Struggling with debt? Ask a debt advisor a question

Sheri_P

Hi, I've had a DMP with the CCS which has been going well for the last few yrs but stupidly, I've had a c/card as well. I can meet the minimum payment of the card but of course the interest is almost as much as the mimimum payment, so I'm never going to be able to pay it off.

I know how stupid this is, but I just don't know what to do next. I've called the c/card company but they have said that so long as I can meet the min payment each mth, they aren't that bothered.

Could I add it to my DMP with CCS, even though I shouldn't have been using this card?

Any advise is really appreciated.

Thank you.

StepChange_Pavan

scrummymummy2011 wrote: »

Thank you for your reply, I tryed quoting what you wrote so you could remember my problems but it wouldnt let me :-(

Anyways iphoned cccs but i dont have enough money left over to set up a dmp, Carrying on as we are isnt a option as £100 to live on isnt enough esp when a newborn is due (pram, cot, bottles, clothing etc!)

So ive decided to wait untill my baby born in april/may then ring up cccs and set up a dmp, as we will then have extra money from tax credits/child benifit and should have enough avaliable to set up a dmp...untill then i am going to send letters out explaining my situation, offering token payments of £1 and asking them to stop interest/charges..
This is all i can do, I am hoping in the 3/4 months maybe some of the debts will go over to debt collection agencies.

What are your views on this? Also how long does it usually take a crediter to either stop interest/charges or transfer it to debt collecters?
Thank you x

Hi there and thanks for your post.

Although you will have extra money coming in, this income may be needed for your new baby.

It’s a good idea to offer token payments as a short term solution until you know what your circumstances will be for the long term.

With regards to the debt collection process, this can vary from one person to the next. It’s difficult to say how likely this is or when it will happen and there are no guarantees. I’d just recommend that you explain your situation in writing and ask for their consideration of your circumstances.

I hope this helps but you can still call us for ongoing support even if you’re not on a DMP – you’ll just need your reference number so that we can access your details.

Kind regards,
Pavan

StepChange_Pavan

Sheri_P wrote: »

Hi, I've had a DMP with the CCS which has been going well for the last few yrs but stupidly, I've had a c/card as well. I can meet the minimum payment of the card but of course the interest is almost as much as the mimimum payment, so I'm never going to be able to pay it off.

I know how stupid this is, but I just don't know what to do next. I've called the c/card company but they have said that so long as I can meet the min payment each mth, they aren't that bothered.

Could I add it to my DMP with CCS, even though I shouldn't have been using this card?

Any advise is really appreciated.

Thank you.

Hi Sheri P and thanks for your post.

You’re right that it’s against the DMP agreement to take out further credit.

However, you took the credit out for a specific reason and haven’t been continually spending on it you may be able to add it on to your DMP.

You may also need to review your budget as if you have needed the card to supplement your income, your budget may not be sustainable as it is.

Either way I’d recommend that you give us a call so that we can explore all of the options that are available to you.

Hope this helps.

Kind regards,
Pavan

drrat

Hi

I have a DMP with CCCS, and I am having issues with an overdraft, I phoned CCCS and taken advice. Doing you have any further advice given the coversation I have had with Lloyds collections, please see this thread

https://forums.moneysavingexpert.com/discussion/3040188

Basically via phone lloyds are being awkward to deal with.

nissan25

Hi all

Friends have done CCCS debt remedy which is throwing out a DMP for £26,500 debt @ £356 p/m for 6.5 years.

A DMP does not guarantee the creditors will freeze interest and charges as it is not legally binding. It also does not guarantee creditors will stop contacting you or pursuing other means, i.e. court action / debt collection companies. (Correct me if im wrong)

So is there anyway they can opt for an IVA which is legally binding (if accepted) all interest and charges are frozen and is only paid over a 5 year period? Also they may not pay back all the debt as a portion is written off.

Either option their credit rating will be severely damaged but the IVA is paid over a shorter period.

Also when the DMP / IVA is settled in full is this the date it will remain on your credit file for 6 years? I.e. 01/01/11 it will remain until 31/12/17.

