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Oregon

I know we're all watching the pennies but there is a massive difference between being careful and being mean, right??

What's the worst thing you've seen someone else do then hmmm?....

wisnaeme

Hello,
I am in a similar situation to mooglet71 .I have returned my completed paperwork to cccs and sent my letters to my creditors. I am paid on Wednesday , should I pay this into my new account , got sortcode and account number but no card as of yet?

Cheers
W

StepChange_Pavan

ShellyBe wrote: »

Hi

Being a newbie on the site, please forgive me if my query has already been answered elesewhere on another thread - I have tried trawling through, but have now gone cross-eyed so I thought I would just ask!:D

I have completed the debt remedy tool on the cccs website...nearly passed out with the total amout...( :eek:)and the recommendation is a DMP with DFD being in around 5 years...although it did say perhaps in 3 and a half year once the plan got going...

Completing it on the web was the first stage as I didnt feel able to actually talk to anyone at that point...but now that I have the figures, I think I would like to ring cccs just to talk through a few things and get them clear in my mind.

Firstly though, I would be grateful for any advice on the following:

I bank with the Halifax and have an O/D of £2450 which we are constantly using - as this is part of the debt (along with 2 credit cards also with them for me and DH and various others) would I need to see about opening a new bank account elsewhere? And if so, how do I go about paying back the O/D? I am so sorry if this seems like a stupid/simple question - my brain is mush at the moment trying to stay focussed on getting this mess sorted...:(

Also, we are just paying Interest only on a mortgage which has just over 12 years left to run...it was meant to be a short term solution (just over a year now) to help clear debts...but hasnt happened that way:o The balance outstanding on the mortgage is £115k...we would really have loved to remortgage and up the term (we still have a lot of working life ahead..!) but house prices tumbling means the amount we would need to borrow would outweigh the current value of the house....

...sooooo I am concerned that once the DMP is in place, and obviously our credit is severely affected, what do we do at the end of DMP to then work on clearing the mortgage? At that stage we we will only have 6 years and presumably huge difficulty in remortgaging..

Ideally I would like to at least be making overpayments on the mortgage to try to bring the capital down, but being on a DMP surely means all excess money goes on the unsecured debts?

Sorry again...head in such a muddle...

Hi ShellyBe and thanks for your post.

Firstly you would definitely need to open up a basic bank account away from any of your existing debts. You can then add your overdraft to your list of creditors and repay it in the same way as your other debts.

With regards to your mortgage; unfortunately there is no way of protecting your credit file as you can’t afford to maintain your payments. When it comes to remortgaging, we can refer you to a specialist mortgage broker that specialises in clients with adverse credit histories.

It’s important to remember that you will be repaying your debt in full, so your credit file won’t be as affected as if you went bankrupt for example.

I hope this helps, but if you have any more questions please get in touch or just give us a call.

Kind regards,
Pavan

StepChange_Pavan

Mooglet71 wrote: »

Hi
I am just about to start my DMP with CCCS. I have now received my pack and although most of it seems clear, I have a couple of queries.

- I am assuming that I should cancel all my direct debits to my creditors asap? I will be sending them the template letter tomorrow

- my salary is due to be paid into my account on Weds, it is too late for me to stop this but I have an overdraft that is part of my DMP, so what should I do (I do have a basic account already set up with another bank but not enough time to change things over)

- when CCCS contact my creditors, do they inform them what the new monthly payment will be to each creditor?

I know I could phone, but I find it difficult to phone during the day at work.

Thanks

Hi mooglet71 and thank for your post.

Yes, it’s a good idea to cancel your direct debits as soon as possible.

If possible, you will need to withdraw all your available salary when you can. Try to do this before informing them that you’re going on a DMP as they could swallow your funds to pay towards the debt.

