Struggling with debt? Ask a debt advisor a question

farradn

Hi, like everyone else on this board I'm drowning in debt. I've spent the weekend going through all my accounts trying to get a handle on what we owe to whom so that I could phone the Consumer Credit Counselling Service in the morning and tell them exactly what was what. However I'm not sure what I owe, I mean I know what I borrowed but when I borrowed it I agreed to pay interest, so obviously I owe that too. When I'm contacting you guys with what I owe do I include interest or just whats left of the principle debt?

My current debts look like this:
Every Day Loans: borrowed £3,180. Outstanding £3,062 (we've been paying £151pm since September, most of that goes on interest).
LloydsTSB Personal Loan: borrowed £2,000. Outstanding £1,214
Credit Cards: £1,500
Overdraft: £2,850

So that £8626 before interest.

On top of this my partner owes:
Credit cards: £2,200
Overdraft: £1,500
Santander Personal loan: borrowed £3,000. Outstanding £2,786

So we have outstanding debts of £15,112 before interest, (actually thats £15,487 as I took out a payday loan for £300 last week to pay 2 of these, and will no doubt have to do so again next month).

Most of this debt was accumulated in the last 18 months. The everyday loan was to clear 2 credit cards, but then a gas bill came in higher than expected which threw out our budget (we thought we had a fool proof plan to pay off all our debt within 4 years) and then each month we slipped further into the red instead of heading towards the black, and before you know it that shortfall one month has lead to the credit cards being maxed again, and I owe an extra £375 next month on a payday loan (so much for fool proof plans).

The whole thing has become ridiculous, I've hardly slept all month, and am seriously considering taking the family camping, and hiding in the woods hunting squirrels for 6 years until the statute of limitations kicks in (I'll only have to home school my son key stage 1 before we can return to civilisation. key stage 1 is easy no complex math like adding, just learning to count which I can do... Honest).

So my question (as my ranting can be distracting). When I contact you guys regarding my debts, am I talking about outstanding debt before interest, or after? (I started to work out all of the different interest rates to add on, but got really lost)

Also as around £9,350 of this debt is with our banks (Santander, LloydsTSB overdrafts, loans, and a credit card). Would it make sense to set up a joint current account with the CO-OP or something (without ovedraft facilities, just a really basic account) for our wages and direct debits in preparation for setting up a DMP. (I was told I should to avoid the banks ignoring DMP requests and just taking all of our wages to settle with them).

blondeyk89

Hi

I am filling out the direct debit form, just a quick question....

what do i put in the reference box?

Thanks

zblake

Hi there

Wondering if you can just give me a bit of advice. I've recently set up a DMP with CCCS and they have said that I should pay my debts off in 44 mths, am going to be £456 a month and my debts are just under £20k. Is this true? Only ask as that I did contact another company, regards dmp's but they wanted me to pay £400 and it would take me 59 mths to pay off the debts also they would take a fee, so i would be paying them just under £4k, so after looking around and reading on here I decided to go with CCCS.

However when I rang back this other company to confirm that I wouldn't be going ahead with them and that I'd be going with CCCS he proceeded to tell me that CCCS tell me that it will take 44 mths but really it would longer as they do not stop my creditors from piling on the interest and that they (CCCS) actually work for the creditors and not you?! Is he just trying to get me to go back to them and trying it on or he is right?!

Flash-bang

Hi,

My OH and I got the paperwork for our DMP at the start of December, since then there have been a series of problems which has delayed our starting up - OH got stranded in Scotland for 3 days, we had fraudulent payments taken from our account and I broke a tooth. We are planning to start on 1st April after we have taxed and MOTed OH's car. I have a few questions to help me prepare:

There are a few outgoings and debts that I missed off our original application, can they be added?
OH is paid a regular basic but also gets commission most months which can vary from 0 to £1000, although usually nearer the 0! Can we work out what we can afford to pay based on his basic (as this is the only amount guaranteed each month) and use the extra to build a small emergency fund (his mother has cancer and if she is unwell he needs to be able to fly out to see her) and put the rest towards lump sum payments? If so, would a letter from his HR department stating his basic pay be ok, alongside one of his payslips?

