Struggling with debt? Ask a debt advisor a question

CCCS_Sue

girlscout666 wrote: »

Hi CCCS,

I recently entered into a DMP with Gregory Pennington, out of pure desperation! I didn't really do my research and have now reaslied how much more you guys can help (without charging fees!). I haven't started paying them anything yet, my first payment of £110 is due to go out to them on 16th or 17th of August, so fairly soon...

I would like to switch to you guys and not pay 15% fees each month as I dont trust that my creditors are going to get the money etc. Is this possible to do, and how simple would it be to switch everything over to you guys??

Also, do you offer a payment protection thing, incase I loose my job or something?

Kind regards,
Jess

Hi Jess

If you are paying fees to your DMP company to administer your plan, then it may be better to change to a non fee charger, as the money you would save can be used to pay more to your creditors to clear your debt faster!
We don’t have the facility to be able to simply transfer your Debt Management Plan from your existing provider as you would need to have an appointment with one of our debt counsellors first. If the counsellor is happy to offer a DMP as a result of your appointment, we would then discuss with you how to end the current arrangement you have and setting it up with ourselves. CCCS does not charge for setting up or administering a Debt Management Plan.
We do not offer a payment protection. If you were to lose your job, we would just do a review of your budget, offer your creditors what was affordable after paying your main priorities, and look to see if there were better options for you.

If you would like us to take a look at your situation to see what options you have, you would need to book a telephone based appointment with one of our trained debt counsellors by calling our helpline on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. It would be helpful that when you call you have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have this information ready it may be possible to refer you directly to a counsellor if one is available, otherwise we will arrange a time that is convenient for you to be called back for an appointment.


Alternatively, you can use our online electronic facility called Debt Remedy. Debt Remedy will assist you in completing a financial statement which includes information on your household, employment, income, expenditure and debts. All this information is used as a basis to determine the options available to you to deal with your situation.

Once you’ve followed the process through and completed all the required information you will immediately be presented with an advice booklet, which will provide tailored advice for you based on your current circumstances. It will also provide advice on ways you may be able to improve your situation. If you would like to get immediate advice on your situation this link will take you directly to Debt Remedy http://www.cccs.co.uk/ref/drcu

Hope this helps,

Sue

CCCS_Sue

makemedebtfreeplease wrote: »

Hello,

Me and hubbie just setting up a dmp with cccs at moment, just got forms in post to send back with the proof of income etc..., has made me think though as sometimes we both get overtime/commission should we include this in our monthly budget, it isnt guaranteed but we usually get something extra? just want to make sure we are doing everything correctly, thanks

Hi makemedebtfreeplease

We would only use guaranteed income.
If you get regular overtime and commission, you could work out an average over the year and use this.
Otherwise, you could look at setting any commission that is not guaranteed to one side and making occasional lump sum payments to clear your debt quicker.

Regards
Sue

CCCS_Sue

mintys1 wrote: »

Hi, I completed Debt Remedy about 10 days ago and was advised to go on a DMP and completed the application process online.
I still have not heard from the CCCS and in the meantime have had a letter from Retail Bank Collections representaing AA Finance stating that "Our representative will be calling to your home on the 11th August 2010" , Any advice on how I should deal with this please,
Thank You

Hi mintys1and thank you for your message

I would recommend you call our Debt Remedy team to see how your application is progressing. The free helpline number should be in your Debt Remedy Booklet, but if you have any problems, send me a message via [EMAIL="contactus@cccs.co.uk"]contactus@cccs.co.uk[/EMAIL]
I can forward the number to you.
Sometimes the creditors use the threat of sending a collector to your property, but do not follow it through, as this method is more costly than phoning or sending letters.
A collector is not a bailiff, and they do not have any special powers.
I have attached a link to our website which gives further information on collectors and how to deal with them.
http://www.cccs.co.uk/InfoCentre/EnglandandWales/Creditoraction/Debtcollectionagencies/Homevisits.aspx

