Struggling with debt? Ask a debt advisor a question

daina

Hi,

I'm looking for some help. I have a lot of debt - 4 credit cards and 2 loans. I wanted to apply for a consolidation loan which I did but they turned me down (2 companies - one I already have a loan with.) I have excellent credit rating as that's the first thing I checked - 477 with Equifax and 998 with Experian. The only thing that is letting me down is that they say I already have a lot of credit. If it's a consolidation loan though, I wanted to put it all into one loan if I could as the payments would be far easier to handle, and then cut up my credit cards! I do have a Barclaycard that has £8700 limit with nothing outstanding on it. If I cancelled that card, would that free up credit? I am not quite sure how it works... the last resort would be a secured loan but I don't really want to do that as plan to sell the house in the next 18 months and I don't have a lot of equity in it anyway.. i basically just want to lower my outgoing payments and not pay so much interest. Look forward to hearing from you!

StepChange_James

daina wrote: »

Hi,

I'm looking for some help. I have a lot of debt - 4 credit cards and 2 loans. I wanted to apply for a consolidation loan which I did but they turned me down (2 companies - one I already have a loan with.) I have excellent credit rating as that's the first thing I checked - 477 with Equifax and 998 with Experian. The only thing that is letting me down is that they say I already have a lot of credit. If it's a consolidation loan though, I wanted to put it all into one loan if I could as the payments would be far easier to handle, and then cut up my credit cards! I do have a Barclaycard that has £8700 limit with nothing outstanding on it. If I cancelled that card, would that free up credit? I am not quite sure how it works... the last resort would be a secured loan but I don't really want to do that as plan to sell the house in the next 18 months and I don't have a lot of equity in it anyway.. i basically just want to lower my outgoing payments and not pay so much interest. Look forward to hearing from you!

Hi Daina,

Every lender interprets your credit history differently, so unfortunately there are no easy answers when it comes to credit scoring. Many lenders will take into account unused but available credit on credit cards when making a decision but it is impossible to say if that was a deciding factor in your case.

It sounds like you're managing your payments at the moment but I would suggest getting some debt advice to see how your finances are looking. We can help with this, the first thing to do is 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.

Debt Remedy will assist you in completing a financial statement with information on your household, employment, income, expenditure and debts. From this the service will automatically determine your options.

To help you fill in the form, it’s best to gather together information about:
• Your income
• Your expenditure
• The creditors you owe money to

You’ll receive a downloadable advice booklet providing a tailored solution for you based on your current circumstances and advice on ways you may be able to improve your situation.

If you’re not confident with computers or would like to speak to an advisor then you’re welcome to ring our Helpline on 0800 138 1111 (free including from mobiles). We’re open Monday to Friday 8am - 8pm and Saturdays 9am – 3pm.

If you phone us it may be possible to refer you directly to a counsellor for immediate advice. Alternatively, we will arrange for an appointment to be booked at a time convenient for you.

Hope this helps.

James

Magi74

CCCS_James wrote: »

Hi Magi,

Great news that your DMP is going well!

The payments on our DMPs are distributed proportionately between your debts based on what we would expect the monthly payment to be. If you have a look at your list of creditors in your paperwork from us the full monthly payment will be listed under “contractual payments”.

This will mean, like you say, that some of your debts will be repaid before others. When a debt is repaid we recalculate everything and the other debts all get a little bit extra every month.

That's interesting - I had it in my head that it was a literal ratio between "amount owing" and "amount available to pay the debt". Thanks!

CCCS_James wrote: »

If you might be able to pay a lump sum towards your debts then I would suggest giving us a call as we can talk you through how best to use it.

Is this a 2-way discussion? I've got a few different ideas on the best way to use this cash (obviously the devil is in the detail so I know you can't comment in too much depth). What I think I'm keen to avoid currently is just sharing it out equally - if the lump sum is 5 times the normal amount I pay then everyone getting 5x their usual payment makes much less of a physiological dent to the overall thing.

Basically I want to have the maximum effect; with the sum available to me I could start with the smallest debt and clear half of the entries on my DMP in a single stroke.

Thoughts (and debate!) welcomed

StepChange_James

Magi74 wrote: »

That's interesting - I had it in my head that it was a literal ratio between "amount owing" and "amount available to pay the debt". Thanks!



Is this a 2-way discussion? I've got a few different ideas on the best way to use this cash (obviously the devil is in the detail so I know you can't comment in too much depth). What I think I'm keen to avoid currently is just sharing it out equally - if the lump sum is 5 times the normal amount I pay then everyone getting 5x their usual payment makes much less of a physiological dent to the overall thing.

Basically I want to have the maximum effect; with the sum available to me I could start with the smallest debt and clear half of the entries on my DMP in a single stroke.

Thoughts (and debate!) welcomed

Hi Magi,

If you give our Client Support team a call they will talk to you about how best to use any money you have. It is a two-way process and the advice we give depends on your circumstances, so we’d listen to your thoughts and make suggestions.

