Struggling with debt? Ask a debt advisor a question

mum2one

StormBlonde wrote: »

Thank you so much for taking the time to reply. Yes, StepChange recommended the DMP. The stupid thing is I know exactly why I got into this mess and it is my 'attitude' to money. I worry that I will do this DMP and end up right back where I started, but maybe that is me just making excuses to myself. I am sure that subconciously I am trying to find excuses because then I can just bury my head in the sand and pretend everything is fine!

They say the first step is always the hardest.....*gulp* Thank you for the links. I just read the first one and I am going to keep reading it every time I think I can sort things out myself until I have submitted the paperwork to StepChange.

Thank you again. x

Thank you, I know where your coming from re money, I did a lot of burying my head in the sand, - thou once your on the debt free lifestyle - ie your budget it almost subconsiously makes you change your spending habits.

Your be fine, once the 1st payment has gone out, it feel like a weight off your shoulder, I'm always here if I can help or you want someone to chat to, pm me anytime. xxx

edbling

lorraine_r wrote: »

Hi,

Never posted on here but I feel I have to comment on this.

Just so you know, I am a 46 year old (now) single mum with 3 kids. I found myself in trouble when my husband left. !!!!less bas***d left, went bankrupt and I haven't heard from him since, one piece of good news I suppose lol. Anyway, due to my job, even though I'm not a homeowner and have no assets I couldn't really go bankrupt, so I approached CCCS for help. That's what the forums say, that's what my employer at the time said. Being reasonably bright about financial statements, I had worked out my own disposable income to be around £200 ish on about £30,000 debt, most in joint names. What was it I said about being bright? Anyway, I spoke to CCCS fully expecting an IVA recommendation at around £200 per month. Let me tell you that my eyes were opened that day. Not only did they not bother discussing an IVA with me at all, they said it was BR or DMP, they then expected me to pay £300 per month on a DMP. No way could I afford that, but they didn't care, their attitude was pay as much as you can. They insisted I should knock both my childcare and petrol down, even though without enough to pay then I couldn't have worked anyway. Laughingly, they gave me the spiel about their plans being paid for by creditors, hinting that it didn't matter what I paid as it made no difference to them. I have since learned that they are paid a %, so the more you pay, the more they earn.

Anyway, I approached a well known IP for an IVA, who was horrified by the way, and I entered into one at £180 per month. I kept all of this from everyone, until my brother found out. I can't say I found the IVA easy, but £180 was a hell of a lot better than the £300 that CCCS wanted. My brother, bless, funded a full and final settlement 2 and a half years in and I am now debt free.

Anyway, all of this really is background to now. I work for a very large creditor (which is why I never wanted bankruptcy) who doesn't refer leads to CCCS and never will. My employers view them as sanitised debt collectors, who are a law unto themselves. I was given, this week, a copy of the latest Credit Today magazine, circulated primarily amongst the credit industry. I don't think you can buy it in the shops. The centre page spread is a huge advert for CCCS, boasting about how they are going to help many more people in debt. This is not going to come from ever more creditor referrals, but from massive advertising on TV, Press and internet. Where is this money coming from? Is it the millions in cash that they sit on perhaps? Let me quote a couple of lines from an advert that no ordinary man in the street/on the internet will ever see, as they will not dare publish it a newspaper,

"For those in debt distress, that means a more caring and considered approach to their problems. For UK creditors, it means the best possible help and advice for your customers. And, importantly, more debt repaid."

"With our debt management plans, all money repaid goes towards clearing the debt, None goes to us, Last year, we repaid over £312 Million to UK creditors. By referring customers to us, not the commercial sector, you're assured of better rates of debt recovery."

"Call us now to find out more on **** *** ****. If you'd like to know more about how we can help your customers overcome debt problems, and manage their debt repayments, contact us now."

This is an advert aimed solely at those creditors that do not refer directly. It blows away completely any lingering hint of impartiality that CCCS claim to have. They mention no ther solution than DMP, and are promising creditors a better return. Why? so they can earn more commission. It stinks. CCCS receive, I believe, around an 11% "dividend" or "donation" on what they collect. Meaning nigh on £3 Million per month in fees. Why on earth would they recommend anything other than DMP? And GD2 is right BTW, CCCS WILL turn you away, though they may say they won't. Search this whole forum for people who have written that they were refused help from CCCS, there are hundreds on here. Or, search for those that were advised DMP when it will take 10, 20, 30 years or more. Probably thousands.

Mat, and the others, may believe what they are fed, but the reality is so much different. I have always said that actions speak much louder than words, and my advice to anyone would be to speak to Payplan, CAB, National Debtline. Anyone but CCCS.

