Cccs dmp

stutra

Hi all,

Ive got myself into a bit of a mess with payday loans and its got to a stage where im stuggling with bank charges, credit cards repayments and loan repayments on top of trying to make payments to payday loans.

I contacted CCCS and they phoned me this morning and we discussed my budget. They said I have £501 surplus cash and want me to pay that each month for 18 months to pay off all my debts. Is this normal for them to want all of your excess money? Personally i would be alot more comfortable to pay half of that so i have extra cash just incase.

Do i have any other options or basically does my life stop for a year and a half? I know i this is my fault but i just dont see this as the best way to deal with the debts.

Thanks
Stuart

chanz4

if thats what they advice yes

fatbelly

stutra wrote: »

Do i have any other options or basically does my life stop for a year and a half? I know i this is my fault but i just dont see this as the best way to deal with the debts.

Thanks
Stuart

Payplan, cab ...

Likely to come out pretty much the same.

Or you could go the do-it-yourself route but you're still going to need to produce an income/expenditure statement that hangs together.

catwoman150

yeah, they mostly all say that. Look at it another way you will be debt free within 2 years. Some people have DMP's that last 10 years on what they can afford to pay.

Deep_In_Debt

Your life won't stop and you'll be debt free sooner. CCCS allow an amount for emergencies anyway.

immoral_angeluk

18 months is a very short amount of time in debtbusting circles. I think if you are able to afford the £501pm then go for it, knuckle down for 18 months and enjoy being debt free much much sooner than most with less repurcussions.

barbiedoll

Sadly, the £501 surplus cash is counted as exactly that...surplus to your requirements. Yes, it does mean that you won't have bundles of spare cash to spend on life's little luxuries but by the sounds of things, you've been spending well above your means anyway and you need to get your head around living within your budget.

I know this sounds harsh and yes, your life is put "on hold" for a time. But if you can clear your debts in a couple of years and you can hopefully learn a few harsh lessons along the way, you really won't regret it. I'm in a DMP for at least 8-10 years and it's bloody hard. I've got a car repair bill which is going to take all of my Christmas cash and my emergency funds that I had built up but unfortunately, that's life. I can't go out and spend money on shoes, handbags, clothes and make-up but so what? In the grand scheme of things, it's not such a big sacrifice to make, I'm keeping my home and I'm still eating, I still have my friends, family and my health and more importantly, I'm not scared to answer the door or the phone!

What you need to bear in mind, is that when you're repaying payday loan companies, credit cards, loans etc etc, loads of your cash is simply going on interest payments. That's basically money for nothing for the banks! Why give them any more of your hard-earned cash than you absolutely have to? Knuckle down, live like a pauper for a while, get rid of all of these debts and start your life afresh.
You won't regret it!

stutra

Thanks for all the replies folks! Since I spoke with the CCCS, I've contacted trust deed scotland and they seem to be a lot more helpful. They said I could pay 190 a month for 3 years. Have a meeting on monday to discuss it further!

Anyone know anything about trust deeds, I've read about them but how likely are the creditors to accept it? I've got a terrible feeling that it just won't happen, saying that I always think the worst! Also because I have a loan with my credit union does it matter?

Thanks
Stuart

lyndsey80

Why do you want to stay in debt longer? Did you not do an expenditure sheet with them? They are strict (I gave up smoking, had to rethink internet / mobile phone) but they do allow a generous budget for food and travel... Think about it...

I would love to have more money left each month but I was stupid enough to get into debt and I have about 3 years on mine. To finish mine in 18 months would be a dream, I would have all the money every month.

sickasachip13

When we started oh our DMP we were looking at well over a decade of all our disposable income paying our debt. BUT, it would mean that the debt was no longer increasing and the situation was being managed effectively.

We're a year into our DMP and while the adjustment period was hard, our lives haven't stopped. We just spend our money a lot more carefully and thoughtfully and our focus is about getting free of the debt.

Best of luck.

stutra

lyndsey80 wrote: »

Why do you want to stay in debt longer? Did you not do an expenditure sheet with them? They are strict (I gave up smoking, had to rethink internet / mobile phone) but they do allow a generous budget for food and travel... Think about it...

I would love to have more money left each month but I was stupid enough to get into debt and I have about 3 years on mine. To finish mine in 18 months would be a dream, I would have all the money every month.

I may be in debt longer but I wont be paying as much back, ill have half the monthly payment that the CCCS are asking me for plus ill get about 40% of my debt written off.