AFRAID>>Should i send token payments to my creditors

keithdonnamoneytroubles

I was all set to make token payments to all my creditors but having sat reading lots of threads, im quite afraid of the uncertanty, i owe £4,500 to credit cards and catalogues but can no longer afford the minimum payments.

I have also enlisted the help of the cccs who i can have a DMP with, but they advised that i send token payments beforehand ??? Which seems like a good idea, but would i just be better off going for the £90 DMP now instead of later.

Also what happens to my car on HP as i dont know how much longer i can afford the £150 a month for it... and ive only had it 13 month too..

Im really worried as im getting charges every month cos im either late with my payments or they dont get paid at all then they send me a letter to say i have a default sum of £12 charged to my account. which i dont understand...

Im not sure i understand any of this, ive never been good with money and im only 27 now.... i dont know what to do now.

Ive already had a threatning phone call from a particular credit card company regarding being overdrawn by 29p.....Yes 29p and then off course they added £24 when the statement came..... but they made me feel like i was a criminal and worthless because i owed them £500, and of which i have never ever missed a payment with them before, until i made the mistake of buying something on ebay hence taking me 29p over my limit

Please help:eek:

Merlinexcalibur

I'd really go on what CCCS advised you do to. They are the experts after all in debt advice.

Regarding your phone call. Simply don't pick up the phone.

First rule when dealing with creditors/DCAs:

1) Communicate in writing only. Purely because you have absolutely NO legal protection otherwise and proof of what has been said.

Im really worried as im getting charges every month cos im either late with my payments or they dont get paid at all then they send me a letter to say i have a default sum of £12 charged to my account. which i dont understand...

What's not to understand here? You've already said you were getting charges so why is it not understood? I am afraid this is standard practice across the debt industry. Anyway, up to you if you do or don't do what CCCS has advised. They didn't say it for no reason for example. Not wishing to sound flippant but there you go.

brightonman123

always best to send something.. have cccs sent any letters on your behalf, asking for interest/charges etc to be frozen for a while?

if not, do this NOW!

RAS

keithdonnamoneytroubles wrote: »

I was all set to make token payments to all my creditors but having sat reading lots of threads, im quite afraid of the uncertanty, i owe £4,500 to credit cards and catalogues but can no longer afford the minimum payments.

I have also enlisted the help of the cccs who i can have a DMP with, but they advised that i send token payments beforehand ??? Which seems like a good idea, but would i just be better off going for the £90 DMP now instead of later.

it can take a couple of months to set up a DMP, so CCCs encourage you to pay a token each month, whilst they sort it out. This generally keeps the creditors calmer.

keithdonnamoneytroubles wrote: »

Also what happens to my car on HP as i dont know how much longer i can afford the £150 a month for it... and ive only had it 13 month too..

You need to read your HP agreement. You can often return a car once you have paid one third of the installments, without penalty. Sounds like it might be a good idea to try and keep it up until you have the get out of gail free card in your mitt.

keithdonnamoneytroubles wrote: »

Im really worried as im getting charges every month cos im either late with my payments or they dont get paid at all then they send me a letter to say i have a default sum of £12 charged to my account. which i dont understand...

Once the DMP is accepted most will stop charges. You do need to recalim any charges in excess of £12.

keithdonnamoneytroubles wrote: »

Ive already had a threatning phone call from a particular credit card company regarding being overdrawn by 29p.....Yes 29p and then off course they added £24 when the statement came..... but they made me feel like i was a criminal and worthless because i owed them £500, and of which i have never ever missed a payment with them before, until i made the mistake of buying something on ebay hence taking me 29p over my limit

Welcome to the club. You might be inclined to take a couple of paras from the telephone template letter here and add them to your token payment letter, withdrawing thier right to telephone you.

You do need to read the OFT Guidelines for debt collection so you know your rights.

have you got a new basic bank account set up, or is your bank account with a provider with whom you have no debt?

