CCCS DMP or other ideas?

mummyofboys

Hi everyone

Just wanted some advice really... I am in debt as is my husband to the tune of around 12 k . I start uni in septemeber as a student nurse so my income will have changed. I am worrying so much, I contacted cccs yesterday who told me it would take 6 years 5 months to pay off my 8k unsecured debt ( the other 4 k is hmrc tax credits over payments) I am currently missing payments and feel like I am cutting down on neccesities to pay minimum payments which dont go down. For example I have a capital one card and it was a limit of 200, they have no put it to 302 in two months because of intrest and charges.

My income is decent but it comes childcare and rent alone make up £1308 of my outgoings before I get even started on priority bills.

I worry all the time. I am wondering If a dmp can actually stop the interest? It seems to easy? Also my dad seems to think if I ring up my credit card companies ect and say I am going bankrupt if I cant sort the debts out they might agree to a full and final settlement... do you think this could happen?

I also dont know whether to wait till all the debt gets sold on and then negotiate with debt collectors as they will accept alot lower ? I know this is going to make my credit file worse but to be honest im not bothered I will be 30 in 6 years so I cant start fresh building up my rating to get a mortgage then.

In three years ill have my degree, be on a better wage and no childcare to pay. I am just so concerned about battling these three years

Ps most of my loands ect are with lloyds which banks are linked?

Debts include

hmrc £4400
Llloyds credit card £1900
Lloyds loan £240 left
Lloyds overdraft £750
Lloyds overdraft £2340
Halifax card £800
capital one card £300
Littlewoods £370
Littlewoods husband £700
isme £600
Any advice

Tixy

Hi

Once you start Uni presumably your income will stop? or reduce significantly?
If you did enter a DMP would you still be able to afford to pay something to the DMP each month?
Was the 6years CCCS quoted based on your current income or your situation as it will be once at Uni?

On a DMP it cannot be guaranteed that interest will be frozen, although often creditors will agree to it if they see you are paying all you can afford.

Until you are some way in arrears and have had defaults issued its unlikely that your creditors will accept reduced F&F settlements, even with the threat of bankruptcy. Do you have some savings you could use to make full & finals? The risk with stopping payments and trying to wait until your debts are sold is that your creditors may decide to take you to court rather than sell the debts on.
If you go on a DMP and make lower payments then its also no guarantee that the debts will be sold on, and it might not be for years.

Have you actually considered the option of bankruptcy for you if you won't have an income for the next 3years? did you talk to CCCS about this as a possibility?

mummyofboys

Thanks for your reply , my dmp was based on figures for September and based on my husbands income, tax credits , my nhs bursary and my Saturday job . They said to make token payments till September.

My dad said if we got full and finals a lot lower he would pay them and I pay back after uni however they would have to be relativley low full and finals.

Bankcrupty wasn't discussed and scares me a lot I'm already scared at dmp I'm only 24

What would happen if I got ccjs do you have to pay them in full ?

Really dont know what to do ...

Tixy

If you got CCJs you would ask the court to be able to pay in installments and the judge would order monthly payments at a rate you should be able to afford (based on your finances) - on a DMP if a creditor goes to court the CCJ payment is often set at the same or even a little less than the figure they were getting on a DMP.

To get really low F&Fs this tends to be once you have been on a DMP for a while, your debts have been sold on to third party debt collectors (not just being dealt with by the inhouse collection agencies) and then they tend to take into account how long it will take to pay off your debts if you carry on with your DMP payments to decide how low an offer they will accept.