Ask a CCCS counsellor a question

gaztop26

Hi CCCS counsellors,

Could you give me some advice with the fllowing (nice) query?

I am about to get a £3000 bonus. I have been on my DMP with CCCS since July. I owe £46000 to 8 creditors. What should I do with my bonus?

Lump it off the mortgage?
Offer full and final to creditors (to those owed about £4000?)
Get CCCS to divide it up between creditors?
Bank it?

Thanks in advance

lostsoul1977

Hi,

I am about to go into a DMP - dunno the monthly payments yet but hope that they will be about £300 - £350 for a debt of £36k. One of the debts is an overdraft with HBOS - if I go into a DMP and, therefore default, will HBOS take off the overdraft and stop me using my chequebook and switch card. I have another account where I plan to put in money - no debt owed to that bank - has a cheque book and cards etc - will this bank remove these facilities although I do not owe them anything just because of my default on the loans etc.?

Thanks

CCCS_Sarah

Sylvvia wrote: »

Dear counsellors,

I'm really not into all this staff but try to help my boyfriend with the debts he has. He claims he went to Citizens Advice Bureau about half a year ago or so and believes that all his credit cards debts and others are frozen.
Yet, as we received the statements from one of the credit cards provider it turned out not to be frozen and the amount he has to pay is about £5,500. There are also other credit cards but of these I'm or him are not sure-waiting for the statements to be posted.

My question is, how do we deal with that debt on that credit card? I was reading about shifting the debt (as they charge him ca £105 per month). Would that be the best option? And also, when do we close the account? After we've shifted the debt or before? Sorry, if my question doesn't make sense.. I'm a newbie in these matters-just trying to help.

Thank you in advance for your answer.

Hello,

Shifting the debt is a good idea if he has enough to pay the debts ie moving the debt to 0% credit card. However if he is in financial difficulties then the debt he has needs to be addressed, as if there is no money to pay the debt then this would be the same if he had a 0% card.

Your partner would need to put together a detailed financial statement, this needs to include all his income and expenditure and then list the debts. This will then show him how much is left over to clear the debts.

If he needs any help completing a financial statement he could visit our online debt advice facility, Debt Remedy would assist you in completing a financial statement and he would be provided with tailored advice on the best way to deal with his situation. Click here to go directly to Debt Remedy.

If he would prefer to talk to a debt counsellor about his situation, he 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 he calls he has details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If he has 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 him to be called back for an appointment.

Regards,
CCCS

CCCS_Sarah

gaztop26 wrote: »

Hi CCCS counsellors,

Could you give me some advice with the fllowing (nice) query?

I am about to get a £3000 bonus. I have been on my DMP with CCCS since July. I owe £46000 to 8 creditors. What should I do with my bonus?

Lump it off the mortgage?
Offer full and final to creditors (to those owed about £4000?)
Get CCCS to divide it up between creditors?
Bank it?

Thanks in advance

Hello,

I would not be able to say via the forums, I think it would be best if you gave our client support department a call then they can look at your account. Let me know if you need the number.

Sarah

beginner52

I wonder if you can advise please. Recently my stepson who lives with my wife and I was made redundant and therefore has been unable to pay any housekeeping or a repayment to a loan I granted him. This has left us with a cash shortfall of £500 per month. This has obviously had a knock on effect and I am finding it difficult to repay the £45k we have in loans and cards which has lead to receiving numerous phone calls at all times of the day and night. I have managed to keep the mortgage repayments up to date as well the larger loans but are beginning to get concerned as the mortgage and loans are with the LTSB with whom I have the mortgage and a credit card and they are now in the habit of "setting off". Due to this I was considering a DMP but since discovering this site, realise we may have a strong case for PPI misselling which, if successful, should pay out in the region of £7k which would be an end to our woes. Bearing this in mind what course of action would you advise and what do I have to do to stop the phone calls? If I make token payments of, say, £5 to the credit card companies for an interim period will they continue to chase.

