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Tuscan

as above, ive been with the CCCS for 5yrs. it was the best thing i did when the debt was out of control...

CCCS_Sue

Rosey-Boo wrote: »

Hi, I am a newbie to this web forum and indeed posting in general.
I am claiming DLA and IB benefits and have debts of £3082.79 owing to a Debt Collection Agency. This was originally a HSBC Credit card and i defaulted payment in 2005. Since then it has been handed over twice and now is with Rockwell. I have been making payments and have agreed to pay £72 per month till May 2010 when £2794.79 will be due. I do not have this in savings as want to know if I could offer them maybe £1000 settlement or whatever I have then saved then? Would they accept this? I know its not as much debt as some people on here so would they hold out for rest?
I am getting very stressed by how long i have had the debt and this is not good for my mental health!
I do not have much money coming in but have been getting help from my mum so this helps -

Should I save up along side the debt if possible and offer them a settlement figure or pay top-ups? Which would mean I pay back less as the advisor said that the lower the money the smaller the percentage off for the settlement figure?

PS - i spoke to Mary ward legal centre before and we got the interest frozen

I hope this all makes some sense.

I would love to be debt free by the end of this year!

Any advice would help!

Many thanks.
RB

Hi Rosey-Boo and thanks for your message

The creditors will sometimes consider a lump sum payment as full and final settlement if you have been making reduced payments for some time.

When making a full and final offer, you should be aware of the following:-
1.If the offer comes from a friend or relative then it is more likely to be legally binding upon the creditor.
2.Include the list of creditors and offers with each letter sent.
3.The money should not be sent until the creditors have accepted in writing.
4.Keep the creditors’ letters.
5.Ask the creditor to send a statement showing that the balance has been cleared in full and a zero balance outstanding.
6.Make sure the creditor agrees to mark the credit reference file ‘satisfied in full’. The creditors should do this because they have agreed to accept the payment as a full and final settlement and are only marking the credit file accordingly. This can be checked by asking the credit reference agencies for a copy of a credit file.

Before deciding on full and final settlements, I would recommend that you call us for an appointment to speak to one of our debt counsellors about your situation, as there may be other options you could consider .
To book an appointment with one of our trained counsellors you would need to contact 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.
If a full and final payment was the best option, then we can give you further help and advice regarding calculating an offer and sample letters you could use.

Regards
Sue

CCCS_Sue

jenjenjen72 wrote: »

Hi,

I'm new to these forums so apologies if it's a waffle!!

Basically, I have debt of 8k on credit cards and overdraft.
I try my hardest to pay the minimum or a little above every month.
My childcare situation is to change in Feb and despite claiming government funding for my 3 yr old I will be paying £150 per month in nursery fees.
My partner owns our house and he is aware of my debt but it's not something we're discussing as he has debt of his own to contend with (along with other stress at present). We will be moving house in 2 yrs and downsizing!!
There is nothing left each month by the time I have paid bills etc.
I guess you want a budget from me???

My question is, Should I contact Creditors to arrange and plead?? to freeze interest in order to pay my debts?
Should I arrange a DMP? and how will this affect my chances of taking over my parents business in 2 years time? Does personal debt affect my business plans?
Their business is established 20yrs and they will be retiring.

Hope this is understood? Where do we go next?

Thanks in advance

Hi jenjenjen72 and thank you for your message

A DMP is not always the best solution for everyone and without knowing your full situation, I cannot say whether it would be your best option
I would recommend that you and your partner sit down together and do a budget first of all showing all your income and expenditure. This will then give you an idea of where your money is going every month.
Once you have worked out how much you have left after paying all your priorities such as mortgage,council tax,utilities,food etc, any surplus can be used to pay towards your non priority debts such as credit cards,unsecured loans,store cards,catalogues etc.
Make a full list of all the debts you have between you.
You would then need to make an offer to each of your creditors and ask them to consider stopping all interest and charges until your circumstances change.This would be at their discretion.
If you have debts at the bank where you have your current bank account (including overdrafts), then you need to change to a basic bank account elsewhere.
This puts you back in charge of your finances and stops the bank from taking money from your account.
If you would like further help and assistance with this, 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. This link will take you directly to Debt Remedy www.cccs.co.uk/ref/drcu
Or, to book an appointment with one of our trained counsellors you would need to contact 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
Sue

CCCS_Sue

>£4meplease wrote: »

Sorry, I'm new. Still working out what I'm doing.
I may have asked this question earlier today.

In short should I transfer a CC debt of £700 from a card with 30.340%/annum to an existing card which has £5000 of debt on it offering a promotional rate of 0.9% on transfer until July2010 with a normal interest rate of 1.4566%/mth?

If I paid £200/mth would the minimum payment (say £50/mth) come out of the £200 and then £150 go off the transferred amount? So, say £200/mth for 5 months would pay 50 x 5= 250 off the £5000 (+accrued interest) and
£150 x 5= 700 off the £700 debt (+ interest at 0.9%)???? ish.

