CCCS - Should I make that step?

EllieB_2

sanfransisco I think you are right - larger creditors would argue that any spare income should go to them as they have the larger debt, although it is tempting to use the money to clear off a smaller one. Would it make much difefference to the overall repayments if the smaller debt is paid off? If not, mabe stash that money for a rainy day -I know creditors don't like the thought of people saving when they have debt but everyone has unexpected expenses and if that means when they happen then you don't have to borrow more money I would think putting that money aside would be a better use of it.

dottyanne

I was just asking the question theoretically as things can and do happen over time - i have an elderly relative who i know will be leaving me some property and cash in her will - shes already nearly 90 so not being cruel or anything but if im on a DM<P for say 10 years and something happend to my elderly relation in that time what do i do with the money?

Wonder_Girl

southernscouser wrote:

Wonder Girl, do you work for the CCCS?

If you have a look at my profile you will find out.....

Wonder_Girl

Just to clarify, if you are on a DMP with CCCS and you come into a small amount of money (I.e. less than 70% of your total debt) whether this is inheritance, lottery or money you forgot you left in the shed. If you call you will be advised to clear off as many of the debts as you can with this money. However this is entirely at your discretion, if you wanted to spread the money out amongst all the other creditors that would be fine too.

The reason the creditors don’t mind is buy reducing the amount of creditors on the plan, the remaining creditors receive more money monthly as the deposit that was going to the debt that was removed will go towards the remaining debts. Also if a client has the full amount to clear a debt it would always be recommended that they pay the debt in full to be fair to the creditors. A full and final settlement would only be recommended if the client only had a percentage (around 70%) of the debt available.

Hope that makes sense, however if your in doubt and you have a DMP just give em a call as advice does vary depending upon the whole situation of each client.

southernscouser

Wonder_Girl wrote:

If you have a look at my profile you will find out.....

Well it's good to have you on board WG! :beer:

You know your gonna get loads of hassle now don't ya?

But seriously, if you want, no pressure, have a look at this thread.

Kevicho

Wouldnt it make sense for the windfall to be used on the debt with the highest APR?

Im sure all the debtors would agree that this will mean less money on interest means there debts being repaid quicker

Then again banks dont respond to logic, they only care about quick £££

Wonder_Girl

Kevicho wrote:

Wouldnt it make sense for the windfall to be used on the debt with the highest APR?

Im sure all the debtors would agree that this will mean less money on interest means there debts being repaid quicker

Then again banks dont respond to logic, they only care about quick £££

Yes that would make sense normally, however a majority of debts on plans have the interest frozen so they don't have an APR if you see what i mean, if however there are one or twos creditors that are still charging it would be better to get these out the way.

Lol, creditors seem to think logic is a terminal illness

ozzyfan_2

Good to have you here wonder_girl, thanks for joining! :j

Really pleased to say I had a message back & I can clear my smallest debt off.

Thanks for all the info wonder_girl & hope this helps with your decision dotty anne

Wonder_Girl

ozzyfan wrote:

Good to have you here wonder_girl, thanks for joining! :j

Really pleased to say I had a message back & I can clear my smallest debt off.

Thanks for all the info wonder_girl & hope this helps with your decision dotty anne

Glad to be here Ozzyfan!

See I told you so

get that debt gone! But remeber to tell them you paid it so they don't send anymore money to them!