CCCS_Sue

donewithcredit wrote: »

Hello, not sure if im doing this right as i have never posted on here before. After looking at all available options and undertaking a debt remedy on the CCCS website it looks as though my best options for dealing with my debt is a debt management plan. The debt is mainly from credit cards. i have an hire purchase agreement for my car. This is one of those passport agreements where you lease the car for three years then have the option to renew the car or make a final payment (probably about £3 to £4 thousand in my case). How would a debt management plan effect this agreement. I need a car for work, not just to travel there but to be able to do my job. I am worried that i would have to give the car back and i would then need to find another job. Thanks

Hi donewithcredit and thank you for your message

A car on HP which is essential for work is normally acceptable on a budget when you are on a DMP. However, if the monthly repayment amount on the HP is high, then it may be advisable to look at a cheaper option.
In order to discuss this in more depth, I would recommend that you call our Debt Remedy support team. They would be able to give you further advice based on your financial situation.

Kind Regards
Sue

Thamesmeadhammer

Hello all,

I have just done the CCCS DMP and it seems I'm able to get help.

I just need to double check a few things with my wife as regards some of the debts but just want to know a few things.

1, Will a DMP affect my credit rating ? I'm not applying for any credit cards or loans but I'm worried about my mortgage renewals.

2, How will my mortgage company react with a DMP ? Or does the DMP only affect the loans and credit cards I have ?

thanks

TMH

CCCS_Sue

farradn wrote: »

Hi, like everyone else on this board I'm drowning in debt. I've spent the weekend going through all my accounts trying to get a handle on what we owe to whom so that I could phone the Consumer Credit Counselling Service in the morning and tell them exactly what was what. However I'm not sure what I owe, I mean I know what I borrowed but when I borrowed it I agreed to pay interest, so obviously I owe that too. When I'm contacting you guys with what I owe do I include interest or just whats left of the principle debt?

My current debts look like this:
Every Day Loans: borrowed £3,180. Outstanding £3,062 (we've been paying £151pm since September, most of that goes on interest).
LloydsTSB Personal Loan: borrowed £2,000. Outstanding £1,214
Credit Cards: £1,500
Overdraft: £2,850

So that £8626 before interest.

On top of this my partner owes:
Credit cards: £2,200
Overdraft: £1,500
Santander Personal loan: borrowed £3,000. Outstanding £2,786

So we have outstanding debts of £15,112 before interest, (actually thats £15,487 as I took out a payday loan for £300 last week to pay 2 of these, and will no doubt have to do so again next month).

Most of this debt was accumulated in the last 18 months. The everyday loan was to clear 2 credit cards, but then a gas bill came in higher than expected which threw out our budget (we thought we had a fool proof plan to pay off all our debt within 4 years) and then each month we slipped further into the red instead of heading towards the black, and before you know it that shortfall one month has lead to the credit cards being maxed again, and I owe an extra £375 next month on a payday loan (so much for fool proof plans).

The whole thing has become ridiculous, I've hardly slept all month, and am seriously considering taking the family camping, and hiding in the woods hunting squirrels for 6 years until the statute of limitations kicks in (I'll only have to home school my son key stage 1 before we can return to civilisation. key stage 1 is easy no complex math like adding, just learning to count which I can do... Honest).

So my question (as my ranting can be distracting). When I contact you guys regarding my debts, am I talking about outstanding debt before interest, or after? (I started to work out all of the different interest rates to add on, but got really lost)

Also as around £9,350 of this debt is with our banks (Santander, LloydsTSB overdrafts, loans, and a credit card). Would it make sense to set up a joint current account with the CO-OP or something (without ovedraft facilities, just a really basic account) for our wages and direct debits in preparation for setting up a DMP. (I was told I should to avoid the banks ignoring DMP requests and just taking all of our wages to settle with them).

