Struggling with debt? Ask a debt advisor a question

DrGonzo1977

Hi

I am on a DMP and my girlfriend is just starting one. We have recently found out that we are going to be having a baby and so have got ourselves some rented accomodation. We have worked out bills etc and the way we are working it is I pay bills/rent etc and she will be paying for things such as food etc.

Would you advise on us starting a new DMP jointly (if this is possible) and can you explain the advantages/dissadvantages or if ther are any other options that may be available.

As im sure you can imagine, this is a very happy but very very stressful time at the moment so any advise would be great.

Many thanks in advance.

paddyisis

Hi, I have two questions please.

We have been on a DMP with CCCS for 18 months now and have paid around £9,000 but our balance has only been reduced by around £5,000 due to charges and interest, Barclaycard in particular are charging £126 of interest every month on a balance of just over £6,000. I have written to all of the companies who are still charging interest and asked them to stop, can you tell me whether I have the right to ask for interest that has been charged in the last 18 months to be repaid to the account ?

My other question is that we have a Northern Rock Together Mortgage with an unsecured loan of £24,000, CCCS have just advised us that this needs to be added to the DMP. I'm concerned because this is going to almost double our total owed and therefore take so much longer to clear our DMP. Also, I wonder what would happen if we sold our house ? we would have around £20,000 equity, would this be split amongst all companies on the DMP or would it go directly to Northern Rock to clear the unsecured loan ?

Thanks for your help.

mikee31

Hi, I have last night set about trying to address my debt problem by way of a Low Start Debt Management Plan. Within the Debt Remedy it mentions the following;

If you are willing to consider selling your property to release your equity please contact one of our Debt Counsellor's on 0800 197 1704, quoting your web number xxxxxxx, they will discuss further options with you.

I am willing to sell my property but am concerned that it would need some work in order to get it in good condition to sell, plus the fact that the market may not be right for a quick sale. What can be done on this basis?

Further, if it was sold, as well as paying off a large amount of my debt (although not all of it), would I be able to keep a certain amount for the purpose of a deposit, etc, in order to rent somewhere?

Lastly, should I state my intentions to sell my property within the letters to my creditors, in order to try to get them to accept the low payments as part of the Low Start Debt Management Plan?

Unfortunately, making a personal call to CCCS from work is not possible hence my queries on the forum. Thanks.

chinawhite_2

Hi
I completed the debt remedy some months ago as per your website and with the recommendations on there and was advised that I was unsuitable for a DMP at the moment and to send token payments.

I have sent these but a few of my creditors seem to just be ignoring them. Egg have cashed the payments but just keep sending me letters from Capital Credit Agencies with no acknowledgement of my letter or payments. Halifax are also doing the same thing.

I have just had a letter from RBS refusing the arrangement although they have cashed all the token payments.
Im just not sure where to go next with either of these ?

Thanks for any help

LauraLou1982

OK, here are the facts, I apologise for constantly asking CCJ questions!

I recieved a CCJ for a credit card, and put in a acknowledgment as I was going to defend.
I have now been advised its unlikely they would have taken it to court if the DCA didnt have the proper paperwork to enforce it.
I find it highly doubtful I will be able to find £1400 to pay it all off, so is it too late to send the paperwork back to Fredericksons as the court papers ask, to put in an offer of payment? The 28 days is up tomorrow, I thought I have longer (date of service was 25th May + the five days) as I read it wrong but turns out its tomorrow.

Any ideas? Totally stuck but need tp do something to sort this out as dont want it going past the deadline!

CCCS_Sue

DrGonzo1977 wrote: »

Hi

I am on a DMP and my girlfriend is just starting one. We have recently found out that we are going to be having a baby and so have got ourselves some rented accomodation. We have worked out bills etc and the way we are working it is I pay bills/rent etc and she will be paying for things such as food etc.

Would you advise on us starting a new DMP jointly (if this is possible) and can you explain the advantages/dissadvantages or if ther are any other options that may be available.

As im sure you can imagine, this is a very happy but very very stressful time at the moment so any advise would be great.

Many thanks in advance.

Hi Dr Gonzo 1977 and thank you for your message.

It is normally better to do a joint DMP rather than two separate ones, as you will have all your income and expenditure on one budget and it will show realistically what you have left jointly after paying all your priority bills. You could then make one payment to the plan to pay all of your creditors.
I cannot say what other options would be available without knowing your full financial situation.
If you would like to speak to one of our counsellors about your situation, you can call us for an appointment on 0800 138 1111. If are already a client with us, then you can call our client support team and they will advise how you need to proceed.

Regards
Sue

CCCS_Sue

paddyisis wrote: »

Hi, I have two questions please.

We have been on a DMP with CCCS for 18 months now and have paid around £9,000 but our balance has only been reduced by around £5,000 due to charges and interest, Barclaycard in particular are charging £126 of interest every month on a balance of just over £6,000. I have written to all of the companies who are still charging interest and asked them to stop, can you tell me whether I have the right to ask for interest that has been charged in the last 18 months to be repaid to the account ?

