first appointment with CCCS - a DMP is is really that simple

lowlowlola

hello all

firstly thanks so much to all of you who took the time to read and reply to my first post- those of you who are currently lurking please please please bite the bullet, tot it all up, wirte a post on here and give CCCS a call, the longest journey starts with one small step and believe me you will feel better !!

any way had my first call with CCCS who were really helpful ---at the end of the day i have £1178 pcm to throw at my £55k :eek: :eek: debt.which means my DFD should be around oct 2010 ( if not before) my questions are as follows:

is it really that easy, i know my creditors may hassle me but in the end will it really go away - am worried that it all seems a bit too simple, there must be pitfalls??

what happens when a creditor reviews - do they make you pay interest

how can I stop my creditors contacting me at work, i have a high level position in my company and god forbid any of my staff get wind of what is happening.

CCCS said that it may be possible to get a mortgage eventually - is that true?

what happens if i can't meet the monthly payment - ie part of my income is dependent on rent from my lodger, if they move out i will be stuck for a month or so or what happens if there is an emergency that i have to pay for, conversly can i offer to pay more if my salary goes up?

thanks as ever for your help

flower_chops

First of all, well done for taking the right step. You'll start to feel much more in control of everything and take on the world!

Yes, your creditors will probably hassle you. However, just do everything correctly (getting the letters adviding them of CCCS correctly etc) and when they call speak calmly and politely advising them that you're going through a DMP with CCCS and advise them of the current situation. Most of my creditors responded not too badly once they realised I was doing everything I could. There are pitfalls...it will most likely effect your credit rating, but: you have to ask yourself the question, if you;re that much in debt and willing to go through a DMP are you actually going to want credit? You certainly aren't encouraged ANY new debt with CCCS anyway.

Each individual creditor will decide what they'll do with your interest. HSBC are carrying on with mine so I'm letting my account default and default until my debt gets passed to debt collection agency who are more likely to freeze interest. However, MBNA have frozen my interest for 12mths. Really depends.

You'll probably need to call your creditors to ask your work phone number be removed from your records and give an alternative number. Ask them to please leave messages on a mobile if you don't answer it. However, PUT THIS IN WRITING that you don't want them contacting you at work.

CCCS said to me that within around 6 years after my DMP my credit ratingwould improve. However, with regard to mortgages people seem to have mixed responses, some people have got thwm quickly, others haven't. Another thing to consider though is whether it's really worth getting a mortgage or would you be better off renting?

If you can't meet a monthly payment for an emergency reason you need to tell CCCS straight away. You can indeed make higher payments although they often like to know where they come from and may wish to do a budget review with you. Also, your creditors will assume you have that amount of money each month and may kick off if you do lots of higher paid payments then a smaller one. You need to ensure that your budget is correct and that CCCS are aware of the lodger thing. If your salary goes up you need to notify them as you'll be able to pay off more debt that way. Emergencies are dealt with in your budget.

Hope this helps. don't forget to check out all the amazing tips on this forum - it's really helped me tons xxx

lowlowlola

thanks for your reply, its really useful although i am concerned about HSBC and how they will deal with my proposal - mind you i shall look forward to getting my new bank account and being free of them once and for all!!

keith_lard

You have taken steps to pay back what you owe!

CCCS will take care of 'the creditors'

dont worry!

k.

flower_chops

I've found HSBC to be rather tricky. I have my loan and my old current account with them. They've refused to accept my CCCS DMP so am just letting my account default and default...if this happens your debt will eventually get passed to Metropolitan debt collection agency who according to CCCS 9/10 freeze interest and accept a payment plan. I'm fed up with waiting now and am going to HSBC when my first new job pay is paid in and cancelling my loan cover and claiming back bank charges. I'm sick of them not helping me when I'm making a fairly good offer to them (£207/month). Just keep coming on here for support and of course call CCCS when you need to discuss anything. They are not the be all and all...creditors do NOT have to accept your proposals sadly. I should hopefully be earning more money soon so can pay off more again each month. Will be rather nice.

james32_uk

Your DMP sounds like its got a lot to offer (c.£1k per month is high) so it'll have a better chance of being accepted by your creditors. Your debt free date can only be a guess as it will depend on how many creditors stop charging you interest and when they do so. It's important to chase this as just one b @ stard creditor that continues to add charges and interest can add years to it.

lowlowlola

Thanks For Your Help, Hope The New Job Works Out Well And That Your Back On Track Soon!!