DMP Mutual Support Thread - Part 7

ianmak

mikon wrote: »

Ianmak

The outstanding balance is £795.03

The Monthly repayment is £8.00

Monthly interest in £6.03

What is the % being charged in interest I am told it has been reduced from %29.9 to 9% can anyone confirm this.

Thank you

In my sledgehammer calculations, I think they are.

1 year's interest is £72 (12x £6.03)
Divide £795 by 100 to give your 1% (£7.95). Times that by 9 to give you 9% (£71.55)

The two amounts (£72 & £71.55), so I'd say they are charging 9% interest.

Please correct me if I'm wrong people!

mikon

Hi Monica31

I am with CCCS however I do maintain communication in writing with my creditors and always respond to their request when they write never ignore them, I feel it is very important to maintain contact. I think things seem to run smoother if you keep in contact with the creditors. I am not always confident that CCCS respond to creditors request thoroughly enough and they never feedback what has happened. However I am grateful to CCCS for negotiating on my behalf. I know when I email CCCS they never get back to me which is annoying.

mikon

ianmak wrote: »

In my sledgehammer calculations, I think they are.

1 year's interest is £72 (12x £6.03)
Divide £795 by 100 to give your 1% (£7.95). Times that by 9 to give you 9% (£71.55)

The two amounts (£72 & £71.55), so I'd say they are charging 9% interest.

Please correct me if I'm wrong people!

Ianmak

Thank you for your mathematical genius.

Mikon

darwins_mum

Good morning all, another sleepless night churning debt figures around in my head.
To cut a long story short, I received a letter last week from Lloydstsb in house dca, advising of impending legal action. I rang CCCS who advised me not to contact them as this is the first stage of action and was nothing to worry about (fat chance).

What I want to know is, when the debt is sold, will interest automatically be stopped? How long will I have to pay the DCA before I can offer a F&F? What percentage can I realistically offer them? I was thinking somewhere in the region of 25%. My mum wants to take me on holiday at witsun, but I was going to ask her if I could use the money to clear my debts instead. It seems wrong to borrow money to pay debt, but I want to sell my house and downsize this year as I can't afford the upkeep on such a large draughty property.

I have struggled for months to find a lodger, but the house is looking a little tired and jaded, plus up until last week I had really noisy neighbours who were off putting to potential lodgers. I really should explore this option again (my youngest son was dead against the idea as he would have to move rooms). Seems like I cant please anyone and I am going round in circles.

Tired and worn out by debt, and can't see any solutions to any of the problems. sorry for ranting, feel a little low as I am sleep deprived.

Any help appreciated.

mrsiwannabefree

Hi
I entered my figures on the CCCS debt remedy last night and have been advised to go with either an IVA or DMP. I think as I've got a mortgage that I should go with the DMP but I'm not entirely sure....

An IVA is in place for 5 years and then the remaining debt is written off, the DMP tells me I'll be paying it for 17 years! Is this right??

What do people suggest I do I have £197 a month surplus that I can pay to my debts of around £30k

Thanks in advance for your help

tess8526

Hi Folks,
We are new here. My wife and i set up a DMP with CCCS just before Christmas, we are saddled with 42k of unsecured debt, we have two children one 8months old now and the other 5, concern over providing them with a secure future has actually made me take ownership of this problem. I have always been irresponsible with money, but of late it had been getting too much for me to cope with. We have setup our DMP but its been hard work and this morning i have had a Default notice come through from Egg, who recommended i speak to the CCCS a few months back!! Tesco have sent me another letter saying they have not heard from the CCCS even though we have been told they have sent them 3 copies of the letter and my budget etc.

Can anyone recommend what i should do next, i am panicing about next year. Our Mortgage comes to the end of its fixed interest only period, i can afford the payments and have never missed amortgage payment but with my credit profile the way it is i wont be able to get a new mortgage, does this mean the mortgage company will call the loan back? its scary times as i don't want to be homeless!

darwins_mum

tess8526 wrote: »

Hi Folks,
We are new here. My wife and i set up a DMP with CCCS just before Christmas, we are saddled with 42k of unsecured debt, we have two children one 8months old now and the other 5, concern over providing them with a secure future has actually made me take ownership of this problem. I have always been irresponsible with money, but of late it had been getting too much for me to cope with. We have setup our DMP but its been hard work and this morning i have had a Default notice come through from Egg, who recommended i speak to the CCCS a few months back!! Tesco have sent me another letter saying they have not heard from the CCCS even though we have been told they have sent them 3 copies of the letter and my budget etc.

