Credit Card Debt and the CCCS

Birkonian

Hello

I currently have around £11,000 of credit card debt and recently became temporarily unemployed.

I was advised to contact the CCCS by one of my credit card companies, so I went on line and did a budget which I printed up and sent off to each company with a letter based on the template letter with my budget plan..

However, there are 2 companies who are contacting me every week from an overseas call centre asking for the full minimum amount or nominal payments. They are not aware of me contacting the UK head offices and insist that I must keep paying.

One of the credit cards is with the same bank as my current account who kindly offered to withdraw my banking facilities if I am unable to pay the minimum payments.

Although I am always polite, co-operative and willing to pay what I can afford, can the banks still take legal steps to recover these debts?

I heard there was a payment plan where you pay the CCCS and they pay the creditors but I am unable to find out more.

The problem is, I have a retirement investment account which has enough to pay it all off but I have to wait 3 years to claim it.

Is there any official process by which I can temporarily postpone payments until I am back at work?

I_luv_cats

CCCS / National Debt Line / CAB / all have debt resolutions and in most cases banks want to know you have dealt with an intermediatery before they will freeze charges etc.

I know how you feel as lots of banks give people hassle needlessly. We have bailed some out for being reckless and they should have a little more compassion!!!

Nargleblast

If you contact CCCS they can give you the details of how a debt management plan works so you can consider taking one out. They are an excellent source of advice and support. Expect a few stroppy phone calls and letters from creditors, it comes with the territory, but CCCS can advise on how to handle them.

Birkonian

I have been in touch with the CCCS who are unable to arrange a DMP at this time, as I am unemployed and do not have any disposable income. However, when I start back at work, they will then be able to help me. They also advise setting up standing orders for a nominal £1 a month per creditor until my situation changes.

DevonGirl

Birkonian wrote: »

I have been in touch with the CCCS who are unable to arrange a DMP at this time, as I am unemployed and do not have any disposable income. However, when I start back at work, they will then be able to help me. They also advise setting up standing orders for a nominal £1 a month per creditor until my situation changes.

Sounds like good advice to me - you would be 'showing willingness to pay' as they say, even if it is a token £1 per month ...

Have you also been onto the National Debtline website? www.nationaldebtline.co.uk They have a large document for download which shows you how to draw up a budget to show your creditors, plus draft letters and loads of useful information.

Also, regarding your bank account and credit card being with the same bank - be careful that they don't start taking money from your current account to pay for any arrears in your credit card account. Debt companies normally advise that you set up a bank account with another bank, that has no ties to any of your debtors.
Hope this helps!

Birkonian

I will try the National debt Line as there may be some useful tips there as well.

Thanks for the info

JES_F1

I would definitely support the advice already given to get a new bank account not associated with any of your current creditors.

I've had quite a few problems with Nationwide (my credit card debt to them is part of my DMP with the CCCS). Stupidly, I left my bank account with them, despite advice to the contrary on here and from the CCCS - and they recently froze my bank account. Unless I cleared the arrears within 14 days, they would have taken pretty much everything out of the account (including my pay that went into the account during this time) but leaving me with a very nominal amount to live on for the month. Fortunately, I could just about pull together the arrears (from money made from selling a few bits online) so the account was unfrozen - the CCCS agreed that I had no choice but to clear it.

Needless to say, I opened a new account rather rapidly!

Best wishes.

gfplux

Hello birkonian,

Tomorrow you MUST go in to your local town centre and open a basic bank account with a bank not associated with you debts. You have the time as you are not yet back at work.
You want a BASIC account. Take with you utility bills to prove your address and a passport or driving licence if you have one.
Martin suggests trying Barclays or the Co-op bank who tend to be more accommodating than most for basic accounts.

Will you do this tomorrow?

Good Luck

Birkonian

Martin suggests trying Barclays or the Co-op bank who tend to be more accommodating than most for basic accounts.

Unfortunately, I have credit cards with both those banks. I was thinking more along the lines of a Halifax card account (if they still do them)

Are people allowed to have more than one current account and can banks refuse me one in view of my recent credit history?

gfplux

There is no law against having any number of current accounts. However what you need is a BASIC account. Normally this does not depend on credit checks as you are, at the beginning not asking for credit or a card. Just pop into any bank you are not linked with and ask to open a BASIC account.
The staff in banks are encouraged (by targets and commission) to get people to open other types of accounts but just say BASIC!. Have £5 to pay into it.

The Halifax card account I assume does what it says in the title, it has a card. That means credit checks etc. and you will get the computer saying NO.

A BASIC account allows you the opportunity to shelter money from your Banking creditors giving you breathing space.

Do it TODAY, There is no reason why not.

Good Luck

DevonGirl

Hi Birkonian

Have a look at this link for good advice about bank accounts.

http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

Best wishes
DG