I have got myself in a real state financiallyl

[Claire-Louise]

Hi

I have got myself in a real state financially for a few different reasons. I have finally realised it’s time to face up to my problems. The worry is actually making me ill now and prescription charges are another expense I really can’t afford!
I have been on to the CCCS website and completed the debt remedy questionnaire it stated that the best thing for me would be a Debt Management Plan.

Basically I owe just under £29,000 I have 8 creditors. My monthly income is £1217, my contractual payments are £980. So basically at the moment I am barely managing to live.
My other outgoings including rent etc are £840 I can no longer borrow peter to pay paul and desperately need to get help.
I feel guilty and ashamed it has got to this.
My main question is has anyone on here gone through CCCS to take out a DMP & if so are creditors usually willing to co-opera rate?
Many Thanks

[MelanieGiles]

Hi there and welcome to the forum

I cannot see why CCCS have recommended a DMP to you - why not an IVA?? This would be over in five years, whereas a DMP could take more than ten! This does not seem good advice to me, unless of course they are motivated to get as much back to your creditors as possible.

I would speak to one or two other firms to compare the choices you are given - I always feel it is dangerous to only offer one solution, and therefore always make sure clients are well advised on all options. As you are renting, have you also considered bankruptcy proceedings as a quicker and cheaper option?

[dand]

Welcome to the forum Claire.

You have taken the first big step in seeking help for the situation you are in. As Melanie states, an IVA would probably be a more practicle and sensible option.

You can go onto www.iva.com and seek a few IVA companies who will point you in the right direction and give you the best advice available. And it's free!

I can personally vouce for Melanie's company (post above) as I have recently started my IVA route with them.

Good luck, and you have found the right forum for all the help and support you need.

[David Mond]

From the facts quoted I agree with Melanie - an IVA may be the most appropriate advice.

I also have my suspicions on what recommendations the CCCS algorithm gives!

You need to have a chat with an IP and give him/her details of all your personal and financial circumstances and particulars.

Visit www.iva.com for reviews on firms and practitioners and select one or two to have a chat with. They will give you
the most appropriate advice and it is free.

[dand]

that meant to say vouch! - its getting late.........

[kallis3]

As regards prescriptions, if you take medication regularly and it is costing a fair amount a month, have you thought of a pre payment certificate?

I have one, and it costs just over £10 a month and that will cover all your prescription costs for a year.

[mole]

Interetingly the CCCS debt remedy programme advised me the best course of action was DMP.
Philx

[Claire-Louise]

Thanks for all the responses. I did think that the advice regarding the DMP seemed all a bit too easy. It stated I would be repaying £347 a month and that my debt would be cleared in 6 years and 4 months.
I am currently renting from my parents my dad is in ill health so for as long as possible I would like to keep my financial situation private, although I hace confided in friends recently which has been a god send.

I will take the advice given and spend some time over the next week contacting a few different places.

Many Thanks

[angelc]

Hi Clare-Louise

I have a friend who arranged a DMP through CCCS in August last year. They were happy with the budget given to them by CCCS as it was more than they had been living on for years. All their creditor's agreed the payments for 12 months.

But at Christmas, CCCS reviewed their figures and took more money off them. Said they were reducing their spending gradually as they considered them to be frivolous!

CCCS make them deal with their creditors themselves and they have spent several hours dealing with unpleasant phone calls from them. Last month one of their creditors increased the interest rate as they said they were obviously coping with the payments.

In their intiital disucssion with CCCS an IVA was mentioned but CCCS said they would charge them £6000 which they would have to add to their mortgage at the end of the IVA.

We contacted CCCS a year ago and they advised us to write to our creditors and offer them £1 per month. They did not mention an IVA.

I used their online calculator a month ago and it said our only option was bankruptcy - no mention of an IVA. Several other websites came up with IVA as our first option, which is what we are pursuing further at the moment althouh we still have some questions (see other thread).

[plasticdaft]

Are cccs starting to get into a habit of suggesting long term DMP's when clearly IVA's or BR are often more suitable??

This reason alone backs up the thinking that you should always approach at least 3 insolvency firms to get free advice.

[kallis3]

Definitely speak to a couple of IP's before deciding which one to go with, the advice is free and you can then see who you would be happy with.

[MelanieGiles]

This is a sorry tale about the quality of advice provided by CCCS. I wish they would join the forum, if only to defend themselves against the general flak that is conveyed.

I know their IP and she is a quality professional, so they ought to be plugging IVAs a lot more than they seem to do.

[David Mond]

I also know their IP who also sits on the IVA Standing Committee (PCIVA.

I mentioned to the previous representative who now works elsewhere that there Algorithm needs looking into as it appears that it favours DMP's when an IVA is patently clear to be the appropriate solution.

I wonder if this is because they are paid fees by the banks on payments made on behalf of their clients in DMP's by CCCS?

[MelanieGiles]

You are getting very cynical David. Shame on you!!!!!!!!!!

[David Mond]

I am glad you put !!!!! at the end.
x