Newbie-about to embark on the CCCS route-advice please?

Jak65

numpty2012 wrote: »

Hi Jak

I'm in pretty much the same boat as you, always delaying thinking that that golden nest egg will emerge.

I have spoken to Payplan who althgough they say they cannot recommend a route their tone and advice seem to push me towards an IVA but something inside tells me thats not the way to go. Daft really but I think in my mind a DMP doesn't feel so bad?

I am going to talk to CCCS to get another viewpoint then I can make a decision.

I guess one of the keys to a successful DMP is all down to whether creditors freeze interest?

Has anyone got any experience as to which creditors are adverse to this and which ones are more accepting or is is it pot luck?

Thanks and good luck Jak :T

Hi numpty,

Just wanted to say thanks, and let me know how you get on. Perhaps we can compare notes and keep each other sane! Good luck to you too.

Time_to_face_the_music

Jak65 wrote: »

This is where I'm struggling a bit. Mr. Jak pays the rent, and we 'sort of' pay the rest of the outgoings half and half, although he usually ends up contributing far more than me, for obvious reasons. My debt is baggage from my first marriage, nothing to do with the current Mr. Jak, and he has no idea of the mess I'm in, although he must wonder why he married such an anxious, grumpy cow who never seems to have any money! I would rather eat my own feet than tell him We have been married for ten years (I know, it's shocking I've never been able to confide in him) and I've always made sure we have nothing in joint names to try and protect him from any potential fallout! So, do I put that I pay half the rent as well as half towards everything else? That would give me extra money, but would also mean less to pay towards a DMP? I am trying to be as honest as I can, but may be that's not in my best interests?!

Try and go for something in the middle to make sure you have enough to live on but are still paying a decent amount to your DMP.

I am thinking of things like haircuts, prescription charges, dental. opticians etc, make sure you put a bit in for each of those. Like an eejit, I put nothing for prescription charges, completely forgetting my OH's blood pressure prescription which set us back £22.95 this weekend and will do every three months. So I am not allowed to get ill this year :rotfl:

Mort

Jak65 wrote: »

Mort, excuse me if I'm wrong, but it seems you managed to pay off all your debt in about five years - i.e. LBM 2006, debt free 2011? I could cope with that, even longer if need be! Do you mind me asking how you did it and any tips you can give me? That's a fantastic achievement.

• It was a case of facing up to a lifetime of bad spending habits and overcoming them.
• Main one being working to a strict budget, worked out by Payplan.
• Mrs Mort lost her job towards the end of the DMP, after a lengthy spell of unpaid sick leave, and received a lump sum which was equivalent to about 5 months DMP payments, pre MSE me would have blown the lot. We used some for a holiday and the majority went towards the debt.
• All the way through I took the opportunity to work any and all overtime that was up for grabs - not an option for everyone but the general principle is grab any extra income that you can.
• It was five and a half years or approximately 2003 days.

Gimpsdad

Ttftm,

Just caught up on this, and would like to clarify. I am not anti CCCS at all, but I am anti bad advice. The fact that advice is free does not make it good. Where a DMP is appropriate, and there is nothing wrong with it per se as a solution, then CCCS is a very good place to go. However, it isn't unreasonable to ask the question why so many people seem to be entering into very lengthy DMP's when they are advised by CCCS.

If you assume that CCCS are truly impartial in these matters, then the take up of IVA's with them as a debt solution would dwarf the rest of the IVA providers put together given that all debtors are automatically pointed to them by creditors, HM Gov, the media and forums of this nature. It doesn't come anywhere near that, and it is not unreasonable to ask why.

The impression given from a lot of these posts and threads is that debtors are encouraged to strip everything right down to the bone and have no life in an effort to pay creditors back every penny as quickly as possible. You can argue, with some justification, that as the debtor has undoubtedly contributed to the situation then he, she or they SHOULD be willing to do what they can, but it does seem very much as if that is the default action of CCCS and other solutions, whilst assumedly discussed, are very much dismissed as alternatives in the vast majority of cases. If that is true, then it follows that people are not being given an impartial assessment, but more gently led to a preferred route. That is quite wrong and cannot be justified.

Now, if you are adamant that you wish to pursue a DMP then as long as it is your choice when armed with all the pros and cons of everything, then it cannot be argued with. Paulmapp gives a convincing argument as to why DMP is right for him. Not everything he says is absolutely 100% accurate, but he is happy so that is fine. Neither should you get the impression that I am pro IVA above everything else. Again, that is not the case. Leaving aside any other debt solution for a moment, most debtors are faced with the 3 "traditional" alternatives which are DMP, IVA and Bankruptcy. Where there is a choice between DMP and IVA then IVA wins in almost every case, however it is also to be acknowledged that where there is a choice between IVA and BR then BR is almost always cheaper and quicker. Is BR therefore better than IVA? In most, not all, cases yes that is true, but as someone else said, it depends where your priorities lie so it doesn't mean you should do it. What should never happen, regardless of whoever you speak to, CCCS, DMP firm or IP, is that you come away with a recommendation. You should always being given the facts and then allowed to weigh up the pros and cons for yourself. Again, I don't think it is unreasonable to state that that doesn't seem to be the case when you read this and many other threads.

