Huge Debts What to do first?

Mrs_Brassic

Hi
I have got into real trouble running up huge credit card debts and have been paying the minimum payments and getting nowhere except further in debt by robbing Peter to pay Paul . It has now got to the point where I've been paying my minimum payments and not able to go shopping so it now needs to stop. I am looking at a DMP and have decided to contact CCCS or other in the next couple of days.
In the meantime I don't know what to do about the payments that are due, do I pay what I am able to pay i.e.half the amount due or token payment or nothing? I also have direct debits set up for some which I obviously need to cancel, do I ring the companies and let them know what I'm intending?
I would really appreciate some advice on this as I don't know what to do for the best I'm really at the end of my tether

sarah1111

Hi Mrs Brassic!

Welcome and congrats on your "lightbulb moment" hard part of finally facing up to things has passed.

I was in a very similar position to you about 4months ago and I wish I knew then what I know now.
First off, get your incomings and priority debts in order so you know how much disposable income you have for creditors, there are templates on here.
Secondly, If you can handle the phonecalls letters etc until the CCCS can get your payment plan together I would stop paying them and offer token payments of what you can afford. Don't avoid them they will often commend you on taking action and often freeze your account and sometimes interest whilst you get yourself sorted. They take your use of CCCs very seriously as it shows you are doing all you can and using a reputable method to sort things out.
Third, you will feel better about things again but it isn't going to happen overnight.

Good luck and if you ever need an ear to bend give me a shout.xx

Mrs_Brassic

Thanks Sarah that's helpful! Roughly how long does it take to get CCCS to sort out a payment plan?

diable

What do you class as huge?

Mrs_Brassic

£30,000 on credit cards

sarah1111

To be honest with you it varies, depending on how busy your advisor is (free ones take a bit longer but well worth waiting for) as long as you have paperwork together you can work out a statement and put your proposal forward. I am in Scotland so It's a little different, but should only take a couple of months max but if you make token payments till it is sorted it's for the best. I mean why would they agree to a payment plan if you are meeting the minimum monthly payment right???

I phoned national debt helpline and they helped a lot talking me through what Was needed, it is always good to get professional advice and they also have a list of free advisors in your area so defo worth a call to them!

Markyb65

Hi Mrs Brassic,

I was in the same situation in 2007, I contacted Payplan, reccommended by people on this forum.
Payplan dont charge any fees, they advise you what will be best for you and they treat you with respect.
I owed £32000 on credit cards, loans, etc. I worked as many hours as I could to try and pay the debts off, but was getting deeper in debt.
I still owe around £10000, but with Payplans help I'll be debt free in March 2013,
You can do it!

Mrs_Brassic

Thanks Markyb65 that is really encouraging!

bottleofred

Hi Mrs Brassic,

I owed £38000 by the time I realised I could no longer cope with the repayments as my entire salary was gone trying to make them and I then had to use the cards/loans or borrow money from the cheque cashing people just to survive. I went with the cccs and it has taken 6 years, but I'm almost there now and indeed hope to be debt free this year. There are letters on the cccs website regarding contacting your creditors and speak to an advisor to discuss the best options. I made token payments initially until things settled down. The creditors won't be very happy and will threaten everything just up to but not including death, but they can't get blood out of a stone. I recommend you deal with them only in writing as I eventually had to have my phone number changed due to the volume of calls, but I didn't know you could send letters etc to request this. If they do ignore the letter, don't go through the security check with them, tell them you only wish to be contacted in writing and hang up the phone. I've put a copy of the letter below. If you do decide to send it to them, do it via recorded delivery so they can't claim not to have received it.

Good luck

Red

Dear Sirs,

Account No: XXXXXXXX

I am writing in relation to the quantity and frequency of telephone calls that I have received from your company, which I deem to be personally harassing. I have verbally requested that these stop, but I am still receiving calls and I now require all further correspondence from your company to be made in writing only. I am of the view that your continued harassment of me by telephone puts you in breach of Section 40 of the Administration of Justice Act 1970, and the Protection from Harassment Act 1997.

If you continue to harass me by telephone, you will also be in breach of the Communications Act (2003) s.127 and I will report you to OFCOM, Trading Standards and The Office of Fair Trading, meaning that you will be liable to a substantial fine. Be advised that any further telephone calls from your company may be recorded and used in evidence and I expect this harassment to cease immediately.

Yours faithfully

a_brand_new_me

Hi, I recently started a dmp with cccs. I did their debt remedy online, (really straight forward) in middle of june and they replied within 24 hours to say my budget etc was acceptable. Next I cancelled Direct debits on my credit cards and loan (didn't inform creditors as was about to send letter that I was seeking advise from cccs anyway) and set up new bank account (not connected to any debts) and transferred all other direct debits.Then sent all the paperwork, statements etc off to cccs the next week and also letters to creditors informing them i was going on a dmp along with a token payment of £1 each postal order (recorded delivery). My first payment to cccs went out yesterday!!!:j Can't believe how quickly it has been set up. I have already also received letters from some creditors agreeing to dmp and freezing interest etc. And up to now only one phone call (although i'm not holding my breath on that one!) Because I only paid £1 to creditors in June it has given me a bit of breathing space to start our new budget in July. Can't begin to explain how much better I feel already (we owe £25,000). Hope this helps.

jimtrent

i hope to be debt free one day!