Correct order for action plan for sorting out credit card debt

[fresh-start]

Hi all,

 

Sorry if this has been discussed already, although searches haven't really been successful so far.

 

I understand that I should get my SAR first from all my credit card companies so I can begin the process of getting the various over limit etc charges refunded. I am also waiting for my credit report from one of the 3 main CRAs.

 

I've found various threads by people who are currently on DMPs wondering if they can still claim back charges. However I've not really seen which is the best to do first when starting from scratch. I'm worried that antagonising them about refunding several years of unfair charges will make them less reasonable about helping me stay solvent over the next few years whilst in FTE.

 

I'm also worried about filling in a signed budget sheet and letting all the credit card companies know just how many credit cards I have (all within a 5% of the credit limit) and try to demand immediate repayment of the entire balance or reduce my credit rating etc.

 

I need to maintain a decent credit rating if possible however as I understand it, entering a DMP can negatively effect your credit rating although it might only do so for a 6 years which isn't too bad for my situation.

 

Thanks for any help/advice and apologies if some of the above has obvious solutions which I should have picked up on.

 

Edit:

I also read about the pros of getting a parachute account setup. I wasn't entirely certain about whether it would be worthwhile for my situation. However, I'm aking use of the "sort out your debts..." thread linked in dx's sig and follow that step. It will actually be refreshing to be using a current a/c which isn't overdrawn

 

Cheers

Edited October 17, 2012 by fresh-start

[firstship]

Hi and Welcome, As you do not appear to have all of the statements from the various credit card or loan companies ,go ahead with the SARs and add a request for a copy of the original agreement at the same time,they may comply with this as well as the statements etc.the companies have 40 days to respond.

 

I would go for a free DMP with CCCS they will help you put everything in place along with the possibility of 0% interest,this is not guaranteed but possible and should you be able to recover charges any PPI etc, fine this will reduce your debts even though the DMP has started,

 

Do not worry about the threat of immediate repayment from the creditors or DCAs,you do not have to pay more than you can honestly afford,these are low priority debts.

 

DMP on reduced payment amounts will show on your Credit Reports although not always

 

Regards FS

[fresh-start]

Thanks FS. As I understand it, it will negatively effect my credit rating for around 6 years which should be ok since that's when I'll need to apply for my first joint ownership mortgage.

 

From all my reading, it looks like the charges can be reclaimed at any time so I'll contact CCCS first and get the DMP sorted.

 

Thanks for recommending them since I was stuck between Payplan and CCCS. Since the latter is a registered charity (and based on your recommendation), I'll go with them.

Edited October 17, 2012 by fresh-start

[dx100uk]

i'd reclaim FIRST

 

CCCS dont like people reclaiming they'd rather you did it first.

 

i'd get your cra file

 

send everyone a CCA

 

then go from there.

 

as for the I&E sheet

 

nothing to do with any creditor

 

its for your own use

 

only a judge can demand to see any of your pers fin dets.

 

dx

[fresh-start]

Thanks dx. I thought that the budget sheet is used when applying for a DMP with the credit card company so that they know exactly how little the debtor has at the moment to make payments (I noticed the bit where the debtor signs the budget sheet saying that the info is accurate etc, so assumed it's for the credit card companies).

 

Also, about the parachute account, I understand the pros of transferring my income to it. Should I continue to allow all the direct debits to credit card companies go out of my overdrawn Barclays account or transfer them to the parachute account?

Edited October 17, 2012 by fresh-start

[dx100uk]

the idea of a parachute account is NO_ONE bar you has access to it.

 

Sort Your Debts Now - Follow this excellent guide- here

 

dx

[fresh-start]

Thanks for the link, I had a good read of that last week but had forgotten to bookmark it.

 

Two things I'm still confused about:

1) Will claiming my charges back first make the credit card companies less reasonable to deal with when CCCS try to negotiate for lower minimum payments and (hopefully) reduced/frozen interest?

 

2) Since the parachute account is to ensure that only I have access to it, I assume that I should NOT transfer the minimum payment direct debits to the new parachute account, right?

 

Cheers

[dx100uk]

1 no

 

2. yep

 

you use your [its] internet banking portal to pay things

 

that way you have total control

 

dx

[fresh-start]

Ok thanks

Edited October 17, 2012 by fresh-start