Debt Advice

Nayma12

This is my first time on this forum and am hoping someone would be willing to give me some advice on my out of control debts.

I have researched debt options and the advice i have been given is that IVA's are not for me in my current situation and that a debt plan repaying my creditors would be my best option.

my debts are currently £45,000. I am fed up of making over payments each month but the interest hikes mean that the balances are barley coming down> Help>

summerstreetallotments

What about going bankrupt...this would draw a line under it all and relatively soon you'd be free to start again...

Tixy

Hi nayma

Have you been in contact with one of the debt charities at all?
Can you meet your debt minimum payments and afford to pay extra each month without re-using credit cards etc? If so then its unlikely creditors would agree to any form of DMP or IVA. Perhaps you could start by looking at the statement of affairs calculator and the snowball calculator to work out how long it will take to clear your debts at the current rate of repayment. It will also tell you what order to overpay your debts to pay the least in interest overall.

If any of your card companies try to hike your interest rate you have 60days to opt out of the rate increase and continue paying at the current rate (though you can then no longer use the card).

Nayma12

Thanks for the advice. I have spent the last week looking again at all my options and have spoken to the cccs. They have advised a DMP and realistically i think this may be my best option. Have done an soa with the cccs and would be able to pay £275 per month to all my creditors based on my current situation it would take 13 yrs and 5 months to repay the debt. At the moment i feel very nervous about the prospect of receiving the threatening phone calls and letters as well as the posibility of the DMP being rejected by my creditors. Do you know if credit card companies generally accept these plans?

worried1969

Hi Nayma

I would go with what CCCS says, we have just sorted out our payment plan with them and have 5 creditors owing over 32K and based on what we can pay at the moment are looking at 12 years! Like you i was sick with the worry about the letters and phone calls i actually changed our landline nummber in advance but as it happened 3 of the creditors have accepted the reduced payment straight away (MBNA, Capital one and Barclaycard) although they have defaulted us straight away.

debtfree2010

Try not to worry about the phone calls, you can always just hang up, which is what i do a lot of time if i dont want to talk to them;)
But now the phone calls are not to often i do have all my paperwork to hand and i do talk to them, just be firm, they cant have what you havent got

As for the letters, yep, our postie earns his money :rotfl:but all the letters are much the same, i have a quick glance and file.
Buy yourself a box file and put all your letters in there and shut the lid and forget about them :T

My DMP is self managed, some creditors are on board 0% etc, but some (Santander thats you!!) are a nightmare....i just make sure i pay the amount i said i would each month and thats it

Good luck with whatever you decide to do

Nayma12

Thanks. That's a good idea to change the landline number. I will look into that. IN the meantime are the creditors likely to tell whoever answers the phone about my non/limited payments (due to set up of DMP). The other thing i am very concerned about is the ability to re-mortgage when our current deal runs out with Santander in 2013. They are one of my creditors - i have been told that the mortgage department is completely seperate to the debt area and that i could continue on a tracker with them or look around for another deal. I'm not sure that i'd get another fixed rate deal though. We have always kept up our mortgage payments and never missed.

Also, My husband has a current account with Santander ( I am in the process of moving mine to the Co-op) and we have a joint account with them. He doesnt want to move his account as he has an overdraft there and feels that other banks may not match his current £1,000 OD. I have been told that my DMP won't affect him as the account is in his name. His wages are paid into our Santander joint account so he wants to leave that where it is. If i removed my name from this account could Santander do anything to this account? I would still need to pay the DD's and Standing orders for utilities from my new bank account( which is what we use the joint account for) so i am worried they could try to claim money from my new Co-op account.

Lots of questions i know but i am really worried about everything.

Any advice would be appreciated.:j

worried1969

Nayma12 wrote: »

Thanks. That's a good idea to change the landline number. I will look into that. IN the meantime are the creditors likely to tell whoever answers the phone about my non/limited payments (due to set up of DMP). The other thing i am very concerned about is the ability to re-mortgage when our current deal runs out with Santander in 2013. They are one of my creditors - i have been told that the mortgage department is completely seperate to the debt area and that i could continue on a tracker with them or look around for another deal. I'm not sure that i'd get another fixed rate deal though. We have always kept up our mortgage payments and never missed.

