Write to creditors myself or contact CCCS?

broccoli_greens

Hi there,

I have significant credit card debt which, until now, has been paid relatively regularly, subject to payments from my customers being late from time to time. But now my business hasn't been doing so well and it's going to take time (three month target) to get things back up to par again income-wise.

I have to all intents and purposes, zero disposable income for the next few months - just enough coming into the business to cover very basic expenses for it and me.

I've read about making offers to creditors for just token amounts and asking to have interest and charges frozen for a certain period to let me get back up and running.

Failing that, I'm confident about getting a job (admitting defeat!) and bringing my income back up to scratch that way. But again, I'll still need time to make the transition.

Has anyone achieved this and can offer any advice? I'm planning to write to creditors myself but is there more "gravitas" associated with using someone like CCCS to handle this? Or perhaps the only options with those guys is a full on managed debt plan?

I want to maximise the chance that they'll accept my proposal...

Appreciate (a great deal!) any help offered.

[Deleted User]

If you have several debts, its probably best to draw up a plan which will be the same for all of them, you can do this yourself by writing to them with your Income and Outgoings. I would either fax to them or make sure its sent recorded delivery to the relevent department.

Alternatively you could use the CCCS, whilst this will be alot easier, until creditors get the paperwork they wont freeze any interest, it can take them a while to send it all out as they (like many DMC's) are over subscribed.

What i would suggest you do is get the thread moved to the DFW board if poss, although im sure many of them will disagree with my advice, what you need to bear in mind is that not everyone is the same, just because theyve had their debts sorted in 1 day flat or whatever, doesnt mean it will be as easy for you.

Hope you get some new business soon and good luck with the debt plan.

Merlinexcalibur

All I can offer is that companies tend to behave when they see CCCS on letters and also the CCCS reference number they would provide you with once you have completed a counselling session with them. They were immensely helpful with me. And they also reassured me about a few things that I never knew before.

You can certainly write to your creditors but you also need to know what to say to them. CCCS does all that for you over the phone. They will compile all the documents you need to send to each creditor.

I am afraid that I would say do not go to company that wants you to pay them. Why pay for advice that you can get free elsewhere and may be more use/beneficial.

I can think of one very good website right now where you will have access to a plethora of knowledge that you'd need to pay for from a solicitor, and a wide range of expertise from different people and that is the consumeractiongroup. Again, it's free. Everyone posting there is going through the same as you are. In fact, after your first look around all the stuff on there I would be surprised if you are not surprised with the amount of info available there. You will see the history of the place, why it was created on the front page.

The really important thing to remember is that when people are in debt the last thing any creditor wants you to know is what rights you have in this situation. And you do have many.

There are, I am afraid, no guarantees a creditor will accept. In fact, they will only accept usually what THEY think is reasonable not what you can actually afford. The trick here is to keep at them in writing until they accept. If they accept any payment you've made to them eg token, then they are also accepting that as payment regardless whether they admit to it in writing.

Lastly. It's a very common mistake many make. Never phone, write to them.

So, I would go with what the poster above said to me but also check out the CAG forum for the other info. CCCS won't give you everything you need to know for example. Nor will somewhere like CAB as they just possess usually the basics which can be read anywhere online anyway. Such as how to word letters legally to creditors if you need to. They can only help you make offers of payment on a debt plan. How and whom to complain to if a collection agency starts harassing you for example. What to do. When to ignore, when not to ignore.