Cccs dmp

helena83

I think I have exhausted all of my other options and so ended up on the phone to CCCS yesterday who have recommended a DMP. They are sending all the paperwork out to me but I just wanted a bit of reassurance that its the right thing to do, my fiance thinks its a bit drastic and we shouldn't go down that road.

Basically, due to having to move house for work, not being able to sell the old house (have now got tenants as of last week), OH being out of work and then having to take lower wages etc we have maxed out all of the credit cards and overdrafts to the point where I spend more and more time juggling money around the accounts to try to pay the bills. We spend more time over the limits than we do within them (fortunately I don't get charges for being overlimit!)

I think I've done everything I can, cut down as much as poss. Looked at a consolidation loan but couldn't get approved and approached the bank to put mortgage onto interest only but they won't. I'm due to go on maternity leave shortly and will go onto SMP as of march (£125 per week).

Sorry for waffling but I've never missed a payment on anything before and it sound like the DMP will kill my clean credit file. Also, all the debt is in my name and OH seems more worried about the effect it will have on his credit too (to be honest IMO is joint debt really!).

Thanks

helena83

Just thought I'd post a SOA in case that will help!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1392
Partners monthly income after tax....... 1560
Benefits................................ 0
Other income............................ 355.5 (rental income)
Total monthly income.................... 3307.5
Monthly Expense Details
Mortgage................................ 455 (capital repayment no option to go on interest only)
Secured/HP loan repayments.............. 136.70000000000004
Rent.................................... 700 (still in contract so can't move to cheaper house)
Management charge (leasehold property).. 0
Council tax............................. 153 (uptodate, it really is this expensive!)
Electricity............................. 24
Gas..................................... 8.1
Oil..................................... 0
Water rates............................. 35 (on water meter, estimated by water company)
Telephone (land line)................... 15
Mobile phone............................ 115 (2x orange contracts, tried to reduce but they won't budge)
TV Licence.............................. 12.37
Satellite/Cable TV...................... 32 (in contract, have reduced as much as they'll let me)
Internet Services....................... 15.99
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 300
Road tax................................ 22.25
Car Insurance........................... 100.03 (2xinsurance and AA cover, shopped around for cheapest deals)
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 36.3 (travel card)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 11.33 (landlords insurance)
Contents insurance...................... 17.81
Life assurance ......................... 11.95
Other insurance......................... 20 (british gas homecare)
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Child Maintenance....................... 433
Lovefilm subscription................... 3.99
Total monthly expenses.................. 2978.82

Assets
Cash.................................... 0
House value (Gross)..................... 95000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 2500
Total Assets............................ 102500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 72000....(455)......4.5
Hire Purchase (HP) debt ...... 3577.42..(136.7)....19.9
Total secured & HP debts...... 75577.42..-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Virgin.........................8276.75...181.2.....29.9
Barclaycard....................1308.09...29.43.....19.9
HSBC...........................2073.55...49.21.....11.9
HSBC Overdrafts................1210......0.........0
A&L overdraft..................789.......0.........£5 per month
Council tax arrears............360.......130.......0 (just found out about this from previous property)
Owed to previous job...........1500......50........0
Creation (DFS).................588.32....27.62.....0
Next...........................256.29....24.86.....not sure of rate
Littlewoods....................853.44....38.44.....0
Total unsecured debts..........17215.44..530.76....-

Monthly Budget Summary
Total monthly income.................... 3,307.5
Expenses (including HP & secured debts). 2,978.82
Available for debt repayments........... 328.68
Monthly UNsecured debt repayments....... 530.76
Amount short for making debt repayments. -202.08
Personal Balance Sheet Summary
Total assets (things you own)........... 102,500
Total HP & Secured debt................. -75,577.42
Total Unsecured debt.................... -17,215.44
Net Assets.............................. 9,707.14
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using IE browser.

sofababe

helena83 wrote: »

