Consumer Credit Counselling Service

Oneday77

I went with the CCCS about this time last year and wish I had done it sooner. Telling the OH was the hardest part.
A year later I am now off the CCCS though. Not that they were no good but things changed for me, pay rise, pulling the belt in a little more, selling a few bits of 'Good Lifestyle' kit and gaining that extra breathing space. I did end up with one default which has ruined my Credt Rating but I don't want credit now.
I am still in debt but I can afford it and I can't increase it.
You say your in £20,000 of debt and with the CCCS you could be Debt free in 3 years. If you post an SOA and there maybe room for you to pay this off without the CCCS especially if you work hard, want to be debt free and change your habits.
A very loose calculation is if you can pay £650 a month to debts while they incur 20% APR you would be debt free in 43months. Your SOA will show what you need to pay and whether this is achievable.

smith10_2

thanks deep in debt - that is great, you have done so well. Even now since I have been posting I have thought if I could get a little payrise next year then it could be even quicker than 3 years, am feeling positive.

oneday 77 -I
am new to this site so perhaps not really understanding, do you feel there is a way this could be done better than cccs are suggesting? Also did you get the default while under the DMP - I didnt realise that could happen still? And how do you get off the DMP without completing your agreement?

Oneday77

smith10 wrote: »

thanks deep in debt - that is great, you have done so well. Even now since I have been posting I have thought if I could get a little payrise next year then it could be even quicker than 3 years, am feeling positive.

oneday 77 -I
am new to this site so perhaps not really understanding, do you feel there is a way this could be done better than cccs are suggesting? Also did you get the default while under the DMP - I didnt realise that could happen still? And how do you get off the DMP without completing your agreement?

SaltVinegar started a good thread tonight regarding the Myths of DMPs might be worth a read.
The CCCS said your credit rating would be poor for a few years, that is due to defaults when the Creditors issue them, which some will some won't.
It is possible to pay off your debts without a DMP but we need you to fill out an SOA to see if there is room for manoeuver. Once that is discovered you could then use the Snowball method to clear your debts down in teh most cost effective way.
The 2 major rules to this are no more debt and adjust to live within your means.
I would also consider speaking to your folks. With such a state for the economy and you feeling you would let them down by not keeping up with the jonses. They may understand and help you out a little.

smith10_2

thanks oneday77 - I know it may seem silly but I just can't speak to my parents about this, have only just decided that I will speak to one close friend about it so I suppose thats a start. I clearly need to spend more time on this site and understand how to put together a soa as no idea how to work out what i spend on birthday pressies etc - not something I can just stop giving to nieces and nephew when I dont want people to know about it. I have read a few of saltnvinegars posts and they have been really helpful - I still worry that could be taken to court now. i feel I am not a great communicator or very forceful and worry that I would not be able to deal with my creditors on my own that is why I am thinking if have cccs to refer them to it might be better - the thought of creditors calling me terrify me!! My debt is only (I don't use that term lightly) to 4 creditors - MBNA, Egg (both credit cards) and Santander which is overdraft and personal loan - I feel these companies could be big bullies to me, has anyone else dealt with them to try and reduce debt?