Ask a CCCS counsellor a question

CCCS_Sarah

raul69 wrote: »

I would like to know this as well, if anyone can help?

This is the answer i posted on the last question.

Hope it helps!

I have been in contact with CCCS about a DMP a while ago, but I would like to confirm / know how it affects your credit rating and in particular the points below.

1. When you come to the end of say a fixed rate mortgage and you wanted to move to another rate - are there any issues with this if under a DMP?

A dmp will have some affect on your credit rating as you will be offering reduced payments and not sticking to the terms and conditions of the original agreement i.e. the creditors may record default notices and CCJ’s. Generally the more of a risk you are to the lender the higher rate of interest you will pay

2. Would you be able to remortgage at some point in the future if still under a DMP? If house prices went up again, it would maybe allow additional borrowing to reduce/remove the debt.

At the CCCS we would not advise anyone to secure debt against their homes, as if further down the line you were to get into difficulties this would put your home at risk.

3. Are you able to get any credit under a DMP e.g. a small credit card limit for emergencies?

During the initial appointment the counsellor will put together a budget that will allow for sundries and emergencies. If when you are on a plan an unexpected cost arises, then we would recommend that you let us know and then we can discuss this in detail. For example you could offer a reduced payment for that month rather than using credit as the point of the DMP is to get you out of debt not increase the amount

4. I need to make a final payment on my car in about 18 months of about 5K? How would that work?

This sounds like a balloon payment on a PCP agreement, once you get to the end of the term you would have 3 options with the finance company (hand the car back, refinance the balloon or pay the amount of in full).

We would review this on a case by case basis as generally the balloons are for a large amount. If the car is an essential cost then we do take this into account

I would appreciate some advice ASAP, as I have been offered a loan to clear all debts but that would last 15 years and probably costs more than the payments to DMP.

Thanks

july73

CCCS_Sarah wrote: »

3. Are you able to get any credit under a DMP e.g. a small credit card limit for emergencies?

During the initial appointment the counsellor will put together a budget that will allow for sundries and emergencies. If when you are on a plan an unexpected cost arises, then we would recommend that you let us know and then we can discuss this in detail. For example you could offer a reduced payment for that month rather than using credit as the point of the DMP is to get you out of debt not increase the amount

Thanks Sarah this has answered the main point to my long winded question.

Just one other thing if say I come in to a little windfall like my free shares from the company I work for. Wouldn't be much as I work part time prob around £100 to £150 every year. Will i have to give all of it to the creditors? I think I can start cashing in as of next year. I'm planning to do PPI claim as both credit cards were without doubt missold. Will this money go to the creditors.

Just to point on the PPI if it did I wouldn't mind. But some of My shares would be used for the kids by choice, A day out type of thing, as I know we would not be able to afford things like this whilst on a DMP.

Many thanks in advance .........I know I waffle on a bit:o

juju11_2

Hello

My sister took out a £22,000 loan 4 years ago with her then-partner whom she lived with. She has made repayments for 4 years now. She pays £147 a month and her ex-partner initially agreed to pay £147 a month too. The loan is secured against her house but they both signed the loan agreement. The house/mortgage has never been in his name. The APR is approx. 15% and the loan is over 15 years.

Her problem is that he keeps not paying his monthly payment but the loan company only threaten my sister with action, as the loan is secured against her home. He will not discuss the missed payments with her (he does not care) even though when the loan was taken out the majority of it was used to pay off his huge debts.

She has sought free legal advice but her solicitors can not find a legal reason for her ex-partner to be made to pay his half of the debt every month.

PLEASE please can someone offer some advice as she has 5 children and the constant threat of losing her home every month is making her ill.

Thanks, J

loveleelaidee

:mad:Hi I wondered can you give me advice on this matter?
My Hubby was overpaid jobseekers in 2001 and he agreed to pay this off at £5 perweek for ??? months by DD. As far as we were concerned the debt had been repaid and the DD's stopped acordingly. Then on 16th July 2008 we received a letter from Social Services Agency telling him he still owes £70. He rang them and asked what this money is and why he hasn't heard anything since the dd's stopped being taken out. The advisor couldn't tell him anything about this and my husband rightfully asked for evidence of all the payments including dates of payment against the debt. We heard nothing since and last week we received a letter from a debt collection agency requesting the £70. Hubby rang and the guy on the phone was quite ifnorant and rude. though my hubby explained he had disputed the debt with the SSA and therefore was trying to seek information about this. Is there any advice you can give me about this. Don't want any problem debts as we are clearing up our loans rightly.