Thanks in advance for any replies

CCCS_Sue

drrat wrote: »

Hi

I have a DMP with CCCS, and I am having issues with an overdraft, I phoned CCCS and taken advice. Doing you have any further advice given the coversation I have had with Lloyds collections, please see this thread

https://forums.moneysavingexpert.com/discussion/3040188

Basically via phone lloyds are being awkward to deal with.

Hi drrat and thank you for your message

All payments should be through your DMP as paying extra on top of your payments could leave you short in your budget for priorities.

Even if your creditors refuse any offers we give them, we will send the payments anyway. You can’t pay them money you do not have. You shouldn’t have to contact them by phone any further if you now have the outstanding balance.
Our client support team have all your details regarding your DMP and will be able to advise you on how to proceed now

Kind Regards
Sue

CCCS_Sue

nissan25 wrote: »

Hi all

Friends have done CCCS debt remedy which is throwing out a DMP for £26,500 debt @ £356 p/m for 6.5 years.

A DMP does not guarantee the creditors will freeze interest and charges as it is not legally binding. It also does not guarantee creditors will stop contacting you or pursuing other means, i.e. court action / debt collection companies. (Correct me if im wrong)

So is there anyway they can opt for an IVA which is legally binding (if accepted) all interest and charges are frozen and is only paid over a 5 year period? Also they may not pay back all the debt as a portion is written off.

Either option their credit rating will be severely damaged but the IVA is paid over a shorter period.

Also when the DMP / IVA is settled in full is this the date it will remain on your credit file for 6 years? I.e. 01/01/11 it will remain until 31/12/17.

Thanks in advance for any replies

Hi nissan25 and thank you for your message

Debt Remedy takes all your details and then comes up with your best option based on the information you provide regarding your income and expenditure.
I can understand why you may think that an IVA may be your best option but if you are able to repay a DMP in 6.5 years, then it is unlikely the creditors would agree to an IVA where any outstanding debt is written off after 5 years.

You also need to take into consideration that if your circumstances were to change for the better within the 6.5 years whilst you were on your DMP and the creditors did agree to stop interest and charges, then you may be able to clear the debt even quicker.
On the other hand, if your circumstances changed and you were not able to pay off the debt in a reasonable length of time, then your budget could be reviewed and an IVA could be a possibility then.

An IVA does remain on your file six years from the date the IVA begins even if the arrangement is completed (unless the IVA lasts longer than this)
I have attached a link to a booklet called ‘Credit Explained’ which explains this further
http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

If you would like to discuss your options further, then you can contact our client support team who will be happy to help you.

Kind Regards
Sue

lassindebt

Hi,can you reclaim crdit card charges if the card got in debt and was them sold on to a DCA then to another DCA. (SainsburyCr Card)Also this agency keeps trying to put up my payments ,then offer to settle my in exces of £8000. debt for £2500. How can they afford to loose so much money ,do I really owe them 8K ?I have asked for a copy of my original agreement , not yet reeceived,I am confused about how I takle this company(RobinsonWay) advice will be appreciated.

mummy2b2011

Hi there

I filled in the form online and it reccommened a dro (dept relief order) to me
Im currently on income support, with 1 child.. This was based on this info
But in june i will have a baby so then il get an extra £200 child tax and £60 child benifit, would this then make my dro invalid, would i then need to arrange to pay my bills with the extra money im getting for baby?

Also im currently seeing a guy who i can see a future with, does this mean he cant move in with me untill the dro is over? What happened if say he moved in in september (hes working) Would it affect my dro? esp as my new baby is his?

Look forward to your reply

sammymo_2

Older and wiser now and slowly working to clear all cards and loans was going well untill shoosmiths threatened and then quickly took court action resulting in a ccj for an unsecured loan taken out years ago, I have settled with 2 other loan companies for a percentage of the balance and got interest frozen on card accounts while paying off but shoosmiths are intent on getting the whole ammount. Have sent off a n245 form to request time to pay etc but not sure want happens next and with my current mortgage deal due up in July this year not sure how this will affect the chances or interest rate at that point. Has anyone managed to work with shoosmiths to fix things, I'm sure they didn't pay the 20k outstanding to take over the debt but need advice on how to fight them or to get a fair deal to clear account not that I have any savings to pay them with. All help appreciated!