Also, My husband has a current account with Santander ( I am in the process of moving mine to the Co-op) and we have a joint account with them. He doesnt want to move his account as he has an overdraft there and feels that other banks may not match his current £1,000 OD. I have been told that my DMP won't affect him as the account is in his name. His wages are paid into our Santander joint account so he wants to leave that where it is. If i removed my name from this account could Santander do anything to this account? I would still need to pay the DD's and Standing orders for utilities from my new bank account( which is what we use the joint account for) so i am worried they could try to claim money from my new Co-op account.

Lots of questions i know but i am really worried about everything.

Any advice would be appreciated.:j

Hi if you are going to to do a DMP through CCCS they will give you a ref number which you can quote to them, once CCCS have all your paperwork they ask for they then write to your creditors telling them what payment you can offer so taking the worry of this part from you so they will know you are entering into a DMP in the meantime just maken token payments of what you can afford until the plan is in place. As for mortgage it will be very hard to find another lender once your on a DMP but it will not stop you going onto another deal with your current lender which i what we done.
With regards to the bank account and things are all the debts in your name only? only don't think you will be able to remove your name if you are using your overdraft but not sure on this. Once you enter a DMP you cannot have an overdraft. If you do not owe money to co op then they will not be able to take any money from you.
Is the DMP just for you then all debt in yout name apart from the joint bank account and not your partner as well?

Nayma12

Hi, thanks for your advice.

With regards to the DMP, yes it is just in my name. With our joint account with Santander, we are not overdrawn as we direct debit sums to cover our bills each month and that is all the account is used for. We do not use it for spending . We have about £250 in that account as it is credit from the 2 months we don't pay council tax in the year(at present this is an emergency fund in case out cooker/fridge etc brak down as we have no other savings).

All i want to do is remove my name and let the account stand as a current account in my husband's name. Is this an option or will Santander be able to take this surplus money as it used to have my name on it. I have been told that Santander cannot do anything to account's that are in my husband's name alone, i just don't know if this is right. I don't owe the Co-op any money as i am taking out a new account with them as the CCCS told me to.

Can i ask about the mortgage deal you got from your lender - was this a fairly decent rate or was it high?

Thanks

jan

worried1969

Nayma12 wrote: »

Hi, thanks for your advice.

With regards to the DMP, yes it is just in my name. With our joint account with Santander, we are not overdrawn as we direct debit sums to cover our bills each month and that is all the account is used for. We do not use it for spending . We have about £250 in that account as it is credit from the 2 months we don't pay council tax in the year(at present this is an emergency fund in case out cooker/fridge etc brak down as we have no other savings).

All i want to do is remove my name and let the account stand as a current account in my husband's name. Is this an option or will Santander be able to take this surplus money as it used to have my name on it. I have been told that Santander cannot do anything to account's that are in my husband's name alone, i just don't know if this is right. I don't owe the Co-op any money as i am taking out a new account with them as the CCCS told me to.

Can i ask about the mortgage deal you got from your lender - was this a fairly decent rate or was it high?

Thanks

jan

Have messaged you

Nayma12

HI,

I have asked this question before but can't seem to find the thread - am new here!

I completely understand that my credit rating is going to be awful on a DMP but my question is this - Our curent mortgage is with Santander with the fixed deal due to run out in 2 years. Can the cancel my mortgage at any time whilst i am on a dmp ? Also, will they give me another deal at all or will i be put on the tracker rate at the end of the deal?

I am about to start my dmp and this is the thing that bothers me the most about it all. I am serious about repaying my debts but don't want to lose my home in the process.

Any advice would be great. Have spoken to the CCCS aboout it but had differing information there.

thanks:)