Best way to pay a gesture of goodwill token payment

sparky1892

Hi, I recently got in touch with CCCS about my debt problems. They said that because I have less coming in than going out, I need to make token payment of £1 per month to my creditors. I sent a template letter, along with a copy of my budget, though I forgot to include the "list of creditors" which they also sent me. And I did not send a payment with my letter. Does this matter at all?

I mainly want to know how (step by step, if possible) to send a token payment, what I need to write, which method i.e. postal order, standing order etc I need to use.

Thanks in advance

p.s., I am new to this kind of thing and I'm not very financialy litterate, so please no technical jargon.lol

gonzo127

postal order is ok to start of with however it can get a lot of work doing it each month,

i personally like standing orders as it allows you to control how much you send and is automatic (even easier if you have internet banking) however you do need to get there banking details and your unique reference number so they can match up your payment with your account

do not EVER set up a direct debt or give them credit/debit card details if you are in arrears as they can take what THEY want from them

my basic number 1 bit of advice if you get in arrears is to make sure you are in control of what goes in and out of your account.

you also need to check if any of the people you owe money to is in anyway linked to your current bank, this is because banks can use this thing called offsetting which basically allows them to take money directly out of your current account to cover arrears on any debts you owe to them! with this another good way of doing it is to get a basic bank account with NO overdraft!

happyhaddock_2

Hi Sparky and welcome to MSE. I've just sent out my letters to my creditors and just went to the post office and bought postal orders, I also got my DMP letter photocopied at the same time and then sent one to each of the companies. However, I've held back on the ones to my old bank, on CCCS advice, until everything is transferred over to my new bank account. That way the old bank can't freeze your account or take any more money before you are ready:)