And finally, we will send each of your creditors a copy of your budget and inform them of the monthly payment.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

wisnaeme wrote: »

Hello,
I am in a similar situation to mooglet71 .I have returned my completed paperwork to cccs and sent my letters to my creditors. I am paid on Wednesday , should I pay this into my new account , got sortcode and account number but no card as of yet?

Cheers
W

Hi W,

It’s best to pay your salary into your new account to make sure your creditor doesn’t take it. You will need to check with your payroll department as it may be too late to switch.

Either way, it’s important that you have access to your funds – check with your new bank how long it should take for your card to arrive.

I hope this helps but if you need clarification, just give us a call.

Kind regards,
Pavan

EKAndrew

Hi All,

Looking for some help and advice of how to get out the messy situation that I am in – I will apologise now for the long post, but I’m putting my cards on the table so that you have all the facts and the twists and turns that I face / have faced.

I’m currently have around £22/23000 debt owed to various lenders (4 credit cards and one personal loan) I also have a car on HP.

My debt payments are just over £650 pcm and £177 for the car. I have a mortgage which is £511 p/m

My salary is £27500. (1796 after tax)

I have no arrears and all my payments are up to date, albeit I am paying the minimum.

I currently live with my partner, my stepson and my daughter in a smallish 2 bed flat – we would like(but soon to be verging on need) more space in the family home. All the debt is in my name – including the mortgage. Things escalated out of control around Dec 09/Jan 10 – my partner fell outside her work (not in or on the premises of) and was off work for several months. She used her 6 weeks “sick pay”, but just as she was about to go back to work, we found out that she was pregnant. She couldn’t return to work as she was suffering from concussion (She then had a horrendous pregnancy and birth and to this date, she has not fully recovered) As she was off work for so long, we were then not entitled to any maternity leave from her work or from the government as she had not completed 26 weeks work in that year. She was also refused ESA

As mentioned above, we need a new place to live, and I’m aware going down any route would affect my credit rating, therefore affecting my ability to get a mortgage.

The debt that I have with the Credit Card companies has seen them increase their interest slowly but surely over a period of time where they are all now nearly 20% APR. This means that although I am paying £650 per month, most of this is being chewed up in interest.

Is there such a thing as talking to the “Bank Manager” these days? Or do I just need to deal with a Financial Advisor at my bank? My flat has little or no equity in it (if there is any, it will be about £1 or 2k) – therefore there is no benefit from re-mortgaging.

I am willing to sell my soul to get us back on track and have offered to get a part-time job for extra income, although this was shot down by my partner as she thinks that I don’t see the kids enough as it is and doesn’t want me missing out on them growing up.

Should I just try to sell everything I have in the house on ebay/gumtree?

My own preference would be a consolidation loan - as I know I can afford the payments - but is anyone going to give me the loan?

Your thoughts / opinions / advice no matter how blunt are more than welcome and much appreciated

Thanks

rdpixie

Evening guys!

Looking for some advice for my situation...

* Been self-employed for 1 year
* Not a home owner

Current debt:
Credit Card 1 = £7900 (Halifax 17.9% and has been closed)
Credit Card 2 = £3100 (Virgin 7.9%)
Loan = £4000 (Halifax 4 years remaining)

Between them all I pay approx. £280 a month in repayments however this is only covering the minimum on the CC's and so my debt isn't really going down. I can just about manage to keep this up but at times it can be a bit of a struggle.

I have never missed a payment on my cards or my loan and I have only been refused credit once and that was over 6 months ago. I haven't got my credit report but I am looking to get that now.

