CCCS and Payplan Question! Newbie

Millionare

Hi guys, I discovered this site about 2 days ago, excellent site. been reading comments on here and finally decided to do something about my £34000 debt and rang CCCS and payplan up from all the recommendations on here.

LightBulb Moment Tday:T (finally)

CCCS say they will ring me next week to discuss it.

however went to payplan. thet asked me about my income details which arent really high and a basic household expenditure which i gave. but didnt take shopping expenditure and said that because they are a ethical company they have a set amount for shopping expenditure that leaves only £45 from.

but my actual figure which they didnt even ask works around £283 which i worked out each month to pay for all my loans credits cards etc etc.

is this right that they can make up a figure that doesnt really apply to what im spending?

thanks in advance

chevalier

I think what you are saying is that after your expenditure you only had £45 to pay to creditors? This may be the case. Part of the thing with going through CCCS or Payplan is that you payments to creditors drop because you really can't afford what you are currentlypaying. So this is maybe what they mean.

On another note, have you posted a Statement of Affairs on the forum yet. If you look at southerscouser's sticky at the top of the page, it give information as to how to set one out. From this us lot on here, might be able to point out savings so that you have more money for your debt repayments
hope this helps
chev

Millionare

thanks for the reply chevalier. im on rations already.:p


SOA: Self emplyed and share half expense with another household member. got wife and 1 kid.

Monthly Incomings:

My Salary - £613.00
Benefits - £353.99
Child benefit - £68.9
Total - £1036.79

Monthly Outgoings:

Mortgage/Rent - £220
Council Tax - £42
Gas - £15
Electric - £15
Water - 10.75
TV License - £5.25
Phone - £10.50
Food - £240
Tax - £35
Car Insurance - £23.33
Petrol - £30
broadband - 17.99
mot - £3.75
Road Tax - £12.5
Mobile - £22.50
Allowance - £50 any clothes and stuff
Total: £753.57

leaves £283.22 (this is what payplan are saying is £45 as they apply their own figure for shopping expense which i dont get.)

Creditors

hsbc a/c – Balance -£1,500 APR 14.9%
hsbc credit card - £8118.00 APR 21.49% some of its on 17.9%
hsbc Loan – Balance £12,294 APR 11.9% Length of term 60 months, 56 months to go they applied 3219.05 of interest on a £9500 loan.

cahoot ac -£1000 9.8%
cahoot cc -£500 9.8%
cahoot loan -£7750 apr 9.1%

IF Credit Card -£2562 12.9%

total approx £33728 debt

ive tried apply for loans to consoldate the higher apr cards but i now get declined (3 times now)

hope this provides better insight. as you can see im on minimum already as i realised when i started getting declined that i had to cut down on expenditure.

whats people recommend cccs or payplan or other?

i was also looking at iva's but by going on what payplan gave it looks more like bankruptcy which i dont want to do.

basically the wife dosnet know about my sitiuation or anyone else really.

CLAPTON

can yopu explain what you mean that you share the expenses with another household member?

do you mean that mortgage/rent is really 440 and you pay half i.e. 220
and that food is really 480 but you pay 240

and how many in the household ?

do you rent or are you buying?

Millionare

Hi, yes that is correct i pay half the expense for all house related items. and yes its rental. its 2 other family members that live with me, the wife and baby.

CLAPTON

i'm still a bit confused and maybe CCCS were too.


e.g for a family of two adults and one child reasonable groceries (food, cleaning stuff, loo rolls etc ) would be around 300 where as your family are spending 480. what did CCCS say then?

maybe there is confusion about what is the total and what is your share.

broadband you say is 17.99 is that really 36 or is it 17.99 in total

presumably your wife works ...what is her income

your income is very low ...are you working full time ?

Millionare

Sorry, there are in total 4 adults and 1 child.

2 are other family members who split half the cost with me on most household expenditure apart from broadband which i pay fully at 17.99 and my cost in shopping which amounts to around to £240 a month.

wife don't work as looks after the toddler and im not interested in childcare.

yes i work full time, only just enough hours thus low income as i havent been very well the last 2-3 years.

skylight

They will have included stuff you have forgotton about - food, clothes, hair cuts, nominal living expenses, nominal entertainment expenses etc.

I queryed this some months ago, but in hindsight, and realistically, they are right. They want you to be set at a repayment level that is completely manageable, not one that you will struggle with for x number of years and can make things worse.

Just because you are in debt, you are permitted a life! - and both Payplan and CCCS try to see to it that you do not over-stretch yourself. Bad management can mean all sorts of things like depression, marriage break-ups and they position you to try to help avoid this sort of stuff.

CLAPTON

as charlotte says they will include things to make a realistic budget that you can live on not just for a few months but for years ...so e.g. they usually allow a little for modest holiday.

even with your figures it will take over 10 years to clear the debts and thats assuming that your creditors freeze interest and charges.

unless you expect your income to rise significantly then you should consider whether bankruptcy is better for you.

Millionare

Thanks for the advise guys.

I understand what your saying, i just cant understand that taking into account that £240 is just on shopping is what i have allocated leaving me £283 monthly. them saying £45 remaining means my monthly shopping would be £523 for 2 adults and a child. thats just way off.

i might speak to them again to see wether there was a mistake in the figures.

thanks for the help

madduck

£523 does seem to be a really high figure for 2 adults and a child. Perhaps there has been some confusion given the house sharing arrangement that you have ie how many people are in your household?

Bit confused by some elements of your SOA. There is an entry for Tax but no mention of what kind of tax. You've already mentioned road tax and council tax - so what tax is this? Also, you've got road tax and mot - but nothing for car maintenance and servicing?

What about contents insurance?

Nothing for medical/dental or hairdressing, etc.