About to start DMP with CCCS soon...can i squeeze the last drops from my credit cards

Firsttimebuyer_4

My other half is due to start a DMP with CCCS on the 1st march... She has not signed the DMP agreement yet but she is fully intending to sort this out now.

She as a few credit cards with some money left on them and since the credit card companies have already taken their share of money from her current account to pay the minimum payment she has nothing to live on (apart from my help).

Would it be wise to squeeze every little ounce of the credit cards and get a the money out in cash that is left on the cards?

I know the interest rate and charges on this is very high..but seeing as she is going on a DMP and the budget we have made is fully enforcable we will be ok. Just need that bit to get us through to 1st march which is payday and also when DMP starts. Unfortunately, she cancelled the direct debits a day to late and went overdrawn (again) on her current account and incurred charges.

So, is it a good idea to get a the last 300 pounds out from the credit cards before they get cancelled? Will it impact a DMP decision from the creditors?

Gemmzie

Definitely not. A lot of creditors won't accept DMP payments unless the cards haven't been spent on within three months, you will make things very difficult if you do it.

Sea78

Have you not had to promise CCCS not to debt any more? If the DDs have gone out - ring CCCS - they might have some suggestions. Have you sent out the letters and token payments?

Sea xx

Firsttimebuyer_4

Sea78 wrote: »

Have you not had to promise CCCS not to debt any more? If the DDs have gone out - ring CCCS - they might have some suggestions. Have you sent out the letters and token payments?

Sea xx

It's not me. It's my other half.

She is completly up to date with all repayments on all creditcards. The problem is that she has been using her overdraft to pay minimum payments and now there's no overdraft left....

Could we ask CCCS to start the plan 1st April instead since all the Debits have gone out? Maybe that's a better option.

SarahNeedle1872

I am not experienced with DMPs but did ur OH not have to do an SOA for CCCS so they could agree a monthly repayment plan?

Sea78

Hi I think it woul dbe a good idea to contact them and see if you can delay it - the fact I only paid token payments the month before mine was the only reason I had money to live from!

Give them a ring tomorrow (or get OH rather) and I'm sure they'll be sympathetic to the situation - your OH can't be the first this has happened to.

Firsttimebuyer_4

SarahNeedle1872 wrote: »

I am not experienced with DMPs but did ur OH not have to do an SOA for CCCS so they could agree a monthly repayment plan?

Yes. She has done a full SOA and the payment has been agreed. She just needs to sign and return the paperwork.

Since all the creditors have taken their loan amounts by direct debit (before they were cancelled) she has no money left for petrol and for our joint bills...

I struggle myself, but I am just about managing on my own (not on DMP but will be debt free in 2 years...yaaay)

She has 2 options.....

1. Get cash out from the credit cards and then start DMP 1st March.
2. Use a bit (around 200 pounds) overdraft on her new current account to cover essential bills until she gets paid at the end of the month and then ask CCCS to defer the start date until 1st Apri so the account can get into credit and then cancel the overdraftl. I KNOW this is using credits and against the DMP payments....but how else can we pay for food and bills?

mummytofour

What I did was have one month break when I just sent token payments before I started my DMP this allowed me to save a little but the DMP started. She must not borrow ANY money as she will be in breech of CCCS and I really dont think having an O/D with her new account is a good idea far to easily lead and as already stated you are not allowed any more credit or cccs says bye bye.

SarahNeedle1872

Firsttimebuyer wrote: »

Yes. She has done a full SOA and the payment has been agreed. She just needs to sign and return the paperwork.

Since all the creditors have taken their loan amounts by direct debit (before they were cancelled) she has no money left for petrol and for our joint bills...

I struggle myself, but I am just about managing on my own (not on DMP but will be debt free in 2 years...yaaay)

She has 2 options.....

1. Get cash out from the credit cards and then start DMP 1st March.
2. Use a bit (around 200 pounds) overdraft on her new current account to cover essential bills until she gets paid at the end of the month and then ask CCCS to defer the start date until 1st Apri so the account can get into credit and then cancel the overdraftl. I KNOW this is using credits and against the DMP payments....but how else can we pay for food and bills?

Option 3.... call CCCS and ask them to give token payments for this month. If having any credi is against their guidelines, I wuldn't do it, and as Sea78 said, ur OH isn't the first person this has happened to

Gemmzie

Her new account needs to not have an overdraft.

When did the DDs go out? They might be able to be recalled.

Otherwise, token pay for the next month and start paying CCCS from 1st April.

She needs to speak to CCCS.

Firsttimebuyer_4

Direct Debits went out a week ago and we cancelled them yesterday. She opened a new account and they gave her an overdraft automatically....she is NOT intended to keep this. First thing we will do when the DMP starts is to cancel the overdraft completly.

If she sends the paperwork now, would they start it 1st or march or is there a deadline? How long does it take to set up?

She has not send the DMP Notification template letter to the creditors yet,. Perhaps the best thing to do would be to send the DMP Notification to the creditors with a token payment for the March installments explaining that the DMP will start 1st April. Then she can return the DMP Agreement along with all her creditors latest statements on to CCCS explaining that she has made a token payment for March and she is ready to start the DMP on 1st April.

Does that sound like a good idea?