If they do call, and you have not paid anything for this month, offer something you can realistically afford, even if it is only a token payment, and explain you are waiting for your DMP to be set up

Hope this helps

Regards
Sue

CCCS_Sue

helen83 wrote: »

Hi, I have accumlated quite alot of debt on my credit card since buying my first home last year and i also owe a member of my family a substantial amount of money. I am at the end of my maternity leave and only being paid smp, i have rang the credit card company to see if i can make reduced payments for 2 mths as i am going back to work in sept and can resume normal payment then. they said no as its against my credit agreement. I'm not sure what to do now, should i just miss the payment and risk it, or is there another way the only option they offered me was to take a bank loan from them on a buy now pay later scheme at a rate of 26% theis meant i was paying double and more back than the credit card debt. any advice would be appreciated!

Hi Helen83 and thank you for your message

You cannot pay your creditors money you do not have!

Taking out further credit to clear existing debt at a very high interest rate could put you in a worse situation.

You need to put together a budget showing your income and expenditure. This will show how much you have left over after paying all your priority bills such as rent/mortgage/council tax/utility bills, food, etc.
If you have nothing left, then you could offer a token payment until your circumstances improve, as a gesture of goodwill.
Do not be pressured into paying more than you can afford. Especially when you have a new baby to look after!
If you would like to speak to a counsellor about your situation, you can call for an appointment on 0800 138 1111. Lines are open from 08.00 until 20.00.

Alternatively you can visit our online debt advice facility called Debt Remedy. Debt Remedy would assist you in completing a financial statement and you would be provided with tailored advice on the best way to deal with your situation. This link will take you directly to Debt Remedy www.cccs.co.uk/ref/drcu

Regards,
Sue

CCCS_Sue

Wanttobedebtfreeoneday wrote: »

hi,
currently 4 years into what I think is a Debt Management Plan with Spectrum. They originally told me I needed to have 5K to pay off my creditors at the end of the 5 years, I rang them today as looking at my paperwork debt doesn't appear to be decreasing and I was hoping to offer my creditors a lower amount and settle early next year. Spectrum won't tell me how much I currently owe and now im worried.

Original debt was £9,307.28
split between
barclays - £2200
barclaycard - £3109.28
Yorkshire bank cc - £3998.00

Paid them the following from Dec 06 to June last year (09)
Barclays - £5.88
Barclaycard - £8.31
YorkshireBank (Brunswick) -£10.68

and since then been paying

Barclays - £8.13
Barclaycard - £11.48
YorkshireBank (Brunswick) -£14.76

also paid Spectrum £17.63 every month as amonthly disbursement fee.

I got a Barclaycard statement this month and my balance is showing as £2873.91. I have worked out that I should have paid them £398.54 which by my reckoning should leave £2710.74 balance.

I have no assets e,g house, car and worried that the other 2 debts that I don't have visability of are the same if not worse.

What do you advise I do.Neil

Thanks

Hi Neil and thank you for your message.

If you are in DMP where you pay a fee, it may be worth considering changing to a non fee charging charity, where all the help and advice is completely free.
This way, all the money you do have available after paying your priorities is going towards clearing your debts quicker.

We don’t have the facility to be able to simply transfer your Debt Management Plan from your existing provider as you would need to have an appointment with one of our debt counsellors first. If the counsellor is happy to offer a DMP as a result of your appointment, we would then discuss with you how to end the current arrangement you have and setting it up with ourselves. CCCS does not charge for setting up or administering a Debt Management Plan.

If you would like us to take a look at your situation to see what options you have, you would need to book a telephone based appointment with one of our trained debt counsellors by calling our helpline on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00. It would be helpful that when you call you have details ready regarding your income, expenditure and creditors, as this can help speed up the referral process. If you have this information ready it may be possible to refer you directly to a counsellor if one is available, otherwise we will arrange a time that is convenient for you to be called back for an appointment.


Alternatively, you can use our online electronic facility called Debt Remedy. Debt Remedy will assist you in completing a financial statement which includes information on your household, employment, income, expenditure and debts. All this information is used as a basis to determine the options available to you to deal with your situation.

