Debt curse

cat4772

Hi Jo6

have just read this thread and have to agree that you should be able to shave a fair bit of money fromt the monthly food bill. Don't try immediately to cut this down though, rather set yourself a challenge to reduce it by £100 and see how you get on. I know I've managed to cut my food bill down and without too much hassle.

Your unsecured debt at the moment looks like you have just one creditor to whom you owe £30K and pay £297 and it has an APR of 0% which looks as though it will take 101 months to clear. Obviously any money you save via food shopping can reduce this further.

Other things that might be helpful include a spending diary - what money might you be spending that you are just unaware of... (mine was a magazine, coffee and crisps each day - soon adds up).

Agree that if you're not having much joy with CAB, then try CCCS or nationaldebtline.

Good luck with it.

Cat.x

ILoveChristmas

Hi Jo 6

I'm new to MSE but just wanted to tell you my story. I have unsecured debts of around 30K and 7 months ago I started a DMP (Debt Management Plan) through the CCCS (Consumer Credit Counselling Service - 0845 272 5400) who offer FREE debt advice and act on your behalf with all your creditors. Because of their negotiations, my creditors have accepted my monthly payments and 5 out of 6 of them have stopped interest :j

The CCCS went through my income and expenditure and my disposable income is spread amongst my creditors on a monthly basis. I pay almost £300 per month, so in 7 months I have seen my debts reduce by about 2K, which may not sound much but at least it's heading in the right direction. Before I went on a DMP I was, literally, bombarded with phone calls and letters from creditors and it really got me down.

Since my DMP has been in place, ALL phone calls and letters have stopped. They have left me alone (for now!). They have my income and expenditure and each creditor knows about the others and what they are receiving by way of payment so they know the pro rata payments are fair.

I'm a homeowner and whilst I may sell my property to pay the debts (I'm keeping a close eye on the market), the DMP has given me my peace of mind back and allowed me breathing space. I do live on a tight budget but that's as it should be and actually I'm here on MSE to learn from people how to save/make even more money which will go towards my debts. For instance, because of this site, I'm now in the process of reclaiming all my unfair credit card charges which will be used to reduce the debt even further.

This site is AMAZING and I learn something new every day. Hold in there, take as much FREE advice as you can and whatever you do, don't take on any more credit - especially by way of a consolidation loan...... 'tis a slippery slope...

I wish you all the best, I really do.

Take care

ILC x

Waspeze

ILoveChristmas wrote: »

CCCS (Consumer Credit Counselling Service - 0845 272 5400)

What's the difference between that number and the free one 0800 1381111?

jo6

Thanks for all the support and encouragement. Will work on getting the grocery bill down and have signed up to do surveys don't quite understand the click for money yet but shall keep trying. The £30000 is spread over 2 loans and about 5 cc which I think should be banned (to easy money for undisciplined people like me).

By the way if you are on a DMP can you still claim back unfair charges? I didn't realise that you could and I was thinking of consolidating but the CAB advised against it.

ILC can't believe you have paid off £2000 in 7 months maybe there is a light at the end of the tunnel.

Will give the CAB another week because I think there handier for me to work with in NI there office is closer. Will also start keeping a spending diary because if I go into a shop at all I seem to break a £10 or £20 everytime.

Thank you all:T

jo6

Oh and I forgot have joined the £2 savers club (havent got any yet) ever hopeful though!!!!!

dellskoi

jo6 wrote: »

CAB are dealing with creditors so that I can make reasonable payments at 1 point I was paying £200 to MBNA and only £40 was coming of it so I was really getting nowhere. CAB figure I have about £280 disposable income toward debt which will take forever to pay off and the letters and phone calls just keep on coming. I have 2 jobs and my husband in self employed 6 kids and a income of about £2100 and my mortgage and secured loan cost me £974 groceries 500 and rates 40 diesel 80 electric 50 insurances 50 sky 45 which I am going to cancel and 50 for extras.

The CAB helped me. Was getting calls 5 or 6 times a day from various CC companies. The HALIFAX deserves a special mention, piling on interest whenever they can. The CAB drew up a Debt Management Plan which offered each company the same percentage of what my Financial Statement said I could afford. Most have been very agreeabe except the HALIFAX. The term "Can't get blood out of a stone" comes to mind every time they get on my nerves. This has been going on now for 2 years since I spent some time in hospital. They even demanded that my wife got me to call them when I was unconcious. Getting 3 calls a day to mobile and landline now. Seems like they suddenly remembered me.

jo6

Does that mean that you have to keep paying the Halifax the original amount and does that interfere with your other creditors if they hear about it. Sorry not sure what way it works and who am I supposed to pay the money to when its sorted is it the CAB or the companys themselves?

Didnt realise there were so many debt collection companies but I seem to get a letter from a different named one everyday but I have pulled the phone out of the wall so they cant reach me that way.

dellskoi has you debt reduced much in the 2 years and have the other companies stopped interest?

dellskoi

Once the CAB have agreed payments the CC companies normally agrre to it for a year then it is revieved. But if your finance situation has not changed there's no reason why it won't continue. You pay the CC companies so it's a good idea to keep a list of their names, account numbers and addresses cos some of them don't even send you a statement every month. I've even got their addresses setup to print envelopes and I've now sorted it so that I just spend 1 hour on the first weekend of each month paying them. I'll never clear the debts but I can pay the total £200/month. I might consider bankruptcy in the future. Then they'll be stuffed.

ILoveChristmas

Waspeze wrote: »

What's the difference between that number and the free one 0800 1381111?

Oh sorry if I misled and there is a free number - the number I quoted is the one I have used once or twice - usually, I correspond with them via e-mail if I have any queries.

Waspeze

ILoveChristmas wrote: »

Oh sorry if I misled and there is a free number - the number I quoted is the one I have used once or twice - usually, I correspond with them via e-mail if I have any queries.

Wasn't doubting you ILC .. as know that number shows up on saynoto0870 for CCCS, just wondered if there was a difference between the two numbers? (apart from the charge of course )