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CCCS_Sue

lollyhop wrote: »

Hi There,

I am new to this forum and hoping for some advice.

When I was 18 (now 26) I got a Halifax credit card (Ibank with Halifax) and spent like a loon (stupid I know but we live and learn) Now Just a quick rant; I know everyone is responsible for their own choices and mistakes and I should have know better but why lend £5000 to an 18 year old earning £14,000 a year? Anyway, I could have managed the repayments if it werent for the fact that I ordered a second credit card (Egg) to transfer the balance. It never arrived (so I thought) and I assumed that I had not been accepted for the card. Except that it did arrive and my boyfriend of the time merrily spent on it without my knowledge (again, you live and learn)

I was unable to keep up with the repayments and buried my head in the sand for about a year.. as you do when your young. The interest and missed payments added up and eventually I contacted Halifax and Egg, held my hands up and luckily they both agreed to freeze the interest and following me submitting budget forms etc I started to pay approx £5 a month off on each card.

Egg was now with Moorcroft Debt recovery and Halifax with Blair Oliver & Scott (whom I beleive are internal DR for Halifax?)

As the years have gone by I have never missed a payment and as my salary has increase so have my monthly amounts. I now pay £60 off a month on each card.

Its never bothered me too much but I have just been refused a car loan, my partner and I want to buy a house, I cant even get a mobile phone because of my bad credit rating.

I have seen my Experian report add oddly Egg isnt on there (can anyone shed any light on this?) but Halifax credit card is and its showing RED for every month since 2004!

I have worked out that at th e rate I am paying these off I will be clear of the egg debt in 2013 and then if I increase my Halifax payment with the money freed up from paying off Egg, I will have paid everything off in 2015...

I really dont want this hanging over me that long.

I would love to get a proper loan to pay it all off but of course the only people who will lend to me charge 2000000%APR.

If only Halifax would take in to account that I havent so much as gone over my overdraft since 2004 and have a really good, steady income. If they would give me a loan for the two debts I could pay it back, with interest!! But im scared to go to the bank manager in case it brings all of this to their attention and they start off setting money from my current account.

I cant move my current account because of my bad credit rating arghhhhh I really am desparate to put one year of spending and a bad boyfriend from nearly 10 years ago behind me!!!!

Any advice??

In return I can offer every last budgetting, thrift and money saving family tip there ever was, I am queen of keeping to household budgets!

Thanks in advance

Hi lollyhop and thank you for your message

You could apply for a basic bank account and have your income paid into this account.
As these accounts do not allow you to become overdrawn they are usually available to the majority of applicants and are the best type of account to apply for when experiencing financial difficulty.
Section 3.1 of the Banking Code states that banks subscribing to the code will offer a basic account if it is specifically asked for, providing the qualifying conditions are met. If a bank refuses to open a basic bank account despite you meeting the qualifying criteria then you could make a complaint to the bank about this or directly to the Banking Code Standards Board.
Opening a basic bank account would put you back in charge of your finances and prevent the bank taking money from your account to pay off any debts with them.
You can then repay them at an amount you can realistically afford.
I have attached a booklet you may find useful that lists basic bank accounts you can consider.
http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

I have also attached a link to a booklet called ‘Credit Explained’. This gives the names of all three main credit reference agencies, as it could be that the creditor has put your details with one of the other agencies, and this is why it is not showing on Experian.
http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

There is a really good section here on ‘moneysavingexpert’ which explains ways to try and improve your credit score.
http://www.moneysavingexpert.com/loans/credit-rating-credit-score

Hope this helps

Regards
Sue

CCCS_Sue

razer12121 wrote: »

ah i see, well this is what the letter says,

"you have not contacted us to discuss repayment for this debt. we require immediate full payment or an acceptable offer of repayment to prevent any further action.
in order to stop our recommending that our client undertake further action such as the instruction of solicitors to issue court proceedings we are prepared to accept payments of £40.00 per month. if you wish to take advantage of this repayment opportunity you must make a payment using the payment slip attached. on receipt of the first payment we will forward slips to you.
unless a payment is received by 10.00am on 08/03/10 we may recommend court proceedings to be commenced agaisnt you without further notice.
such action could incur you in further cost and may also affect your future credit rating. it is therefor in your best interests to give this matter your immediate attention."

im pretty stuck on how i should word a letter back, i mean i could get £150 but i dont think they would settle it with that, and apart from that im still stuck on how to word the letter lol , please hurry ive onyl got a little while longer thanks!