Once you’ve followed the process through and completed all the required information you will immediately be presented with an advice booklet, which will provide tailored advice for you based on your current circumstances. It will also provide advice on ways you may be able to improve your situation. If you would like to get immediate advice on your situation this link will take you directly to Debt Remedy http://www.cccs.co.uk/ref/drcu

Regards
Sue

depressedwithdebt

Hi there
I am after a bit of advice, having gotten myself into a mess with debt. This is the first time I have been able to pluck up the courage to deal with my debt problem, and am largely doing so as it is really starting to be the only thing I think about.
I have over £40k of debt, made up of the following:
Barclaycard - £6k (limit of £8k), fixed interest at 5.9%;
Natwest Visa - £3,500 (limit of £4,500), rate of 17.9%;
Egg credit card - £3,400 (limit of £5k), rate of 22.9%;
Virgin Credit Card - £8,200 (limit of £8,500), just ending the 0% rate, soon to be a massive 29%;
Santander 'loan' - £7,600 (this used to be a Cahoot flexi loan but is now a fixed loan with a high interest rate of 17.9%;
Citi Credit Card - £2,400 (limit of £3,500), fixed rate of 5.9%;
Natwest Charge Card - £2,000;
Natwest overdraft of £5,000;
Barclaycard overdraft of £2,300;
Northern Rock loan of approx £7,000 (nearly 4 years in of a 10 year loan);
AA loan of £3,500ish (few years into a 7 year loan).

So there it is. So much debt that I don't feel I can cope with any longer.

I am married with a 5 year old child. My wofe works part time around my childs schooling, and whilst she knows we have some debt, she does not know the extent of it, and would be beside herself with worry if she did. I feel like a proper failure for landing us in this situation, but am determined to get out of it, even if it does take some time.

I have a good job earning £39k per annum, take home of £2,400 per month.

I have a house which only has about £15k of equity in it, and am on a tracker mortgage so pay very little interest, but am paying on a repayment basis at £615 per month. The lender is C&G and won't agree to interest only as we don't have 25% equity in the property.

I know about DMP's, but am worried of the impact this could have on my credit status (which admittedly is not good given the level of debt I have), and whether this would see every last penny tied up for a number of years, as I do want to think about the future, setting up a pension (I am only 31), maybe have another child if possible, whcih I may not be able to do if I have no spare money at all. I was thinking of leaving my two loans ticking over, and getting a 10 year (or maybe a little longer one) to clear the Virgin Card, Santander loan, Egg card and Natwest Visa, as I may be able to afford those payments. But then I am worried that I may not be eligible for such a loan.

I am not behind on any payments, and haven't missed any payments yet, but I am worried about keeping my head above water when the Virgin payments go up from the initial low £25 per month payments.

Any help at all would be so very much appreciated.

Thanks.

as220375

Just a quick question - I am considering signing up on a DMP with CCCS but am worried that whilst the letters are being sent to my creditors and reduced payments are (hopefully) being agreed, if I start paying reduced payments that I can afford, will the creditors then send a letter saying that I have unpaid the minimum payment on my credit cards and I am then going to get charged a fee on top of what I pay every month?

FOURCANDLES_2

Quick question for friend, he has offered token payments all have said NO but he has sent them a payment for last month, how does he pay them ie no giro slip etc when statements stop? also his one is a loan and used to be paid via dd from the same a bank account how does he do it ie pay it ? just write a letter enclose postal order and account number ? how does he do it?

