Ask a CCCS counsellor a question

telboy99

H Tiffani,
Please DO NOT go to a debt management company which charges a fee.
Go to one of the charity Debt management Companies such as CCCS ,Payplan or National Debtline.

CCCS_Matthew

hunnybee wrote: »

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!

Hi there,

It’s normally against the terms of a DMP to take on further credit such as an HP/lease agreement. However if the car is essential you would need to call up and speak to us to so we can redo your budget to work out whether your DMP payments need to be altered.

Your credit rating is likely to be affected by coming into a DMP, as most creditors at some point will issue a default against you. All default notices would be held against your credit reference file for 6 years. If you were looking to privately rent somewhere a letting agency may run a credit check against you which may affect their decision. However, this doesn’t mean you won’t be able to rent anywhere. Many people have still managed to get success renting elsewhere by going directly to landlords or sometimes paying more than one months rent upfront to show intention that you are going to keep up to date with payments.

Hope this helps,
Matthew.

CCCS_Matthew

lelebo wrote: »

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

Hi there,

If the plumber is claiming there is money still outstanding and you do not claim liability for the balance their only option would be to go for a Scottish Decree at the Sheriff Court. If you wanted to defened the claim you would have the oppotunity to do so with the forms provided. It's then up to the court to decide whether on the evidence you've given if you are liable to pay the balance that your are being pursued for.

Hope this helps,
Matthew.

CCCS_Matthew

themousey27 wrote: »

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

This really would depend on what is outlined in their terms and conditions. If you have been charged you may want to ring them up and ask them to reverse the charges if it's a one off and a genuine mistake.

Matthew.

CCCS_Matthew

nntbb wrote: »

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

Hi there,

It's a little hard to go through the implications of both options without knowing a little more about your situation, such if you are a property owner, and your age etc.

However I’ll try and sum up some key points:

An IVA can be good as it stops creditor contact, and it guarantees interest is stopped. It’s also a good option if you know your situation isn’t likely to change drastically within the next few years, such as taking a change in career or having children for example. It doesn’t tend to affect many jobs and doesn’t really have an impact on assets other than property. However an IVA is only realistic if the figures add up for one. As you’ve gone through Debt Remedy and had that as an option, it suggests you are in the minority of people an IVA would be suitable for.

A DMP can be better suited for people that want a little more flexibility in payments, and sometimes it’s a safer option if you have property to protect. Also, you don’t have to have full consent of the creditors to do it as it doesn’t require them to necessarily agree to the proposal. If you are planning on getting back into work in the near future, you might want to try and work out how much of on an impact that would have on money available to your creditors and see how much of an impact that has on the term. If it suggests it brings it down in the region of the same timescale of an IVA then there probably isn’t much between them. Of course this is on the assumption that the creditors do stop interest and charges.

Of course there is nothing stopping you from doing a DMP and then looking at an IVA again at a later date if it’s not working out. Or you might want to discuss an IVA in a bit more detail with one of the people from CCCSVA to discuss any concerns in a little more detail. If you choose an IVA you are not committed to it until the documents have been signed if the creditors choose to the proposal.

I hope this helps for now. I would perhaps suggest gibing us a call if you are really unsure and want to discuss further as it’s a lot easier for us to give constructive advice when we can see everything in front of us.

Regards,
Matthew

CCCS_Alan

WorriedofSurrey wrote: »

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

Hi WorriedofSurrey,

It would depend on the kind of finance you used to buy the car. If the loan was a standard credit agreement, then paying a lower amount on that debt would not affect your car and therefore it can be dealt with alongside all your other debts as part of the Debt Management Plan.

If you finance is a Hire Purchase policy, Conditional Sale Agreement or a clause in the contract states the car is at risk if you do not pay, then you could lose your car if you do not keep up to date with the full payments. In these circumstance we would include the £90 payment into your priority expenditure, so the payments can be maintained in full by you and the Debt Management Plan will deal with the other debts.

To find out what kind of finance you have I would suggest checking the original agreement forms, if you don’t have these to hand you could contact the finance company and ask them.

Hope this helps.

CCCS_Alan

CCCS_Matthew

bobdauilda wrote: »

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?

Hi there.

All I can suggest is that you ring up and book an appointment to discuss things with a counsellor in more detail. I'm a little concerned that you mention you've altered the figures to ensure a surplus is available. You need to ensure the budget reflects your situation, as otherwise the advice isn't strictly relevent if you've not physically got the amount left at the end of the month. Although Debt Remedy is a useful source of advice for most situations, it cannot provide "best advice" in all situations which is why you would need to speak to a counsellor. Try not to panic too much, there is a solution to every debt problem.

If you entered an IVA and came into a windfall you would need to discuss the situation with your IP. The IP may propose to the creditors to see whether they would accept a settlement to end the IVA earlier. If not it may have to be a case of drawing up a reproposal to the creditors.

Regards,
Matthew.

CCCS_Matthew

tiffani wrote: »

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

Hi Tiffani,

An IVA is unlikely to be no longer an option if your household income has dropped so signficantly. As mentioned, you are best to avoid any company that is to charge you for adminstering a DMP as the money paid to the to adminster it would be better spent going towards your debts.

If you haven't already done so I would suggest you give us a call to discuss your options. As we are a debt advice charity, we are completely impartial and do not charge for our services. If you would like us to take a look at your situation you can book an appointment by calling our Helpline on 0800 138 1111.

Regards,
Matthew.

Pott5y

Hi

I currently owe circa £50k (varying from £2k - £15k unsecured debts) to several creditors. I am also currently on a DMP with Payplan.

There may be an option for a family member to help me out (with a small amount) but I have been warned that I cannot pay off/settle early any individual creditor (e.g. a small debt of £2k) without upsetting the others. Is this true?

Also how much in reality do creditors write off for early settlement?

Many thanks
Pottsy

leebarton

Hi

One of the CC companies requested that I telephone with my details. When I did they said that they couldn't put me on a reduced payment plan because I had spent £2000 on the car after my maternity leave had started and I knew that my income would be reduced.

The other CC company seems to have completely ignored the fact that I wrote to them and are carrying on regardless.

Any advice please CCCS?