Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

teddyed wrote: »

Hi,
Im in debt and struggling my od is currently 2315. And i have a credit card of 7412.
I know we all have a bad deal but mine has been unique to say the least 4 yrs ago my ex husband had an accident resulting in him being paralysed unfortunately our marriage didn't work we divorced and due to his disability he got everything my name still remains on the mortgage and i have a charge on the property which doesn't come into effect until his death.
since then i have had to rebuild my life with our now 5 yr old son, it has not been easy and to top it all off my son is now going through the process of being diagnosed with autism he needs care 24/7 which means i cannot work, i do have a new partner but his wages only cover our food costs. Is a Dmp my best option or should i talk to my bank and see if they can help i feel sick everytime a statement comes please can someone advise me.
Thanks

Hi teddyed and welcome to the forum.

It certainly sounds as though you’ve been through a difficult time, but we can help look at the solutions available to help with your debt problem.

It’s difficult to say what your best option is without looking at your circumstances in more detail but from what you’ve said, a DMP wouldn’t be your best option if you can only manage to pay for your living costs.

I’d recommend that you get in touch with us so that we can look at your situation properly and see what options are available to you. You can visit our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) to help you find a solution to your debt problem quickly or ring our Helpline on 0800 138 1111 (free, including mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

I hope this helps.

Kind regards,
Pavan

tazz72

Thanks very much for that advice, has taken a load of my mind. Will certainly follow your recommendations and see what happens.

Depth_Charge

Experian_company_representative wrote: »

Free DMP providers like CCCS take a small cut from the money they distribute to your creditors. It's called 'fair share'. CAB face-to-face debt advice is also largely funded by creditors, but through an FSA levy on the industry.

James Jones

Hi

Is the small cut 17.5% or thereabouts?

The difference between CAB funding & CCCS is that there is no cut from Debt Management Plans, IVAs or any other debt remedy so therefore no financial interest for the CAB in any solution advised, administered or maintained.

Some people might suggest that the above makes the CAB more impartial & independent.

CABs also do their own Debt Management Plans often where the disposable income is less than £100 per month or where token offers are applicable - cases that others won't touch for some reason

There are also other sources of funding for CAB debt advice (many under threat including the one you mention) unlike CCCS which I believe is almost 100% funded by the creditors.

The last I heard there is a kind of pilot partnership with the CAB & CCCS that has been underway for a year or so with regard to 'working together' where Debt Management Plans are concerned (I understand this pilot scheme is up for review in the not too distant future)

You dont seem to hear much about the above pilot scheme now so not sure how its going, progressing or whether it is set to continue.

Depth_Charge

Hi

Just to follow from my last post

Heres a some very interesting information / written evidence on CCCS and 'fair share' funding etc

http://www.publications.parliament.uk/pa/cm201012/cmselect/cmbis/writev/1649/dm16a.htm

Hopelessly_Hopeful

Depth_Charge wrote: »

Hi

Just to follow from my last post

Heres a some very interesting information / written evidence on CCCS and 'fair share' funding etc

http://www.publications.parliament.uk/pa/cm201012/cmselect/cmbis/writev/1649/dm16a.htm

Very interesting posts Depth Charge. Thank you

HHx

wanna-be-mortgage-free_2

Depth_Charge wrote: »

Hi

Just to follow from my last post

Heres a some very interesting information / written evidence on CCCS and 'fair share' funding etc

http://www.publications.parliament.uk/pa/cm201012/cmselect/cmbis/writev/1649/dm16a.htm

Interesting read and thanks for sharing Depth Charge. So is it the case that if I have to go down to token payments CCCS won't be able to serve my DMP anymore?

Depth_Charge

wanna-be-mortgage-free wrote: »

Interesting read and thanks for sharing Depth Charge. So is it the case that if I have to go down to token payments CCCS won't be able to serve my DMP anymore?

Hi

You are welcome

I can't really speak for CCCS.

I understand they have a token offer scheme but I am not sure on the figures (for example what CCCS constitute as a token offer) or how this operates and for how long etc

More interesting information here with the token offer scheme getting a mention (mainly section 9 towards the bottom under breathing space)

http://www.publications.parliament.uk/pa/cm201012/cmselect/cmbis/1649/1649we10.htm

wanna-be-mortgage-free_2

Thanks will take a read of that.

Also read on another thread the reason why some suggest token payments of even £1 is so the debt won't become SB.

Tell you it can get confusing out there. I guess you need to take suggestions with a pinch of salt and then do your own research to make sure you are fully informed of all your options.

phartypantz

Hello, my husband and I are in approximately 20000 pounds in debt with credit cards and loans which are costing us £800 permonth. We have a bad credit rating, and initially contacted cccs who advised us to change bank accounts, which we have. I decided to take the bull byhorns today and have emailed them and filled in form etc. So what will happen now? Do i have to arrange DMP myself, or will they do it for me? Thanks

susiemoondust

Hi,

Firstly thank you in advance for any help or support you can provide.

I owe roughly £13'000 to two different credit cards. £8'000 on one, and £5'000 on another.
The £8'000 was 0% but that will end this month, and the 5'000 isn't 0%. I really want to get these paid off now as I have often made the mistake of transferring the balance...and then continuing to spend on that card. An thats basically why I am in this situation.

My credit score via noodle is 3/5 which I think is ok? But I am scared I won't get another 0%.

As I see it my options are; apply for another 0% card and if I don't get that, apply for a loan. Should I apply for a 0% card first or a loan first? I am worried about if I don't get the card, the credit check for the card may damage my credit score and prevent me getting a loan? I've read a bit on IVA but am guessing that may not be a good option for me?

Thanks again, yours Susie