CCCS - DMP - Hire Purchase?

ruthem215

Hi there,

Me and my husband are about to enter into a DMP with CCCS after many many years of burying our head in the sand and struggling for a while, we feel now that this is our only option.

They have advised us that we should be debt free within 2 years 8 months. Which doesn't seem too long thankfully. One of our debts is on a hire purchase, which we have 3 years left of this month (it was over 5 years). I understand that sometimes you have the option of handing back the car at the half way point but that isn't an option for us at the moment. I was just wondering if CCCS can also help with or is it possible to FREEZE the interest on a hire purchase agreement, or is that a seperate debt altogether that they have no control over? Does anyone have any experience of hire purchase and CCCS?

I ask this because when I filled out the forms online to put the wheels in motion for the DMP, it asked for the amount we pay monthly of the hire purchase in with all the other normal monthly outgoings, then in the second section it seperatly asked for our monthly payments for debts e.g loans, credit cards, catalogues. I had typed the monthly hire purchase amount in the first section as it asked, but I had also typed it in the second section as a debt which it is. It has now slightly confused me as I'm now trying to work out if they have included the debt twice now?!?! OR should I fill out the form again and take the hire purchase out of the first section and just leave it in the second 'debt' section?!

Hope someone can help. This is all very new to us
Thanks

Superbiatch

It sounds very much like you've counted the debt twice, so contact CCCS to rectify your payments to reflect this.

With regards to your HP agreement, it is my understanding if you pay less than the expected monthly amount, they can repossess. Do you need the car or are you wanting to reach the point where you can hand it back and walk away?

ruthem215

Thanks for your reply, well we can't really afford to give the car back as we need the car for my husbands work, as he works away a lot. But not really sure how that works. Its not even a really expensive car or anything its just an average car which we are paying a ridiuclous amount for over 5 years as this is all we could get at the time. My husband is still burying his head in the sand tbh and he said that as we are coming into some money in a few months from his work that, this money will clear two of the 7 debts. So why are we bothering with this company etc. I am trying to work with the 'here and now' and I know at this point in time we cannot meet our monthy repayments. Does going with this company blacklist us? Once we are debt free we would eventually like to see ourselves with a mortgage one day, probably in the very distant future. We wouldn't be able to consider this with a poor credit rating would we? x

Superbiatch

By going onto a DMP your credit record will be affected as you won't be meeting your agreed monthly repayments. Most companies give you two months before issuing a default which basically stops you getting further credit for 6 years but if you can't afford your monthly repayments what choice do you have? The positive to going on a DMP is interest is often reduced or sometimes even frozen.

Why not post a statement of affairs (there's a sticky thread about it) and see if we can help free up any money to throw at your debts?

Your other half needs to see the figures on paper, you can't continue as you are and he needs to get used to it. Sorry to be blunt but the stress of all this is hard enough for one person and he needs to take responsibility too

Post your SOA and lefts see what the helpful bunch on here can come up with

summerstreetallotments

....I think you'd have to wait six years after clearing your debts before you could improve your credit rating and apply for a mortgage...but...as it 's hard to get a mortgage now without at least a 25% deposit...it's all going to take a while anyway. I sympathise with you over your husbands attitude, I am getting the same, I think men find it harder than women to admit that there is a problem and that changes need to be made....They seem to like the status symbols much more...and certainly my partner has no idea what anything useful or mundane costs...x

BigCraigJohn

summerstreetallotments wrote: »

....I think you'd have to wait six years after clearing your debts before you could improve your credit rating and apply for a mortgage...but...as it 's hard to get a mortgage now without at least a 25% deposit...it's all going to take a while anyway. I sympathise with you over your husbands attitude, I am getting the same, I think men find it harder than women to admit that there is a problem and that changes need to be made....They seem to like the status symbols much more...and certainly my partner has no idea what anything useful or mundane costs...x

Its 6 years from default date so realistically if you are going to default you want to default as soon as possible so to get the clock moving.
Back to the OP/
I know you say about needing the car but is there any chance you could pick something really cheap up?, amazing what you can get for £500 if you look in the right place. A ten year old car now is a lot better than a ten year old car would of been ten years ago.
If you are going to default anyway, let them repossess the car and make do with what you can pick up.
Not sure exactly how all that works legally but my 99 £900 BMW is a million times better than some of my friends £10k cars especially on long trips up the motorway and ive had no problems whatsoever in 18 months.

ruthem215

Hi again! Thanks for comments. Just Re-did the online budget calculater at cccs, and we now have a totally different result after taking the hire purchase off the second section - it seems it was included twice afterall. So now they are saying they won't help us as we do have enough money to give to the crediters so we don't need them to help us. Which is good right? means we don't have to go through them and have a mark on our credit rating. BUT yes thats how it works out on paper, so its due to our monthly over spending on 'whatever' that means we struggle.

When I did it the first time I felt like a weight had been lifted and someone was finally going to help us, and now I feel like a tonne of bricks has just landed on my back and I am going to continue struggling once again with our money issues. We might be able to afford to give money to our crediters but maybe only the minimum payments unless we have no luxuries whatsoever, so where does that leave us? is leaves us paying off a credit card for a 100 years doesn't it?! If me and my husband are going to get this sorted once and for all we need some kind of plan, to make this work, and have a goal set say in so many years/months the debt will be gone by paying this much a month for this and this etc.

I've already typed up all our outgoings so I know what has to come out and the amounts. Scary thought here but we have never budgeted in our life and its high time we did, especially as we are living off one wage and have an under 2 to support. Getting rid of the car and finance would be highly beneficial I know, but I'm really not sure how to go about any of this, even if we gave it back, we would still be in debt with the finance wouldn't we? and we'd have no car at the end of it, and no money to buy even a cheap one. Its not even a brand new car its a 55 plate.

I could post my SOA but have no idea where to start with that one. I know for a fact there are areas where we could save money, we've worked on somethings already like getting our food shopping down by a lot. Just feel really depressed about managing our money just need some kind of budget and a good plan a goal to work towards so I know as said above in so many years we will be debt free. Please tell me there is light at the end of the dark dark tunnel?