Repayment to CCCS £2000 per month to clear debt ?

[Tina Shortland]

Hi Reg_uk - hopefully from everyone's posts so far you will have realsied that there is much more advice and support out there to be had! When you contact any further companies for advice they will start fom the beginning andgo over your household net income and overall expenditure - right down to haircuts, dentist etc - thiswill then give your disposable income figure which will tell you how much you can realistically afford to offer creditors.

The various options mentioned above will be explained to you in full and depending on your circumstances and options available to you, you can then decide which is the best course of action to take.

Regards,

[REG_UK]

Guys, you are great, thank you.

I had a longer chat with CCCS today.

They explained that they would independantly recommend the best option and curently that is a DMP.

I explained that I was worried about the monthly premium of over £2000 and they said that I can review all of my outgoings to see whether they could adjust it. Whatever happens I will have something in place by the end of this week. I have another bank account set up (the co-op ever-so-simple account without cheque book as that's all my credit rating would get me)

If they recommend an IVA following my second stab then I'll go down that route.

What really worried me when we first started on this was that someone was virtually guaranteeing that I would only have to pay about 25% of my debt and then it would all be written off. They say if something is too good to be true. But the guy on the phone really convinced my wife that this is the way to go ... she is pretty vulnerable at the monent and has suffered from depression over the last 16 years - just coming out of a bout now having got 5 years of bank charges CC interest late fee charges etc back from the bank (a 5 year struggle - another story!). So I need the independance of advice that I've been given so far by CCCS (and, of course your support!!)

REG

[littlefi]

oh dear yes I did mean that Jan, I wrote that rather quickly, sorry!

[Judo]

Hi Reg.
Glad you had another chat with CCCS. Did they come up with a time frame as to how long they anticipate the term of the DMP to be? Just be mindful that with a DMP there is no guarantee that creditors will freeze interest and charges. Some play ball and unfortunately some don't. If they didn't agree to freeze interest throughout the term you could end up paying for a lot longer. Just something to bare in mind.

Have you visited www.iva.com yet? It still might be worth you doing so. Give a few of the companies on there a ring. They will also be able to give you some free and impartial advice on your particular situation. If they come up as showing a DMP the best way to go then fair enough. It's just better to be armed with as much info as you possibly can before making the decision and of course we are all here too!

Good luck with whatever you decide

[kallis3]

Reg, these people are very good at targeting the vulnerable and making things sound wonderful. It is rare than anyone would pay back just 25% of their debts, especially with the disposable income you have.

Have CCCS told you how long it will take to pay back your debts in a DMP?

Forgive me for being nosy but how much are your total unsecured debts?

[Tina Shortland]

Hi Reg_uk - I am not sure from your posts whether you understand that with a DMP you carry on paying back until 100% of the debt is repaid - debt is not written off - that is only with an IVA or bankruptcy.

A DMP is not legally binding so you have no protection from creditors changing their minds, adding/increasing interest and you will have no fixed end point as to when it will be over.

If £2000 per month is affordable to you and this will repay your debt in full in less than 60 months then a DMP may well be your best option but if it will takel onger and £2000 is a stretch then an IVa may be better for you.

It is not for any commpany to tell you your best option - it is up to all of us to give you full information on each option - help you work out how much you can afford and then for you to decide what is best for you depending on which options are viable for you.

Regards,

[REG_UK]

Having tweaked a few things I am settling for £1700 a month over 4 years. It's a worry as, after the mortgage has been taken out, there is nothing left without my wife's wages to pay for all the usual outgoings. It's enforced self discipline for a problem that is no one's fault but my own.

[kallis3]

I hope your DMP works for you. Let us know how things are going - we're always here for any support and advice and we'd love to know that you finish it successfuly.

[REG_UK]

New bank account created, all dd's cancelled, hopefully new bank setting up replacements for utilities.
Just waiting for contact from creditors ... which hopefully will go to CCCS now as all authority handed over to them.

[kallis3]

Glad you're getting things sorted - hopefully CCCS can stop interest and charges and that your creditors are happy.

Good luck with it and let us know how you are getting on.