CCCS_Sarah

STSAVER wrote: »

Hi all.

Just wondering if anyone can offer any advice (or even just some re-assurance) as to how best to deal with MBNA when it comes to actually trying to get some sense out of them when it comes to discussing the possibility of a reduced payment plan – or even just to get reduced or frozen interest charges.

Background

Obviously, given that I am trying to obtain reduced payments this is as a result of me getting myself into too much debt, strung across various different credit cards and a minor loan balance which will be fully repaid in the coming months then throw in a change to job circumstances meaning it costs me a fair bit to get to work each day it means I cannot afford to meet all of the minimum repayments and MBNA is the one that has fallen behind now (2 months behind repayments on two cards with them).

I have put together an exhaustive Income and Expenditure statement which detailed
- Salary Income
- House and home costs (which detailed every single payment that my wife and I must make each month to keep our house running)
- Creditor payments (full listing of all minimum payments currently expected along with full balances outstanding to each creditor)
- Travel expenses (which included a breakdown of three months worth of fuel expenses I’ve incurred)

I have sent letters to MBNA twice now including the Income and Expenditure statement and requested for a reduced payment plan to be put in place to a manageable level for my circumstances until I get into a position that I can increase the level of payments (such as when the loan repayments cease in a few months time).

When subsequently speaking to MBNA I have had various different reports as to what can be done to help me as well as dealing with some people that have been quite degrading in the manner with which they have spoken to me.
The “advice” I have received from them have ranged from
– 12 month reduced payment plan could be done (if I gave them full I&E details – which I’d already done)
– they don’t offer reduced payment plans unless I take default on the account and enter into full payment plan with them
– have I thought about a secured loan against my house
– why don’t I apply for a new credit card and just transfer the balances (to which I explained that my credit history is bad enough as it is…. But this was greeted with comment verging on “so what”).
– We can offer reduced interest if I supply full I&E details to them (which I had already done)
– They can only offer something to me if I also supply them with details of my wife’s income and expenditure (she is not on any of the credit card accounts in my name)

The latest call was left with me saying I would have to phone back to run through details of all my household bills (despite the fact that I told him the I&E statements I sent in detailed all of this).

I sent exactly the same information to Egg who were very helpful when subsequently speaking to them – and they even commented that the I&E information I had sent in was a great help to them as they rarely get as much detail from people.

Can any one offer any advice from either personal experience (or from working there maybe) of how best to get something sorted as I ideally want to get payments made each month to start repaying capital and get myself back on track as I am getting to the end of my tether with them now?

Hello and thank you for your message.

You are doing the right thing by offering reduced payments. A creditor should not encourage you to pay credit with credit as detailed in the debt collection guidelines.

Securing the debt against your home is a bad idea, as if you get into difficulties later down the line and you were unable to maintain your payments, this would put your home at risk.

If you have calculated payments that are fair to all your creditors and there is nothing that could be classed as excessive in your budget and you have enough for all your living costs – you will be fine to stick to this amount.

The key is, even if they say they are not accepting the payment, send it anyway!

If they do default your account this is common and nothing to be worried about. A default notice will stay on your credit file for six years. A default is a legal requirement that ends the contract between you and the creditor, so they can then pass the debt onto a collection agency.

A collection agency has no more power than the original creditor to collect the debt, so all you would need to do if this happened is send them a copy of your income and expenditure and stick to the same payment.


Hope this helps put your mind at ease, if you have any other questions feel free to send me a PM.