Jak65

Ok, well I've finally plucked up the courage to fill in the CCCS debt remedy and press 'submit'! (first time I've added it all up - not good!) Anyway, it has come back with DMP over 5 years and 8 months - I can cope with that! Unfortunately, I am STILL dithering about finally taking the final plunge and would be extremely grateful for any positive feedback from anyone who's currently on, or done, a DMP? I have phoned CCCS three times this morning with some questions and concerns, and hung up each time before they answered! I'll keep trying though. Such a wimp. Just after some reassurance. Thanks all.

Jak. x

paulmapp8306

What are those questions and concerns? PM me if you wish.

As I said - IVAs are a way for some, and CCCS DO offer that as a route. Its less flexible but often offers a quicker completion date - normally 5 years.

Jak65

paulmapp8306 wrote: »

What are those questions and concerns? PM me if you wish.

As I said - IVAs are a way for some, and CCCS DO offer that as a route. Its less flexible but often offers a quicker completion date - normally 5 years.[/QUOTE

Hi,

I definitely don't want to go down the IVA route- I am totally committed to repaying everything I owe - even if it takes me until retirement (got about 20 years!) :eek:

My main concerns are about how likely my creditors are to accept the terms of a DMP and freeze/reduce interest. They are:-

Barclaycard (cc x 2)
Bank of Scotland (cc)
American Express (cc)
NatWest - main creditor (o/d, loan, cc)
Lloyds TSB (cc)
M&S money (personal reserve account)

Also, I work for a legal practice and recent legislation has dictated that all employees now have to be credit checked - would this just be to find bankruptcies and IVAs? Would the fact I'm on a DMP come to light?

Maintenance and child benefit for my daughter is due to cease in December this year. Do I still include these payments and re-arrange the DMP when I stop receiving them - or just not declare them?

How do I go about paying any surplus cash I might receive into my DMP?

NOW THIS IS A STUPID QUESTION - when CCCS send out your pack to you, is the envelope covered with their trademark???!!! :eek:

Seriously, would be grateful for some positive feedback.

Thank you. x

Time_to_face_the_music

Jak65 wrote: »

My main concerns are about how likely my creditors are to accept the terms of a DMP and freeze/reduce interest. They are:-

Barclaycard (cc x 2) No experience
Bank of Scotland (cc) Stopped interest and defaulted 1 month
American Express (cc) No experience
NatWest - main creditor (o/d, loan, cc) O/D refused to stop interest, CC stopped interest after 1 month, Loan no experience
Lloyds TSB (cc) Reduced interest after 1 month
M&S money (personal reserve account) Refused to stop interest, FOS now writing to them

Also, I work for a legal practice and recent legislation has dictated that all employees now have to be credit checked - would this just be to find bankruptcies and IVAs? Would the fact I'm on a DMP come to light? Are you a lawyer? You can't be called to the bar if you fail a credit check. Otherwise I think you are safe unless you are bankrupt or have CCJs

Maintenance and child benefit for my daughter is due to cease in December this year. Do I still include these payments and re-arrange the DMP when I stop receiving them - or just not declare them? I wouldn't include them and would use them in the mean time to either save an emergency fund and/or pay amounts of debts which still charge interest

How do I go about paying any surplus cash I might receive into my DMP? We don't do it via our DMP, we pay any spare cash independently off any debt which is still charging interest. Highest interest rate first so it's NatWest OD, when that is gone, it will be Lloyds TSB OD

NOW THIS IS A STUPID QUESTION - when CCCS send out your pack to you, is the envelope covered with their trademark???!!! :eek: No question here is stupid and no, they don't. Plain brown envelopes all the way as I remember or something very subtle. it certainly didn't say anything like "LOOK EVERYONE! HERE IS JAK's DEBT PAPERWORK!" :rotfl:

Seriously, would be grateful for some positive feedback.

Thank you. x

Hope some of this is useful but copy and paste your post to the DMP support thread and I will guarantee you will get some more answers

Hatecreditors.com

Barclaycard won't budge on interest for me.

Been on DMP for 2 years now paying double the minimum payment and they insist on 12.9% APR stating 'this is a heavily reduced rate'. Laughable.

I also had a card with Egg who were more than happy to freeze interest until Bang, sold to Barclaycard who came up with the magical 12.9% APR!!

paulmapp8306

Barclaycard are a sticking point. i dont pay interest - though it took 2 year so get them to stop charging it, though they did reduce to 2%

The other issue is they never sell the debt on - so dont list you as default on your credit history, they record as "AG" (Agreed payment plan) which is re-registed every month (instead of a green) meaning it is on your history until 6 years after you clear the account. Get any extra payments to them and clear it down as soon as you can.

Natwest also tend to reduce interest but not freeze it - though they tent to sell the debt on after 2 years, and then the interest does stop.

one point to remember - its GOOD to get your debts sold on for two reasons:

1. Companies are not aloud to charge interest on accounts they buy (if they are in a DMP - they can if its a going concern) AFAK, so once its sold from the original holder there is no further interest (should that lender still be charging it).

2. As debts are bought for pennies in the pound (normally the 10%-20% level) companies are much more open to full and final settlements. The more there sold on the lower you can get a settlement figure. Dont get me wrong - they will try for the full amount BUT a debt originally £5k gets sold for £500-£1000. When its re-sold it goes for £100-£200 but the outstanding balance could still be close to the £5k mark. The company that owns the debt is likely to settle for 30-50% of the debt (start your offers VERY low - 15% ish) as its still a healthy 500% to 1000% profit for them.

Everything else - pretty much as Time to face the music says.