Ask a CCCS counsellor a question

CCCS_Matthew

MS_Dolphin wrote: »

Basic question I guess, but what happens if I call all my creditors and tell them I can't afford to pay my monthly payments?

I know this is not a 10 word answer, but the basic summary would help.

Thanks.

Hi there, sorry to take so long to get back to you, we're trying our best to catch up with the back log!

It's a little difficult for me to advise you without knowing much about your situation. Is the reason why you cannot afford payments a short term until things have improved? Are you wanting to make a reduced offer or payment, or can you not offer anything at all?

The documents we send out to our clients are tailored based on the situation they are in as advised by one of our counsellors. However, a general statement I could suggest would be something like...

"Due to a change in circumstances, I'm no longer in a position to offer my normal amount of £XXX per month, and can only offer £XXX. I would appriciate if you could accept the situation, and I will contact you again when the situation improves in order to ammend my payments"

Hope this helps,
Matthew.

CCCS_Matthew

spoll wrote: »

Hi,

My Dad has racked up a huge amount of credit card debt and has got to the stgae where his monthly salary cannot stretch to pay the credit cardbills and overdraft.

He's just had an appointment with paylplan and they have refused a dmp and basically offered little advice as to what he can do now.

He's going to speak to the ccs but are they likely to refuse him as well? I thoughte idea of such schemes were to negotiate a monthly payment with the creditors?

Thanks for any help you can offer.

CCCS doesn't just offer Debt Management Plans, so if a DMP isn't a possibility we will still be able to provide him with the advice for him to get things back on track. A DMP can only be offered if there is a surplus available at the end of the month after all priority costs are taken out, which is enough to clear the debts in a reasonable amount of time.

Regards,
Matthew.

CCCS_Matthew

richiescotland wrote: »

Need advice on next step and what happens next, I feel so stupid here
Here is my SoA
[tt]Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1200
Partners monthly income after tax....... 1200
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2400

Monthly Expense Details
Mortgage................................ 730
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 200
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 20
Mobile phone............................ 15
TV Licence.............................. 15
Satellite/Cable TV...................... 20
Internet Services....................... 20
Groceries etc. ......................... 350
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 10
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 150
Other insurance......................... 70
Presents (birthday, christmas etc)...... 50
Haircuts................................ 15
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1820


Assets
Cash.................................... 0
House value (Gross)..................... 168000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 168000


Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 0........(730)......0
Total secured & HP debts...... 0.........-.........-

Unsecured Debts
Description....................Debt......Monthly.. .APR
capitaln one...................5097......140.......0
virgin.........................14660.....25....... .0
egg............................3300......63....... .0
egg............................1000......9........ .0
halifax........................8000......110...... .0
M&S............................2850......70....... .0
lloyds.........................4300......90....... .0
lloyds.........................4000......82....... .0
Mint...........................6300......283...... .0
Rbs............................7700......176...... .0
BoS............................1170......27....... .0
barclaycard....................3200......110...... .0
Total unsecured debts..........61577.....1185......-


Monthly Budget Summary
Total monthly income.................... 2,400
Expenses (including HP & secured debts). 1,820
Available for debt repayments........... 580
Monthly UNsecured debt repayments....... 1,185
Amount short for making debt repayments. -605

Personal Balance Sheet Summary
Total assets (things you own)........... 168,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -61,577
Net Assets.............................. 106,423

Crazy borrowing I know but what will CCCS say and what will they think best a PTD or BR or DMP
please give advice have a meeting in a few weeks

Hi there,

Good to see that you've got your figures together ready for your appointment. Try not to worry or pre-empt what you're options are going to be, the counsellor will discuss all possibilities with you on the appointment. Your in the position where you have a surplus to offer towards your creditors, which always helps to ensure you're going to have options available to you.

Regards,
Matthew.

CCCS_Matthew

Joolsvw wrote: »

Hi there,

my boyfriend racked up quite a lot of debt as a student and unfortunately just as we get on our feet as a family these debts are catching up with him. He assures me that this is the final debt, a credit card debt of £1340 that has been sent to a collections agency.

Now I'm just wondering if there's a possibility of us saving ourselves some money by asking for a reduction in this figure for payment in full (wiping out our savings!). Is this a possibility and what is a fair offer?

