Ask a CCCS counsellor a question

mozzyc

Hi

We've been on a dmp now since 2005, and making very slow progress. We're still trying our best to get the interest on most of them stopped or reduced, but we're not having much luck.
The biggest one is Lloyds TSB.
We owe them the same, if not more, than we did in 2005 at the moment, even with paying £202 per month since 2005. This is due to high interest charges.
On our justabank website, it says we owe them roughly £3000. But we had a statement from Lloyds TSB the other day saying we owed them roughly £11500. And it showed that in the past 6 months we've been charged £1000 interest.
We feel like we're drowning in this debt, and despite our best efforts, we're getting nowhere. We've been putting off starting a family, and so many other things because of our debt and dmp, which according to the justabank website, was due to end 2011. Now the end date seems like its never going to come, no matter how hard we are trying to clear it all.

Do you have any advice on how to deal with this debt that is just getting higher and higher every month?
It feels like this dmp could be never ending with things still actually going up instead of down.
Thanks so much

CCCS_Sue

seh567 wrote: »

Hi, need some advice. My son has been advised by CCCS to either go bankrupt or start a lowcost DMP until his finances improve. This is because he has been unemployed but has just started employment on and basic and commission basis. They would only take his basic wage into consideration which only gave him a very small £25 excess amount after living expenses. However he should be earning considerable more soon because the commission is based on installation not on selling and the order book is full and he advised CCCS about this during his interview. He is not keen to take the bankruptcy route just yet so I believe he will take the low cost DMP route for the moment to see how the work goes for a couple of months. The question is, would he be able to make extra payments to his creditors if he is earning the potential commission and would he have to make these payments direct or would he be able to make extra payments via the DMP plan. Any information would be appreciated. Thanks

Hi seh567 and thank you for your email

Once up and running on the DMP, any extra money he has can be paid through his plan so each creditor will get a fair share. Just contact our client support team and they will advise him how to pay.

Regards
CCCS_Sue

CCCS_Sue

dfwannabe wrote: »

Hello, an anonymous post here (for obvious reasons). I am wondering if it's possible for a currently qualified independent financial adviser to have a DMP / IVA / go bankrupt without the FSA revoking the ability to keep selling.

Just to clarify, the financial adviser is very good at their job and looking after other people's money - just not their own :rolleyes:

Many thanks in advance (and if this is posted in the wrong place, please accept my apologies)

Hi dfwannabe and thank you for your email

You would need to check with your professional body to find out more information on how bankruptcy and IVA would affect your profession.
A DMP should not affect you, but a county court judgment may.

I have attached a link to the Insolvency Service website. You may be able to get further help there. http://www.insolvency.gov.uk/


Regards
CCCS_Sue

CCCS_Sue

leslb wrote: »

Hi i'm not sure if i am in the right place or even posted correctly but i wanted to ask a question ... my husband has debt on 2 credit cards totalling £28K ... he gave up his career 5 years ago to take care of our children and since then i have been making the payments on his behalf ... i was made redundant 9 months ago and have since had to take a major salary drop and now am really struggling to make the minimum payments ... any suggestions what route we should go down to try to sort this out .... i haven't even had this conversation with him but i spend most nights worried sick about how we will manage going forward
thanks

Hi leslb and thank you for your message

You cannot pay them money you do not have.

I would recommend that you call us for an appointment to discuss your situation with one of our debt counsellors.
The counsellor will put together a budget with you, showing your income and expenditure.
You will then see how much you can realistically afford to pay them after dealing with all your priorities.

The counsellor will then look at all the options available for your situation.

If the debts are in your husband’s name, he will have to do the appointment or he can authorise you to do it on his behalf. So, it may be an idea to speak to him and let him know the situation.
If you would like 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.

Alternatively,you can visit our online debt advice facility called Debt Remedy. 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.

Regards
CCCS_Sue

CCCS_Alan

PollyandMartin wrote: »

Please help me as I am unsure where to turn next. Although we have been to CAB and have looked at options of DMP, IVA and BR and have a telehone appt with Payplan on Sat eve. I have so many questions and worries.

I know we are the only ones to blame but have been juggling to ensure all minimum payments have been made on time and because of this and other stupidity have huge debts. I am so humiliated and angry with myself.

My main worries are: nasty phone calls and letters - although home visits scare me the most. Will everyone know if we have to go down BR route?

Our mortgage is 340 000 and house worth about 375 000. Have early repayment penalties with mortgage of about 15 000. Really want to keep our home if possible. Never been late with mortgage and until this month credit card repayments.