If you want to pay your creditors as much as you can then do it direct, don't let these money grabbers earn their commission. Maybe, as more people (and creditors who pass them 10,000 leads per week)are cottoning on to them, that is why they are going tobe directly advertising at,great expense,to replace the captured market monopoly that they have hitherto enjoyed. Maybe that is why this "debt myth" thread has appeared. The only debt myth here is that CCCS is impartial.

I was in a dmp with payplan who get 8p in the £ of what you pay back. Initially the dmp was for 7 years on a debt i owed of around £30,000. After 6 years of paying around £300 per month i still owed £22,000! Payplan said they can't guarantee intrest frozen.Why would they want to freeze intrest? I don't think that if i had ended the dmp there and then i would ever have become debt free! I'm sure dmp's may work for some but not for me.

mum2one

I have to speak as I find, and I have nothing but praise for CCCS, I tried to self manage a DMP and that basically blew up in my face as each creditor was trying to say they were more important than the other, and as I paid so well I was transferred back to normal dealings.

No-one promises that your debt will be interest free that is up to each individual creditor, for me, I have one that is digging their heels in, another on low interest the others so far have blocked any interest.

Everytime I have spoke to anyone at CCCS - I have found the consultants to be polite, helpful, and more importantly making sure that I have enough money to live on, even when I had to take a months break, then later on my repayments dropped, I have found nothing but professional service.

Everyones situation is different - I say judge for yourselves.

mum2one

have reported the posts by the "good witch" - as spam....... x

Stubblet

Hi

I have around £6680 of debt on an MBNA card which i have been making token payments on for the last 6 months. I have negotiated a partial settlement of £1,900 which i am happy with and am waiting to receive the terms in writing (i am aware this isnt the same as full & final, but is the best i can get with them or face a default)

My question is, i know this will be marked on my credit file as 'partially settled' for 6 years, will it make a difference if i also partially settle with my other 2 credit card-Ie is having 3 partially settled accounts worse than just 1 on my credit file?

I have around £7k on barclaycard and £3k on RBS... have been making min payments, but really want to get my debts cleared asap and am struggling every month. I know to get partial settlements accepted i will need to stop payments for a few months & advise of financial difficulty for it to be considered. My parents will be able to lend me some money in a few months after the sale of their house, hence why i would be in a position to offer lump sums...

I'm really not sure whether to carry on making min payments on these 2 cards, or attempt partial settlements and finally become debt free- albeit with detriment to my credit file

I do have a mortgage with my sister which is fully up to date, although i do worry that if/when we sell and i want to get my own mortgage i wont be able to due to the partial settlements on my credit file...??

Any help/advice most appreciated. Thank you.

StepChange_James

Stubblet wrote: »

Hi

I have around £6680 of debt on an MBNA card which i have been making token payments on for the last 6 months. I have negotiated a partial settlement of £1,900 which i am happy with and am waiting to receive the terms in writing (i am aware this isnt the same as full & final, but is the best i can get with them or face a default)

My question is, i know this will be marked on my credit file as 'partially settled' for 6 years, will it make a difference if i also partially settle with my other 2 credit card-Ie is having 3 partially settled accounts worse than just 1 on my credit file?

I have around £7k on barclaycard and £3k on RBS... have been making min payments, but really want to get my debts cleared asap and am struggling every month. I know to get partial settlements accepted i will need to stop payments for a few months & advise of financial difficulty for it to be considered. My parents will be able to lend me some money in a few months after the sale of their house, hence why i would be in a position to offer lump sums...

I'm really not sure whether to carry on making min payments on these 2 cards, or attempt partial settlements and finally become debt free- albeit with detriment to my credit file

I do have a mortgage with my sister which is fully up to date, although i do worry that if/when we sell and i want to get my own mortgage i wont be able to due to the partial settlements on my credit file...??

Any help/advice most appreciated. Thank you.

Hi Stubblet,

Thanks for getting in touch.

It's very hard to give firm advice about credit files, as much depends on the attitudes of lenders and the huge number of variables that go into making their decision.

So it's hard to say exactly the impact any of these things would have. James Jones from Experian suggests the impact of partial settlements might not be too bad in this article: http://www.experian.co.uk/consumer/questions/askjames261.html.

If you can afford to maintain contractual payments to your existing debts then that's generally the best way to proceed. I'd definitely not recommend making reduced payments to debts when you can afford to pay them in full.

If you'd like to get more in depth advice you might want to get in touch with us. Our contact details are in my signature below.

