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? moving to self managed

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  • Hi HH :)

    Did you make a decision or give this any more thought? It's something I have been thinking about for a few weeks, I am keen to go it alone, OH likes the security of CCCS and doesn't want to rock the boat.

    When we started our DMP, I was a little naive in believing that all of CCCS's income came from the interest on our payments between the 1st and the 25th of the month and had no idea that they actually received "cashback" from the banks on payments made. I don't really have an issue with the banks paying them, though I do wish they were a bit more upfront about this.

    Like you, I am concerned that their bias is towards the banks, not us. How can I get interest stopped on some of our debts and they can't? It does make one think, have they really tried. My second issue is around the payment dates, if our money actually went to our creditors on the 1st of the month instead of sitting in the CCCS account for 25 days accruing interest, we would be 25 days ahead with our payments. In our particular case, we could actually be a whole month ahead as OH gets paid on the 23rd of the month so we would pay all creditors on that date.

    I would really like to hear from people who have gone it alone having been with CCCS or Paypal. I did start a related thread on it once https://forums.moneysavingexpert.com/discussion/3931179=
    but didn't get much response except someone telling me we would be better off on a IVA :(

    Please let me know how you decide to proceed.

    TTFTM


    Morning TTFTM

    I totally agree and share your sentiments. I have just made a number of responses onto your thread.

    To be honest I am lost at sea and haven't made my mind up. I feel the relationship is one sided and they could do more to be trasparent and to champion our plight. That said am apprehensive about going it alone.

    Like you my preference is to pay the money back. I was honest. Put my hand up, said I wanted to pay it all back. I think the allowances should allow for a small holiday at some point, to expect you not to but a family birthday present or have a holiday for years on end is not respecting someone human rights. I don't expect to be out on the razz all the time but for goodness sake!!!!!

    In my mind I think the fair thing for all when going on a dmp would be to sign up to an agreement so you knew what interest rate 0 or otherwise was going to be.

    What we really need I think is to hear from people who moved over to self managed some time ago.

    HHx
  • freshstart11
    freshstart11 Posts: 416 Forumite
    TTFTM - would that be gimpsdad ;) (I apologise if wrong)

    just wondering as odd as this is, have you contacted Payplan to see if they come up with the same details or work it another way. If nothing it may give you confidence to go it alone if everything very similar?

    I wish I could offer some advice further really but I am so soon in t mine, all I am getting are lettings thanking me for my payment and offering F&F settlement figures lol you'd think if I can only afford £x.xx t them at the moment I cant manage £xxx.xx - honestly!

    Really hope you do both work it out. :) I really do x
    Official DFD: Dec 29
    Challenge DFD: July 23
    Debts Cleared: 1/13
    Building EF: £20/£600 3%
  • 925pws
    925pws Posts: 121 Forumite
    Hi everyone

    I'd be really interested to hear views from those who have gone it alone. Come on lurkers :p

    I've just started with CCCS but I do know they will not be fighting my corner, their role is merely to be a middle person. In all my months of reading the forums I can't recall anyone saying that CCCS or Payplan did anything other than distribute money.

    My reason for going with them initially was the fact that they do get money from the banks and because of this, the banks trust them. At least at the start the banks will know what our income and expenditure is. But as time goes on maybe going it alone would make sense.
  • Jinx
    Jinx Posts: 1,766 Forumite
    Debt-free and Proud!
    I did my own DMP start to finish and used this site as a resource; its actually fairly easy to do, however you do need to develop a thick skin to the standard threatening letters and accept your credit file is completely trashed for 6 years. This is what I did:

    Wrote to my creditors explaining I could not sustain my payments and would therefore be breaking my contractual agreement but that I was committed to paying my debts. Enclosed with this a breakdown of my debts and their percentage of them. Also enclosed a copy of my statement of affairs (MSE has a great version but I used my bank statements as a guide) Worked out how much I had available each month and told them I would begin paying this on a percentage basis (eg if Egg had 50% of debt they would get 50% of available cash. Asked for interest and charges to be frozen.

    I then set up recurring online payments for the amounts stated on my online banking as this was what I could afford and no more.

