CCCS & DMPs - Queries!

Achelois_2

I am planning on starting a DMP with CCCS shortly.

I am scared. I am worried about a number of issues and wondered if someone could put my mind at rest please?

1) I have always just about managed to keep up my repayments with all my items except for one / two debts which are on frozen interest and agreed monthly payments (barclaycard and Amex - now with RMA) - will they not be "shocked" when I send the letters saying I am moving to a DMP?
2) What if I go with CCCS and my debtors refuse to freeze the interest and take my monthly payments - I dont want to end up in a worse situation then I am in now?
3) My parents have offered to guarantee one loan with my bank to cover everything instead of going on the DMP so that I can just do this this way but this worries me as I would still have access to credit and I dont trust myself.... so therefore leaving me open to making my situation worse.... should I take this option and avoid the DMP or go with CCCS and become debt free eventually?
4) If I go with the DMP, my parents will give me £3600 to knock off some of my debt. I thought with this I should try and get some F&F Settlements with some of them before I take the DMP route, or should I wait and let CCCS deal with this on my behalf?

Sorry to ask so many questions. My Mum and Dad are convinced CCCS is not the way to go, they keep mentioning IVAs, Insovelncy Solicitors, the fact I will lose my house (which is housing association and loans / debt is not secured) and people like Ocean Finance despite me telling them that CCCS is a registered charity and the money I pay goes off my debt. I think the fact that they have heard CCCS is funded by banks is what is worrying them (and me!)

Thanks all and sorry for the long post

A xx

Tixy

Hi and welcome

Its good that your parents are trying to help but it does not sound like they are as informed as you (especially if they are mentioning the likes of ocean finance!).

Your creditors are unlikely to be shocked, the reality is there are lots of people struggling for various reasons related to the recession and the increased difficulty in getting 'easy' credit.

Your creditors may refuse to freeze interest, no one can guarantee that they will but by using CCCS you give yourself the best chance that they will. Just to be aware, many don't agree to freeze interest for the first few months so don't panic as usually most will after a while.

If you don't trust yourself this does not sound like a good option, you don't mention how much your debts equate to but how long would you be looking at taking the loan out over? Could your parents actually cover the loan if say you lost your job or couldn't work due to ill health? would this put additional financial pressure on them?
This option though could 'save' your credit rating but cost you in interest. No one can say what is right for you. How bad is your credit rating at the moment anyway? presumably at least the debt with RMA has a default?

Usually you will get the best reduced F&Fs after about 6months on a DMP, by this time your debt will usually have been defaulted and possibly passed to a debt collector. External debt collectors often accept much lower percentages. If you go this route though you would usually be advised to make the F&F offers yourself rather than through CCCS (as technically you are not treating all creditors the same).

You mention IVAs, did at any point CCCS suggest that this was a good option for you? they are actually suitable only for a small percentage of people and if they didn't mention it, it probably isn't right for you.

If you keep up with your mortgage payments and rent payments there is no reason for you to lose your house. Even if you had a creditor being 'difficult' they would only obtain a CCJ which would be for an installment you could afford, providing you keep up with those installments there would be very little chance of a charging order and an even more remote chance of a forced sale order.

Hope this helps a little, but if you are unsure do talk over you concerns with CCCS, they really are acting in your interests.

Achelois_2

Hi

Thanks so much for your lovely reply - I feel better already!

My parents could probably afford to look after the loan if they needed to i.e. if I lost my job / was ill etc but I dont really want to put this on them - why should they - after alll its my debt!

My debt equates to approx £48784. RMA have already offered over 50% settlement to me and have said they may even do better - would it be worth giving them the settlement before I start the DMP?

My credit rating is practically shot anyway and as you said I have a default with RMA anyway. I just worry about CCJs and things as to press, I have avoided all this by maintaining my payments (just about). The thing is by going with cccs it means that my debt will eventually (and sooner with interest frozen) be gone and I can start again. My dream!

CCCS have not mentioned IVAs (my dad looked on their website and this was all he found and now has an obsession that this is what they would want to do!

Thanks so much for all your help - I think I now only have to make a decision

1) do I settle with three out of seven debts with F&F offers coming from a 3rd party ie my parents and hope they will accept
2) do I wait a while and try and offer the F&F later after I have started my DMP (outside of cccs)
3) do I put the 3600 towards my debt as soon as cccs start managing it.

im very lucky with such supportive parents and I just dont want to let them down again - I just want to be debt free as soon as possible (as morally as possible)!

thanks again for all your help

A x

Tixy

Certainly might be an option to try settling at least the RMA debt before doing the DMP. As you say the coming from a third party bit is important. There is a really useful factsheet on national debtline for F&Fs which is worth reading.

Achelois_2

Great, thanks again for all your help