Ask a CCCS counsellor a question

churchill82

Hello

I wondered if it was at all possible to enter into a Debt Management Plan with the intention of only paying off my credit card debt. I have a car which is on finance which I am happy to pay the fixed amount each month. I am really only looking at reducing my credit card repayments. If this is possible how will I go about arranging this?

Any help is very much appreciated

lmclean100

CCCS_Sue wrote: »

Hi Imclean100 and thank you for your message.

Do you mean an inhibition rather than charging order?
If yes, you do not have to sell the house, but the debt stays in place until the house sells.
If selling, you would need approval from the creditor who has the inhibition to be able to sell your home,
This may be denied if there is no equity (profit) - which means that the debt wouldn't clear.
Do you have an arrangement in place to pay the creditor? If yes, that is good, as the debt will be reducing and will eventually clear.
If you have no arrangement, I would recommend that you make one as soon as possible, but ensure that the offer is reasonable & realistic and that you can afford to pay until the debt is cleared.
Regards
CCCS Sue

Hi Sue

thanks for your reply, it's my creditor who has mentioned a charging order (afraid I wasn't too sure that that was). Anyway, I'd completed the debt remedy on your website and used the figures there to allocate may 'spare' income to pay my creditors. But the creditor in question has ignored all my letters sent recorded delivery and have been signed for and has written to me several times saying that I've not contacted them and asking me to phone them. Don't like dealing with the call centres overseas as they can't understand me and a lot of the time I don't understand them either. I'm just going to keep in paying what I can afford, not much else I can do.

L

lincoln1961

I have a £8500 BOS CC debt. the APR is 27.95% making the minimum payment of £242 a month. I am currently able to afford £300 a month.

Can you please advise me what would be the most effective way of actually clearing this debt over a manageable time scale - 48 months would be ideal.

I have no other debt - its all in one place, but is causing me real stress, thank you in advance.

sab_100

recoveringshopper wrote: »

Hi there
First time poster so please be gentle!
Have just had an appointment with a CCCS debt counsellor and for the first time in years am feeling like there is light at the end of the tunnel. Although it'll take time, am feeling like clearing debt is achievable with the Debt Management Plan they are suggesting.

The only question I have is for those who have experienced the first part of this process - the counsellor led me to believe that companies can still chase for paymetns etc and you are, obviously, defaulting etc to start with and some companies don't like this. My question is, how scary is that?
I ask as someone who grew up with a Dad who struck fear into my heart about debts etc, so even though I know this is the only way out of it, am wanting to know how bad the first few months will be as companies start to contact me and hassle me for money...? or will most of them just stop after a while as they know they're at least getting some money each month?>

I'd appreciate any help people can give, especially those who've been through it!

Thanks in advance

Hiya,
I have been on a DMP with CCCS for 4 yrs after I couldnt go back to work.I know what you mean about the family thing and believe me it feels bad even this far on. CCCS do make it a whole lot easier to deal with though and I can honestly say if I had budgeted like this way back I wouldnt have got into the mess I did. My marriage nearly broke down too. It is so easy to blame each other but at the end of the day you have to accep responsibilty and deal with it. At first you do still get letters and the odd call. MBNA were really nast and would ring up til 9pm at night and even over the weekend. I have been at the point of saying stuff it and taking option of bankrupy as my debts are really high but part of me still says its my mess to sort.
I have a CCJ which made me feel sick when I got it. All I could see was my Dads face in my mind and I felt embarassed. The thing to remember is if it does get that far then the payment amount is set and you have that figure to work with. CCCS are great at working with you and can make a huge difference.
I really hope this helps!

jayneben

Hiya
Was wondering if i could ask a quick question ? ive already had my telephone appointment with CCCS ( which was fantastic ) ive recieved papework for the recomended DMP which has been delayed in sending back due to a family death, Im just in the process of photocopying stamenets etc when ive realised ive missed 1 of my oh debts off, ive tried ringing the number given but have been unsuceddful multiple timed due to your goodselves being busy so was wondering should i just send it with the others or not ??

CCCS_Matthew

WhoKnows wrote: »

Is there any chance of being able to secure a new mortgage with a normal bank while on a Debt Management Plan?

I know there are certain companies around that offer these services, does anyone have any experience on this?

Hi there.