My question really is am I better to try and go for a consolidation loan or to try and apply for a credit card with 0% on transfers to try and clear some of my debt? Are there any particular places that are better to apply if you are self employed? Or as I have only been self employed a year am i likely to be declined on that basis?

crob

hey just need a bit of guidence, i have never been great with my money and i have fed up of spending more and want to try and save, it feels like each month i end up having to spend thought.

i have a over draft from being a student on £2346
its a halifax one and i have a feeling they will start to charge me interest on it, im not sure either to try and pay it off with a loan or just wait and see what the interest will be?

also did the budget brain here are my resultsStatement of Affairs and Personal Balance Sheet
Monthly Income Details
Income from Employment (after tax). . . . . . . . . . . . . . . . . . . . . . . 1,748.00
State Pension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.00
Mobile Phone(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.00
TV Licence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.00
Mortgage/Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340.00
Food and Household Shopping . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00
Motoring & Public Transport
Petrol/Diesel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234.00
Car Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48.00
Breakdown Cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.00
Entertainment
Cinema/Theatre Trips. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.00
Shopping for Fun. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
Hobbies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
Drinking Out. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
Eating Out. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.00
New Clothes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50.00
Big One Offs
Birthdays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00
Summer Holiday. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500.00
Christmas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200.00
Odds & Sods

Coffees/Sandwiches/Snacks . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.00

Total monthly income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,769.00

Total monthly expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,138.00

any advice

ShellyBe

Hi Pavan, thank you for your reply - I will start with opening a new account and then give cccs a ring, thanks again.

ShellyBe

StepChange_Pavan

EKAndrew wrote: »

Hi All,

Looking for some help and advice of how to get out the messy situation that I am in – I will apologise now for the long post, but I’m putting my cards on the table so that you have all the facts and the twists and turns that I face / have faced.

I’m currently have around £22/23000 debt owed to various lenders (4 credit cards and one personal loan) I also have a car on HP.

My debt payments are just over £650 pcm and £177 for the car. I have a mortgage which is £511 p/m

My salary is £27500. (1796 after tax)

I have no arrears and all my payments are up to date, albeit I am paying the minimum.

I currently live with my partner, my stepson and my daughter in a smallish 2 bed flat – we would like(but soon to be verging on need) more space in the family home. All the debt is in my name – including the mortgage. Things escalated out of control around Dec 09/Jan 10 – my partner fell outside her work (not in or on the premises of) and was off work for several months. She used her 6 weeks “sick pay”, but just as she was about to go back to work, we found out that she was pregnant. She couldn’t return to work as she was suffering from concussion (She then had a horrendous pregnancy and birth and to this date, she has not fully recovered) As she was off work for so long, we were then not entitled to any maternity leave from her work or from the government as she had not completed 26 weeks work in that year. She was also refused ESA

As mentioned above, we need a new place to live, and I’m aware going down any route would affect my credit rating, therefore affecting my ability to get a mortgage.

The debt that I have with the Credit Card companies has seen them increase their interest slowly but surely over a period of time where they are all now nearly 20% APR. This means that although I am paying £650 per month, most of this is being chewed up in interest.

Is there such a thing as talking to the “Bank Manager” these days? Or do I just need to deal with a Financial Advisor at my bank? My flat has little or no equity in it (if there is any, it will be about £1 or 2k) – therefore there is no benefit from re-mortgaging.

I am willing to sell my soul to get us back on track and have offered to get a part-time job for extra income, although this was shot down by my partner as she thinks that I don’t see the kids enough as it is and doesn’t want me missing out on them growing up.

Should I just try to sell everything I have in the house on ebay/gumtree?

My own preference would be a consolidation loan - as I know I can afford the payments - but is anyone going to give me the loan?

Your thoughts / opinions / advice no matter how blunt are more than welcome and much appreciated

Thanks

Hi EKAndrew and welcome to the forum.

It’s tricky to answer your question because you’re currently able to afford you minimum payments, and like you mention, any debt solution will affect your credit file.

Have you considered renting a bigger house instead of buying? We would really need to look at your situation in more detail to be able to advise you fully. You could speak to the bank first, but it’s important that you don’t let them pressure you into anything that you can’t afford.

If you’d like to discuss your options with us you can call our free helpline on 0800 138 1111 – but like you’ve said, offering reduced payments to your creditors will affect your eligibility for future credit. It could be worth checking your credit files to see what it’s like at the moment.

Kind regards,
Pavan