies to no avail and the debts have just spiralled out of control. Theres a slim chance of winning a legal case in the next few years but even that wouldn't pay off more than a third of the total. What happens if you take out an IVA and then 2 years down the line your circumstances change and you can afford to pay off some/all the debt? Is there facility for this and will it be noted on your credit file?

tiffani_2

I have recently hit a debt crisis, husband is now unemployed after earning £31,000, and we owe £28,000, we contacted debt free direct who said a IVA would be our best option, so everything was sent off, but we have now been contacted and DFD say that they can`t do the IVA as my hubby is unemployed and there is not enough money coming in, so they have sent our info to Lawrence Charlton debt management company, but i am a bit concerned as i have never heard of them... has anyone else?
Also if we go with LC, we have no legal protection, which we would have done with the IVA!!
Can anyone advise me?

Tiffani