If you're a CCCS client, we have a mortgage broker we can refer you to who specalise in helpling people with damaged credit ratings. So there are certainly cases where a new mortgage can be obtained. Whether it would be possible to obtain a mortgage with a prime lender would really depend on your circumstances.

Regards,
Matthew.

CCCS_Matthew

snookered wrote: »

I expect to be getting my DMP from CCCS shortly, but before I start on all the paperwork I have a few of questions.
Firstly the DMP will be in my name only not my wifes, as all of the debts are mine, however our mortgage though paid monthly by her is in both our names and next year we are due to come to the end of our 5 year fixed rate. Our mortgage is with Northern Rock , so does the fact that I will be on a DMP for three years, and it effects my credit rating for six years bode badly for either keeping the rate fixed at its current rate or when looking for a better deal?
Secondly, one of the debts is for the remainder of a loan with my bank, but it was taken out in both our names, but my wife does not contribute to the repayments, will this cause difficulties and will they chase her for repayments, due to personal circumstances there is absolutely no way I can ask my wife to pay towards what is my loan.
Lastly, in 2012 we are due to have our original 25 year endowment mortgage policy pay out, after we re-mortgaged 4 years ago we continued to pay the monthly policy on it, in order to get a lump sum, this is probably going to be in the region of £25K-£35K (if only we had it now), can this effect the DMP in any way?
Many thanks for considering my questions.

Hi there. In answer to your questions…

1) Your DMP is likely to have a negative impact on your credit file, so this could be taken into account when looking for a new mortgage deal. If you were to stay on the existing product you are on it’s not likely to have a negative impact, as you are only likely to be credit checked when applying for a new product.

2) Whether the creditor will chase your partner for any of the balance would depend on how receptive they are to accepting the payment through the DMP. If they are happy to accept the proposal, they may not make contact at all. However, you will need to take into account that the creditor could issue a default against your partner as well as yourself.

3) The lump sum you are due to receive shouldn’t affect the DMP, as you will need to use this money to go towards your mortgage. You won’t be expected to use it to repay your credit debts.

Hope this helps,
Matthew

CCCS_Matthew

doombrain wrote: »

We have been on a DMP for three years now, but lately our creditors have begun to add late payment charges and interest to our debts including one which has been passed over to a third party and the amount owed is now more than when we started paying it. Is there anything we can do about this or do we just have to accept that some of these debts will be with us for the rest of our lives.
Thanks for your attention

If some of the debts haven't gone down. I think you would benefit from giving us a call so we can review your situation and see what your options are.

We can send out re-proposals to your creditors to consider stopping interest and charges if they have refused to do it so far.

Regards,
Matthew.

CCCS_Matthew

churchill82 wrote: »

Hello

I wondered if it was at all possible to enter into a Debt Management Plan with the intention of only paying off my credit card debt. I have a car which is on finance which I am happy to pay the fixed amount each month. I am really only looking at reducing my credit card repayments. If this is possible how will I go about arranging this?

Any help is very much appreciated

Hi there,

A DMP can only be offered when all debts are included. You must also have more than one debt for a DMP to be considered.

If you have more than one credit card, and the car finance is HP (secured on the car) then it may mean a DMP can be looked at (assuming you have no other debts).

The reason we have to include all debts within a DMP, is to ensure all creditors are given a fair deal. Plus, if your budget shows you are making full payments to all your debts other than your credit cards - your creditors aren't going to want to accept the proposal knowing your other creditors are offered a better deal.

Hope this helps,
Matthew.

CCCS_Matthew

lincoln1961 wrote: »

I have a £8500 BOS CC debt. the APR is 27.95% making the minimum payment of £242 a month. I am currently able to afford £300 a month.

Can you please advise me what would be the most effective way of actually clearing this debt over a manageable time scale - 48 months would be ideal.

I have no other debt - its all in one place, but is causing me real stress, thank you in advance.

Hi there.

If this is your only debt, your best bet is to overpay as much as you can. Given the fact you can pay £300 a month, this will certainly help bring the debt down much quicker than it would be if you were to pay the minimum.

It may also be worth looking at whether you can transfer the balance onto an 0% card. Martin has a good guide on his website about this. Potentially if you could do so, you could find that the £300 you pay each month brings the balance down by that amount. Often you'll find that's it's only 0% for a set amount of time, and will end if you start to borrow on the card again.

Hope this helps,
Matthew.