is this correct?

tom1970

i rang CCCS in a panic a few weeks ago, basically i told them i could continue to pay my loans but unable to keep up payments on CCs. i told them i was going to try and negotiate a lower payment each month. the guy told me that this would not work as they would not allow me to keep up full payments to one creditor but reduce theirs, he said that my bank may get wind of what is happening and they make take back my overdraft. he said the only way to do it was to roll all the credit into one and let them negotiate with all creditors to work out a payment. i want to pay back my debts and with some overtime and a parttime job i will be able to increase CC payments, also next Jan one of my loans will finish and i'll have £200 extra to hit CC with, it will be a tough 2 years but i am prepared to do it.
another question i have is if i go down this route how will this affect my ability to remortgage in 2 years? currently with abbey will they be happy to keep me on providing i miss no payments?

OberonSH

Are you already in a plan with an agency? If so then see what they can do for you. They're the ones who do this day in day out, so let them help you. Obviously any missed payments to anyone will show up on a credit rating, so it may affect yor remorgage, even if you keep up with the actual morgage payments. Again, the debt charities will be able to advise you better. Don't panice, th main thig is that you're doing something about your debt.

Have you done a SOA on here to see if anyone on here can help you cut your costs?

immoral_angeluk

IF you're missing payments on your credit cards you credit rating is going to be affected and you're going to be hits with loads of fees etc. The companies will put defaults on your credit file which will effect your credit rating. Not sure about the remortgaging but I'd presume you wouldn't get as good a deal as if you'd kept up all your minimum payments.

Gemmzie

If you are asking can you pay the full amount to your loans and reduced payments to your credit cards (which is what I think you're asking )

Then the CCCS is correct, you have to look at all debt as one total, and equally distribute payments between them in relation to the percentage of the total.
Eg. If you owe £10k, and Loan1 is 3k, Loan2 is 6k and CC1 is 1k and CC2 is 1k and you have £100 to service your debts. They will expect it to be; £30 to loan1, £60 to loan2 etc

Hope that makes sense

Jolinar

CCCS have advised you correctly, either way it sounds like you'll end up with some mark on your credit file so why not let the professionals handle it? CCCS can also help with things like remortgages as well, I'm not sure about the particulars as I'm only half way along the DMP process myself but I did ask the same question at the start. They do have a good relationship with a lot of lenders and can advise you on who to approach etc. Obviously keeping up payments with your current mortgage lender will help.

Broken_hearted

I've found it possible to reduce payments to some creditors while still paying the full amount to others on my self run DMP.

Willsnarf1983

Gemmzie wrote:

If you are asking can you pay the full amount to your loans and reduced payments to your credit cards (which is what I think you're asking )

Then the CCCS is correct, you have to look at all debt as one total, and equally distribute payments between them in relation to the percentage of the total.
Eg. If you owe £10k, and Loan1 is 3k, Loan2 is 6k and CC1 is 1k and CC2 is 1k and you have £100 to service your debts. They will expect it to be; £30 to loan1, £60 to loan2 etc
Hope that makes sense

its not really relevant but does that not make the total debt 11k?

Gemmzie

Willsnarf1983 wrote:

its not really relevant but does that not make the total debt 11k?

Yes, I can't count