Just thought I'd post a SOA in case that will help!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1392
Partners monthly income after tax....... 1560
Benefits................................ 0
Other income............................ 355.5 (rental income)this is low compared to your mortgage
Total monthly income.................... 3307.5
Monthly Expense Details
Mortgage................................ 455 (capital repayment no option to go on interest only)
Secured/HP loan repayments.............. 136.70000000000004
Rent.................................... 700 (still in contract so can't move to cheaper house)
Management charge (leasehold property).. 0
Council tax............................. 153 (uptodate, it really is this expensive!)
Electricity............................. 24
Gas..................................... 8.1is this correct? take payments over the year and divide by 12
Oil..................................... 0
Water rates............................. 35 (on water meter, estimated by water company)
Telephone (land line)................... 15
Mobile phone............................ 115 (2x orange contracts, tried to reduce but they won't budge)you need to drop this asap
TV Licence.............................. 12.37
Satellite/Cable TV...................... 32 (in contract, have reduced as much as they'll let me)
Internet Services....................... 15.99
Groceries etc. ......................... 300this is VERY high for 2 people
Clothing................................ 0
Petrol/diesel........................... 300can this be cut? seems an awful lot
Road tax................................ 22.25
Car Insurance........................... 100.03 (2xinsurance and AA cover, shopped around for cheapest deals)
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 36.3 (travel card)
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 11.33 (landlords insurance)
Contents insurance...................... 17.81
Life assurance ......................... 11.95
Other insurance......................... 20 (british gas homecare)
Presents (birthday, christmas etc)...... 0should allow something here
Haircuts................................ 0and here
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0and here
Child Maintenance....................... 433
Lovefilm subscription................... 3.99do u really need this?
Total monthly expenses.................. 2978.82

Assets
Cash.................................... 0
House value (Gross)..................... 95000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 2500
Total Assets............................ 102500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 72000....(455)......4.5
Hire Purchase (HP) debt ...... 3577.42..(136.7)....19.9
Total secured & HP debts...... 75577.42..-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Virgin.........................8276.75...181.2.....29.9
Barclaycard....................1308.09...29.43.....19.9
HSBC...........................2073.55...49.21.....11.9
HSBC Overdrafts................1210......0.........0
A&L overdraft..................789.......0.........£5 per month
Council tax arrears............360.......130.......0 (just found out about this from previous property)
Owed to previous job...........1500......50........0
Creation (DFS).................588.32....27.62.....0
Next...........................256.29....24.86.....not sure of rate
Littlewoods....................853.44....38.44.....0
Total unsecured debts..........17215.44..530.76....-

Monthly Budget Summary
Total monthly income.................... 3,307.5
Expenses (including HP & secured debts). 2,978.82
Available for debt repayments........... 328.68
Monthly UNsecured debt repayments....... 530.76
Amount short for making debt repayments. -202.08
Personal Balance Sheet Summary
Total assets (things you own)........... 102,500
Total HP & Secured debt................. -75,577.42
Total Unsecured debt.................... -17,215.44
Net Assets.............................. 9,707.14
Created using the SOA calculator at
Reproduced on Moneysavingexpert with permission, using IE browser.

At first look it does seem that a DMP would be a good option for you, particularly as your income will soon be reducing further. Without meaning to sound harsh, OH doesn't seem to be taking your situation as seriously as you are. Have you shown him this SOA?

Ellieseleven

Hi Helena, just wanted to send hugs and say that from my experience a DMP has been the answer to my prayers.

We had never missed any payments and had a good credit history but found that we were robbing Peter to pay Paul continually due to reduced income etc. etc. I took a long time to actually go through with the DMP and in the meantime had thrown thousands at my debt only for the interest to swallow it all up and be no better off.

I've now made 1 payment to CCCS and all in all it's taken about 8 weeks to get to where we are now. The letters and phone calls have died down with some of my creditors freezing charges and interest. I'm no longer continually worrying how to pay the next bill and pay for everything in cash, we are living within our budget and feel better off than we have for years. Yes our credit file is trashed but you've got to ask yourself do you want any more credit?

It's a tough decision which only you and your partner can make but for us it has been the best thing that we have done and we can now see light at the end of the tunnel. A trashed credit rating is the least of our worries:)

I hope this helps
Ellie xx

helena83

Rental income is after the agents management fees and at the top end of the valuation, I htought it better to get it rented out than paying the mortgage with no income and not looking like any chance of selling (had 2 viewings in 5 months!)

We've really tried to reduce the food bill. OH is a builder and eats like a horse! I do the shopping myself now so he can't put in the spur of the moment stuff which is what has added up in the past. I'm just on the mysupermarket website as well to see if I can save that way.

