DMP - CCCS am scared about setting it up

zippee

We're just starting on a DMP with CCCS we owe absolutely tons about 66,000, we have got to the point where we are sending them the letters, should I enclose a token payment? if so how much for should there be a set amount?

I'm really scared about whats going to happen next, will our creditors take us to court etc? I'm scared because of the kids and our home am really frightened of anyone turing up here or someone trying to take our home.

Has anyone got experience of dealing with such a large amount of money with the CCCS? I could do with some support have this huge knot in my tum I'm trying not to give in to as I will start crying and it won't stop.

trying-very-trying

Hi! welcome to this marvellous site.
I can't really give you absolute security, as you have said how much you owe, but not how much you have available to clear the debt.

If you pop up a full soa http://forums.moneysavingexpert.com/showthread.html?t=107280
we will be able to see how bad your situation is, and suggest ways to cut back.

Come on we're all a friendly bunch and you'll get loads of advice and moral support.

Newgirl_2

Hi Zippee. Well done for making a start and don't worry... everyone feels the same at the beginning - you're among friends here!

We are in exactly the same position almost - I think our total was £68k when we started. Our experience with the CCCS has been excellent - we sent our letters (we made £10 token payments via online banking to meet that month's payment date, so no payment enclosed in the actual letter as such) and from that point, only paid money to the CCCS and they distributed it via our plan.

Once we got our budget agreed with CCCS, things were a lot smoother as before we had been playing catch up every month to meet escalating credit card bills etc. We have slept better and had less arguments since we made the decision to sort this.

To answer your question about court - in theory, CCCS will negotiate on your behalf (the point of your budget is to show that every available penny is being put towards your debts, meaning that in theory, the creditor would gain nothing by taking you to court as they can't take what you don't have). I

f you follow your payment plan, what should happen is that CCCS send payments by the 26th of each month. Some creditors may call - we only ever had calls from one company (not even the one we owe the most to) and they stopped once they got their records sorted and could see CCCS were paying them. We get statements telling us where we are at and, yes, your balances will probably go up before they go down as, in our experience, creditors like to get 3-4 month's more interest before they stop it. We started our DMP in March and all but one has frozen interest now I think.


CCCS should advise you but basically, if creditors do call, tell them you are with the CCCS and keep calm and polite, ask them to contact CCCS (most have their own liaison dept for this) and to communicate with you in writing. You may get letters threatening default - that will happen anyway, it's part of being on a DMP and, technically, you/we are defaulting by not making full monthly payments. but that is what they have to do - they get the message eventually! If you need to put the phone down, say your piece and do so - I found caller ID and an answerphone a lifesaver. God Bless Hellifax - Grrrrr.

Now, we get no calls, only statements. Our balances are reducing, and I feel so much better.

One word of advice - post your SOA on here (see the sticky on the main page) and others will help you look at your budgets. CCCS tell you what you are allowed (food, clothes etc) but it is the little savings that you can make which will oil the machine - for example, I love my hairdresser, nothing extravagant, just a bit more than I should spend, so I go every two months instead of every 6 weeks. Or, we don't go out a great deal so we kept our Sky package and we make a bit of money by spending less on clothes or food etc. Do what works for you - one person's extravagance is another's necessity.

Above all, good luck. People on this site are fantastic, they will help you so much. And if you need someone to rant at or ask advice, feel free to PM me. I'm no expert but I am going through it at the same time.

Hugs

Newgirl

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our case, as our letters

zippee

Thanks for replying, I was just at melt down point sat here on my own with H at work, when I aw your replies. Basically we have 280 a mth to help clear the debt with the CCCS, not huge but I can't work at the moment as I due to give birth over the next ten weeks, then after a couple of months I will look for a part time afternoon job to help get some more money to put towards the DMP, as H works nights thats all I would be able to do. We have minamized all our expenditure to as little as we can do with the CCCS and the budget is realistic, we won't have any money for extras but will have money for a food budget a mth which will seem like bliss after the last few months. I am kinda expecting the worse but am so scared at the same time.

meerkat2007

Hi Zippee. I don't know if this will help at all, but I'm on a self-administered DMP - have been since about 2001/2002. At that point, I owed over £90,000 (including the mortgage), ended up with one CCJ before I got my head out of the sand.

Since then, I've been making reduced payments, all interest and charges frozen. At no point has anyone come calling at the house, or threatened to take my house away from me. The worst thing I had was the CCJ - I maintained the payments as directed by the court, and I paid that off about 13 months after it was recorded against me.

Over the years, I've had phone calls from the debt collection agencies, but they seem to have dwindled off (I hope I'm not tempting fate!). In fact, one of them has never contacted me at all during that time. When I've been able to, I've increased the payments - more with a view to getting them out of my life as soon as possible, rather than keeping them happy!

Hope this helps.

MissKJ

Zippee, my advise is, still post up your SOA and your circumstances, you may be surprised at the little suggestions that really do help. This is not a time when you should be fretting over your finances, you need to have things to look forward to for you and your young family. I owe a fortune but have no CCS arrangements, but with little hints and tips I have my own plan to get straight.

Good luck, and let everyone help.....

Newgirl_2

It's understandable that you are scared - we don't have children, I'm sure that only adds to the pressure.

Just use the money that you have at the moment and put that to your debts. When you can work, speak to CCCS and up your payments.

One thing I would say is to put aside any money you can when you can, this will pay for the unexpected, such as our 2 new tyres for the car this morning (£308 - ouch!). You might not think you have any extra money but if you can sell items on ebay, or perhaps babysit for your friends, save any pin money that you don't spend from your budget that week etc, it all adds up. If you do manage to amass any savings (which you might over time) you can look ahead to paying off smaller debts when you can, or if you are offered full and final settlements, and you will clear your debt that bit quicker.

Newgirl

zippee

Thanks for your replies everyone. We are hoping we will still be able to save on our monthly budget by scrimping here and there and putting money away we may need etc..

Do you mean SOA with all the debts in there? or now without them? I will do it soon when my heads a bit clearer, because i'm on my own at the mo I'm sat thinking to much about it all and what could happen and working myself up

zippee

Meerkat2007, I replied a long reply to you but it didn't appear, basically said thank you for sharing xx

sofa_bean

Hi zippee
Can't really offer you any advice as I'm pretty much in exactly the same position as you at the moment (just about to send the CCCS letters out to our creditors :eek: )
Just wanted to say that you're not on your own... Finding this site has been one of the best things that's happened in the past few very grim months, and I'm sure you'll find everyone here really helpful and supportive.

meerkat2007

No problem, Zippee I hope everything works out for you, especially with the little one on the way.

Take care.