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CCCS_Sue

longhairedbloke wrote: »

Hi,

We've looked at various options (CCCS said IVA or DMP would be best). We decided to try the DMP, partly because it's more flexible and partly because it's our debt and we are trying to be responsible by paying all the money back.

However, we're now getting lots of hassle from our creditors. I have written all the letters and just waiting for the new bank account to be opened before we send the forms off to CCCS.

I'm wondering if this will ever stop, or would it be more official and less hassle to go to an IVA? I know the IVA would be less flexible, but it's also more official. If they keep hassling me I'm tempted to go to an IVA just to stop them getting all their money back!

The CCCs calculator says the DMP will currently take longer than 6 years to settle and an IVA would be quicker and I feel like we're being harrassed because we are trying to give them all the money back.

We are quite desperate and I think even going bankrupt might be a better option. We own a house that we rent out and are renting somewhere else (had to move due to job relocation). We are in negative equity due to a secured loan, so selling would make us worse off. I read somewhere that if you are in negative equity and go bankrupt you can buy the beneficial interest in the property back so won't lose the house. Is this guranteed, or very probably? Also, would that mean we just need to keep paying the first mortgage, or would the secured loan still need to be paid?

We have received one letter saying that the 'reduced payment plan' would leave a default on the credit file for the life of the account and then a further six years! Would that be the same for an IVA, or once the IVA has completed would it be removed more quickly?

One final question : I realise our credit score has already been affected, but is an IVA much less severe than going bankrupt if we ever get back on our feet and want to get another mortgage, etc?

Thanks,
LHB.

Hi LHB and thank you for your message

A DMP can be the most flexible way to make your repayments as it is not legally binding.
However, the creditors can still contact you and they could take further action. It may also take longer to repay your debts as you are repaying the full amount owed.
An IVA is a legally binding arrangement between you and your creditors, where they agree to a fixed affordable monthly payment over a fixed term (usually five years).
If you keep to the arrangement, your creditors will not chase you for payment. They will also not add any more interest to your balances unless you are able to pay the debts in full during the term of the IVA. It is a form of insolvency, so your unsecured debts need to outweigh the value of your assets such as property.
An IVA will show on your credit file for six years from the date the IVA begins.
If you think you would be able to maintain the payments for the full term of the IVA, then this could be the quickest option to repay your debts.

I do not have your full financial details but generally, if you are able to make a repayment to pay off your debts over a realistic period of time, then bankruptcy would probably not be an option for you.

If you still cannot decide, you can call our client support team who will be happy to discuss any queries you have regarding your options

Kind Regards
Sue

CCCS_Sue

longhairedbloke wrote: »

Hi,

Sorry, I have another question. It states on your forms that you need the payment around the 1st of each month. I get paid on the 10th of each month, so this would be a better date for me to set up the payment for. Is that possible?

If not, we would have to delay setting it up for a month while I 'save' the money in the account for the following month (if you see what mean), but are keen to get this started so the creditors get the contact from yourselves.

Thanks,

LHB.

Hi LHB

You need to contact our client support team who will be able to confirm whether you are able to change the payment date.

Regards
Sue

KayG

Thanks, Tixy - got my Experian credit file and all looks OK, so I'll try appealing. Cheers for your help!

wendallg

hi
ive contacted cccs who are dealing with my case with a dmp. i am currently setting up a new bank account and getting statements from my 6 creditors.
the debt is around £32,000. my plan will work out at £165 per month.
my concern is i ve read even even though the debts are unsecured a creditor may force me to sell my home to cover any debts a charge on my proeprty i think is the term.
is this correct?

thanks

tired_mum

I am a SAHM with no income of my own except what hubby gives me and CB can i set up an arrangement with cccs for my creditors and without my OH knowing?

StepChange_Pavan

wendallg wrote: »

hi
ive contacted cccs who are dealing with my case with a dmp. i am currently setting up a new bank account and getting statements from my 6 creditors.
the debt is around £32,000. my plan will work out at £165 per month.
my concern is i ve read even even though the debts are unsecured a creditor may force me to sell my home to cover any debts a charge on my proeprty i think is the term.
is this correct?

thanks

Hi wendallg and thank you for your post.

It is unlikely that a creditor would force the sale of your property to pay back an unsecured debt if you are making repayments through a DMP which will clear the debt. It would be more likely if you had a lot of equity but weren’t able to make any regular payments at all.

If the creditor isn’t happy with the repayments, they would firstly have to apply for a county court judgment. At this stage you would need to show the courts that you are already paying as much as you can by sending them a copy of your budget. The repayment would be set at an affordable rate for you


A creditor can then apply for a charging order if:

• You have missed payments on the CCJ
• The application for a judgment asks you to pay immediately or ‘forthwith’ and you have not asked the court to change this

If the creditor applies for a charging order you will first receive a letter telling you that the creditor has an interim charging order. This means that you cannot sell your house until the process is finished. You will also be given a date for a final charging order hearing in your local county court.

At this stage you can attend the hearing as this is your opportunity to tell the court about your financial situation and you can also ask for conditions to be attached to the Charging Order. You could ask that the Charging Order will not be used as a basis for an order for sale as long as you maintain the monthly agreement.

If you have any further concerns, you can call our client support team and they will be able to explain it in more detail.

Kind regards,
Pavan

StepChange_Pavan

tired_mum wrote: »

I am a SAHM with no income of my own except what hubby gives me and CB can i set up an arrangement with cccs for my creditors and without my OH knowing?