You're right about OH. I was so cross at him yesterday for agreeing to pay the council tax arrears back at £130 per month when he knows we can't afford it and we could have offered a lower amount. I don't think he can see the bigger picture and then gets cross when I tell him there's no money for him to go for a drink with his mates. I haven't had a haircut for goodness knows how long, don't buy a single magazine etc etc etc and he still wants all his little luxuries. We haven't bought a single thing for the baby yet and I have no idea where the money is going to come from. Also my MOT is due next month and I know that it will need new brake pads at least. Its terrifying me the more I think about it.

Hax

Ellieseleven wrote: »

I've now made 1 payment to CCCS and all in all it's taken about 8 weeks to get to where we are now. The letters and phone calls have died down with some of my creditors freezing charges and interest. I'm no longer continually worrying how to pay the next bill and pay for everything in cash, we are living within our budget and feel better off than we have for years. Yes our credit file is trashed but you've got to ask yourself do you want any more credit?

It's a tough decision which only you and your partner can make but for us it has been the best thing that we have done and we can now see light at the end of the tunnel. A trashed credit rating is the least of our worries:)

I can echo the above sentiments - the feeling of relief you will get is unbelievable - you'll feel like you've got your life back again.

Not meaning to sound rude, but IMHO, your OH needs a good kick up the backside and needs to take his head out of the sand and face up to reality and responsibility - especially with a little one on the way! He's going to have to stop putting himself first and think of you and the baby.

Good luck with it all Helena - it's not as bad or scary as you think it is right now and it WILL all get better. You've taken the first and most important step and acknowledged the problem - the next step is dealing with it and there are people out there (like the CCCS) who will help you through this.

eyeopener2

Do you need two cars AND a travel card?

My DMP saved my life, it really has made a masive difference and made me look at money in a completely different way. Afternoon drink with mates (although I quit drinking I could still go out) or could I use that money for something else?

Take a serious look at a DMP and show your OH this thread if need be, he can see your finances in black and white then. It may just jolt him into action. And if he thinks he is being restricted now by lack of funds, just wait till the baby arrives!

helena83

We live in the sticks and have looked into getting rid of one of the cars. Unfortunately its just not an option because OH needs car to get to and from work and I can't get a bus from home straight into town.

I'm pretty much decided that the DMP is the right thing to do and at least we'll know where we stand and I can hopefully stop dreaming about paying bills! Hoping the CCCS paperwork will come today so I can show it all to him tonight. I can get it all filled out and sent off then before I go back to work on Monday.

discodriver

Yes, do it! We did nearly a year ago and it was a lifesaver. We had run out of options trying to "go it alone", juggling 0% cards etc, etc. Now we can sleep at nights and concentrate on our jobs and on getting things back on track again. We have found the Debtline and CCCS people to be totally professional, approachable and non-judgmental. Also bear in mind that they have endless experience in dealing with these cc companies and their tame collection agencies, as do the people on this forum. They know all their tactics and tricks and can put you wise to what you are going to get in the way of phonecalls and letters, and tell you how best to deal with them.
You go for it, and good luck with it!

PS Our position was FAR worse than yours and we are now handling it with help!

helena83

Well I've got the info I can together, just waiting for some statements for the DFS stuff and one of the loans. I still keep getting jittery about what its going to do to the credit file and if my parents ever find out they'll go mad! I can't admit to them what a mess we're in let alone that I'm going to have adverse credit now. I don't ever want another credit card but we want to buy another house at some point and I know its going to affect that idea too. I keep going over and over the numbers to see if there's any way we could just manage for a bit longer until we get some more money coming in from somewhere.

discodriver

I'm with you on the parents! Mine are definitely "old school". I just like to think that we are now (finally!) being responsible...
Seriously, putting it off just means more robbing Peter to pay Paul etc. With the DMP we are paying a sizeable chunk each month, but the important thing is that the interest and charges are now frozen so the payments are actually doing some good. And the CCCS monthly payment is still less than anything we could have got by re-mortgaging or taking out a debt consolidation loan.
As for the credit rating? Def never having another credit card ever again, and we will just have to stay put for the foreseeable...