Hi razar12121

I have attached a sample of a full and final settlement letter you could use.
Keep a copy of the letter yourself and ask them to mark your credit file as ‘satisfied in full’ if your request is accepted.

Your Name

Your Address

Date

Name of Creditor
Address of Creditor

Without Prejudice

Dear Sir/Madam,

Re: Insert creditor’s account number

I write concerning the balance outstanding on the above account.

I am unable to continue to make payments on this account because insert brief details e.g. I am unemployed.

However, I can raise £insert your offer to this creditor and I offer this amount in Full and Final Settlement of the account.

This offer is made on the understanding that if accepted neither you nor any associate company, will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.

I also request that if accepted, you will make an entry on any credit reference agency files relating to this account as ‘satisfied in full’.

Payment can be made within 28 days of receiving your written acceptance of this offer.

I look forward to your reply.

Yours faithfully,


Your Signature

Your Printed Name

Regards
Sue

CCCS_Sue

North1234 wrote: »

Hi, I was working in a self employed position contracted to a firm and have left due to lack of work. I have signed on and am waiting to see what if anything i am due re JSA. I have two credit cards and one loan which i have paid last month but will be unable to pay at the end of this month. Am I able to ask them for a break in payments? I am hoping to be back in work within the next two months.
Help please..... many thanks.
North1234

Hi North 1234 and thank you for your message

Put together a copy of your income and expenditure and send this to each of your creditors with an offer of payment.
Just offer a token payment of £1 as a goodwill gesture until your circumstances improve and you return to work. Attach a letter asking them to consider stopping interest and charges. They do not have to agree to this. It is entirely at their discretion.

If they refuse to accept your offer, then send it anyway. The main thing is that you are keeping them informed of your situation and paying what you can.
It is not a long term fix. It is just to help out until you get back to work.

Regards
Sue

CCCS_Sue

tedsd wrote: »

Hi, just a quick question, is the review every 12 months if you are self employed, which I may be soon... or is it done more regularly to reflect the different incomings/ouitgoings each month?

Thanks

It is normally every 12 months, unless you are struggling and want to review your plan sooner. Then you could ring us for an update before the review.
Regards
Sue

CCCS_Sarah

Just_Me wrote: »

Hi my query is about Lloyds TSB. I don't understand why they can't be more understanding like other creditors. Most of them will make an agreement and even freeze the interest but with LTSB its no no you have to review it every six months and then phone them to see if you can continue with the agreement. Anyway with one of our debts with them they did freeze the interest for the last year. We got one of the six monthly letters, rang them and they have been totally adamant that they will not continue to freeze the interest. We can pay the same amount but they will now add the interest on to it which means it will take us probably 25 years to pay them off. If they just kept the interest frozen we would actually get somewhere with it. Is there anything we can do to stop them from treating us like this? We have never ever missed a payment, not when we were paying the loan amounts nor since starting the DMP, so why do they have to penalise us like this?:(

scouselad1974 wrote: »

Hi

I'm having the same problem with Halifax, everyone else has been great.

Hello,

Thank you for your message.

Unfortunately as making reduced payments is an informal arrangement there is no way of making them stop the interest and charges. Have they given you a specific reason why they won’t stop it i.e. excessive expenditure?

You could try and put a letter together advising that your other creditors have agreed to stop the interest and advice that you are willing etc

I would recommend that you have an appointment with the CCCS so we can help you put together a detailed financial statement and look at all your options. If you would like an appointment please call 0800 138 1111 or you can do this online by visiting our Online debt advice tool Debt Remedy. This link will take you directly to Debt Remedy

Sarah

CCCS_Sarah

debtqueen wrote: »

Hi,
I currently have about £24,000 on credit cards and have been managing the debt using my salary and also a 2nd job. The interest that I'm paying is huge and now I will never manage to pay off the debt (not while I'm alive anyway). I also have £90,000 mortgage (little or no equity as I refinanced a few years ago). I have never defaulted on any of my payments for either mortgage or the 4 credit cards that I owe. I do have a steady income, good job and also have beening doing a 2nd job to make ends meet, however income is variable.

