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CCCS_Matthew

kellycontrary wrote: »

Hello, please could I get some advice on my current debt
In total I owe approx £8,500 worth of debt. I have no problem paying the monthly amounts, and for two of the cards I have I pay over the minimum payment to try and reduce it as quick as possible. However, its never ending adn I get frustrated that its swallowed up with interest! My credit rating is bad so I cannot get a lower interest card, Ive tried life of balance cards too.

I did contact moneyexpert.com and someone called me and after Id explained things, he suggested a debt settlement plan which would pay the debts off after 19 months, writing off some of the interest. Obviously there is a fee. THis sounds too easy to me, and they have someone coming out to me on saturday that worries me. Is there another way in which I can try and reduce my interest that is less risky? or is this company legit???

Ive tried to speak to someon on the CCCS debt remedy chat page, but I didnt get a lot of help to be honest, after Id explained everything they just told me a pack would be out in the post!

Please help!

Hi Kelly, thanks for getting in touch.

If you are in a position to be able to pay more than the minimum payments on your debts then a debt management plan wouldn't right for you. DMP's are designed for a situation where you would be unable to pay the minimum amounts each month. Even if you were suitable, you wouldn't need to pay someone to do it for you, as there are places such as CCCS who do them for free. The most important thing for me to stress is that no one can ever guarantee freezing or reducing interest on a DMP as it's down to the discretion of the lender.

In your position there are two ways in general that will help you clear the debts quicker by paying less interest.

1. Make overpayments - Whilst you are already doing this, you need to make sure you make the bigger overpayments on the debts carrying the largest interest rates. The more you overpay, the less interest you'll pay in the long run. There is a good calculator that can help you work this out, and put things into perspective in terms of how long it will take to become debt free, found here: http://www.whatsthecost.com/snowball.aspx
2. Get cheaper credit - Balance transfers is normally the best option, particularly if you can transfer to 0% for a set amount of time. However, as you've experienced if you have bad credit this isn't always an option

If you've considered both of the above, there isn't much else you can do other than to continue paying. Unfortunately when you take out the credit, you do agree to pay the level of interest which isn't really something you can do a lot about I'm afraid.

Hope this helps a bit.
Matthew.

tinker7474

Hi

I am starting my DMP on the 1st May with CCCS I have a few questions which are a few things that are bothering me:

• When a DMP is in place and regular payments are in place will the creditors demand the outstanding amount and is there a strong possibility they will they take me to court? Or do they just tend to be threats?

• Do I cancel my direct debits that have gone out this month and start sending them a letter explaining my position with a payment of some description after my next payday?

• I am not planning on contacting my bank until just before my May pay date as I am concerned they will freeze or take out money from my account, am I correct to do this?

• Please could I have some guidance on how to word the initial letter to my creditors

• How do I respond to threatening letters/phone calls whilst in the DMP with CCCS?

I’m sure I will have some further questions but this is all I’m after for the time being.

I look forward to the response

Tinker x

CCCS_Sarah

tinker7474 wrote: »

Hi

I am starting my DMP on the 1st May with CCCS I have a few questions which are a few things that are bothering me:

• When a DMP is in place and regular payments are in place will the creditors demand the outstanding amount and is there a strong possibility they will they take me to court? Or do they just tend to be threats?

• Do I cancel my direct debits that have gone out this month and start sending them a letter explaining my position with a payment of some description after my next payday?

• I am not planning on contacting my bank until just before my May pay date as I am concerned they will freeze or take out money from my account, am I correct to do this?

• Please could I have some guidance on how to word the initial letter to my creditors

• How do I respond to threatening letters/phone calls whilst in the DMP with CCCS?

I’m sure I will have some further questions but this is all I’m after for the time being.

I look forward to the response

Tinker x

Hello,

I have answered your questions below, let me know if you have any further questions.

Sarah

• Do I cancel my direct debits that have gone out this month and start sending them a letter explaining my position with a payment of some description after my next payday?

Arrange for your wages to be paid into your new account and then cancel all your direct debts, and set your priority ones up to come out of your new back account.

• I am not planning on contacting my bank until just before my May pay date as I am concerned they will freeze or take out money from my account, am I correct to do this?

The sooner you change your bank the better, once you have your new account open and your wages paid into this account it means your money is safe.

• Please could I have some guidance on how to word the initial letter to my creditors

If you are going on a DMP there will be a letter in your pack called “notification of debt management plan” send this to all your creditors. I would recommend that you have your bank changed over before you send it to them.

