should i go alone

debtfreeplease_3

could anyone please advise me in should i go through cccs to do debt management or should i go alone?

i just had appiontment with cccs this morning and they advised me in going through their debt management, which is all well and good and appreciate their advice but to me it just seem so final.

i have been in touch with 3 of my creditors and they all agreed to a smaller payment each month. would this still affect my credit rating? or should i just let the cccs do it for me so i wont have to deal with monthly statements from my creditors.

also if i did go with cccs obviously this would affect credit rating would it be six years from when they start payments or when all the debts have been cleared.?

i have been advised to cash my endowment which we were using has savings policy if i surrender today i will have approx £5.300.00 to pay off some debts.

can anyone help in what to do.

creditors :
my halifax credit card owing 2140.00
oh halifax credit card owing 4239.00
amex 1100.00
mbna 4044.00 these agreed to 68.00 per month
nationwide credit card 1120.00 these agreed to 14.00 per month
nationwide overdraft 960.00 these agreed to 13.00 per month.

i also have car payments 155.00 per month approx 6.500.00 outstanding
and settee payments 70.00 per month 2.500.00 left to pay

incomings a month are 2174.00
outgoings approx a month 1970.00

thanks for any advice on this matter

super_mario_4

hi well done for taking the first steps with the cccs;

quick answer as im off home;

i work for a credit card company and as a rule we only consider offers of pmt from third partys - ideally payplan or cccs

if you are paying less than the minimum payments on your cards or less than what your loans would be on the longest term then it probably will be effecting your credit file.

with our place, when u start a dmp your account will be defaulted and terminated and a default will be registered on your credit file. the default will drop off your credit file 6 years after that date

Xbigman

Your post throws up some questions.

If you outgoings are less than your income why are you doing a DMP at all? In those circumstances you should cut back your outgoings and start paying off your debts starting with the highest APR. However, with the amount of debt you are carrying you have been overspending for some time and you need to have a good look at the reasons why. I also suspect your budget is incomplete and you will find you have missed some stuff off.

If you have a freestanding endowment not linked to a mortgage then you need to realise that having savings whilst paying out on high interest debts is just throwing money away. You need to realise your investment in that endowment and use the lump sum to clear your highest APR debts (if you are on a DMP and have defaulted you might be able to do full and final settlements, but you are not there yet). However, you should not cash the endowment in with your provider but sell in on the open market. You would get between 15% and 30% more.

Lastly, your credit rating. Worrying about this in your position is pointless. You do not need more credit right now and unless your mortgage deal is up soon you should simply ignore your credit rating getting worse.
Regards



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debtfreeplease_3

thanks xbigman, u say that i should sell my endowment policy how would i go about that?

Xbigman

Have a look on the mortgage and endowments board. Basicly there are companies who will buy your endowment as an investment and transfer it to themselves. Some of them advertise on TV. You can get the details of the best ones from the M&E board members.
Regards



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