Struggling with debt? Ask a debt advisor a question

Julie67

Good Morning,

I wonder if you could help before we embark on a Self Administered DMP.

We would be starting on a low DMP after completing your money remedy we have £233 per month to pay towards our non priority debts. The largest one of these is the HSBC which is a total of £18,800. This includes an overdraft, credit card and personal loan.

My question is should we contact them first and ask them to combine the debt and freeze interest so we are paying off one large amount or send 3 offers of payment and let them get on with combining this, would they do that automatically?

Secondly we are at the stage were we have already opened a new account with another bank and transferred the majority of the direct debits over. I will be cancelling the last few in the coming week, can we ask that the arrangement begins from 1st June to give us a month to get organised so sending them token payments of £1 with the offer to begin the DMP in June with the actual amounts?

Though the current amount we are offering is small our income should imrove as my husband is self employed and has been very affected by the recession but this should gradually improve over the coming months. At that point would we just write and offer to increase the payments?

Thanks for your help with this. I think I have a reasonable understanding of how the process works, its just some of the little details that have me confused.

LHJD

Hi There,

I'm currently on a DMP and have a question about the scheme and my creditors.

I have the prospect of a promotion coming up and if I get it, I will be in the fortunate situation of being able to increase my monthly payments significantly.

If this is the case, I think the payments will be similar (or a little more) to my original payments. Just like back in the day when I could afford to pay off my debt.

What will be the result of this, will it mean my creditors will want to start charging me interest? Or can I continue paying everything through my debt management plan, as I am currently which means no added interest?!?

Many Thanks in advance CCCS for taking the time to answer my query.

CCCS_Sarah

chocolates wrote: »

Hi there
My partner had an unpaid phone bill from Orange for £150, however he was unable to pay it and so was disconnected. The debt was passed on to Buchananclark & Wells and costs etc added. He agreed to pay them £28 per month but he missed a payment last month. He made a payment last week but today he has received a letter saying- Despite repeated requests for payment your overdue debt in the sum of £225.17 with our client Orange pcs remains outstanding. Accordingly documents can now be prepared for the issue of a claim against you in your local court. Once judgement or decree has been granted the following can take place;
1. Your debt being increased to include legal costs and interest
2. Your name being entered in the public records of your local court
3.Your credit worthiness being adversely affected for future credit and mortgage applications.
To avoid these actions being taken payment must be made immediately........etc etc

I am extremely worried about this as i am already on a debt management plan with yourselves. My partner only has a credit card with £200 on so his debt is small but i am worried about court action etc etc.
What would you advise us to do??
Many thanks in advance.

Hello,

Creditors often use letters as a collections tactic. If the creditor has gone for a CCJ then your partner will have received a blue and white county claim form. If he has not received these then just disregard the letter and continue paying the amount through the dmp.

Regards
Sarah

CCCS_Sarah

hilaryjp wrote: »

My partner moved in with me last September and the other day received a letter saying that he owed money for debts against Severn Trent Water. He admitted to me that he did but my question is how did they get hold of his address? There are only three companies that know his address - The local council (who although he owes them money and they know his present address still send mail to his previous address), his bank and Orange.

My question is how did STW get his addresss when he should have been covered by Data Protection?

BTW he is registered for voting at his previous address (not the property he owes money for!).

Hello,

Companies are able to trace their customers by using various methods. The voter’s role is just one of them. If things are registered at your address, this would leave a “footprint” on his credit file and then this would just link the two together.

Your partner would need to try and come to an arrangement over the outstanding amount based on a detailed financial statement. If he needs any help completing on of these, he could call the CCCS for an appointment. Our helpline number is 0800 138 1111.

Regards
CCCS

CCCS_Sarah

Julie67 wrote: »

Good Morning,

I wonder if you could help before we embark on a Self Administered DMP.

We would be starting on a low DMP after completing your money remedy we have £233 per month to pay towards our non priority debts. The largest one of these is the HSBC which is a total of £18,800. This includes an overdraft, credit card and personal loan.

My question is should we contact them first and ask them to combine the debt and freeze interest so we are paying off one large amount or send 3 offers of payment and let them get on with combining this, would they do that automatically?

