Struggling with debt? Ask a debt advisor a question

elerifairy

Hi, sorry if this doesn't make much sense, Just starting to get my head round everything.......

have completed Debt remedy and the outcome is to start a DMP with cccs. Have received all the paperwork and am just starting to get a plan of action ready....

My debts are:
£550 - Paydayloan
£260 - Barclaycard
£1800 - Natwest O/D
£1500 - Barclays O/D

Few questions......

Should I open a new account before setting up my DMP? Is it best to go to a new bank (as I think it said on debt remedy that I could open a barclays one?) Would this be a wise decision?

I contacted the payday loan company this morning informing them that i would be unable to make the repayment and was starting a dmp, they would not talk to me about the account and said if CCCS hadn't contacted them before Feb 28th (date payment is due) then they will try to take the money and will continue to apply interest...
How can i make sure that cccs have contacted them before then as I couldn't cope with them trying to take payment.....
Do i send them the letter in my pack even though i have told them on the phone?

Sorry am really struggling with all this, My partner has just found out and is very supportive but with a move planned at the end of the month (closer to work, saving lots on petrol) its just a lot to get my head round!

Hope this makes some sort of sense.......??

Jen

StepChange_Pavan

B17c wrote: »

Hi there, i'm starting a DMP with the CCCS on 1st of Feb and i have set up a new bank account as i have a loan and overdraft with my current bank ( firstdirect)... do i need to have cancelled my firstdirect bank account before my DMP starts? Wages will not be going into that account anymore but could firstdirect still take money from it anyway for my loan repayment, (although i HAVE cancelled the direct debit,) making me overdrawn over my limit and then charging me for it?? Or do i not cancel any accounts and just let CCCS and creditors come to arrangements?
Many Thanks!

Hi B17c and thank you for your post.

It’s unlikely that they will allow you to close that account as there is an outstanding overdraft.

You’ve done the right thing by cancelling your direct debit to your loan, but you’re right that they could try to take the money anyway. If this happens, give us a call so that we can update the balances and also contact First Direct on your behalf to explain your situation.

If you’re unsure of anything, please give us a call.

Kind regards,
Pavan

StepChange_Pavan

nissan25 wrote: »

Hi i have a friend who is in about 25k unsecured debt with several companies. He will be contacting CCCS very soon for assistance with a DMP.

The problem at the minute is he is being harassed every hour by telephone from these companies at home, mobile and sometimes even at work. He is now severely stressed and on edge every time the phone rings.

Each time he has advised that he is not in a position to make any payment and can only make small payments (less the minimum payments) on a specific day. However they still call and it is now constant harassment.

Can he write to each company and withdraw his consent for them to contact him only via post? Do the companies have to comply with his request?

Hi nissan25 and thanks for your post.

Mikon has already given you a good answer to your question, and you’re right that your friend can ask his creditors to contact him in writing only.

It’s good to know that he’ll be contacting us for more detailed advice soon, but I’ve included another sample letter below that he could use for now:

I hope this helps.

Kind regards,
Pavan


Dear Sir/Madam

I am writing to ask that you no longer contact me by telephone as your calls are causing me considerable stress due to the frequency, and that they are being made at inappropriate times. Please remove my telephone number from your database and send all future communication in writing to my home address.

I have provided the most recent copy of my income and expenditure to make you aware of my current financial situation. I will continue to make my payment of x on the x of every month and will keep you informed of any changes in my circumstances as I am keen to resolve this issue as soon as possible.

I understand that following this request if you continue to call I can contact the Office of Fair Trading to make a formal complaint.

Please confirm in writing that your records have been amended.

Yours sincerely

elerifairy

Sorry.... Also, What address do I send my bank letters to? Head office or my branch (although my branch is back in my home town and just where I opened the accounts years ago, now live a long way from them....)

Bumear

Hi, I spoke to one of the after team from CCCS today in relation to a payment I am due to make tomorrow. I asked if I could make a reduced payment as I have had to spend over £200 on my car which I didnt expect. He advised me to cancel my direct debit and then ring again to make a reduced payment. Is there anyway I can do this online through my bank?

JT87

Hi, just registered to ask a Q to the CCCS guys.

I've spiralled into a mess the last 6 months with payday loans, and now am in a position where on Payday all my wages are going to pay these back and I'm having to get more just to live on. Got to the point where I really don't know where to turn next.

I've been reading up on several DMP from companies and spoke to someone from one last week who sent me a pack with T&C's etc. After doing some more research, they seemed like a poor company who are there just to get be further into dect.
I eventually stumbled across CCCS site, and finally I think i have found an answer to make my life so much better.