My other question is that we have a Northern Rock Together Mortgage with an unsecured loan of £24,000, CCCS have just advised us that this needs to be added to the DMP. I'm concerned because this is going to almost double our total owed and therefore take so much longer to clear our DMP. Also, I wonder what would happen if we sold our house ? we would have around £20,000 equity, would this be split amongst all companies on the DMP or would it go directly to Northern Rock to clear the unsecured loan ?

Thanks for your help.

Hi paddyisis and thank you for your message

Sarah has replied to your query previously. I have attached the reply below.

It’s unlikely that the creditors will agree to pay back the money you have paid on interest and charges, as the creditors are still able to charge these. They are under no obligation to stop the interest and charges.

With regards the Northern Rock debt, as this is an unsecured debt it does have to be added to the list of creditors or otherwise this would be giving them preferential treatment.

Once the house is sold, you should get the equity. Are you thinking of selling?

Sarah

CCCS_Sue

mikee31 wrote: »

Hi, I have last night set about trying to address my debt problem by way of a Low Start Debt Management Plan. Within the Debt Remedy it mentions the following;

If you are willing to consider selling your property to release your equity please contact one of our Debt Counsellor's on 0800 197 1704, quoting your web number xxxxxxx, they will discuss further options with you.

I am willing to sell my property but am concerned that it would need some work in order to get it in good condition to sell, plus the fact that the market may not be right for a quick sale. What can be done on this basis?

Further, if it was sold, as well as paying off a large amount of my debt (although not all of it), would I be able to keep a certain amount for the purpose of a deposit, etc, in order to rent somewhere?

Lastly, should I state my intentions to sell my property within the letters to my creditors, in order to try to get them to accept the low payments as part of the Low Start Debt Management Plan?

Unfortunately, making a personal call to CCCS from work is not possible hence my queries on the forum. Thanks.

Hi mikee31 and thank you for your message.

If you were to sell your property and release any equity in the property, then there are other options you could consider such as full and final settlement offers.
You would need to work out what was needed to pay for the deposit for your new home, plus any removal fees, estate agent fees, solicitor’s costs etc. Whatever was left over would be the amount you could offer as a full and final settlement.
The creditors do not have to agree to this. It would be entirely at their discretion.
However if you have been making a reduced payment for some time, they may be more likely to consider the offer.
You may also be able to look at a lump sum IVA.
I would recommend that if you do have a lump sum to offer you call us for an appointment to discuss these options in more detail.
It is possible that it may take some time before the property was sold, but you could continue making reduced payments to your creditors until you had a buyer.

Regards
Sue

CCCS_Sue

chinawhite wrote: »

Hi
I completed the debt remedy some months ago as per your website and with the recommendations on there and was advised that I was unsuitable for a DMP at the moment and to send token payments.

I have sent these but a few of my creditors seem to just be ignoring them. Egg have cashed the payments but just keep sending me letters from Capital Credit Agencies with no acknowledgement of my letter or payments. Halifax are also doing the same thing.

I have just had a letter from RBS refusing the arrangement although they have cashed all the token payments.
Im just not sure where to go next with either of these ?

Thanks for any help

Hi chinawhite and thank you for your message

Even though they are refusing your offer, you need to continue sending your token payments. You cannot give them money you do not have. Do not be pressured into paying more than you can afford.
If you have sent them a copy of your budget and a list showing any other creditors, then you have done everything you need to.
Token payments are not a long term solution to your debt situation and you need to look at ways to maximise your income or cut back on any non essentials in your budget, if you have not already done so.
If you can see no changes in your circumstances in the future, then you may need to look at other options.
I would recommend that you continue what you are doing at the moment, and if there are any changes to your circumstances, then contact us again so that we can review your options.

Regards
Sue

ANTHONY_HOLMES

Hello , i am on your debt repayment plan since I was made redundant , i am 63 and my wife - who is still working - is 53 . I was told yesterday that our payments would take 19 years to pay off the debts . I get £33 per week pension credit which of course all goes into debt repayment . I get my full old age pension in a couple of years , it is the basic i havnt any other pension as a lifetimes working at minimum wages hasnt left any spare for pension pot building . Likewise with my wife , she will get just the old age pension . So , would it be reasonable for two pensioners to fund the debt repayments we are paying now -£146 a month - from our basic pensions - as i am sure this would destitute us as there probably is no provision in the old age pension payments for spare money to continue paying our debts off with , we do not want to sell our home as private renting around here is so expensive that all our pensions would be taken for rent and the local council havnt built rentable houses for years - and I know practically for certain that our children - 20 -14 -11 have no intention of leaving home as they couldnt afford to rent . I know it is a future problem but we are very worried about it and really do not know what is likely to become of us . Hope you can help , Anthony and Elizabeth