cccs Payments please help

jaapie

Hiya I am going onto a DMP with cccs they have sent me my payments yesterday and it does not seem to make sense. I have 2 large debts and 4 smaller debts. They are paying more money into the smaller debts. Does anyone know why they are doing this. It does not seem to make sense, can I stop this and ask them to pro-rata my debt differently. Will this make it more difficult to get my larger creditors to accept the DMP. I am going to call in the morning but I would welcome any and all feedback. I called the national debt helpine as CCCS are not open on weekends and they seemed to think this did not make sense. Does anyone else have any experience of this. Thanks

GeorgeUK

The only reason i can think of why they may be making larger payments to smaller debt is if the debts are either to the loval authority, have a CCJ or are secured debts.

Are they just standard unsecured debts without any judgements against them?

I_know_my_ABC_and_my_CMYK

jaapie wrote: »

Hiya I am going onto a DMP with cccs they have sent me my payments yesterday and it does not seem to make sense. I have 2 large debts and 4 smaller debts. They are paying more money into the smaller debts. Does anyone know why they are doing this. It does not seem to make sense, can I stop this and ask them to pro-rata my debt differently. Will this make it more difficult to get my larger creditors to accept the DMP. I am going to call in the morning but I would welcome any and all feedback. I called the national debt helpine as CCCS are not open on weekends and they seemed to think this did not make sense. Does anyone else have any experience of this. Thanks

Your smaller debts APR /interest rate could be higher than the larger debts. I noticed this when I was with them. They do tend to pay more to the higher rates than the amount outstanding. If you read through the pack they send you there should be a section in there explaining this.

mbs1

it gets dividied up depending on your original monthly payments.

Example, loan at 10k paying 100/month

Credit card with 3k paying 100/month

Both will get the same a month due to original payments being the same, even tho balance is diff

Hope this helps

jaapie

how do the creditors feel about this?

mbs1

fine, as all creditors are getting the same % of original payment. no matter how large the balance was/is

jaapie

Has anyone else had any experience of this I am totally confused this is different to what they told me last week.

telboy99

Hi Jaapie,
Dont worry,this is just the way CCCS divide up the pie.
I have been on a DMP with them for 2 years and there have been no problems about the share any creditors get so far.

JES_F1

Hello :wave:

I've been on my DMP with the CCCS for just over a year. I'd always believed creditors got a pro rata share of what you owed rather than anything to do with minimum payments.

I've just gone back to the original figures that I gave the CCCS to work out the percentages. And creditors do seem to be getting the same percentage of my DMP total monthly payment as they were from my total monthly payments pre-DMP.

For example:

Creditor 1 was getting 2% of my monthly payments pre-DMP so is now getting 2% of my DMP money paid to the CCCS - but the amount I owe this creditor in total is 1% of my total debt.

Creditor 2 was getting 15% pre-DMP, 15% through DMP, but the total owed is 20% of my grand total.

Generally, either way (% of grand total or % of monthly payments pre-DMP) seems to put them in roughly the same order of priority. But in a couple of cases, I've found a couple of creditors switch places depending on whether I sort by total amount owed or monthly payment.

I was aware that some of my DMP payments were a little higher to a couple of creditors but I know some fees and interested were added in some cases before the DMP settled down, so had assumed this was the reason they'd "switched" places.

I think I was in such a daze when my DMP started ...

Good luck and best wishes.

I_know_my_ABC_and_my_CMYK

Not all creditors will accept their payment, just keep on paying as they cannot have what you cannot afford. So if one or two refuse the offer just keep paying and don't worry CCCS will help you all the way.