CCCS_Sue

depressedwithdebt wrote: »

Hi there
I am after a bit of advice, having gotten myself into a mess with debt. This is the first time I have been able to pluck up the courage to deal with my debt problem, and am largely doing so as it is really starting to be the only thing I think about.
I have over £40k of debt, made up of the following:
Barclaycard - £6k (limit of £8k), fixed interest at 5.9%;
Natwest Visa - £3,500 (limit of £4,500), rate of 17.9%;
Egg credit card - £3,400 (limit of £5k), rate of 22.9%;
Virgin Credit Card - £8,200 (limit of £8,500), just ending the 0% rate, soon to be a massive 29%;
Santander 'loan' - £7,600 (this used to be a Cahoot flexi loan but is now a fixed loan with a high interest rate of 17.9%;
Citi Credit Card - £2,400 (limit of £3,500), fixed rate of 5.9%;
Natwest Charge Card - £2,000;
Natwest overdraft of £5,000;
Barclaycard overdraft of £2,300;
Northern Rock loan of approx £7,000 (nearly 4 years in of a 10 year loan);
AA loan of £3,500ish (few years into a 7 year loan).

So there it is. So much debt that I don't feel I can cope with any longer.

I am married with a 5 year old child. My wofe works part time around my childs schooling, and whilst she knows we have some debt, she does not know the extent of it, and would be beside herself with worry if she did. I feel like a proper failure for landing us in this situation, but am determined to get out of it, even if it does take some time.

I have a good job earning £39k per annum, take home of £2,400 per month.

I have a house which only has about £15k of equity in it, and am on a tracker mortgage so pay very little interest, but am paying on a repayment basis at £615 per month. The lender is C&G and won't agree to interest only as we don't have 25% equity in the property.

I know about DMP's, but am worried of the impact this could have on my credit status (which admittedly is not good given the level of debt I have), and whether this would see every last penny tied up for a number of years, as I do want to think about the future, setting up a pension (I am only 31), maybe have another child if possible, whcih I may not be able to do if I have no spare money at all. I was thinking of leaving my two loans ticking over, and getting a 10 year (or maybe a little longer one) to clear the Virgin Card, Santander loan, Egg card and Natwest Visa, as I may be able to afford those payments. But then I am worried that I may not be eligible for such a loan.

I am not behind on any payments, and haven't missed any payments yet, but I am worried about keeping my head above water when the Virgin payments go up from the initial low £25 per month payments.

Any help at all would be so very much appreciated.

Thanks.

Hi depressedwithdebt

Thank you for your message
It’s good that you are looking at taking control before you start to really struggle,
though it is not always a good idea to take out further credit to pay off existing debt as you could end up in a worse position.
If you are only making minimum payments at the moment, then the debt will take a very long time to clear.
You could look at 0% balance credit card transfers to clear any high interest debts first, but remember most charge a fee for the balance transfer.


If you were only able to make reduced payments to your creditors when your Virgin payments increased, then your credit file would be affected whether you were on a DMP or not.
A DMP is not always the best option for everyone and there may be other solutions you could consider.
In order to give you advice on your options, I would recommend that you call us for an appointment to speak to one of our debt counsellors about your situation.
The free helpline number is 0800 138 1111.
Or you could use our online facility, Debt Remedy. www.cccs.co.uk/ref/drcu


Regards
Sue

CCCS_Sue

as220375 wrote: »

Just a quick question - I am considering signing up on a DMP with CCCS but am worried that whilst the letters are being sent to my creditors and reduced payments are (hopefully) being agreed, if I start paying reduced payments that I can afford, will the creditors then send a letter saying that I have unpaid the minimum payment on my credit cards and I am then going to get charged a fee on top of what I pay every month?

Hi as220375

If a DMP has been recommended, then we give you a letter to send to your creditors explaining that you are going on a DMP with CCCS.
We recommend that you give them a realistic payment of what you can afford until your plan is set up. This is usually just the one payment for the month preceding the start date of your DMP.
Once your DMP starts, then you will be paying them all a pro rata reduced amount anyway.
We do ask the creditors to consider stopping the interest and charges whilst you are on the DMP, but this is entirely at their discretion.
The main thing is that you are paying the debt off at an affordable amount regularly each month, and keeping on top of your main priorities.
If you have any further concerns, then you can call our client support team who are there to give you help and support whilst you are on your DMP.
Hope all goes well!

Regards
Sue