Advice please -PayDay Loans/IVA (Fresh Start)

chezba

Hi all - apologies for long post and multiple questions!!

Just wondered if anyone has used Fresh Start Financial Management for an IVA?

I know there will be people out there who are gong to shout at what I'm about to write but I'm looking for genuine non-judgemental advice please as I know how stupid I've been and it's my problem to sort out but I'd just like some advice from people who have been there!

In summary:

Jan 2012 started DMP with CCCS paying £430 to cover 5 creditors. I had 2 outstanding manageable payday loans I thought I'd be able to clear so did not declare them with CCCS as I'd heard they don't deal with PayDay loan companies.

As with all PD Loans - couldn't pay them off as wanted to and got into the re-loaning circle (YES - I know it's against my CCCS rules!) and now in the situation that I cannot manage and have 7 outstanding PD Loans which even by rolling on interest only have meant that this month I've not paid my rent or council tax!

I've already negotiated a repayment plan with Wonga which is manageable over the next year (Although one final payment of £429 but I'll worry about that in 12mths). My plan was to default on the rest next week when I get paid and try to set up repayment plans which each one individually but it would be at a minimal amount and I just want advice on how successful others have been and dealing with threats of baliffs etc. I want to do this separately from CCCS as I don't want to avoid repaying - just need to do it at manageable level.

NOW an extra thing to consider - I've just spent 90 MINUTES on the phone to Fresh Start after I picked up phone without checking number 1st - they've been calling several times a day for last few weeks while I've been at work and showing up on missed calls. I ended up going through all details with them and they are suggesting I leave CCCS and move to them with an IVA of £300 a month and that would include all my current CCCS creditors and the PayDay loan companies.

They are saying my 1st and 2nd month payments go to them as set up fee and then the following months will go to creditors. Is this too good to be true?! Do i really want them to take £600 that could go on debt (although they told me CCCS are in cahoots with my creditors to earn a fee!?).

It appeals to me as with an IVA I know the Payday loans have to stop interest and cannot contact me. How successful am I likely to be with setting up my own repayment plans?

Grateful for any advice or good news from other Fresh Start users?!

Thanks
T

Heffi1

CCCS are not in cahoots with your creditors is the first point I want to make. Also CCCS or Step Change as they are now known, also do IVAs and do not charge you for this. The £600 would go to pay your debt


You know this is a crazy thing to do with this new company, but are probably a little scared to tell Step Change about the new 7 creditors to add to your plan. You also know they will probably tell you to stop the plan as you agreed when you took it on that you would not take on anymore credit AT ALL

So now it is time to pay the piper.

I would call Step Change tomorrow and ask them if they would be willing to re-negotiate your plan to include the new debt and see if an IVA is still the best option for you.

Unless of course you want to give your money away in that case go ahead with the new company and I wish you luck.

chezba

I knew that it was a 'selling tactic' re. CCCS being in cahoots with creditors. I think now I'm off the phone and thinking about it that I now can't believe I've been so stupid to get sucked into a cold call!!

I'm on a DMP with Step Change rather than IVA. I was just sat here thinking that I should just ring them tomorrow! I even thought that if they did cancel my plan I could negotiate directly with my creditors and for a couple of months pay them a token £1 and use the DMP money to get rid of the Payday loans then up the amount again to DMP amount but just deal direct?!

I can see i won't be getting any sleep tonight!

I'm so so stupid!!! Especially as I gave Fresh Start my card details to take the 1st payment next week - I'll have to ring and ask them not to or just ring the bank and cancel my card. As long as I can access online banking, if I need cash while waiting on a new card I can transfer to a friend's account and ask them to withdraw it!

Why did I answer the ohone? I'm so on edge about it all at present and they know that and let me get carried away with it all! aaarrrgghhh!!!!!