Hi there I'm in debt crisis, but I have 0% CRdit cards

f1ameboy007

Hi there, I took the steps yesterday to tackle my debts head on.

I went on CCC's website and filled oUt the forms and it came back that the options suitable for me is either debt management and bankruptcy,

Our outgoings are more than our incomings.

We don't want to file for bankruptcy as we would lose our home. And we don't want that.

So we are going down the debt management route hopefully

One thing the credit adviser said was cancel our direct debits

Evn though can pay my bills, we can't afford to buy food or clothes etc.

The thing is if I cancel my direct debits I will lose my 0% rates on my credit cards, I'm worried that if I do that and the creditors refuse to freeze the interest on my I will have to pay huge amounts of interest on my credit cards..

I'm a bit of a worrier and in worried that this CCCS company will not be alle to help me.

Depth_Charge

Hi

Sounds like you have very little or no disposable income which is very likely to restrict your choices and options.

Can you put up further details of your circumstances as there is not really much to go on.

925pws

Welcome and well done on starting on the road to becoming debt free.

To be honest once you default the 0% deal ends anyway and if you can't afford to pay them I don't see you have much choice.

A lot of people who are on a DMP have managed to get their interest / charges stopped so why not come over to the DMP Mutual Support Group.

There are a lot of us who have just recently started on the DMP journey so we can try and help you with whatever questions you may have.

It might also be useful to put up an SOA so that people can see if you are on the best deals and how to cut back on items.

I filled out the CCCS forms a few weeks ago and just sent them off this week, I also continued to pay my creditors up to the this month and hoping that my DMP will start in June. CCCS send you a template letter to send to your creditors, why not send that off with a token payment.

Hope this helps.

Good luck.

dfwsometimesoon

I also have 0% cards and am about to enter plan with payplan,the way i worked it out is keep dd running for now for cc and once the plan is up and running and they receiving share from payplan it will actually work out that they are receiving more than the min if urs is 1% of the balance as mine are..... therefore the 0% will stay in place for the duration on the 0% deal(im hoping anyway lol) after that if have been shown regular payments etc through the plan hopefully they will leave interest at 0% if not will have to cross that when i come to it.......


i did see a calculator as to roughly how they work out the pro rata payments..

example

debt 1 - £500
debt 2 - £250
debt 3 - £700
debt 4 - £500

total debt - £1950 payment to be made through dmp £100

divide £100(the payment to DMP) by the total debts so 100/1950 = 0.0513

debt 1 - £500 x 0.0513 -£25.65
debt 2 - £250 x 0.0513 -£12.75
debt 3 - £700 x 0.0513 -£35.91
debt 4 - £500 x 0.0513 -£25.65

if u try working that out with ur figures ul see theyll actually be getting more than the min payment for the duration of the 0% deal and hopefullyyyyyy will keep it in place.... after that tho the way im looking at it i wouldnt have been able to maintain payments after the 0% deal anyway at least this way uv shown u are making regular payments and company mayyyyy (big mayyyy) be more generous re the added interest etc due to go on.

thats just my way of thinking hope it helps somewhat... good luck

f1ameboy007

Basically I have 15,000 worth of credit card debt

My wife has a personal loan for 15,000

4,000 overdraft

They are newly interest free and will last for another 12 months as zeros percent.

Me and my wife earn a combines 2200 a month and on debts alone we are paying 1100 out

Then we have utilities mortgage hire purchase etc etc

Out outgoings are 2500 a month so we are sinking further and further.

I cancelled all my direct debits for this month for my loans and credit cards, which the councillor suggestEd from CCCS

I'm just panicking for the aftermath.

Depth_Charge

f1ameboy007 wrote: »

Basically I have 15,000 worth of credit card debt

My wife has a personal loan for 15,000

4,000 overdraft

They are newly interest free and will last for another 12 months as zeros percent.

Me and my wife earn a combines 2200 a month and on debts alone we are paying 1100 out

Then we have utilities mortgage hire purchase etc etc

Out outgoings are 2500 a month so we are sinking further and further.

I cancelled all my direct debits for this month for my loans and credit cards, which the councillor suggestEd from CCCS

I'm just panicking for the aftermath.

Hi thanks

As another poster has put a SOA would give a clearer picture here

eyeopener2

First of all

DON'T PANIC

As a great man once said.

You have done the right thing because the important bit is keeping your home, paying council tax and utilities. Everything else is irrelevant at the moment.

You will lose your 0% deals, but you may not pay any interest if you are paying below minimums, which looking at the amount of debt you probably will be.

You have to get used to the idea that you are now in a different world. Your in DMPland and this world has the single purpose of paying back your debt. That is it.

Your goal is to be debt free, however long it takes.

The initial months can be annoying as the creditors will deluge you with mail and phonecalls but just file the letters and state your CCCS number for the phonecalls.

Next - pay your monthly payment

Learn to budget - and live on it

Look forward to debt free day.

Really thats it, anything else isn't worth worrying about. If anything crops up, come on here for advice from people who have been where you are and there are plenty of us.

Good luck, don't get bogged down in detail and ask CCCS for advice.

The system works.

E2

f1ameboy007

Thanks guys

What's SOA?

Hovel_lady

A SOA is a statement of affairs.
Basically, money in and out, debts, assets etc.

Link here:

http://makesenseofcards.com/soacalc.html

When you have clicked 'Calculate' on the Statement of Affairs form, click 'Format for MSE'. This gives you a popup window. Click 'highlight text', right click on the highlighted text and copy the highlighted textincluding all formatting codes. Paste the copied text into a post on this thread.

f1ameboy007

Hi I did a statement of affairs here

https://forums.moneysavingexpert.com/discussion/3982925

Thanks

asparagus1968

hi,maybe ask the MODs to merge your two threads,so you have all info together?