• How do I respond to threatening letters/phone calls whilst in the DMP with CCCS?

You don’t have to. Just put them in a safe place for your records. All you are looking out for is if the debts change companies because you need to let us know or if you receive any County Court claim forms these need to be filled in and sent back.

candypop

Hi I am due to start a DMP with CCCS on 1st April for 6 years. I have received my first default notice from one of my creditors. Can you confirm that default notices stay on your credit file for 6 years from when they are first given or do they stay there from now and then 6 years from when the debt is repaid ie as my plan is for 6 years will the default notice remain on my file for 12 years?

bigmacman

i have debts as followed

£2995 loan pay 100 pound a month
£3225 loan pay 60 pounds a month
£400 orange phone bill pay 100 pound per month

im on jobseekers allowance which is £200-
do you think it be best to go on debt management plan as i could afford £100- each month for all the creditors.

all help would be great
many thanks
bigmac

lyndorset

Hi Ive started the DMP with help from great people on here. However, I thought creditors were not allowed to contact me for a month?

I have had a letter from Tesco asking for inforation about other creditors and a reply from Blackhorse that they will accept the £1.00 but reserve the right not to at any time, however their letter advises me that the whole time I only pay £1.00 the non- payment charge will go on each month and the interest will increase. I knew all this was coming, but I really thought there was a law that they had to give me a months breathing space, both of these have written back within a week. Also is there a template I can use to try and convince Blackhorse to be more helpful? I really do not want the debt to spiral even further. Theirs is already the highest interest rate. Thanks in advance Lyn

scouselad1974

Hi

I'm sorry that you are having a hard time of it allready with Blackhorse, I would have a look on The National Debtline website as they have some great letter templates, were you can ask a creditor to freeze or at least reduce your interest.
Unfortunatley they do not have to do this and it is at their discretion. If they continue to add interest it may be worth sending a letter to their complaints department, explaining your whole situation and telling them that their refusal to freeze interest could put your DMP at risk.

slicsav

Quick question. I've filled in my details with CCCS and received the pack Saturday. Completed and returned today. I dont recall putting my bank details on the initial application....would I have done this?
and on the letters to creditors I've written April as a start date. Have I given CCCS enough time for this to be implemented in time? or will they contact me?

Georgiegirl256

I found out today that my partner is about £32,000 in debt, made up of 2 credit cards and 2 loans. The worst credit card being about £11,000. We own our own house (morgaged) and one of his suggestions was to change the morgage to an interest only morgage for a couple of years as we currently pay about £550, and by doing this it would save us a few hundred pounds which could be used to pay off the debts. I really don't know, I don't know which way to turn for the best.

I was thinking of getting the credit cards to freeze the interest and also cancel the payment protection which I notice he has on them but apart from that I don't know what to do?

Any advice at all would be greatly appreciated.

dadooronronrondadooronron

Hello

I have previously asked for help on this forum and over the last 4-5 months have started to make a dent in my debts. I have been making bigger payments and now not using overdraft at all. I have cut up all cards bar one which is useful to have but I pay in full at the end of each month. I dont have any mortgage arrears or loan arrears - managed to keep on top of all those but found it was paying huge amounts each month to credit cards that was causing my anxiety levels to rise.

I wrote to each company (letters from here). Cut up cards and told them I wouldnt be using cards and needed to set up payment arrangement. I offered amounts and was pleased to have these amounts accepted. However in January TESCO CARD called me to say my 3 month payment plan was up for review. This was fine by me. I discussed things over the phone. I have been paying them £60 per month (debt of £5000). THey wanted me to increase from Feb to £100 per month. I told them not possible. I then received letter with new amount. I paid original amount £60 and sent letter to them. 3 weeks ago I received letter from Triton Collection stating I need to contact them regarding TESCO card. I sent letter to Tesco reiterating my position and stating I would be discussing with them only. I sent copy letter to Triton and covering letter to say I am discussing direct with TRITON. NO response yet from TESCO. Today received letter from TRITON to say they were disappointed they hadnt heard from me (I sent letter recorded delivery and I know they have received it). They suggest that they will be sending somebody to my house if I dont get in touch with them.

NEED ADVICE PLEASE!!

1. What do I do next?

2. Are they likely to send somebody to my house.

I am really disappointed as I have been making huge inroads into my debts and have kept everybody fully informed. Would appreciate advice on best thing to do with this one. RON