Debt problem advice.

DVardysShadow

MattX wrote: »

Here is a breakdown of the debt;

Card 1 - £11,136
Card 2 - £4,972
Card 3 -£1,100
Card 4 - £3,400
Overdraft - £2,837
Bank Loan - £14,472

Before any payments at all to my creditors I have £500 monthly outgoings (I live with parents) and earn £1600 a month after tax.

Not enough info here to recommend a Debt Management Plan. The fact that you were refused a consolidation loan means that you are at the end of your available credit, but not that you are necessarily going under. And if you are going under, another loan is going to take you deeper under.

The basic question is whether you can pay minimums and a little more from the £1100 surplus you have. If you can, then you do not need a Debt Management Plan nor do you need to default.

I suggest you try the snowball calculator http://makesenseofcards.com/snowcalc.html and post here how long it will take to pay off your debts. Then we will have more idea of what is possible.

MattX_2

Thanks to everyone for their advice it has really helped me out in getting someway towards sorting this, I decided to go through CCCS and set up a 'free' debt management plan, I have sent all the documents off today and it will be looked at by them and dealt with.

The CCCS plan is £530 a month for 6 years to become debt free.

I telephoned gopher finance who tell me that CCCS are paid by the creditors to keep interest & charges running. I challenged CCCS on this who tell me that they are paid by creditors who give them an amount of what is paid back in order for them maintaining regular monthly payments.

The woman on the phone at CCCS told me that 90-95% of the time all interest and charges are frozen.

What if anything do I need to worry about now, I don't want to end up in court with CCJs or have baliff's turning up.

Thanks

Grumpelstiltskin

Why do you think Gopher told you that?

I'll tell you, to try and scare you into using their paid for debt management plan which they can't guarantee interest and charges will be stopped.

Paid for debt management companies will tell you anything you want to hear so that you will sign up with them. Please don't fall for it.

MattX_2

I haven't, I told them that I wanted to discontinue services with them and contiued with my DMP at barclaycard. Hopefully it will all work out but I'm panicking that everything or anything will go wrong as I'm about to miss my first payments ever this month.