Sarah

CCCS_Sue

jujuxander wrote: »

Hi
My husband was made redundant from his job (£37K) last March. I am unable to work as we have a disabled daughter. After struggling for months trying to get a job we decided (with private family funding) to set up a Ltd company selling childrens goods, our shop opened in November 08. Well the business is struggling but it is early days. We are only able to pay him a minimum wage (£10K).
Having lived off credit cards for months now they are almost maxed out. I approached our mortgage company (which is a one account (RBS) mortgage current account) following the announcement by Gordon Brown that they are offering people struggling in situations like ours a mortgage freeze. They have basically come back though saying no they are not offering anything like this and that and that as this type of account has a facility rather than a fixed mortgage amount then we are OK as long as we don't exceed our facility (we are about £7K under facility which is £125,000). But the interest a month alone almost equals my husbands salary and so this is just going to make us spiral further and further in dept.

Do you have any advice or details about this scheme annouced by Gordon Brown?

Hi jujuxander and thank you for your email

It sounds like there are a lot of issues to discuss here and it is difficult to give detailed advice via email without knowing your full situation.

We do have specialist mortgage counsellors who could look at your situation and give advice on the best options available for your circumstances.
They could also advise you on the latest on any mortgage rescue schemes that you may be eligible for.
I think the eligibility for the mortgage rescue scheme is based on the area you live in. I have attached a link which gives you further information in the meantime. click here

Hope this helps

Regards

CCCS Sue

CCCS_Sarah

robgazi wrote: »

Hello:

My title say's it all really, I'm expecting I am obligated to do so.

Is there some sort of template thats available?

Having had my CCCS interview it was felt by both parties that bankruptcy declaration is the best way forward

Thanks and all the best,

Robert.:cool:

Do you have all your fees and forms ready? If so there would be no need to tell the creditor as the Official Receiver would inform them all once you have gone bankrupt.

If you need some time to save your money for your fees etc unfortunately, there is no template letter you can use.

Either way though its your choice if you want to let them know :O)

Good luck and if you need anything, you would be able to contact out Bankruptcy support team.

CCCS_Sue

toostressestooeat wrote: »

hello quite new to site so question is
can i use my credit cards still before i go bankrupt??
basically have managed to keep upto date so far but now cannot pay cccs remedy plan is to go br whilst sorting this out can i use my credit cards
thanks

Hi toostressestooeat

You need to stop using your credit cards immediately and cut them up.
If you have put together a budget on Debt Remedy then you should try and stick to this. If you are going bankrupt immediately then you do not need to pay anything on your cards.
If you need help getting the bankruptcy fee together then there should be a telephone number in the DR booklet to ring to contact our bankruptcy support team for further help with this.

Regards

CCCS Sue

maclovinglifedfw

Hello

I have an American Express Credit Card with a balance of £7500. It has recently been passed to RMA Collections due to three months of late/non payment.

RMA Collections have contacted me requesting that I seek alternative credit and look at equity in my property in order to repay the full balance of the card. Once I highlighted to the collection agency that this is a slim possibility they requested a payment of £450.00 per month for the next three months with an review due on the account after this time. They highlighted that if I fail to comply legal action would be taken with an addition cost to me of £1200.

Due to being a self employed bricklayer in the current climate I obviously can not guarantee my income for the next three months and also have other outgoings.

I do not understand what going legal means and the agency was reluctant to explain. Please can you advise as they are now pushing for my bank details.

Thank You

Maclovinlifedfw

caramia1812

I posted here earlier but have an update and need advice. I have two cc with HBOS and they agreed to suspend interest and charges for a year if I paid them 1% of the balances back monthly. My arrangement is up on 29th January. I wrote on 6th January to the customer services department (they helped me out last year) and didn't get a response. I wrote again two weeks after the 6th with copy of my first letter and sent it recorded delivery. No-one has got in touch with me yet.

When I rang to make my last-of-the-arrangment month payment on 20th January I told the assistant about my letters and he said "not to worry" they were getting inundated with calls, communications etc.

Shall I wait and hope they contact me? I can't bring myself to call them as I feel physically sick when I have to speak to them about this. Every month is the same when I make the call to make my payment, it really disturbs me and I get very stressed out.

I am worried to death that they start adding interest again - last time it took four months for them to come to an arrangement with me and the accounts accrued £1200 in interest during that period (I think in my earlier post I said £900).

Just another thing, how can it be right that they can put up interest rates and apply them to money you have already "borrowed". HBOS cc's are now at 26% and 24% APR.

Edited today (28.01.09). I am at my wits end at work and have just faxed another letter, practically begging them for contact.