Hiding your debts? Think you can cope on your own?

scared-sick

Rochdale_Guy wrote: »

Thank you scared-sick,

Are you with CCCS or Payplan. I'm sure they are both wonderful but I'm going with CCCS, if people shout "don't even consider the bank consolidation loan" route - (if they would help me).

:A

I went with cccs. I initially telephoned national debt helpline but the woman I spoke to on the phone just ran through what sounded like a script really really fast and I didnt understand anything and came off the phone even more confused. I struggled on for another 2 months until I realised my current situation was unsustainable.

I did the debt remedy online thing on the cccs website...(which is what I think you should do now) and then I plucked up the courage to ring them the next day. I had so many questions! The man on the phone was so patient and helpful and talked me through everything in simple terms so I could understand. He answered all of my questions and reassured me. I came off the phone this time so relieved I nearly cried! I went back on to their website that night, adjusted my debt remedy form thing and pressed the 'proceed' button. And that was that!!

I am now at the getting a new bank account stage and I have cancelled the direct debits to creditors for this month (you still pay your priority debts ie mortgage, gas, electric water etc) and I have sent them all letters to advise them of the situation and have given them all token payments of only £1.00.

This is the start of my debt free journey. So far I feel like a weight has been lifted although I am sure things are going to get a lot harder.

To be honest, reading your story A) a consolodation loan is never really advised and I dont think it will help you out that much anyway but I am probably not in the best position to give out finacial advice!! haha!

So that is my story, dont know if it helps!

Rochdale_Guy

Angry_Bear wrote: »

You'd have to check to make sure, but I don't think they're allowed to do that. I think you legally have the option to refuse the rate rise and the account will be closed - you will carry on paying it off as you were but will be unable to use the card.

Cheers, I will check that. I guess it doesn't matter if I'm going to start a DMP - or does it?

Angry_Bear

Rochdale_Guy wrote: »

Cheers, I will check that. I guess it doesn't matter if I'm going to start a DMP - or does it?

I don't know but I wouldn't have thought it would make a difference. Good luck getting everything sorted

fracturedsun

Angry_Bear wrote: »

You'd have to check to make sure, but I don't think they're allowed to do that. I think you legally have the option to refuse the rate rise and the account will be closed - you will carry on paying it off as you were but will be unable to use the card.

Just want to echo Angry Bear, that is what I understood too. You don't immediately have to pay off the credit card. They shut the account so no increases in interest but you can't use it ever again obviously.

If you're feeling brave ask on the credit card thread they are a really knowledgable group.... They tend to be a tougher crowd than the DFW board (they get quite a lot of people who seem to only want to scam companies and they'll jump on anyone who they think is doing this), but helpful and knowledgeable for anyone seeking for genuine help and advice.

Good luck with your debt free journey, if you haven't done so already I'd suggest filling out and posting an SOA here. The people on this board are really good at finding ways to stretch your budget.

Rochdale_Guy

Thanks both of you

I did complete an online Debt Remedy with CCCS late last year but never completed it by sending off the paperwork due to various reasons. That suggested I only have £144 free a month to offer creditors....
I guess thats why it said my DMP would take 12 years to pay off

I need to do a new one ASAP with something else to add then will post an SOA.

katsu

you can definitely reject the rate jack - Martin's credit card tab at the top of the site will tell you how. You do not have to clear in full, can continue to repay over time. You can no longer spend on the card.

Do that anyway so the rate charged doesn't increase your debt further whilst things are sorted.

Consolidation generally not advised - I would say look at whether you can afford to live and afford the consolidation loan (and have changed however you overspent the 23k). Would it help you and your partner resolve things if you went for a loan instead of DMP (or vice versa?).

Rochdale_Guy

Thanks, will contact the card company to reject the increase. Nearly at the limit anyway.

Re: loan VS DMP, I think the fact that I won't have paid much off in a DMP over 12 months was a big argument starter (especially if its only a token £1 a month to each creditor), plus the fact we used my cards to occasionally book concert tickets or online CDs/DVDs with them. Obviously I can't use them once I start a DMP or go down the loan route as they quiet rightly insisted I cut them up and hand them over if they gave me the loan (a year ago).

Its the fear of what if I run out of money with no other source available thats scary? I take it when people say open a new basic bank account, that doesn't mean one with an interest fee free overdraft (for an emergency only)?

Worried about being out in the car and need petrol. If I have no money left in my basic bank account I'm stranded

BTW - I think if she confessed to me that she owed over £20k and that we'd now have no money for our future together I'd be pretty mad and upset too

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SteffieLou

Rochdale_Guy wrote: »

EDIT: Had a letter today saying the interest on Card 4 is being put up by another 4% come 1st March.... If I want to reject this, I can pay it all off now at the current rate and the account will be closed. I don't have money to do that! :mad:

Yet another kick in the teeth when I'm down and already can't afford the repayments (as of 1st February) :mad:
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I also agree, I don't think they can do that. I received a letter from one of my card providers a few days ago stating I could close the account and continue with monthly payments but the interest rate would be frozen. Give them a call and see what they say. Sounds like you definitely need some help from CCCS or similar.

Good luck

wannabee_in_credit

Hi
I've been on a dmp with cccs for almost 2 years, with another 5 to go. It is without a doubt the very best thing that I have ever done. It took me a couple of months to realise that though - I felt embarrassed and ashamed that I'd gotten into that state financially but the simple fact was that I spent it. You need to get into a dmp. It might take 12 years, or it might take the rest of your life of paying off at minimum rates, with all that stress. Unlikely you'd get a loan now anyway, but don't borrow to pay off debt.
I understand the panic about needing money for emergencies etc, but you need a whole new way of thinking about money. CCCS will allow you a fair amount to live on you know, enough for petrol etc. You will have to cut back on the luxuries but it's worth it to get things under control.
Please go back to cccs, they are fantastic. I've regularly been on the phone breaking my heart to them and I've never felt more supported and encouraged.
Good luck.

Rochdale_Guy

Many thanks wannabee_in_credit for the sensible words and for your other post re: overdraft facility in a new basic bank account.