Many thanks

Hi there,

If you have a bit of spare cash available it's certainly worth persuing a settlement on the debt. I'd perhaps start by offering 50% of the balance and working you're way up until you meet somewhere in the middle. It's better doing it this way rather than going in high and getting accepted straight away, as you'll be kicking youself that you may have got more written off!

Make sure you get any settlement agreement in writing, and if you like send me a PM and I can give you a template letter to use.

Regards,
Matthew.

spoll_2

CCCS_Matthew wrote: »

CCCS doesn't just offer Debt Management Plans, so if a DMP isn't a possibility we will still be able to provide him with the advice for him to get things back on track. A DMP can only be offered if there is a surplus available at the end of the month after all priority costs are taken out, which is enough to clear the debts in a reasonable amount of time.

Regards,
Matthew.

Thanks Matthew for taking the time to respond. My Dad has spoken to the CCCS and they have arranged a telephone appointment of Feb 5th and have said that they will be able to help no matter what his situation so that has given him some hope.

Payplan have sent through a number of pre-written letters for him to sign and send to his creditors but I've told him to wait until he has spoken to the CCCS and go from there.

I have a plan of attack lined up for him depending on what comes out of the CCCS interview but something along the lines of freezing interest on the CC's and switiching to an interst only mortgage would help a huge amount.

Thanks again.

bikechic

Hi, i've got some details on the link below.

http://forums.moneysavingexpert.com/showthread.html?t=1420509

I have taken quite some advice over the last 3 weeks, going from pursuing BR and now looking at undertaking informal arrangements.

Can you assist me with some questions I have?

1. Do I write to the initial debtor, or to the solicitor/debt collector chasing the debt on their behalf?

2. Do I write with the minimum payment letter first, or write asking to see if they will write off the debt (hoping)

3. Can you give me some advice as to what should be done first, i.e. a step by step 'idiot's guide'???

many thanks

scholars13

Hi I wondered if anyone could help me with this(my) scenario.

I have unsecured debts about 50k and until recently lived at home with my parents. After coming clean about my troubles they are helping me sort them out. Their financial advisor has arranged reduced payments with my creditors and I have been paying at these reduced rates for 6 months now. The plan is to pay at these rates until a time they come back to us or we approach them for a settlement figure that my parents are going to pay off. However im now living with my fiancee and we plan to marry next June. If I am still paying them off at this time how will it affect my fiancee getting credit now and in the future. Would the address be the a bad credit risk or just me still? If we retain seperate bank accounts and dont open a joint account will this get around this problem or as soon as we marry will my living at this address make us financially linked??? What would be the best course of action for us??? All comments welcome.

flatbroke49

I have been with a debt management company for 5 months, following a period of ill health. I had no arrears ect., but knew my financial situation was going to change dramatically. I contacted a debt management company and continued paying the full amount until this kicked in. However, I have been absolutley hounded by MBNA, who according to the DMP have agreed a monthly payment which is just over 50% of the amount. I have since received a letter from them saying that they are looking into putting a charge on my house. I have never missed a payment, even though the past four months they have received a reduced amount. Can they do this?? It is extremently stressful. I wrote and told them that I was receiving fortnighty hospital treatment (chemotherapy) and keep being hospitalised (not terminal) and that they are causing me more stress but this doesnt seem to bother them. I have also wrote three times outlining the situation, and the DMP have contacted them even more times both by phone, fax and letter. I have also sent them an 'harrassment letter'. but this threat of a charge on my house has really worried me.

sallyx

Hi
I have been on a DMP for 18 months Approx and HSBC overdraft being one of my creditors. They are still charging interest on this account and balance is obviously going up. I have come into a bit of money and wanted to know will they accept a F&F on an overdraft and if so what % should I go for

Thanks

NEWLIFE_WANNABE

Hi peeps, I am new to this so bear with me. I have just completed a debt remedy and chosen the dmp option. All will be posted out to me but now that this is being processed I can't access my advice booklet and don't as yet know when the dmp will start. Do I need to continue paying my creditors the full amounts whilst the plan is being set up. I was wondering if I could reduce my payments on the credit cards (I have 8) while the plan is being implemented as it is these payments that are pushing me into my overdraft. Would this be OK? Many thanks.