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Will I lose my cards?

shambolic_2
Posts: 1 Newbie
Hi, newbie here, be gentle with me 
I dont want to bore anyone with the ins and outs, but I have a question and I cannot find the answer anywhere on the internet or on MSE.com, although perhaps the answer is obvious, I would still like to ask
I have contacted the CCCS to help with a pretty substantial amount of debt. My initial phone interview with them is not for 3 weeks as they are very busy, and as it is the weekend, i cannot ask them this directly
My question is this: If i go down their route and have them arrange payment plans with the credit card companies that I am in debt with, is it the case that the credit card companies that I owe money to will stop my credit cards and / or take them away from me.
I'm not in a big panic one way or the other, I've gone past that stage. But I do have a need to know.
Will I only be left with my Switch card? Will all my actual CREDIT cards be stopped/taken from me.
Thanks
Shambolic.

I dont want to bore anyone with the ins and outs, but I have a question and I cannot find the answer anywhere on the internet or on MSE.com, although perhaps the answer is obvious, I would still like to ask
I have contacted the CCCS to help with a pretty substantial amount of debt. My initial phone interview with them is not for 3 weeks as they are very busy, and as it is the weekend, i cannot ask them this directly
My question is this: If i go down their route and have them arrange payment plans with the credit card companies that I am in debt with, is it the case that the credit card companies that I owe money to will stop my credit cards and / or take them away from me.
I'm not in a big panic one way or the other, I've gone past that stage. But I do have a need to know.
Will I only be left with my Switch card? Will all my actual CREDIT cards be stopped/taken from me.
Thanks
Shambolic.
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Comments
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i know little about credit cards but i would expect so. however someone more knowledgable may say different. .....
having said that .....I'm not in a big panic one way or the other, I've gone past that stage. But I do have a need to know.
if its not a huge issue, it might be best to have them stopped while you are getting sorted?
DC0 -
If they agree to a freeze in interest payments then undoubtly they will not allow you to borrow more money.
I cannto see how any of the companies you enter into an payment plan to pay existing debt off at either 0% or a reduced interest rate would then agree to advance more credit.
Maybe if you kept one currnet card completely clean i.e.no debt for the express purpose of using it for spending.0 -
Hi shambolic
When any creditor agrees to a special repayment plan, i.e. reduced/suspended interest and/or reduced payments, effectively some of the terms of the financial agreement between them and you are suspended. This includes suspension of any further credit.
Credit card companies will advise that the card should no longer be used and either returned to them or a signed confirmation that the card has been rendered unusable (cut up!). Don't throw the cards away though as you may at some point need info from the cards, e.g. start and expiry dates and security code (the last 3 or 4 digits on the signature strip on the back).
That's the long and short of it. Hope it helps.
Best wishes, Graham B0 -
YES, you will agree to not take on any further credit and if you use use any of your cards/overdraft/etc you MIGHT be in breach of your agreement...0
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WiseSteward wrote:Hi shambolic
When any creditor agrees to a special repayment plan, i.e. reduced/suspended interest and/or reduced payments, effectively some of the terms of the financial agreement between them and you are suspended. This includes suspension of any further credit.
Credit card companies will advise that the card should no longer be used and either returned to them or a signed confirmation that the card has been rendered unusable (cut up!). Don't throw the cards away though as you may at some point need info from the cards, e.g. start and expiry dates and security code (the last 3 or 4 digits on the signature strip on the back).
That's the long and short of it. Hope it helps.
Best wishes, Graham B
Oh dear, I totally disintegrated all my cards and got rid of them. I take it this will cause me problems? mind you surley it can't put me in much more jeapody than I already am0 -
Turning_into_scrooge wrote:Oh dear, I totally disintegrated all my cards and got rid of them. I take it this will cause me problems? mind you surley it can't put me in much more jeapody than I already am
You should be OK as long as you have old statements or you wrote down the acct. numbers somewhere. You just need to have some details for future reference. If you close a card account you should always keep the confirmation letter.
To the original poster. If you have a debt problem the you should ditch your cards anyway. Aren't they part of the problem?
Regards
XXbigman's guide to a happy life.
Eat properly
Sleep properly
Save some money0 -
we'd already cut up our cards before we went, but it didnt matter, you also can't get credit for 6 years which is a good thing.i wasnt able to have an overdraft or a cheque book with the bank either but you can keep your accounts.i have managed to pay 4 creditors since january all with interest stopped.6 more to go should be clear by christmas originally was in 35,000 of debt. but they wouldnt touch the hps for some reason0
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bonnie wrote:we'd already cut up our cards before we went, but it didnt matter, you also can't get credit for 6 years which is a good thing.i wasnt able to have an overdraft or a cheque book with the bank either but you can keep your accounts.i have managed to pay 4 creditors since january all with interest stopped.6 more to go should be clear by christmas originally was in 35,000 of debt. but they wouldnt touch the hps for some reason
Bonnie, do you mean you have cleared the debts on 4 creditors since Jan 2005? Sorry if i sound a bit thick but may i ask how you've managed to do it as thats approx my total debt too but well done for the progress youve made :beer:0 -
not exactly, the car and computer hp are still running not included in dmp but will be gone in 2007, halifax loan was 15,000 now 8,000 as they kindly stopped interest.rest of debts have cleared 4 since jan 1,500 total by just paying household bills and living on £50 a week shopping, fags etc.i will have cleared all little debts by xmas which is about 7,000. car will finish june 2006 and computer oct 2006.halifax be gone in 2007 then debt free by way been in debt forever never again though.dont forget all interest on debts has beeen frozen part from hsbc they are tight.you are better to do what i did work out strict budget pay minium payments on time so you dont get stung then throw everything left at highest debt til gone and carryon till all gone it is best way tried everything else, on the dmp the debt kept going up did it for a year then went alone look at the difference0
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bonnie wrote:but they wouldnt touch the hps for some reason
HP agreements won't normally be included in any Debt Management Plan as the creditor has the right to repossess the vehicle or equipment should you default on your contracted payments. More info hereshambolic wrote:Will I only be left with my Switch card? Will all my actual CREDIT cards be stopped/taken from me.
Yes, as others have said, your credit cards will be taken away from you. Furthermore, if your bank is one of your creditors, you will also lose your Switch card as it is also a cheque guarantee card, which is a form of credit. If your bank is one of your creditors then you should be looking to open a new bank account elsewhere with a basic debit card, like a Visa Electron card, otherwise they may legally offset your debt with ANY money in your account, or that is paid into your account.He huihuinga taangata he pukenga whakaaro – A meeting of people; a wellspring of ideas (Maori proverb)0
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