Debt Management Plan

moshambo

Help....Information overload!!

My wife and I have hit the financial wall 'again' this month, but rather than search out a new lender we have decided to make the jump and get debt free....Well maybe its not a jump and more of a marathon. But i reckon we have the stamina for that rather than the stress of the post man and phone ringing.

Bascially between us we have debts around the 30k mark - the biggest part of which (20k) is a bank loan with bank of scotland that was originally for 5000 and was topped up again and again and again...

We were never flash, just very niave....No Stupid!!

Anyway i have just completed the CCCS debt remedy questionnaire, completed the budget and received my 'remedy'. Apparently i have £400 available.

They will be in touch in the next 2 hours with more information.

But i am not 100% sure how this works.
Do i pay one lump some - the total i am currently paying + the 400 to an independent and that is split between my creditors.

Is the split equal? As some debts could be cleared quicker than others...

Great site by the way....Will prove an excellent tool as we move forward.

Tixy

With a CCCS DMP you would pay the amount you have left after basic living costs (the £400 in your case) to CCCS who then distribute all of it between your creditors. They split the payment pro-rata based on the amount you owe to each person. So if you have £30k creditors and owe £20k to one bank they would get 2/3 of your £400. That should in theory mean all debt will be repaid at the same time.

CCCS will go through the way it works and the implications of a DMP with you in more detail, but well done for taking the first step and contacting them.