Can anyone recommend what i should do next, i am panicing about next year. Our Mortgage comes to the end of its fixed interest only period, i can afford the payments and have never missed amortgage payment but with my credit profile the way it is i wont be able to get a new mortgage, does this mean the mortgage company will call the loan back? its scary times as i don't want to be homeless!

It's a real worry, but try not to panic. Your mortgage company won't foreclose. When my fixed rate ended, I was put onto SVR just as interest rates dropped. It actually worked out cheaper than what I was paying at the time. If you want to move lenders to get a better deal, then you may struggle with defaults on your credit file. That's not to say that you wont be able to get another mortgage, you just won't be offered an competitive rates. The only way that you will become homeless is if you stop paying your mortgage, and even then it is a long drawn out process. Take some deep breaths and try and enjoy the rest of your day.
DM

ianmak

darwins_mum wrote: »

Good morning all, another sleepless night churning debt figures around in my head.
To cut a long story short, I received a letter last week from Lloydstsb in house dca, advising of impending legal action. I rang CCCS who advised me not to contact them as this is the first stage of action and was nothing to worry about (fat chance).

What I want to know is, when the debt is sold, will interest automatically be stopped? How long will I have to pay the DCA before I can offer a F&F? What percentage can I realistically offer them? I was thinking somewhere in the region of 25%. My mum wants to take me on holiday at witsun, but I was going to ask her if I could use the money to clear my debts instead. It seems wrong to borrow money to pay debt, but I want to sell my house and downsize this year as I can't afford the upkeep on such a large draughty property.

I have struggled for months to find a lodger, but the house is looking a little tired and jaded, plus up until last week I had really noisy neighbours who were off putting to potential lodgers. I really should explore this option again (my youngest son was dead against the idea as he would have to move rooms). Seems like I cant please anyone and I am going round in circles.

Tired and worn out by debt, and can't see any solutions to any of the problems. sorry for ranting, feel a little low as I am sleep deprived.

Any help appreciated.

If the debt is sold, then interest should be stopped, as the DCA shouldn't be able to charge interest. They make their money on the fact that they've bought the debt cheaply (As usual, don't quote me on them not charging interest!).

With that in mind, the DCA would be delighted to, and in fact will offer you an F&F at the beginning. However, what they offer you will likely be no less than 50% of the debt owed.

tess8526

Thanks you, does that mean we will just have our fixed rate interest only mortgage ported onto a variable rate repayment? If thats the case then that makes things a little easier to swallow.
I just don't understand why companies like Egg and Tesco seem to deny all knowledge of letters from CCCS, they have acknowledged that i have told them but say CCCS have sent them nothing, when we ask CCCS say we will send it again, i am a bit of a control freak (apart from when it concerned my finances) but now i have money on my radar i hate passing this onto a third party, i would prefer to send the letters etc. myself.

I will never borrow money again.

darwins_mum

tess8526 wrote: »

Thanks you, does that mean we will just have our fixed rate interest only mortgage ported onto a variable rate repayment? If thats the case then that makes things a little easier to swallow.
I just don't understand why companies like Egg and Tesco seem to deny all knowledge of letters from CCCS, they have acknowledged that i have told them but say CCCS have sent them nothing, when we ask CCCS say we will send it again, i am a bit of a control freak (apart from when it concerned my finances) but now i have money on my radar i hate passing this onto a third party, i would prefer to send the letters etc. myself.

I will never borrow money again.

Why not ring your lender and sound out your options? You maybe able to remain on interest only for a period of time until things settle down. Obviously this is not a brilliant long term plan unless you have an endowment or some other means of paying your mortgage at the end of its term.

Regarding CCCS, although it has been a blessing for them to take the strain of dealing with creditors, they are not always the best at communicating. An email to chivvy them along often helps if you can't face speaking to them or creditors.
HTH