Ask a CCCS counsellor a question

CCCS_Sarah

giddyg wrote: »

Hi,
Please can you advise as I am going out of my mind with worry.
Today we have been to try and set up a basic bank account with Barclays, but we were declined. When we asked why, we were advised to contact Experian to get our credit history and it might be due to a CCJ (which we have never had) We were gutted as we are trying to prepare a new account as advised by your people at CCCS in readiness for our appointment on July 22nd. We were totally up front with Barclays and told them we have been late paying credit cards, but all our other credit was up to date. The Experian reports shows 1 default record and late payments, both on credit cards but all other credit satisfactory.
Where do we turn now? We have been told to apply to a bank for a basic account that is not linked to any of our credit cards or banks, which are Natwest, tesco, lloyds, MBNA capital one .

Hello,

I have attached a link to a booklet that lists basic bank accounts for you, just choose another one off the list. As it’s a basic account there should be no credit search as everyone is entitled to a basic account.

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

Hope this helps

Sarah

CCCS_Sarah

freedom777 wrote: »

We have been trying to get through to the bankruptcy team at the CCCS for over a week now and we can not so I have decided to post here. We are going through all the options of whether to go for an IVA or file for bankruptcy but have a lot of unanswered questions.

I am trying to find out whether my partner (not business) would be counted in my bankruptcy if she has a joint loan with me?

Also if we were able to pay this joint loan off and it was just all my debt, how would it affect her credit rating for me to go bankrupt (we live at the same address)?

How long does bankruptcy affect your credit score, is it for life?
Thank-you in advance.

Hello,

If one of you was to go bankrupt on a joint debt, the liability would transfer to the other person. So this means if you go bankrupt then your partner would have to make the payments.

Bankruptcy would stay on your credit file for six years, however in future if asked you would have to declare that you have gone bankrupt in the past.

Sarah

CCCS_Sarah

monkeysarecool wrote: »

Hi, I'm currently under DMP with Payplan but I'm now in the position where I feel I can manage on my own. The debt isn't huge.. and is down to around £8K. (Problem was, I lent the money to family at a young age and they didn't pay me back so I couldn't afford to repay my creditors for about a year!).

Now that I'm on track, with a good regular income, and 3 years in my current home, if I were to come off DMP would this improve my credit rating at all? I am looking to buy a share in a house in 2-3 years time so want to get planning now rather than later.

Thank you!

Hello,

If you will be still making reduced payments, this would still show as an arrangement on your credit file. However if you are paying more towards the debts then this would reduce the term down which is always a good thing.

Once the debts are cleared your credit file will start to improve with time. I have attached a link to a booklet that explains about credit files in detail for you.

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

Hope this helps
Sarah

CCCS_Sarah

pie_man wrote: »

sorry if i have posted in wrong thread i am new ,I am about to start a dmp soon i have a car loan which i have included in my budget thinking of changeing the car to a more economical one can i do this on a dmp as it will save me around £40 pper month can anyone advice me please:rotfl::rotfl:

Would it be another HP agreement?

CCCS_Sarah

single_mom_desperate wrote: »

I am in an aulfull lot a debt and i dont know where to start, plaese see my soa , i am having real trouble coping , i am no longer able to keep up min repaymnets as before i was borrowing money of family left right and centre , them unknowingly to it paying my debts , i cant borrow no more and dont want to , just want out plesae help :-(

Statement of Affairs and Personal Balance Sheet[/b
Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 650
Partners monthly income after tax....... 0
Benefits................................ 816
Other income............................ 0
Total monthly income.................... 1466
Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 300
Management charge (leasehold property).. 0
Council tax............................. 68
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 8.6
Telephone (land line)................... 11
Mobile phone............................ 50
TV Licence.............................. 11
Satellite/Cable TV...................... 6
Internet Services....................... 6
Groceries etc. ......................... 173
Clothing................................ 60
Petrol/diesel........................... 80
Road tax................................ 16.6
Car Insurance........................... 52
Car maintenance (including MOT)......... 40
Car parking............................. 10
Other travel............................ 40
Childcare/nursery....................... 70
Other child related expenses............ 80
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 8
Life assurance ......................... 6
Other insurance......................... 10
Presents (birthday, christmas etc)...... 25
Haircuts................................ 12
Entertainment........................... 35
Holiday................................. 20
Emergency fund.......................... 25
Total monthly expenses.................. 1313.2

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 2500

No Secured nor Hire Purchase Debts
[b]Unsecured Debts
Description....................Debt......Monthly...APR
cc 1...........................1300......25........0
cc2............................2000......55........0
cc3............................1900......25........0
overdraft......................900.......0.........0
sofa...........................700.......25........0
catalougue.....................2900......160.......0
loan...........................5000......252.......0
Total unsecured debts..........14700.....542.......-
[b]
Monthly Budget Summary[/B]
Total monthly income.................... 1,466
Expenses (including HP & secured debts). 1,313.2
Available for debt repayments........... 152.8
Monthly UNsecured debt repayments....... 542
Amount short for making debt repayments. -389.2
Personal Balance Sheet Summary
Total assets (things you own)........... 2,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -14,700
Net Assets.............................. -12,200

Hello,

I would recommend that you use this information to complete our online Debt Advice facility. Debt Remedy would assist you in completing a financial statement and you would be provided with tailored advice on the best way to deal with your situation. Click here to go directly to Debt Remedy.

