can I deal with my debtors myself, or will they deal with me

michanddave

Hello and thankyou in advance for any help or advice.

Over that last 5 years we have built some high interest debt which is causing us problems and I want rid of it within 36 months.

I have worked out a payment plan which takes into account the monthly interest but it still leaves us short.

If we were to contact our lenders and ask for a reduction in the interest for a fixed amount a month (a payment plan) would they deal with me or would we need to go though the CAB or another such debt advice service. we would like to deal with this our selves.

Debtors are additions (2 account), marshall ward, Tescos credit card, Barclays total outstanding £8813.

It might not seem a lot but Its getting me down and causing tension.

thanks again
David and michelle

Tixy

Hi

There are quite a lot of people who do a debt management plan themselves without a charity so you can do it. One thing is they will expect to see a statement of affairs/incoem & expenditure account to see you are paying all you can afford and you need to ensure you are treating all creditors fairly (making equal pro-rata payments to each based on your outstanding balance). You need to contact all your creditors in writing rather than by phone.

Some people do find it useful to see advice from one of the charities first as even if you plan to do your own DMP they will give you various useful templates etc. Alternatively have a look at the national debtline website for useful info and template letters.

If you are paying less than the minimum payments on a debt do be aware that your creditors are likely to issue default notices and register a default on your credit file (they can do this even if they say they will agree to accept your DMP payment).
Also they don't have to agree to freeze interest although many will and they may still decide to take you to court at a later point (though a judge won't make you pay more than you can afford). These points aren't meant to frighten you but its things that a charity would ensure you knew before you started making reduced payments.

debtfreenewbie

If you have some official headed paper, they are more likely to accept.I started with https://www.cccs.co.uk, you can enter all the details apart from your personal information.The system will come up with some usefull stuff for you and also copies of letters that you can download and print out.
You will also be given a number, this way should you need any further help, you can call and give them the number and the will have all you financial info.You will still remail anonymous.
Hope this helps....

michanddave

Thankyou I contacted the CCCS and our 1st payment for the 7 debts goes out on the 1st March. the letters have stopped the phone has stopped ringing.

we have a 22 month plan to pay off the whole amount.

thankyou all again.
Mich and dave

michanddave

had my 1st review, kept my payments at the same and so far have seen my debt reduced by 17% over 6 months. 5 of the 7 debt I have have stopped all interest Tescos and barclaycard are refusing to stop or reduce interest as i am paying the required payments, I have to accept that none of them have to stop interest so I`m gratfull for the 5 that are not charging interest.
If all goes well I really should have all these gone within 19 months.

thankyou all again
and anyone thinking of using cccs then go for it.