Lets Talk Strategy.....is This A Plan?

OHNOANOTHERDFW

Hello

I have been in and around this forum for months but have reregistered for this thread

I am on a DMP with CCCS and am slowly paying back my creditors. After the euphoria of my LBM and focus on getting organised, I would welcome views on what I should do. I appear to have 2 very different roads to go down

Anyway, outstanding debts


CC - company 1 INTEREST FROZEN 5800
same INTEREST FROZEN 3000
same INTEREST FROZEN 2400
same INTEREST FROZEN 2100
cc - company 2 Interest reduced 12% 6500
cc - company 3 Interest frozen 900
cc - company 4 Interest reduced 6% 4100
total credit card debt 24900

loans
company 5 - 13000 - no idea on status more below
company 6 - 11000 - company accpeted reduced payments for 6 months
total loan debt 24000

current accounts

company 5 again - still whacking on interest - no contact - 6000
company 4 again - interest frozen 2400
total CA debt 8400

TOTAL DEBT 57.5K

Instant access savings across Building societies 8k
Share schemes with work, bonds, small endowment 8k


I have another debt of 6.5k which didn’t fall into the traditional categories of ca, loans or CCs but they have accepted 2.5k !!!!!! and I have netted this sum from my debts and instant access

OK I currently pay cccs 1100 a month which is pro rata'd across the debts above. With one company receiving !!!!!! in the next few days the remaining creditors will receive slightly larger payments

My mortgage has reduced by nearly £185 a month as a result of moving from fixed to tracker, but in an effort to avoid giving this extra money away, we have by standing order decided to overpay the mortgage. Whilst this reduces the capital owed, we CANNOT get this money out or take a payment holiday etc etc

I also have been contributing nearly £200 a month to a share scheme with work. Price has plummeted but I am guaranteed cash back (anytime) and a small amount of interest. I see this as a saving - hopefully with a view to more !!!!!! in the fullness of time

My total debt is down 14k including the !!!!!! I mentioned above

Now for the creditors

company 1 - We have 4 credit cards. Interest frozen early on. Statements each month showing debt reducing. no issues - no problems - no phone calls.....surreal!

company 2 - They are a joke. Admin is appalling, constantly write to me every month stating I havent made minimum payment, even though CCCS agreed this ages ago, and they accepted the DMP....anyway 7 or 8 months into a 12 month freeze, at the end of 12 months they have stated they will definitively move me back to standard APR - I think this is about 18%. I offered !!!!!! a few weeks ago, and the letter back said I should consider contacting CCCS if I have financial problems

company 3 - no issues, Default sent, interest frozen. For some reason they only get £11 a month, so even though all debts will be paid in about 4 yrs, they will wait 9 at current rate. would love to f+f this one, havent tried

company 4 - bad admin, but told verbally interest reduction will last until oct 09

company 5 - NIGHTMARE....On the loan just a default and then accepted payments at around 60% of previous monthly commitment, but no statement, no acknowledgment or anything. On the CA they kept whacking on stupid charges, and admin fee's and interest and I was paying £120 a month to see the debt climb not reduce. In December they said it was being passed to DCA - and gave me the details. In Jan, DCA no idea who I am or the account. Meanwhile CCCS say nothing they can do so keep paying each month. To be honest I am guessing the figures above, I can’t get them out of them for love nor money! (well maybe money)

company 6 - seem ok, accepted reduced payments although up for review in April. With it being a loan the interest if front ended, so don’t suppose I will have lots of issues?

I have NOT sent off any CCA letters

The rub of the issues are, I could go hell for leather and pay more, perhaps increasing from 1100 to 1500+ cancelling share save and mortgage overpayments. I could use some of the savings and in due course some of the investments - of which some mature in 2010. OR I could continue to build up in the hope of full and final settlements.

To be honest I think some of the creditors get enough each month for them not to consider f+fs. If I could get £200 a month for 40 months or £2k lump sum I would go for the former. If I was getting £20 a month for 400 months I would go for the latter.

So my strategy is restrict payments, build up lumps, and bide my time, hoping once passed to DCA and when longer has elapsed I can sort then.

Meanwhile though paying some pretty hefty interest

What’s the consensus? What are your thoughts?

Thank you and apologies for length

OHNOANOTHERDFW

Did I Bore Everyone?

LilacPixie

i would be using the instant access savings to pay those still adding interest. What is the point in having 8k at maybe 3% but paying 12-18% on 8k of debt

OHNOANOTHERDFW

thanks for that lilac

the interest rate is probably not even 3%, for me it was about hoping for full n final settlements. if I use the money now and lump sum against some of the debts, i am wrorried

1 - they think i will have more.....

2 - as I will owe less creditors there will be more cash for each of those left, and therefore !!!!!! is less likely

3 - will be over minimum payments and therefore maybe not have intereest frozen


but take your point, charged £100 a month by a creditor and could halve the debt and therefore the interest

thanks

OHNOANOTHERDFW

welcome any views

OHNOANOTHERDFW

bump!

chevalier

It is generally the case that having savings when you have debts is considered a bad practice just because debts almost always have higher apr's than savings. But as you are on a DMP that means that thinking doesn't necessarily apply.

I am surprised that you are being allowed to divert money to overpay the mortgage, rather than this going to CCCS for extra payments. Does that mean you haven't told them? Bit naughty maybe if you haven't.

With regards to company 5 if you got a copy of your credit history ( which you can get free if you sign up for www.quidco.com and then sign up via them , you just have to remember to cancel it before the month is up), then it should tell you on there what the status of the debt is and how much it is currently.

Also company 2 and 4 that are still charging you interest, what you have in your savings and share save would pay them off in full or offer them full and final settlements. I know that it would seem like you are paying off those who have performed badly first, but it would save you money.

It is tricky and I would suggest checking it through with your DMP advisor.
You will get more answers later on in the day, but I am on a different time zone, so didn't want you to think that no one was reading lol

chev

OHNOANOTHERDFW

chev

appreciate a 3am email!....

Couple of quickies

sign up for what with quidco....is that experian?

Mortgage - no not mentioned it, havent been asked....

The dmp guys since day 1 have advised all savings should be diverted to pay debts, I cant help thinking this is a stock answer and to be frank having had 1 !!!!!! i think its not necessarily best for the client....I will talk to them again. I get your point about paying those who have been most obstinate feels counter intuiative. i dont think they will take !!!!!!, in fact 1 wrote back to me stating if I was having financial probs I should contact a debt agency (even though I have been paying them via cccs for 6 months +.....)

cheers for guidance

itsalongroad

chev

u were right,CCCS are totally keen that all; available funds are diverted to creditors.....i only mentioned i htought the mortgage would come down and they were down on me!

cheers