Is the principle right?

>£4meplease

Hi >£4meplease and thank you for your message

I am afraid I do not know how a balance transfer to another credit card would work, and I would recommend that the best thing to do would be to contact the credit card provider and ask them.
There may be some information in the terms and conditions of the card.
The most important thing is, that it is a lower interest rate you are transferring to and that you can pay it off within the promotional rate period, as otherwise, you could end up paying a much higher percentage when it finishes.
Regards
Sue

CCCS_Sue

Topcatcourtenay wrote: »

Hi,

I am determined to take my debt by the horns in 2010 and so on New Years Eve, I completed the Debt Remedy on the CCCS website, and clicked the button for a DMP.
I felt like a weight was off my shoulders immediately! But since then have read some of the threads on here and am worrying whether I am doing the right thing.
We have built up a huge amount of debt mainly on cards but also a couple of loans, in total we owe near on 50K. Up to this point we have managed to meet all the minimum payments but only with a lot of juggling and we are getting nowhere. After everything is paid we have no money left at all and so continues the downward spiral.
My main concerns are
1) how likely are my creditors to agree to a DMP when so far they have all been recieving there money with no problem?

2) CCCS mentioned my DMP would start in Feb- I get paid at the end of the month and all my C/C's etc are due by the 1st.....would you say it was ok to send everyone a token £1 payment at the end of Jan with the CCCs letter, this would then give me some money to get my Maintenance charge up to date and my husbands MOT done which is now 2 months late??? and then send my first installment to CCCS at the end of Feb???or would this delay it starting and if it did does it matter??

3) My biggest fear and worry is all the nasty letters and calls people have mentioned on here from creditors...so far coz we have just managed to keep them all happy we haven't experianced this...is it very likely or is it quite rare to be taken to court etc.... I except we will now have loads of defaults after this DMP, but was hoping that was the worst they could do t me??? feel very scared about this and unsure how much I would have to deal with this myself or are CCCs there to help with this side of our creditors too???

Thank you in anticipation of your reply!!!
XX

Hi topcatcourtenayand thank you for your message

First of all, it’s great to hear that you are taking charge of your situation, before it gets out of control!

To answer your questions:-

1. Although you may have been managing to just keep up to the minimum payments so far, this could be because you have been ‘robbing Peter to pay Paul’ which is a common situation when you are trying to keep your head above water. Although this sometimes works for a while,if you continue, then things usually start to spiral out of control and important priorities such as mortgage/rent/council tax/utilities start to get behind. Sometimes, people use credit cards to pay off other credit cards,or to buy food every week, which then increases the debt and before long, they are at the limit on their cards and they cannot get further credit. By doing a DMP,you are paying back a reduced amount that is affordable to you, whilst at the same time making sure you have enough in your budget to live on. The creditors will see your budget and this shows them why you are having to make reduced payments. The majority of creditors will be happy to receive regular monthly payments of what you can realistically afford. If they do not accept the offer of payment on your DMP, we send the money anyway. You cannot pay them money you do not have!
2. It is fine to send a token payment with your letter as a token gesture until your plan is up and running.
3. A default notice is a legal requirement the creditors have to send before they can take further action. This will show on your credit file for 6 years. If the creditors pass you on to a collection agency, then send us the letter and we will send them an offer of payment and they will be added to your DMP. If they ring you asking for more money, tell them that CCCS are dealing with all your payments and you do not have any extra to pay them. They are not allowed to harass you and you can let us know if you have any problems. If any of your creditors do go for a CCJ, then you do not have to go to court. You will receive a court form that you will need to fill in and return with an offer of payment and a copy of your budget. Again, CCCS will help you with this. As long as you maintain the payments, and do not default, they cannot send bailiffs.

I hope that this has put your mind at rest! If you require any further help,you can ring us and speak to one of our support counsellors.
Regards
Sue

CCCS_Sue

Beckyp1976 wrote: »

Hi

I have been contacted by a DCA looking for £47000 which was a second mortgage against a property I used to own. I jointly owned a house with my ex, when we split up in 2006 I transferred the property into his sole name as he had always paid the mortgage and dealt with the finances. This seemed a fair proposition at the time. It now appears that there was a second mortgage on the proprty which I was unaware of though my signature does seem to be on the documents. It seems he stopped making payments in 2007 and has now disappered. Is there anything I can do, I don't have this sort of money as although I work my partner stays at home with our baby. Our house is rented and in my partners name.
I hope you can help.