I have filled out the Debt Remedy form, with my 11 creditors totalling around 4.5k, what is the next step from here? The advice was to go through with a DMP, which i'm happy to do but just wondering if i need to ring to get it started and what kind of help I can expect i.e will I be able to pay a fixed sum each month of around £200?

Many thanks in advance.
JT

Rochdale_Guy

CCCS_Sue wrote: »

Hi Rochdale Guy

Taking out extra credit to pay off existing debt is not always the best solution.
You could end up in a much worse situation, especially as you are not dealing with the whole situation. By borrowing just £7500 you would still have another £7500 outstanding if you owe £15k +

As you say you are struggling to pay your rent every week, the first thing you seriously need to look at is your income and expenditure.
Priority bills such as rent, council tax, utility bills, and food costs are much more important than trying to clear your non priority debts such as your credit cards, unsecured loans etc.
You should work out a budget making sure you have enough to pay all your priorities and any arrears.
Whatever is left is what you can realistically afford to pay your creditors. If there isn’t enough then you may have to offer reduced payments until your situation improves.
If you wish to discuss your Debt Remedy options further with a counsellor you call us free on 0800 138 1111.

Kind Regards
Sue

Thanks Sue

I phoned MBNA up last night and to cut a long story short, they said they can only help people who cannot afford the minimum monthly repayment, they didn't care I was paying it by D/D and the interest was £5 more a month (and rising). He said it's unlikely they would freeze the interest or cut the APR as that is what my original credit agreement was.... I originally rang the number for "difficulties paying" and after 10 minutes of automated nonsense, got through to a normal customer service advisor who said the dept. I wanted is open 9am to 5pm only, which is no good to me as I am work in thsoe hours and there is no privacy here, not that I want anyone at work knowing my difficulties

I was that annoyed with them I feel like transferring £2,000 off the MBNA onto my EGG card, just so the greedy MBNA ******* won't take as much interest off me (leaving £2,229 outstanding on the MBNA). But that would then leave me with £2,000 on my EGG card at 26.9%, I can't even fathom what minimum monthly repayments would be on that, and that rates as extortionate as MBNA

Getting nowhere, it's scary....

CCCS_Sue

elerifairy wrote: »

Hi, sorry if this doesn't make much sense, Just starting to get my head round everything.......

have completed Debt remedy and the outcome is to start a DMP with cccs. Have received all the paperwork and am just starting to get a plan of action ready....

My debts are:
£550 - Paydayloan
£260 - Barclaycard
£1800 - Natwest O/D
£1500 - Barclays O/D

Few questions......

Should I open a new account before setting up my DMP? Is it best to go to a new bank (as I think it said on debt remedy that I could open a barclays one?) Would this be a wise decision?

I contacted the payday loan company this morning informing them that i would be unable to make the repayment and was starting a dmp, they would not talk to me about the account and said if CCCS hadn't contacted them before Feb 28th (date payment is due) then they will try to take the money and will continue to apply interest...
How can i make sure that cccs have contacted them before then as I couldn't cope with them trying to take payment.....
Do i send them the letter in my pack even though i have told them on the phone?

Sorry am really struggling with all this, My partner has just found out and is very supportive but with a move planned at the end of the month (closer to work, saving lots on petrol) its just a lot to get my head round!

Hope this makes some sort of sense.......??

Jen

Hi Jen and thank you for your message

You need to open a new account and have your money paid into this account as soon as possible, as this will put you back in control of your finances and prevent your bank taking your money without your permission to pay off their debts.

You can open a basic account with any bank where you have no debts.

Use the letter we provide to advise all your creditors that you are going on a plan with us and send this with a payment you can realistically afford for this month if you have not already paid them. It may be advisable to communicate in writing rather than phone.

As soon as we receive all your paperwork and signed authorisation to speak to your creditors, we can then contact your creditors to make an offer of payment.

Our debt remedy team are available to give you ongoing support if you require any further help.


Kind Regards
Sue

CCCS_Sue

elerifairy wrote: »

Sorry.... Also, What address do I send my bank letters to? Head office or my branch (although my branch is back in my home town and just where I opened the accounts years ago, now live a long way from them....)

You could send them to the address on recent statements they have sent you.

Kind Regards

Sue

CCCS_Sue

Bumear wrote: »

Hi, I spoke to one of the after team from CCCS today in relation to a payment I am due to make tomorrow. I asked if I could make a reduced payment as I have had to spend over £200 on my car which I didnt expect. He advised me to cancel my direct debit and then ring again to make a reduced payment. Is there anyway I can do this online through my bank?

Hi bumear and thank you for your message

You need to check your online account with the bank. Most online banks do have this facility

Kind Regards
Sue