    Depending on the company:

    some agreed straight away - result! :T
    some defaulted me and sold debt so I paid a variety of DCAs :o
    those that didn't stop the charges and interest I changed my payment to a token payment of a quid a month and this then encouraged them to sell the debt and the DCAs do freeze interest no bother in my experience. :cool:
    one argued my statement of affairs! Told them to take me to court then and let a judge decide...no more issues. :D

    I also changed my phone number at this time and only ever communicated in writing.

    Going this route needs a thick skin re the letters, I have folders of them and have kept all correspondence to and from me. I have had alllllllllllllll the standard threats numerous times. I was defaulted for every debt and have no CCJs or court appearances - getting a small amount regularly and keeping in touch stating I would pay and was doing all I could (and not missing payments) seemed to make the whole thing run quite smoothly.

    Good luck if you decide to go for it :)
    Light Bulb Moment - 11th Nov 2004 - Debt Free Day - 25th Mar 2011 :j
  • 925pws
    925pws Posts: 121 Forumite
    Hi Jinx

    That is so helpful, thank you very much. I have read elsewhere about people making token payments to encourage their creditors to sell on the debt. How long did it take before yours was sold on?
  • 925pws
    925pws Posts: 121 Forumite
    Jinx
    Forgot to add, many congratulations on being debt free :j
  • Jinx
    Jinx Posts: 1,766 Forumite
    Debt-free and Proud!
    Thanks 925 :) It was a long slow road........made worse as it was my stupidity..... Heyho!

    Most of the companies in my experience default at the 3rd month of not being paid the minimum (think it might be a guideline thing) thats usually when it gets sold to the DCA.

    If the creditor is still adding charges etc so you decide to drop to a token payment, its moved pretty quick (you may or may not have been defaulted already). For me it just meant a change to the recurring online payment - I made sure I didnt have payment gaps.

    Apologies if this is totally obvious - but you want to be defaulted sooner rather than later if its inevitable. I had an account with Barclaycard and they took my payments for 2 years before they defaulted me. Now aside from this not being good practise according to the information commissioners office (iirc) it meant the default is only now due to drop off my credit file while the others were gone ages ago.
    Light Bulb Moment - 11th Nov 2004 - Debt Free Day - 25th Mar 2011 :j
  • Jinx wrote: »
    Thanks 925 :) It was a long slow road........made worse as it was my stupidity..... Heyho!

    Most of the companies in my experience default at the 3rd month of not being paid the minimum (think it might be a guideline thing) thats usually when it gets sold to the DCA.

    If the creditor is still adding charges etc so you decide to drop to a token payment, its moved pretty quick (you may or may not have been defaulted already). For me it just meant a change to the recurring online payment - I made sure I didnt have payment gaps.

    Apologies if this is totally obvious - but you want to be defaulted sooner rather than later if its inevitable. I had an account with Barclaycard and they took my payments for 2 years before they defaulted me. Now aside from this not being good practise according to the information commissioners office (iirc) it meant the default is only now due to drop off my credit file while the others were gone ages ago.




    This is why I want to self manage so I can drop off payment to £1 to one of my creditors until they play ball. am worried it will back fire and others up their interest rates!

    Well done on your DFD
    HHx
  • Jinx
    Jinx Posts: 1,766 Forumite
    Debt-free and Proud!
    This is why I want to self manage so I can drop off payment to £1 to one of my creditors until they play ball. am worried it will back fire and others up their interest rates!

    Well done on your DFD
    HHx

    I see what you mean HH.... I will just say this, no-one will argue the toss on your behalf better than you! Once I had my DMP running, it tended to be reviewed 6 monthly and I dont think I had any that charged me interest once they were all with the collection agencies. I just used to write and say my salary/bills are the same therfore your payment is the same too.

    I reckon you can do it :)
    Light Bulb Moment - 11th Nov 2004 - Debt Free Day - 25th Mar 2011 :j
  • Jinx wrote: »
    I see what you mean HH.... I will just say this, no-one will argue the toss on your behalf better than you! Once I had my DMP running, it tended to be reviewed 6 monthly and I dont think I had any that charged me interest once they were all with the collection agencies. I just used to write and say my salary/bills are the same therfore your payment is the same too.

    I reckon you can do it :)

    Challenge for me is all with originator. None with dcas.

    Was the review as a whole or individually?

    HHx
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