citizens advice bureau (few questions)

blu1974

Hi im pretty new to this so it mat sound a stuip question sorry if it does.Me and my partner have unsecured debt between us of 24,000 loans plus credit cards,the last 3 to 4 months we have been on a knife edge and just managed to keep the payments up we have never been behind and we still are not behind with any payments but once every think is paid out i can just put food on the table at a push.We have 2 small children and one on the way,so i decided to contact my bank who i have the loans and credit cards with and explained my situation and to my amazment they was very helpfull and understanding but told me for them to take me seriously i must seek advice and go to the CAB.So me and my partner went yesterday and the young lady there went through all my income and how much i have to pay out etc etc.After she worked it all out she came up with a figure of £199 which we have left after every think else was accounted for food,gas,elec,morgage council tax all the main important things.Now she has drafted me a payment plan and told me she is informing all my debtors of my situation and that i must now stick to her payment plan.The £199 is spread evenly between my debtors and in order of who i owe the most money to gets the highest amount out of the £199 in that order if you know what i mean.She told me to cancel my direct debits and only pay using giro slips etc she also asured me that this was totally legal and that my debtors will except my offers as long as i stick to the plan.She also said if i have any threatning letters to contact her and let her know so she can deal with it.I have also opened a new bank account with both our wages going into it and still maintain morgage payments and council tax etc.This women has been a angel and hopefully the next few months once it settles down things will be alot better for us but is this the usual how the CAB help you im still scared to cancel the direct debits but she said i must do this and pay what she has told me to pay.Im going to cancel them this month and start her plan but just worried about balifs knocking the door but she also said that should not happen as she is dealing with it personally all im asking really does this sound right before i cancel my direct debits and sorry about the spellings cheers

tealady

Hi and welcome. Don't worry about the spelling, what you were writing has come across clearly. Just follow what the CAB say, they are very experienced. If you want to double check then give one of the debt charities a ring.

cabvol

Firstly the CAB is a charity and were the first organisation of its type. They are there to advise you on your options and assist you with your problem. There is nothing in it for them, other than job satisfaction.

You have been given standard debt advice, how ever with out the figures this can not be checked.

It would appear that you have not understood the advice given, you need to go back and check what you have been told by the adviser and ask for an explanation of anything you do not understand.

In addition no one at the CAb tells people they must do things its up to you, however debt advice and assistance is very expensive and time consuming, once you have agreed to their assistance and you do not keep to your side they may decide that they can not help you any further with that issue.

fatbelly

Hi

The advice sounds good.

Yes, you do have to cancel the direct debits.

Did she tell you to start the new payments immediately? Or wait until confirmation of the offers has been received?

Bailiffs cannot be instructed until there has been a court order and you have defaulted on that order. Most debts never get anywhere near that stage. In the unlikely event of receiving a court claim you would return to the CAB for advice.

beanielou

You have received great advice & yes you do need to stop the DD's and make sure any money coming in goes to your new account ASAP.

blu1974

Hi thxs for your replys she has told me to start the payment plan this month straight away and only pay what is on my plan as if i pay more it will then scrap my plan she was brillent and she did explain every think very well the main reason i posted on here was to see if other people had gone through the same process and how they got on with it.Im going to open a new bank account on monday coming and then move my wages and my partners all to that account and start her plan and then ill hold on and wait for the storm thanks again for all your replys ;0)

tealady

Hi Your CAB adviser sounds great, they do have a tough job considering the range of problems people need help with.
If you want to, put up your SOA and we will see if we can help tweak your budget a bit more. Or how about joining one of the challenges?

MrsTinks

Sounds like the Cab advisor is doing a great job for you As far as I can tell from your posts the advice is spot on and yes there might be a month or two as the creditors get used to the idea, this is normal, then again they might just accept it straight away!
Best of luck and remember both CAB and the gang on here will always be happy to help you answer any questions

wendywitch

OMG where do you live? Your adviser sounds like a God send! Everytime I've ever been to my local CAB I get little old ladies who are no help and tell you what you already know.

blu1974

Hi i live in Birmingham the advisor was in handsworth she deals with the whole of handsworth all on her own shes very good and really reasuring i have promised her choclates if all goes well lol. Below is the Finacial Statement bellow.
MONTHLY INCOME.
Me £1300
My partner £1080
Child Benefit £125.40
Child Tax Credits £41.83

MONTHLY INCOME £2547.23.

MONTHLY EXPENDITURE
Mortgage £476.33
Secured loan £690.58 (dont ask)
Council Tax £94
Gas £100
Water £25
Electricty £40
School Meals £40
Tv Licence £12
Car Fuel £100
Car Insurance £50
Food £200
Household £50 (extra food and toiletries through the month)
Clothes£40 (2 kids and 1 on the way)
Mobile £25 me
mobile £8 partner
Leisure & activities £60
Building and contents Insurance £30
Lane Line broadband £30
School trips /snacks £50
Pet Insurance £15
Child care £260

MONTHLY EXPENDITURE £2353
Total income £2547.23
Totalmonthly outgoings £2353.91
MONTHLY CASH AVAILABLE £193.32

NON PRIORITY DEBTS
MINE
LLOYDS TSB £3040 CREDIT CARD I NOW PAY £24 AS I HAVE BEEN ADVISED
LLOYODS TSB LOAN £9903.30 I NOW PAY £76 AS ADVISED BY CAB
LLOYDS TSB LOAN £4838.50 I NOW PAY £37 AS ASVICED BY CAB
MARKS & SPENCERS CREDIT CARD £2463.41 I NOW PAY £19 AS ADVISED BY CAB.

MY PARTNERS DEBTS
NEXT CATALOGUE £206.34 PAY £2 AS CAB ADVISED
LITTLEWOODS £111.62 NOW PAY £2 CAB
CAPITAL ONE £1333.25 NOW PAY £11
MBNA £790.56 NOW PAY £6 CAB ADVISED
VIRGIN £2093 NOW PAY £16
ARGOS £365.19 NOW PAY £3
ADAMS 190.26 £2 CAB ADVISED
DOROTHY PERKINS £178.01 NOW PAY ££2
TOTAL WE NOW PAY £199 BETWEEN DEBTORS

This is the exact statment that the cab are sending to all our debtors i also explained that the last 6 months i have been earning more than £1300 basic and she said that she will not take over time into consideration this is just as well as over time is drying up.We did pay alot more than what i have put above we are not proud of our debts and i will pay them back it may take a while but with this plan i can manage far far better,thanks people see what you think cheers ;0)

beanielou

School trips and snacks seems qute high.
You could maybe reduce that a wee bit.