If you would prefer to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. It would be helpful that when you call you have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have this information ready it may be possible to refer you directly to a counsellor if one is available, otherwise we will arrange a time that is convenient for you to be called back for an appointment.

Regards,
CCCS

pie_man_2

hi
it will bee on hp with lower payment .cheeper car

CCCS_Sarah

pie_man wrote: »

hi
it will bee on hp with lower payment .cheeper car

One of the things that they would look at is the term of the agreement, because on your initial appointment your counsellor would have taken into account how long you have left on your HP agreement.

It’s hard for me to talk in detail as I don’t have access to your budget.

monkeysarecool

Thanks for the swift reply! One more question though... am I allowed to apply for credit while on DMP? I did so accidentally (entering my details onto a catalogue website for a competition entry!). They scored me, and gave me credit straight away.

The debts have been passed on... so I think it's just a question of paying whatever I can afford? I would rather just consolodate this into a loan, which I can now manage but am I allowed to do this? Thanks

euronorris

CCCS_Sarah wrote: »

Hello,

Consolidating is not often the best option, as all it does is move the debt from one place to another and increase the amount of interest paid overall.

If you are struggling to keep up with payments on your credit debts and priority living costs, then something has to give and the main thing is that you keep up with your priorities i.e. food, bills etc

You would need to keep a spending diary and write down everything you spend your money on. Once you have this information you would be able to put together a detailed income and expenditure. You will need to include everything from utilities, food, clothes, travel etc. This will show you how much you can realistically pay your creditors.

If you would like any help completing a financial statement and would like further advice on how to deal with your situation please call 0800 138 1111.

CCCS_Sarah

Hi Sarah,

Thank you for your advice. Last week was....difficult for me. I was getting very upset. But this week is a new week and my situation has changed.

Currently, my boyfriend and I have been 'officially' living in two separate apartments. I spent most of my time at his anyway, but his landlady rejected his original request to add me to his rental contract back in December. As I needed to have a place to register myself as a resident (in Holland) and get my social security number, set up a bank account etc etc I had to find a place of my own to rent until his contract came to an end and we could get somewhere together.

The rent here is VERY expensive as there is a housing shortage and so I was paying out €875 per month (gas, water, elec, tv and internet was included). This is what was crippling me. That and having to pay back premiums for medical insurance!

Anyway, since December I have met the landlady a few times and we got on really well so my bf decided to try asking her again (as it would save both of us a great deal of money on a monthly basis, but also on the cost of moving).

She said yes! This has halved my monthly rent and I'll be saving over €400 per month! Thank God!

Luckily my contract has a 6 month break out clause in it and I have advised my landlord today (who were fine as they are lovely). Which means I only have one more rent payment to make at the start of July and then I will be able to cope a lot easier and even send additional funds back to the UK to clear my debt quicker.

I called my Mum this morning and asked for my parents help in making one of the monthly CC payments in July, as after this I will be able to return the money to them etc and she agreed.

I cannot tell you how relieved I am. Not only am I going to be able to get back on track, but I can also afford to make more than the minimum payments on CC and overdraft in the UK. Phew!

I just wanted to thank all of the advisors and people on here who offer support, guidance, practical advice and a shoulder to cry on.

THANK YOU

CCCS_Sarah

monkeysarecool wrote: »

Thanks for the swift reply! One more question though... am I allowed to apply for credit while on DMP? I did so accidentally (entering my details onto a catalogue website for a competition entry!). They scored me, and gave me credit straight away.

The debts have been passed on... so I think it's just a question of paying whatever I can afford? I would rather just consolodate this into a loan, which I can now manage but am I allowed to do this? Thanks

Whilst on a DMP, you would not be allowed to take out further credit because the point of the DMP would be to get you out of debt. As long as you have not gone any further with the catalogue, I can see it been a problem – I would recommend that you contact them and just ask them to close that account if one was created.

If you were to consolidate the debts, then this would be a new agreement and you would be charged interest on the loan. The chances are that, as the debts have been passed on that all the interest and charges have stopped anyway so I don’t think it would benefit you as you would be paying more money overall. If you have any extra money you might as well just overpay the accounts via your dmp to close them as soon as possible.