Urgent Advice Required Please!!!!!!!

poppyg_2

Have a go of the online debt remedy on the CCCS website www.cccs.co.uk, if you type your incomings and outgoings into that then see what it recommends. I think these charities do take into account that you do have to live as well as pay the debts off (for example my brother is on a DMP with Payplan and they allowed him to budget for a night in the pub every week)!

I think creditors would be likely to accept reduced payments under the circumstances especially going through a debt charity such as these or Payplan (have heard both are very good)

rayday2

kroeger wrote: »

Who would you recommend out of CCCS and Payplan? Also what would they allow for a family of five to live on? Does anyone have a breakdown by category?

I am seriously considering a DMP even though it will likely take 6 1/2 years to pay off, how likely are the companies to freeze interest and charges? especially over such a length of time!!!!!!

Just out of general conversation in the DMP support thread a few people compared their personal experiences and it seemed that CCCS were more generous with the levels to life off. But I must stress it was just general conversation and conclusions drawn.

kroeger

Did the Debt Remedy on CCCS and it recommends a DMP. Looks like I will be contacting them shortly.

moxie_2

Good luck, you've taken the first step now you must see it through. I've got a DMP with Payplan and for a lot longer than 6 years! But it was the best thing I ever did.

rayday2

Well there is plenty of support out there for you, somewhere on the first or second page there is a big DMP support thread with people at all stages of the DMP route well over 200 members.

Its very hard to get out of cycle of borrowing - I know that from experience we are always told it is what you do but I wish years ago I had never took my secured loan out and sought out other avenues.

Good luck and you have any worries just ask plenty of people around to help!

kroeger

Thanks for your advice everyone, it is appreciated. I did not sleep for more than an hour last night with worry.

kroeger

Well just to update everyone. I have spoken to an advisor at Payplan, gone through my debts and income and expenditure with him and he recommended an IVA. I am waiting for the paperwork to come through.

I have drafted a letter to each of my creditors stating that I will make a token payment to them and that I have spoken to Payplan and will be proceeding with an IVA and that they will hear from Payplan shortly.

Is this the right thing to tell them? I have not posted off the letters yet!!!

Also does anyone have a link for up to date cost of living figures that the IP would use for my situation i.e. 2 adults 3 children in a three bedroomed end of terrace house? Thanks.

hypno06

IVAs are not for the majority of people - they are only designed to help a very few people.

Before you agree to an IVA (and I am not saying that it is wrong for you, just saying please check) please speak to cccs and see what they say. IVAs, if they go wrong, can lead to bankruptcy, and you say this is something you have to avoid because of your job, so you need to keep the risk of bankruptcy at a minimum.

If you go down the DMP route, it CAN be flexible, so if something happens, like you lose your job and get one with lesser income, for example, the payments can be adjusted downwards, whereas my understanding is that the IVA is more "set in stone" so if you cannot afford to pay it for any reason, you could be made bankrupt pretty quickly.

Just double check x

BARGAINHUNTER!

loaner wrote: »

Sell your car, buy a banger, pay off egg.

Saves £173/month. A third of the debt is gone, no IVA, no problem at work, and no deficit.

That was my gut reaction when I read the SOA. You say the car is worth £10k. That has to go - sell it, buy a decent car for a couple of grand and use the surplus to pay off one of your debts. Can your wife not go out to work in the evenings or at weekends - something like Tesco for example? They are always looking for staff. You would get discount on your shopping too and her wage would pay towards one of the debts.

kroeger

I think you are right about the car, I am also still giving a lot of thought to selling the house and car and renting, thereby just about clearing all my debts in one go.