CCCS objectives

[chesterpants]

Hi and thanks for reading.

 

I've been living beyond my means for a while now and it's finally come to a head (October 2009). I'm self-employed and over the last few years have earned in excess of six figures each year. Consequently I've lived quite a lavish lifestyle and have foolishly stored nothing away for a rainy day.

 

I've fallen behind on every monthly payment imaginable (mortgage, 2 x HP car agreements, council tax, credit cards, etc). The worry of all this is starting to affect my health and the health of my wife.

 

Constantly hounded by my creditors by phone and letter I finally conceded that I needed help so I telephoned CCCS and arranged an interview (next week).

 

I'm quite confident I can get back on my feet again and will once again be bringing in well over £ 100k. As a consequence I will catch up with my outstanding debts, assuming it's not too late for some of them (the unregulated car agreements).

 

My question here is whether a CCCS is right for me? The idea that the credit card companies can go and whistle, especially with the exhorbitant interest rates they are charging me and fines they are imposing for late payments, is VERY appealing. I really resent paying all my money just to make the minimum payments. My fault I know but the banks have had a hand in this too, pushing easy credit down the throats of people like me who don't have much self-restraint.

 

Just what would a payment plan achieve for me in terms of these credit card debts (I have around £ 30k)? Does it reduce the debt? Will it stop the interest building up? What about the fines? If I entered into a plan like this I understand it is reviewed periodically. What would they say when my monthly income goes from £ 256 currently to over £ 3,000? Will this buy me time to store up the interest payments I would otherwise have been making and then just throw them at the debt? Would the interest have still been building up all along or would it have somehow frozen it? What about interest rates? I'm currently on near 30% with the Halifax, which is scandalous. Finally, how long would the payment plan last? Until the debit is cleared or a predetermined period of time?

 

Any advice you could give would be very much appreciated.

 

Thanks

Edited January 16, 2010 by chesterpants

[IdaInFife]

hiya,

 

ccs should try and get the companies to 'freeze' the accounts so that no charges or interst is being charged, normally for a set period until each review.

 

Ida x

[loobyloo85]

Hi

 

Entering a plan with the CCCS or anyother debt management company is a recommended way of making payments to your creditors.

You would make a monthly payment each month into the CCCS who will then distribute your payment pro rately amongst all of your creditors. CCCS have a good reputation for getting interest and charges frozen, whcih can reduce the overall repayment period of your debt. They will also deal with any correspondence or legal action on your behalf, releiving a lot of the pressure.

All the best

[squidward]

Hi Chesterpants

 

And welcome to CAG.

 

I have a very similar situation to your self High income and Banks and credit card companies throwing money at me. I got to a position last August of just short of 71K of debt costing me around 1260pm a month. I went to Payplan who went through the income and expenditure and got pay my payments to just over 300pm. They have managed to get interest frozen so at least the debts do not gather further interest or charges.

 

Car Finance if it's a Hire purchase agreement ( conditional Sale) probably would't be taken into account as the Finance company would be within there rights to take the car back (unless you have paid more than 1/2).

 

If you don't mind your credit file being trashed, you will get defaults then a DMP works well.

 

Have you checked if your Credit Card Agreements are unenforceable this would be a good starting point.

 

Squidward

[Mydogsawestie]

Hi Chesterpants

 

I am with Payplan as per the poster above...they are great & got all the interest frozen on my debts which I tried to do myself with the creditors but they were having none of it.

 

I have been with Payplan a couple of years now & my husband since 2004. What I would say different in my experience to loobyloo85 tho is not let the debt management people deal with your legal stuff should you ever get served a county court form as when they deal with it on your behalf they end up admitting the debt & thats when a CCJ/Charging order if you have a property could occur??

 

Definitely check to see if your CCA are unenforceable first as squidward has mention using the relevant template letters on this site & when the default notices start arriving post them up (via photobucket) on here so the caggers can give you all the advice you will need .