Secondly we are at the stage were we have already opened a new account with another bank and transferred the majority of the direct debits over. I will be cancelling the last few in the coming week, can we ask that the arrangement begins from 1st June to give us a month to get organised so sending them token payments of £1 with the offer to begin the DMP in June with the actual amounts?

Though the current amount we are offering is small our income should imrove as my husband is self employed and has been very affected by the recession but this should gradually improve over the coming months. At that point would we just write and offer to increase the payments?

Thanks for your help with this. I think I have a reasonable understanding of how the process works, its just some of the little details that have me confused.

I would recommend that you just leave the debts as they are for the moment and offer them separate pro rata amounts, if the bank do merge them then just merge the payments.

If you need more time to prepare then its fine to start your DMP in June, just pay them what you can in May as a goodwill gesture. You could send Mays payment with your proposals.

Once there has been an improvement with your situation, you would just need to complete a new budget then work out the pro rata amounts again.

Regards
Sarah

PoorOldPete

Hi Sarah

Thanks for the reply. I can see where the current debt company are wrong about their advice, so I will end it with them. I will ring about an appointment, but could you tell me about 1 things before I do as I need to get a new budget done pretty quickly for a court. Is there somewhere that I can see figures of acceptable levels for housekeeping etc etc... It would be a great help.

Thanks again and I will be making an appointment soon

Pete

CCCS_Sarah

LHJD wrote: »

Hi There,

I'm currently on a DMP and have a question about the scheme and my creditors.

I have the prospect of a promotion coming up and if I get it, I will be in the fortunate situation of being able to increase my monthly payments significantly.

If this is the case, I think the payments will be similar (or a little more) to my original payments. Just like back in the day when I could afford to pay off my debt.

What will be the result of this, will it mean my creditors will want to start charging me interest? Or can I continue paying everything through my debt management plan, as I am currently which means no added interest?!?

Many Thanks in advance CCCS for taking the time to answer my query.

Hello,

Thank you for your message.

Depends on the creditor, they don't always stop interest and charges when on the plan so some may still be charging anyway. You could stay on the plan if you wanted as the contractual payments might not stand as you have defaulted.

Credit cards are the most likely to start adding interest again as you start paying more than the minimum payment. Collections agencies as normal are least likely to but it’s a bit of a creditor lottery I'm afraid!

Hope that helps I would also recommend that you have a review once your situation changes.

Sarah

CCCS_Sarah

PoorOldPete wrote: »

Hi Sarah

Thanks for the reply. I can see where the current debt company are wrong about their advice, so I will end it with them. I will ring about an appointment, but could you tell me about 1 things before I do as I need to get a new budget done pretty quickly for a court. Is there somewhere that I can see figures of acceptable levels for housekeeping etc etc... It would be a great help.

Thanks again and I will be making an appointment soon

Pete

Hi Pete,

There are guidelines that creditors and courts work against but these are not published as your budget should reflect your situation. I would recommend that you just have all your details wrote down and if anything is under or above these figures your counsellor will discuss these with you.

Sarah

adamnichols

Hi,

I currently have a debt of £5100 on a LloydsTSB Airmiles credit card and paying £100 per month interest :-(

Following a visit to this site, I realised that a balance transfer onto another card would reduce my interest to zero so I applied and was accepted for a barclaycard credit card for the 0% on balance transfers offer. Unfortunately, the credit limit is only £1600 so I am stuck with what to do. Could I transfer 1600 from my Loyds card and then do the same again at a later date or would that effect the 0% offer? Any advice would be appreciated.

brum33

I need some advice not to sure what to do. I move into my house in October 1993, I was able to do this as part of the home buy scheme through a housing association. I got a mortgage for £76,500. The housing association paid a deposit of £19,000 and I got a mortgage for £57,500. How it works is that I have to pay the housing association 25% of whatever I sell my house for. My mortgate is now down to just over £50,000 and I pay £279.00 per month. My house is now valued at £95,000. On top of this I have a loan which has an outstanding balance of £15738 pounds which I pay £359 per month and still have 5 and a half years left to pay this. I am in a good paid job my salary is £34002 per year and get £2046 per month. What I need some advice about is I am now ready to move up the property ladder and don't know what way to go. Do you suggest that I wait and pay off my debt? or do I get a new loan and pay more over a shorter period? or do I move and pay a higher mortgage and my current debt off together? I would be grateful for any advice.

Thanks

Jaime