finally facing up to debt problems

captain_hook_2

I have recently taking the first step in recognising I have a debt problem. Over the last couple of years I have been using my credit crads to pay for everyday things like food and petrol,. Things have now reached breaking point and I know I have to address the problem. I have been in touch with CCCS and they have suggested a DMP. I have received the documentation to get the ball rolling but for some reason I am hesitant about going ahead with it. I feel that I am letting down the companies that I am in debt to by having to resort to these measures,and I feel guilty that I will not be making full payments if I allow CCCS to act on my behalf, I also feel that I have let myself down by getting into this situation.Upto now I have not missed any payments to any of my creditors although sometimes the payments have been late, but by keeping up with these debts I am leaving uas without money for the basics.
i am a lone parent, working 27 and a half hours a week and receive working and child tax credits to top up my income. I have about just enough income to cover my monthly payments but then have to put food , petrol ,on my cards which only increases the problem - it's a vicious circle- basically there is nothing left at the end of the month and i always use my overdraft each month. One of the payments that would be included in my DPM is a loan with the bank that I have my current account with,I am worried that they may ask me to close my current account - could this happen and if so what do you advise.

4littleone

You are not letting anyone down, you are being honest with your creditors and letinmg them know that you will be paying them but over a longer period. (give yourself a hug you are doing really well).

It's unlikely in my humble opinion that you will have your current account closed if you use a dmp for the loan, i defaulted on my loan umpteen times at one point and had a account with the same bank but they did not close the account. (remember they want you to pay the loan off eventually so if they clo0se your account they lose your business).

If you are really worried you could open a separate basic bank accoun to have your wages paid into. I think there is a list somewhere on here. Other more experienced guys will be along to help you soon. Don't panic you'll be fine.

fermi

captain_hook wrote: »

One of the payments that would be included in my DPM is a loan with the bank that I have my current account with,I am worried that they may ask me to close my current account - could this happen and if so what do you advise.

CCCS normally advise you to get a new bank account (or use a different one you have already) with a bank that is not connected to any of the creditors that are going into the DMP.

The reason for this is that a bank can often take money from your current account to pay for a loan or credit card with them if you defaulted on payments (normally the case in a DMP).

This is called a "right of set-off".

See this link: banking: firms' right of 'set off'

It's probably best to start looking for a new account ASAP.

kel123_2

Hi i Captain (sorry)

If you go to the Doctors and he/she tells you to take the tablets 4 times a day for 5 days - you do it because your not a Doctor

The same applies for debt advisors - unless your a repeat debter then please believe me when I say they know what they are doing. I'm with payplan and I cannot thank or praise them enough. It took me 6 months todo what they said my way didn't work their way did!

It's a banking establishments job to sell you money (to make money) and your job to buy, so yes it is your debt and your responsibility BUT! look at what they are doing and how they are doing it, They are not interested in you, only what they can make out of you!!! Just after xmas it was come in and have a finantial review. I'll bet not one of the advisors said, "weve got you on too high a rate i'll nock a point off" or "i've done a review of your accounts and youve been charged £500 in charges we shouldn't have made I've put it in your account" Do they heck as like More like they said...... We can up grade your account to a ................. it will only cost you £10 per month extra and we can consolidate your overdraft and loan into one that saves you £10 per month so it balances (except that it will take an extra 12 years to pay off but don't worry they will do the same with you when you go in for the summer review). You have to start looking at it with a cold heart and a business head. If it's your nature then it's hard to accept this, thats why it took me 6 months to change, it wasn't untill I watched a talk programe about Lloyds banking principles that changed me, They actually highlighted that they encouraged managers to use the above method to get more money out of you??:rotfl:

Kel

Hell1

Hi sweetie, no advice, just feeling it with you. You are not letting anyone down. It will get better.

captain_hook_2

it's good to know there is support out there, and comforting to see that many people have been in the same situation, got through it and are now debt free.

I'm still a little nervous about the DMP as after reading a few posts some people appear to be having problems -such as credtors insisting on increasing payments or adding interest after the DMP has been set up, leaving them no better off than when they starting the agreement.
Is it just a chance you have to take? i presume some creditors are more sympathetic than others.

captain_hook_2

I am currently with First Direct and need to open a Basic Bank Account with a bank that is not connected to them as I am in the process of finally setting up my DMP.
Any advise as to which baks I can use


:rolleyes:

chevalier

First off well done for stopping the rot now rather than later

Second, often the people that are having problems with DMP's are those that have gone to fee paying companies, who take say £100 off you but keep £50 in fees, so the creditors are hardly getting anything. With CCCS, Payplan, National Debtline etc, they don't take anything out of the payment you make so the creditors get more. Also they are generally more respected in the industry and have a better reputation.

Ref the bank account. Alliance & Leicester do a 0% overdraft for a year, and I don't believe they are linked to First Direct. Open an account via www.quidco.com and you get cashback too! Or I have found Smile quite good.

best of luck
chev

nimbo

:grouphug: :grouphug:

you are not letting anyone down. you are doing what is best for you, and your child(ren). the fact that you have taken this step speaks volumes, it shows that you are determined to do the righ thing for everyone involved, (which includes you).

good luck.