Hi Beckyp1976 and thank you for your message

If the debt is in joint names, then you are both joint and severally liable for payment.
I presume that if your ex partner has now disappeared, he no longer owns the property? If he has sold the house, then the debt is no longer secured on the property and you can make an offer to repay at an amount you can afford.
I would recommend that you call us for an appointment to speak to one of our counsellors about your situation as it is difficult to give you detailed advice without knowing your full circumstances.
To book an appointment with one of our trained counsellors you would need to contact 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
Sue

CCCS_Sue

Jacey53 wrote: »

Hi
I have been in touch with CCCS and completed the debt remedy form. In order to start a DMP i have applied for a basic bank account with another bank. I am told it will take about 2 weeks to come through.
I need to notify my employer asap in order to have my salary transferred in time (payable at end January).
I have not completed the authorisation yet to CCCS as i was expecting a small salary increase at end of December and wanted to make sure i had the most up-to-date details. I will be doing this tomorrow morning.
Should I start cancelling my direct debits now? I can do this online so do not have to give an explanation at the time, but if for any reason my salary is still paid into the old bank at the end of the month, could they take all my salary to clear the overdraft? I could meet the minimum payments on my bank credit card and loan this month if this is the best way forward, but could possibly then not pay the minimum on the other CC (although it may just be possible as i have enough food etc in the house to last for a fortnight)
Can you please advise the best way to move on with this. many thanks

Hi Jacey53 and thank you for your message

It is important that you make sure all your priority bills are looked after first and that you have enough money to buy food.
Whilst you are waiting for your new bank account to be set up, you should cancel any direct debits you have set up for unsecured loans /credit cards and offer a token payment.
Send this payment with your ‘Notification of DMP’ letter to each of your creditors but not your bank. You should wait until you have withdrawn your money and opened your new account before notifying them or else they could use any money in the account to clear their debt.
If you need any further help, you can ring our Debt Remedy team.
Regards
Sue

CCCS_Sue

patchy987 wrote: »

ok, so how to start, well we are 3 years into an iva and had some payment problems this year, i had a letter of breach in october , this completely panicked me and i rang them to say we would try to pay 1500 within 6 weeks to get back up to date, the next day i realised this was unrealistic and rang back, after a conversation with a really nice woman she said we could have till march 2010 to get the arrears paid and everything would be fine.

anyway today i get a letter from the iva supervisor saying they have now written to the creditors asking if they want to pursue bankruptcy proceedings, i am in the process of getting the money together as i promised them i would and now it seems its too late.

is there anything i can do ?? and please dont say call them as they dont open again till monday and i am already feeling suicidal over this and am currently sitting here with a lot of tablets.

please help me, i really need some advice

Hi Patchy987 and thank you for your message

Depending upon all the facts of the IVA, if you cease payments or otherwise contravene the terms of an IVA, then the Supervisor is duty bound to advise the creditors. The Supervisor can also recommend an application be made for bankruptcy against you. The creditors are only likely to agree to the application for bankruptcy if there are sufficient assets to pay the creditors a reasonable and worthwhile dividend. A creditor's petition for bankruptcy costs money and they are more likely to pursue bankruptcy if prospects of asset recovery are good.

Again,it depends on all the facts, and you do need to contact your Supervisor to try to negotiate continuing the payments if you are able to .

We are not able to give any further advice due to the IVA being a legally binding contract.

Regards
Sue

suzib1981

Hi just found this topic and think its great that you are on here to help ppl its very kind of you.

I completed our debt recovery plan on monday night on CCCS website and it adviced us that we should start a DMP paying £249 per month. I applied for this and i am waiting on my welcome pack. I have a few questions tho:

1) I forgot to put in a couple of unsecured debts when i completed the debt remedy how can i add these to my DMP?

2) I have set up a new basis bank account with RBS and my husbands wage will be paid into this account as of next week (he's paid weekly) and am in the process of transferring my essential DD's ie mortgage, council tax, elec and gas etc. But a loan we have included on our DMP is due to be paid next week and i am unsure if i will have received my welcome pack by then should i cancel the direct debit now at my old bank account and send a letter and token payment already before i receive my welcome pack? Im slightly worried about this as the loan is with my old bank and we also have an overdraft there and my mother and i also have a business account with them would they try to take the money from our business account even tho my mother is also the account holder??

3) Our current 2yr mortgage deal ends in july we have never missed a payment on this in the 2 yrs and my mother is included in this as i was on maternity leave when we took the mortgage ( she and my father are highly regarded customers at RBS where our mortgage is held as they have alot of money invested with the bank) this being the case in light of my parents being priorty customers will RBS still charge us a higher interest rate on our new deal with my husband and i taking out this DMP???

My mother is fully aware of us taking out this DMP as we want to get out of this debt by ourselves and not borrow money from my parents which would be the easy way out the way we see it is we got ourselves into it by oversprending, we get ourselves out of it, she is saying that if the RBS do try to give us a higher rate then she will threaten to remove all her money from the bank (which is a great deal of money) do you think this may persuade them to give us a better deal (our current deal is high as rates were high at the time of taking the mortgage).

Thanks in advance

Suzanne

little_london

man is life stressfull with the goverment taking the shirts of our backs.
advice please on getting them credit cards gone with affordable payments not theres dont care if i get another credit card really. lost my job last oct sub contracted to a firm for 2 months got paid rubbish money and now over my limit on all try talking to them and they just want there payments so seem to be getting no where help me