Hi tiredmum and thank you for your post.

Our services are completely confidential so we wouldn’t inform your partner if you were on a DMP with us. However, we would recommend that you try to sit down and explain your situation to him especially of you have any joint debts or a mortgage.

There may be options available to you other than a DMP, so I’d recommend that you get in touch for further advice. There are no fees or obligations and like I mentioned, we’re confidential so no one would know that you’ve contacted us.

To get advice you can either use our online advice facility, Debt Remedy or ring our free Helpline to book a telephone appointment with a counsellor.

Debt Remedy will assist you in completing a financial statement which includes information on your household, employment, income, expenditure and debts. All this information is used as a basis to determine the options available to you to deal with your situation.

Alternatively if you would prefer to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

Kind regards,
Pavan

Richie_Wakefield

Please can you help?

I set up a Cahoot loan online 5 years ago. It was a low rate of interest, not the lowest but I liked that fact it was flexible so I could hopefully pay it of quickly if I had some spare money. I didn't have a lot owing on it and but then two years ago my wedding ran over budget and I borrowed some more. We are now really feeling the pinch and I felt sick when earlier this year Santander, who own Cahoot, started sending me statements for my loan. I discovered that they are now charging me 16.61% interest.

I think this is appalling.

My monthly payments are £165 per month on a balance of £6722 but £94 of that is interest. I feel as though I am never going to repay it.

I have been into a Santander branch to see if they will give me a new loan to replace this one as they advertise rates from 8.9%. This would mean either my payments would reduce or I would be able to repay it much quicker, but they won't.

I feel that I am being completely ripped off but I am too scared to complain as we have three bank accounts between us with them and we rely on the overdraft facilities that they have. I am worried that if I complain they will take our overdrafts away that we rely on at the moment. We also have our mortgage with them as this was with Alliance and Leicester

Please can you tell me what I should do? Will complaining get me anywhere? Or could they then take our overdrafts away of refuse to re-negotiate our mortgage with them in the future?

Kind Regards

Richard

bexta33

Hello

I'm hoping someone could offer a bit of advice as I'm at a loss as to what to do next.

I split up with my ex over a year ago. We were living together and needed new sofas. Although he had the money to pay for them outright he suggested I get them on finance and he would pay it back before the years free credit was up.

I got the finance but after a few months we split up. I had to move into a room in my friends house so he kept the sofas but promised to pay them before the years free credit was up. I made sure he had all the paperwork for them so knew who and what to pay and by when.

The payment was due in August and he still hasn't paid it. I have spoken to the DFS finance company and put his name on the account for access purposes and so that they can discuss it with him. They also have his phone number to chase him for the money. I have received an answerphone message from a debt collection agency today but it doesn't say what they are chasing and they were closed when I tried to ring them back.

I also have finance in my name for a watch that he has. He had been making the payments but it is nearly due for pyt again. Again his name is on this account so he can discuss it and they have his phone number.

I know the finance is in my name and I shouldn't have done that looking back!! But as he has the goods for both of the outstanding finance and I also have texts from him saying that yes he will pay it do I have any kind of rights in forcing him to pay it off now to clear it out of my name?

His parents have control over a savings account that is in his name that I know that there would be enough money to pay me for the finance. Do you think I should send his parents the finance information? Or should I try another tactic??

Thanks in advance for any help offered

Becki

StepChange_Pavan

Richie_Wakefield wrote: »

Please can you help?

I set up a Cahoot loan online 5 years ago. It was a low rate of interest, not the lowest but I liked that fact it was flexible so I could hopefully pay it of quickly if I had some spare money. I didn't have a lot owing on it and but then two years ago my wedding ran over budget and I borrowed some more. We are now really feeling the pinch and I felt sick when earlier this year Santander, who own Cahoot, started sending me statements for my loan. I discovered that they are now charging me 16.61% interest.

I think this is appalling.

My monthly payments are £165 per month on a balance of £6722 but £94 of that is interest. I feel as though I am never going to repay it.

I have been into a Santander branch to see if they will give me a new loan to replace this one as they advertise rates from 8.9%. This would mean either my payments would reduce or I would be able to repay it much quicker, but they won't.

I feel that I am being completely ripped off but I am too scared to complain as we have three bank accounts between us with them and we rely on the overdraft facilities that they have. I am worried that if I complain they will take our overdrafts away that we rely on at the moment. We also have our mortgage with them as this was with Alliance and Leicester

Please can you tell me what I should do? Will complaining get me anywhere? Or could they then take our overdrafts away of refuse to re-negotiate our mortgage with them in the future?

Kind Regards

Richard

Hi Richard and thank you for your post.

Firstly, if you are relying on your overdrafts, I would recommend that you open up a basic bank account elsewhere. You could then have your income paid into this new account and repay the overdrafts at a rate that you can afford. This also reduces the risk of Santander taking money from your account to pay towards your debts.

With regards to the interest you are repaying, it might be that you agreed to this new rate when you borrowed more money two years ago. You could check the terms and conditions to be sure before you consider complaining.

If you feel that you are struggling and can’t afford to repay the overdrafts as well as the loan, or you have other debts that you are repaying, you could benefit from some further debt advice.

You could either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor.

Debt Remedy will assist you in completing a financial statement which includes information on your household, employment, income, expenditure and debts. All this information is used as a basis to determine the options available to you to deal with your situation.
Alternatively if you would prefer to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

Kind regards,
Pavan