Kind regards

James

phrygian10

Hi

I've woken up this morning to hear my parents have taken another stupid Wonga loan ..
They actually rely on wonga every month for all the house payments.

I understand the APR / interest rate is 4217%
Every month their debt climbs higher with this payday loan company.

My poor folks have not really shown an inch of money savvy behaviour.
They're not trying to use price comparision sites for better loans.
Due to previous experiences they will never approach a credit card.
And they believe its their only choice, due to a supposed "black" credit rating.

Anyway i've taken it apon myself to help them out.
Im in work, but I cant afford to outright give them the money they need to just get out of debt with the payday lenders.
So I figure ill take out a credit card with as low interest I can possibly find, they can go through me instead of this stupid Wonga site.

I figure they need that money lent to them first to clear this wonga debt, then once more for the fallout, afterwards until they are sorted.

(there genuinely is infact a light at the end of the tunnel soon they just cant keep using Wonga loans.
They have successfully been paying back debt from a business my father used to own, which had been liquidated.
Very soon that will be finished and they'll be around £800 better off, every month.)

Sorry for the long winded story heres the short:

Im 22. Living in the UK.
I have never borrowed money (so thats neutral credit or something?)
I want to get a credit card to help my folks and stop them borrowing from Wonga. And offer them a better interest rate, through me.

Any suggestions?

*Foolish*

phrygian10 wrote: »

Hi

I've woken up this morning to hear my parents have taken another stupid Wonga loan ..
They actually rely on wonga every month for all the house payments.

I understand the APR / interest rate is 4217%
Every month their debt climbs higher with this payday loan company.

My poor folks have not really shown an inch of money savvy behaviour.
They're not trying to use price comparision sites for better loans.
Due to previous experiences they will never approach a credit card.
And they believe its their only choice, due to a supposed "black" credit rating.

Anyway i've taken it apon myself to help them out.
Im in work, but I cant afford to outright give them the money they need to just get out of debt with the payday lenders.
So I figure ill take out a credit card with as low interest I can possibly find, they can go through me instead of this stupid Wonga site.

I figure they need that money lent to them first to clear this wonga debt, then once more for the fallout, afterwards until they are sorted.

(there genuinely is infact a light at the end of the tunnel soon they just cant keep using Wonga loans.
They have successfully been paying back debt from a business my father used to own, which had been liquidated.
Very soon that will be finished and they'll be around £800 better off, every month.)

Sorry for the long winded story heres the short:

Im 22. Living in the UK.
I have never borrowed money (so thats neutral credit or something?)
I want to get a credit card to help my folks and stop them borrowing from Wonga. And offer them a better interest rate, through me.

Any suggestions?

It is admirable that you want to assist your parents, however I have known in the past that those with no credit do sometimes find it difficult to obtain credit (crazy I know when they chuck it at you when you're in debt!) Just so you're aware you cannot use a credit card to pay off a Wonga loan, so you would have to use cash from a credit card which is costly. Wonga will arrange a repayment plan with your parents, if they tell them they are facing financial difficulties, or if they are on the downward spiral of payday loans, maybe they should contact one of the debt charities for some advice and maybe consider a DMP.
I'm not sure that you getting into debt is the right option here, but I appreciate that you want to help your folks out. Is there anything they could sell, car boot/eBay just to try and raise some funds?

andfear_2

Hi

What is the best thing to do? We have a house that we rent out £30,000 tied up in the property but we owe £20,000 on C/C's = we don't take home any extra money from the property in fact it costs us.
my husband is Self employed and we refer to it as his pension.

Would we be better selling and paying off all debt or sitting tight and slowly chipping away at our debt. Most of which is interest free but we spend appox £500 making minimum payments and it doesn't feel like its going down.

Any advice welcome

thanks

baldwin1976_01

Hi

I was wondering whether you could provide some advice on whether an arrangement to pay is better than a CCJ or default and how long it will stay on each of the three credit rating reporters files under my name.

I stupidly took out a pay day loan with Express Finance and was made redundant in May 2013. I am now temping and pay as agreed £16 a month towards the debt, but now they have sent a letter saying if it is not paid in full by the 23rd October they will default me. This I really don't want as my credit rating was improving and I have just found a very good job.

Lending Stream another payday Lender have agreed a repayment plan and there is no default on my file. By the way how long will an AP stay on my file 6 years from the date it started or the account is settled?

If I have an AP but all my other debt is clear will this mean I still have adverse credit and a poor credit rating?

Sorry to bombard you with questions I would just like to get back on track and will never take out a payday loan again.!!!

Many thanks

SBP