Do an SOA as well http://www.makesenseofcards.com/soacalc.html

We may be able to help you sort some of this out.

keithdonnamoneytroubles

merlinexcalibur

You are entitled to your opinion, perhaps i didnt explain correctly, im not the brigtest star up there....Lol

Sorry i meant i didnt know what default sum meant, i no im being charged for late payment or non payment but i cant pay it if i have no money, u see....
I presume in there terms it means failure of non payment or something, like i said i dont know there financial terms.

With regard to your cccs comments, i no that they are a fantastic company at helping us etc and would not guide anyone in the wrong direction but i wondered if i would get into more trouble by making token payments to the creditors, thats all.

Thanks everyone for your advice too. x

keithdonnamoneytroubles

Ive have the DMP all ready, although i have not as yet took that final step to confirm i want them to act on my behalf.....but will be doing shortly.

I have a bank account with the natwest where we have 2 joint accounts and an overdraft and a loan in my partners name... i wasnt sure how to go about this with my bank as i was considering not including there credit card i have in the DMP.......What would u advise for me.

And i have just prepared all my letters etc to my creditors regarding that i will only be sending token payments while im taking advice from cccs, but want to include something regarding the NON telephone calls etc..

Merlinexcalibur

What opinion? I have none because I don't know you but ... I often say things to make people think more about their situation eg motivate them. Because sometimes people miss the obvious in life. Nothing wrong with that but you go to GP when unwell for example because they are the experts. And the only way to get people to do that is to speak directly, put things plainly. Especially where debt is concerned. Not being rude, just speaking plainly. There is a difference for example. Because I can tell you that if you went to court a judge would speak plainly and directly to you.

And I see RAS has already provided you with the link to the letters you wanted. As to your bank account. I shall not trouble you anymore but you wanted help and no one had replied to you.

Because ultimately only you can make that choice on what to do next.

but i wondered if i would get into more trouble by making token payments to the creditors, thats all.

No. You will not get into trouble. It is to show your creditors a willingness to pay, because when you stop paying that is when things get serious, particularly later down the line. As long as you are paying something they cannot say you have not been. QED that's why the token payments are both suggested and what they are for. There are also other things you can do like request your CCA - credit agreement under the credit act.

Anyway, I am certain others here will help you with those other things.

keithdonnamoneytroubles

Thanks for that merlinexcalibur, without your opinion....even though you say you have non.......i wouldnt be able to sit hear and make a rational decision, which after reading all the above all of you have helped in a way to make me see my situation and sort it and know that i cant carry on like i am so i have to do this and get my butt into gear.....So i thank you all very very much...there is so much help and advice here....

Dont suppose any of u have any info on my OH going BR do you, while were close to the subject, he owes 30k, is currently using credit to pay credit which has almost dried up, he works his damn !!! off 76 hours+ a week for a no win situation, he too had advice from cccs who say BR or token payments ??? Any help on this one....

DevonGirl

Hi Keithdonnamoneytroubles!
I'm a dmp newbie so can't answer your questions, but regarding the 'token payments' - I think the idea is that as long as you are payinga tiny amount, it shows willingness to pay, no matter how small the amount. Ultimately, if it got that far, a judge would see it that way too. I've heard different quotes of sending £1 and £5, or more if possible. I personally sent my 7 creditors postal orders of £1 each along with my 'notification of entering a DMP' letter from CCCS and a covering note to my creditors asking them to work with the CCCS. (In fact, when I rang CCCS and explained I only had £30 to live on for the rest of the month (at the start of the month) they said I should take off the cost of the postal orders (50p each) thereby making it a 50p postal order. However, I chose to make it a whole £1. And as such now have £5 left until pay day but anyway.....). Hope this helps!

RAS

Hi

We can certainly help you and OH regarding BR.

You will get a lot more help with the process, checking SOAs etc if you post up on the BR sub-forum. They are all going BR or have done so in the last couple of years.

he will get most by posting himself and by reading the threads by people who have faced similiar situations.

keithdonnamoneytroubles

What is SOA 's...... Lol