Hi farradn and thank you for your message

First of all you need to try and get out of the downward spiral of relying on payday loans to get you by. This is only going to make your situation worse.
Concentrate on paying all your priorities first. These include your rent/mortgage, council tax, utility bills, food etc.
Whatever is left is what you can afford to pay your creditors.
So, if there isn’t enough to offer the minimum payments, you will need to offer them a reduced amount based on what you can afford. If you have nothing left, then you may have to offer a token payment until your situation improves.

Change to a basic bank account as this will put you back in control and stop the bank taking money from your account without your permission to pay back debts you owe them.

It is advisable that you have your latest outstanding balance when you call for an appointment as this enables us to give you the best advice for your situation.

Your latest up to date credit card statements are fine for outstanding balances on your cards but you may have to ring for the latest balances on any loans you have. The interest owed is normally included in your up to date balances. If you don't have all your balances, then still contact us anyway.


When you have your appointment with the counsellor, they will explain everything you need. A DMP is not always the best solution for everyone and there may be other options you could consider.

The main thing is to get help as soon as possible so that you can start to sort out your situation.
To put your mind at rest, I’m sure that camping in the woods and hunting squirrels will not be an option!

Kind Regards
Sue

gambit27

Hi, I currently owe credit card and mail order debt, all accounts defaulted 4 years ago when my relationship ended, partner moved out, and I was left with a hefty mortgage, car loan, personal loan, and credit card/mail order debt we had taken on jointly, under my name unfortunately, along with 2 children to bring up without maintenance. I wasn't able to continue paying the debts as my money was stretched to the limits, and my ex refused to let me sell the house.

After about 6 months of battling through courts, the house was sold, mortgage cleared without default, and I used my share of the profit to pay off court and lawyer fees, and car loan were paid in full, as was the personal loan, the personal loan had defaulted but states satisfied on my credit file. I didn't have enough to cover the credit cards, but am now paying these off at a manageable amount each month, and the first is due to be paid in full by September woohoo!

I got a copy of my credit file to deal with the mess in December, and am now paying off everything on my file, and hope to have it all paid off by the end of next year.

My 1st question is, do the default notices stay on my account for 6 years from the date of default? Or from the date I clear the debt?

Once I have paid off the debt I would like to keep saving the money I'm paying out for debt each month for a deposit so I can get back on the property ladder, but at the moment, with the defaults on my account I can't even get a high interest card to start to try to repair my credit.

So my 2nd question is, how, and when, can I begin to repair my credit rating?

Thank you

jamie_22

Hi all,

i am new to this and was hoping someone could help me,

Telogram have send me a letter asking if i am the person who lived at a previous address, yes i am but that was in 2005 does anyone know much about these people, as i dont recall owing anybody, i did have a captial one account but it was cleared before i moved.

sickasachip13

Hi Sue and Pavan,

My DMP is running pretty smoothly now (three months in). Most creditors have accepted very small payments, a few have passed us onto DCA who have accepted the payments, only Virgin remains a bit of a mystery - they wrote immediately saying that rejected the DMP (back in Nov) but have continued to take the payments and have stopped the interest. We're just waiting to see what happens.

I am currently unemployed and my partner works on a low-wage. We're paying relatively small amounts due to our small income and we're finding being on the DMP very hard work in terms of managing on what's left and have been relying on selling things to make ends meet. Obviously when I get work the DMP payment will increase significantly and in relation to that I have a couple of questions:

1. Will the DMP increase to the extent that essentially we'll be living on exactly what we do now - that essentially every penny of any income I own will be absorbed by it?
2. I have no clothes to take up a new position as I have significantly lost weight since I last worked. My child absolutely needs new shoes and a coat. Also my car is going to need new tyres and a new exhaust system before I can start commuting properly. Given this, would it be acceptable for me to keep my first month's wages and undertake the review ready to start the new increased payment in the second month of my working?
Thanks.
SAAC13