I always enjoy a debate but I think we see things the same as you on this one, we’d want your money to be used in the most beneficial way.

All the best.

James

marzom

Hi,

I am looking for some advice. I am at my wits end with Natwest.

I have been on a DMP with CCCS since June 2012. And every other creditor has been fine.

The NatWest have chosen to ignore everything that I have sent them.

They first sent me letters telling me I had gone over my overdraft limits and would occur daily charges, then they sent me a letter asking for a suitable payment plan and now finally today they have sent me a letter saying they have passed the debt to Allied International Credit as I could provide no details of a suitable payment plan. Each time up to todays letter I have replied back stating my situation and telling them to contact CCCS. No acknowledgement whatsoever, even when I asked what their complaint policy was!

Now I am really scared. I have heard horror stories about Allied- they turn up at you door, they post through yellow cards with your debt on them. I do not want anyone in my household to know that I am on this plan.

What can I do? Any advice?

Thanks

mum2one

marzom wrote: »

Hi,

I am looking for some advice. I am at my wits end with Natwest.

I have been on a DMP with CCCS since June 2012. And every other creditor has been fine.

The NatWest have chosen to ignore everything that I have sent them.

They first sent me letters telling me I had gone over my overdraft limits and would occur daily charges, then they sent me a letter asking for a suitable payment plan and now finally today they have sent me a letter saying they have passed the debt to Allied International Credit as I could provide no details of a suitable payment plan. Each time up to todays letter I have replied back stating my situation and telling them to contact CCCS. No acknowledgement whatsoever, even when I asked what their complaint policy was!

Now I am really scared. I have heard horror stories about Allied- they turn up at you door, they post through yellow cards with your debt on them. I do not want anyone in my household to know that I am on this plan.

What can I do? Any advice?

Thanks

Your in a position I was earlier in the week, - letter from a debt collection agency, - I recieved brillaint advice from CCCS.
When you get a letter from the debt collection agency ring them explain your with CCCS and give them your client reference number,

Then contact CCCS - give them the details of the company and any new reference number you have then CCCS can deal with the firm on your behalf.

Basically the debt collectors, are going to try to get as much money as possible, - it won't surprise me in their the inhouse collectors for natwest.

I know saying don't worry, is easier said than done, no-one in my household knows I have debts, never mind a DMP and how many times hit rock bottom, but your get briliant support from CCCS.

xx

becciboop

Hi all
I am not sure I am in the right place to post this, but I'm starting to stress out. I received a verification letter from Buchanan Clark & Wells which stated how much the 'debt' is I have with British Gas. I have lived at my current address for just over 6 years.
I sent a letter back to them which was a template letter, basically saying prove its my debt. I now have received a reply today saying they have proof and they have attached a copy of the bill from British Gas. The bill states my name with the wrong flat number on it. It also states a 'final meter reading date' with a date well after we moved out of there (24/06/2007), we moved into our current address on 29/09/2006. Does anyone have any template letters they can send/show me to deal with this?

stickman

Hi
On DMP with CCCS who are brilliant by the way.
However creditors willing for full and final which sounds great.
Problem is I can't get loan to cover it.
Currently paying 500 plus on DMP with end date of approx 6yrs time. 12k loan =350/380 over 3yrs.
So saving 200 per month and debt free in half the time.
Help and advice please.
Thanks

win123

Dear CCCS

Can I please ask advice - I am on a DMP with yourselves and my original payments were £92 per month and were dropped down to £60 at my review as my mortgage payments had gone up - which was great for me as I was worried re my mortgage - My mum has recently rung Payplan re a DMP as she thought I was with them she has approximatey 7k worth of debt and when I wrote her expenses down on paper following an expenditure sheet she has around £50 spare a month after bills etc have gone out - But Payplan took her details and say that the minimum you can pay into a DMP is £100 over 5yrs is this correct? She has agreed to this payment as she is panic stricken as she cant afford the credit card bill of £200 per month - SHe is 66 years of age and is all for paying her debt as she spent on the cards but she asked payplan if they could offer her a lower payment a month over a longer period and they said No because the minimum payment for a DMP a month is £100 - Is the CCCS different to Payplan as I know several people who are on a DMP who pay less than this a month and they are older than my mum and owe more - This is worrying her very much and she is scared as she is worried that we are going to loose our home (mortgage we are paying) and she is disabled - Any advice would be great thanks CCCS you have been great with me and I have had my plan with you for nearly 2yrs now and I have never looked back -

mum2one

stickman wrote: »

Hi
On DMP with CCCS who are brilliant by the way.
However creditors willing for full and final which sounds great.
Problem is I can't get loan to cover it.
Currently paying 500 plus on DMP with end date of approx 6yrs time. 12k loan =350/380 over 3yrs.
So saving 200 per month and debt free in half the time.
Help and advice please.
Thanks

I can see where your coming from, but I would guess due to the DMP plan, has knocked your credit rating quite a lot, and if you get a loan it qould be 50%+ apr, - I think it will be a case of plodding along.x