Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

Hi everyone and thanks for your comments.

Just to clarify: creditors agree to pay us what’s known as a 'Fair Share Contribution' (FSC), in recognition of the unique service we provide to people in debt.

FSC comes from creditors that pay a voluntary, non-contractual and charitable donation of the money that’s repaid to them through debt management plans.

This doesn’t affect our advice in any way - we’re completely impartial.

However, this forum thread is to help those in need of debt advice rather than discussions on how we are funded. As someone has mentioned, somehow another thread has been merged into this one.

To stop any confusion, and so that we can continue to help those that need it, it’s best to continue this conversation on another thread - we’re happy to contribute if needed.

Thank you,
Pavan

Hopelessly_Hopeful

Morning Pavan

Can you confirm whether CCCS negotiate with creditors to ask for interest to be stopped?

Also may I ask whether it is usual for creditors to reapply interest once the plan progresses and the debtor is able to make the minimum payment?

HHx

StepChange_Pavan

phartypantz wrote: »

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

Hi phartypantz and thanks for your post.

If you’ve filled out the forms using our online Debt Remedy, you will have been provided with an advice booklet at the end detailing your options. If a DMP is your best solution we can administer it for you, and you’d just need to return the paperwork.

If you’re unsure you can just get in touch with your reference number. This way we’ll be able to locate your details and discuss your options with you. Our contact details are in your advice booklet or you can send me a private message with your details (CCCS Private Messages).

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

susiemoondust wrote: »

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

Hi Susie and welcome to the forum

You’re right that if you’re not accepted for one form of credit, it’s unlikely that you’ll get another afterwards. It’s difficult to say how likely it is that you’ll get accepted in the first instance but you might find this article useful as it gives you tips on how to improve our credit file: http://www.moneysavingexpert.com/loans/credit-rating-credit-score. It could also be a good idea to check the other two credit reference agencies too.

I’d recommend applying for a 0% credit card if you know you can clear the balance within the 0% timeframe (and you don’t use the old card again). I wouldn’t recommend getting another loan unless you know that you can afford the repayments for certain – otherwise it can make your situation worse in the long term as you’ll be taking out more credit. This blogpost gives you more information about what else you’d need to consider: http://moneyaware.co.uk/2011/04/to-debt-consolidate-or-not-to-debt-consolidate/.

Depending on your circumstances, there will be other debt solutions available to you but we would need to look at your situation in a lot more detail to be able to advise you.

If you’d like some more detailed advice you can use our online debt advice service Debt Remedy (http://www.cccs.co.uk/ref/drcu) or call our helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

Hopelessly_Hopeful wrote: »

Morning Pavan

Can you confirm whether CCCS negotiate with creditors to ask for interest to be stopped?

Also may I ask whether it is usual for creditors to reapply interest once the plan progresses and the debtor is able to make the minimum payment?

HHx

Hi HH,

I've answered your question on the other thread.

Thanks,
Pavan

MadeinCumbria

The reason I went with DFH is beacuse I was referred to them by Experian as I needed to better my credit rating and help to get out of debt as all I was doing is paying interest and not reducing my debt to my creditors. At the time of joining I was not explained that they would keep the 1st two monthly payments as their set up fee and I was also not exlpained to that they would be charging me around £124 per month over 6 years. All I was told that I would be debt free in 6 years. I have decided to change to 1st Step Finance as their fees are less and promise to have me debt free in 3 years. DFH are supposed to be helping people get out of debt, I appreciate that they are a Company and have to make money but over 6 years they would have charged me around £9000. I would also appreciate it if when my creditors contact them that they could you kindly advise them that I am now with 1st Step Finance. I feel very frustrated by the service I have received from DFH and their professionalism and I would like to share my experience with others so they too do not get ripped off by a company who is supposed to be helping you. Rant over

Time_to_face_the_music

CCCS_Pavan wrote: »

Hi HH,

I've answered your question on the other thread.

Thanks,
Pavan

Hi Pavan

To continue on from HH's question. Why could I get interest stopped on some of our debts but CCCS couldn't? Or did I just try harder? :think:

TTFTM

Time_to_face_the_music

CCCS_Pavan wrote: »

Hi HH,

I've answered your question on the other thread.

Thanks,
Pavan

Sorry if I have posted in the wrong place but the thread merge is very confusing :wall:

While I am here, can I please just ask one more question:

If CCCS's income from FSCs was £28.6 million in 2010, why is it necessary to hold on to our money for 25 days each month? I naively believed that was the only way that CCCS earned money to keep running and thought it was fair enough but in the face of £28.6 million, I would really like my debts to be paid off 25 days earlier

Hopelessly_Hopeful

Actually when you put it like that TTFTM it got me thinking. My plan is over 4 years in duration so 48 x 25 = 40 months of interest I could be saving by paying direct to the creditors?

Have I got that right please?

HHx

Time_to_face_the_music

This thread is entitled
Struggling with debt? Ask a debt advisor a question
but it always seems to be CCCS debt advisors who answer the questions. Does anyone from Payplan answer questions here or is there another thread for this?

I wondered if anyone could answer the question if payplan also hangs on to payments for 25 days or pays it to creditors immediately?