I've been advised to contact my credit card companies (MBNA, RBS, Halifax, Egg) through a credit association (charitable, so no charges) who will write a formal letter to them all asking them to freeze the interest (for MBNA I pay £379 a month, £350 is interest).

My question is - what sort of response will I receive from them. My stress levels are at their peak and I don't think that I could cope with demands for payment or threatening letters etc, or bailiffs calling. Is it likely that they will agree to the proposal - freeze interest and then I can hopefully repay the debt.

Any advice would be much appreciated.

(I do have an alternative and my parents have said that they will lend me money to cover some of the debt, but obviously they would prefer not to)

I debtqueen,

I have attached a link to the CCCS website for you to have a read through. One link it to information on the collection process so this is what creditors can and cant do and the other is about interest and charges. Have a read through as this should answer your question. If you have any other questions give me a shout.

http://www.cccs.co.uk/InfoCentre/EnglandandWales/Creditoraction/Chargesandinterest.aspx

http://www.cccs.co.uk/InfoCentre/EnglandandWales/Creditoraction/Debtcollectionprocess.aspx

Sarah

CCCS_Sarah

maeeve wrote: »

We have a DMP with CCCS which has been brilliant and a complete weight was taken off our shoulders a couple of years ag when we began.
We have a debt with just £347 owing to ABBEY and was wondering if you think it might be worh making an offer to them to finish the debt early with a settlement figure?
we also have £522 to M&S but maybe one at a time for now??

We maybe in a psoition to ask family for a small loan to pay this so we can then offer the other companies bigger payments.

What would your advice be on this please?

thankyou

Hello,

I would recommend that you give our client support department a call so that they can look at your account and they will be able to talk through this with you.

Sarah

CCCS_Sarah

ducatifrog996 wrote: »

hi, my wage is only £1250 a month but gets topped up to around £2300 on average with dividends but my girlfriend does contribute £600 a month towards bills.
which makes our total house income up too £2900 will they then take in to account that i have £400 extra cash a month and put that towards my debts. will they just take my word for the top up in dividends or need proof, as goes up and down depending on business profits?
can i go bankrupted if i am only a secretery of the business but hold shares?
thanks

For a debt management plan you are better putting what is guaranteed or an average you can always make overpayments to reduce the term down. If you have an appointment your counsellor will talk through this in detail and help you decide what to put.

If you would like an appointment for a counsellor to discuss your options please call 0800 138 1111.

Sarah

CCCS_Sarah

linkslow wrote: »

Hi

I'm just wondering what I should do, I'm about to do a request with cccs however I have a save as you earn poilcy to buy shares with my earnings which I'm unable to stop should I not include this as it taken before I get my wages and I also work overtime each month so do I remove this from my earning and just include my basic monthly wage..

one other thing is I'm thinking about clearing my banks accounts, overdrafts and loans and closing all but 1 bank account before I start a dmp by using some shares I'm about to get so I only have 3 creditors rather then 8


what would be your advice regading this.

Hello,

Have you already had your appointment? If so I would recommend that you call our support counsellors to discuss these questions as they will be able to look at your budget.

I would maybe recommend contacting your HR department and ask them if there is anyway of stopping it due to your current situation.

With regards your overtime, you could include an average if it’s regular or leave it out and make overpayments if it’s not guaranteed.

If you have a lump sum due you could look at making full and final settlements, this is a way of clearing the debt at a reduced amount.

Sarah

CCCS_Sarah

jazeda wrote: »

Hi, I just wanted to ask a couple of questions. my husband and I are on a joint DMP with the CCCS at the moment. we are in the process of seperating and my husband is moving out. the only joint debt in both our names is the mortgage. we have children and to save having to uproot them from schools etc, he wants me to stay in the house with them. our individual debts are prob about £13000 each. my questions are these - my husband is talking about declaring himself bankrupt to manage his debts, how would this affect our joint mortgage (we dont think there is any equity in the house)? and will i be able to go onto a DMP in my own name? I have worked out roughly my income and expenditure and think I should have about £190 that I could pay to my creditors and this includes me paying the whole mortgage payment myself. I'm worried sick about whats going to happen so any advice would be greatly appreciated.

Hi Jezeda,

Thank you for your message.

The best thing to do here would be to call our client support department and they can split the budget for you both. If bankruptcy is your husbands best options we will talk through this in detail. You could then have an appointment with just your details and then we can look at your options. Our client supports telephone number should be on your statement.

Regards