I am desperately trying to find a solution to what I hope is a temporary situation but nobody appears to want to listen.

Sorry to have gone on but thatnk you for taking the time to read and reply.

sunnymoneytree

Hi CCCS counsellors, How lucky we are to have you, thanks!
Here are my 2 questions.
I am subject to a Debt Relief Order and I would like to clarify how I proceed if my income rises as I am currently living in a very spartan way and have several basic needs such as winter clothing that I need to raise extra income for, and basic but expensive requirements for my degree studies. (hard drive/computer++).
Would I just need to notify the Official Receiver about both and show that my surplus has not risen over £50, or would it be considered contrary to the conditions?
Also, with a fluctuating income, how often am I expected to update the OR on my changing circumstances?, as at present I have calculated over the whole year then divided by 12 months.
Many thanks for your time.

mrjohnmiles

Hi CCCS

I have a question for you, I am looking to enter a DMP shortly as I have seperated from my partner and cannot keep up with all the commitments I have long term, (specifically from December onwards).

We have a house in both our names, however all the unsecured debts are solely mine, totalling £32.5k

I would like to keep the house on in my name only, however the Halifax will not entertain the idea as there is not enough equity in the house to transfer it to me, and with my unsecured debts at minimum payments I would fail there credit scoring.

My question is (eventually) Would me going onto a DMP affect my ex's ability to get credit, and would I be able to get a mortgage in my name only at some point in the future while on the DMP.

My other option is to sell the house, and rent, but now I am on the ladder it seems like last resort and something I don't really want to consider at this time.

Many thanks for reading this.

Cheers

John

missjones123

Hi CCCS,

Please may I ask 2 questions?

I'm currently a full time mature student and lone parent. I was told I needed to use the student advice centre to try and lower my loan/credit commitments as I was dependant on university hardship funding due to a large mortgage. The advice centre organised a DMP for me as National Debtline would not consider my student income e.g. student loan. As I have a mortgage, and was previously employed in finance I was used to a very good credit rating and felt my arm forced into going into a DMP. I have been saving to try and make full and final settlements in the next 6 months before I start empolyment again. My worry is that when I start working again they may try to impose CCJ's as I have equity in my property. It's a vicious circle where I can't remortgage due to poor credit and with being a student, the housing market is slow despite me trying to sell and constantly reducing the price on my property. I'm wary of an IVA as I need to keep my home for my children. I'm in my final year and have studied a profession which has a registered body (non finance) and am worried about the implications on that also.

1) What sort of full and final percentages should I start off by making and what is likely to be accepted in the current climate? The advice centre very rarely deal with settlements and can't give much advice. I know it's a long shot but I was going to start at 20% and hope for round 40 in most cases.

2) I have a loan with Northern Rock where the interest was added to the loan from the beginning. My other creditors have frozen their interest but what happens in a case where the interest has already been added to the debt?

Thank you in advance

Leanne

CCCS_Sarah

tedsd wrote: »

Hi, I'm a Newbie and wondering how you check whether or not your current or a new account is connected to any of your credit cards?

Thanks

Hello,

I have attached a link to a booklet that lists basic bank accounts, you could choose one of the list that you don’t have any debts with, and then we will be able to let you know if it is linked to anyone.

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

Hope this helps

Sarah

CCCS_Sarah

lostsoul1977 wrote: »

Hi,

I am about to go into a DMP - dunno the monthly payments yet but hope that they will be about £300 - £350 for a debt of £36k. One of the debts is an overdraft with HBOS - if I go into a DMP and, therefore default, will HBOS take off the overdraft and stop me using my chequebook and switch card. I have another account where I plan to put in money - no debt owed to that bank - has a cheque book and cards etc - will this bank remove these facilities although I do not owe them anything just because of my default on the loans etc.?

Thanks

Hello,

If you have any debts with your current bank including an overdraft, you would need to open a new account. I have attached a link to a booklet that lists basic bank accounts, so you could use that to choose an account as each bank will allow you to have slightly different facilities.

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


Sarah