I have SOA

Income:
OH 2555
Me 1556
Child Benefit 135
Total: 4246

Expenditure
Mortgage: 2365
Utilities: 213
Council Tax: 176
TV Licence:12
Life Ins: 33
Home ins: 33
Water: 50
Travel: 220
Petrol: 80
Car Ins: 30
MOT/Tax: 20
Children activities: 50
Food: 450
Haircuts: 30
Glasses: 22.50
BT: 25
Mobiles: 30
Prescription: 13
School Lunches/trips: 30
Total: 3949

Surplus: 364

Our outstanding debts between us are:

Barclayloan: 14100
Eggloan: 7000
Egg cards: 500
Egg card: 5000
Barclaycard: 8700
Barclaycard: 2000
MBNA: 14700
MBNA: 10000
Halifax: 10500
Marks and Spencer: 9700
Overdrafts: 8500


I know I should wait until Payplan interview but would really appreciate soem advice.

I know I have been stupid but please go easy on me as feel very vulnerable. Nobody can beat me up more than myself.

Hi PollyandMartin

It’s difficult to give full advice via the forums about your situation, so I would advise using our online debt advice facility called Debt Remedy. 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.

With any situation though you have to look at trying to improve your available surplus by trying to maximise income, and reduce your expenditure. In any situation if you are offering lower payments to your creditors they will expect your costs to be reasonable so changes to lifestyles and expenditure would be expected, as this shows you are trying your best to help the situation.

The main thing you would have to look at is if the available surplus was correct and your debt balances as well, it could take over 20 years to repay the creditors if balances were frozen and your income stayed the same.

One thing you could alter is the housing costs as this is your highest expenditure. Look if it’s possible to switch to interest only to free up more money to repay the debts quicker. Consider that if you sold the house you could reduce your overall balance overall with the lump sum from the sale. If you moved to a rented property it could free up well over £1000 pcm to help go towards clearing the debts, making you debt free a lot quicker than what could possibly take over 20 years.

Regarding your creditors if you are worried regards calls you can just screen them with an answer phone, and only pick up people you wanted to talk to. And any one who may call at your house would not be a bailiff, just a doorstep representative who has no power to take goods or demand money, and no right to be on your property so you can ask them to leave.

Regards

CCCS_Alan

CCCS_Alan

mozzyc wrote: »

Hi

We've been on a dmp now since 2005, and making very slow progress. We're still trying our best to get the interest on most of them stopped or reduced, but we're not having much luck.
The biggest one is Lloyds TSB.
We owe them the same, if not more, than we did in 2005 at the moment, even with paying £202 per month since 2005. This is due to high interest charges.
On our justabank website, it says we owe them roughly £3000. But we had a statement from Lloyds TSB the other day saying we owed them roughly £11500. And it showed that in the past 6 months we've been charged £1000 interest.
We feel like we're drowning in this debt, and despite our best efforts, we're getting nowhere. We've been putting off starting a family, and so many other things because of our debt and dmp, which according to the justabank website, was due to end 2011. Now the end date seems like its never going to come, no matter how hard we are trying to clear it all.

Do you have any advice on how to deal with this debt that is just getting higher and higher every month?
It feels like this dmp could be never ending with things still actually going up instead of down.
Thanks so much

Hi Mozzyc

Unfortunately it is up to the creditors if they are willing to stop interest and charges, as a DMP is not legally binding. Normally they are good enough to help when people are in difficulties and have shown willing by going down a DMP route.

If you call our Client Support number whose number should be on your monthly statement, you could ask for the proposal to be re sent out to the creditor to see if that helps. The Client Support team could also re asses your situation and see if any more suitable options may be available for you to consider at this time.

Regards

CCCS_Alan

PollyandMartin

I have looked into interest only mortgage and this would free up over £600. But still not sure whether to try on my own or go through Payplan - will they be imparticla? I will go to the website you suggested.

Many thanks

PollyandMartin

I meant impartial above!!!!

CCCS_Sue

PollyandMartin wrote: »

I have looked into interest only mortgage and this would free up over £600. But still not sure whether to try on my own or go through Payplan - will they be imparticla? I will go to the website you suggested.

Many thanks

Hi PollyandMartin

Let us know if you require any further help when you have visited our website.

Regards
CCCS_Sue

CCCS_Sue

PollyandMartin wrote: »

I meant impartial above!!!!

Yes. We understood!