DMP with CCCS?

Mrs_Arcanum

Gimpsdad wrote: »

Incorrect on more than one front. If they like you to pay off your debt in 10 years then the token payments scheme would not exist, nor would hundreds of people on here be posting about 15, 20, 30 year plus DMP's. The courts do not have a preferred timescale either. I would challenge whoever gave you that information to put it in writing as it is factually incorrect. I don't deny that it may seem a laudable aim, a benchmark if you like, but the law is the law and if 10 years were official government policy then BR, IVA's and DRO's would look very different to how they actually are.

The judge certainly commented on a 10 year time-scale when he gave Shoosmiths the option to come back later for a full Charging order for my debt with Nationwide. I also got the same thing from CCCS with my debt a very strong need to pay it off sooner rather than later. I was referred by the National Debtline to CCCS. Individual debts over £5,000 are the ones that cause sticking points along with being a home owner.

Gimpsdad

I am not calling you into question personally, merely making the point that what you say previously is not actually true. One judges opinion on an individual charging order case is simply that, an opinion and not law.

Interesting that you say that you got the same from CCCS, i.e. pay creditors as quickly as you can. I always thought that any debt plan was based upon an ability to repay and not the needs of the creditors. I am sorry to hear that you had to go to the charging order stage of recovery.

Mrs_Arcanum

Gimpsdad wrote: »

I am not calling you into question personally, merely making the point that what you say previously is not actually true. One judges opinion on an individual charging order case is simply that, an opinion and not law.

Interesting that you say that you got the same from CCCS, i.e. pay creditors as quickly as you can. I always thought that any debt plan was based upon an ability to repay and not the needs of the creditors. I am sorry to hear that you had to go to the charging order stage of recovery.

The irony is, Nationwide/Shoosmiths payment has not gone up even though I have increased my payments to the rest. :rotfl:

WuBu_2

Gimpsdad wrote: »

Why are CCCS turning people away? Surely they are a creditor funded charity and should not discriminate against you just because you have a low disposable income? Did they discuss their token payment scheme with you? That could have at least bought you some breathing space.

If you have nothing to lose then you should give serious thought to bankruptcy, worst case is that you end up with an IPO for £60 for 3 years, or look at an IVA (if applicable) if you feel, like poosmate, that maybe you can get a little higher, there are lots going through at £100 per month. A DRO may work as well, depending upon the specifics of the situation.

I have been rethinking my options. At the moment I am never behind in my payments and didn't wanna start getting default notices etc.

I think I am going to write to my creditors about freezing interest on things such as credit cards.

Gimpsdad

Worst thing you can do. You have to borrow £440 each month to pay minimum payments, most of which is interest. Because the debt goes up the payments go up, because the payments go up the debts go up.

You know you are in trouble, don't make rich people any richer, do something about it before it gets worse. Which road you take is up to you, but ask yourself what you have to show for the debt you already have, and what you stand to gain from creating more totally unnecessary debt. Nothing, apart from lining creditors pockets.

BlushingRose

Our DMP is currently 14 years...I had heard that CCCS have a minimum payment they'll make to creditors of £5 each.

Gimpsdad

14 years is a long time. You could only justify that length of time, especially in light of this 10 year aim or benchmark mentioned previously, if there were clear cut reasons why you should not pursue either IVA or Bankruptcy. You may have too much equity to look at either of those, or you may have an occupation that bars formal insolvency, but if neither of those is true then you may want to rethink your long term options.

BlushingRose

Gimpsdad wrote: »

14 years is a long time. You could only justify that length of time, especially in light of this 10 year aim or benchmark mentioned previously, if there were clear cut reasons why you should not pursue either IVA or Bankruptcy. You may have too much equity to look at either of those, or you may have an occupation that bars formal insolvency, but if neither of those is true then you may want to rethink your long term options.

It is a long time, yes.
It's basically because we couldn't initially manage on the original SOA as discussed with CCCS, there were things we'd missed off and stuff as we'd done it in a state of panic/worry.
However, we're going to give this present budget a go for a few months and, hopefully, once we're in the swing of things we'll be able to up our payments again. We don't see the current budget as a long term thing. Apparently the CCCS refer to this DMP as a 'slow starter'

wannabee_in_credit

CCCS told me as well that they would accept a minimum of £5 per month per creditor...

Gimpsdad

Fair enough Rose, but it is strange that IVA seems not to have been discussed or considered. The debt level at the bottom of your signature says £48,979. Divide that by 14 years and you get £291. £291 per month is more than enough to look at an IVA, or even an interlocking one if this is a joint situation. You have no legal protection from your creditors on a DMP and you cannot guarantee they will freeze interest, see numerous other threads on here re that. You say you may be able to increase shortly, that is good but still pretty useless if your creditors don't play ball.

Slow starter? Hope for the best and tough luck if it doesn't work out the way you planned might be nearer the mark. Apologies if there is some other reason why you have chosen the DMP instead of the legally binding IVA, such as equity/occupation etc, but if there isn't then hoping for the best is rarely a sustainable strategy in the long run.