Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By stickywicket
#6994 Hi there

I'm new here, so bear with me.

My wife and I owe about £60k in unsecured debt, and are struggling.

We've made first contact with CCCS and are expecting to have a full chat in the next few weeks.

We believe that we can sort it out through a DMP, as we both earn good wages.

My questions are:

1 - Are CCCS good at what they do and are they trustworthy? Are Payplan any better? Is there another org I should consider? We are in Belfast, and so any companies which don't operate here are out of the question....

2 - Can a joint DMP happen for this amount of debt - trying to avoid IVA for various reasons I'm not going to bore you with

3 - Does this approach (DMP) work and do the creds eventually stop harassing us - we're up to date with everything at the moment but I've heard the creds go nuts after a DMP is introduced?

4 - Can I, after say 3 years of DMP, do an equity release on our home and clear whatever is left of the dmp?

5 - Does it feel like you are OK once the dmp is in place? I really want us to be able to sleep and not worry all the time...


I know this info is probably on here somewhere but the threads are so full I'd spend an age trawling for answers so I just thought I'd come straight out with it.

Thanks in advance.
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By JaneClack
#6995 Good morning.

CCCS are very good at what they do and if you have your appointment with them you are well on the way to getting - as Churchill would have said - to the end of the beginning. Payplan do the same thing - the only thing is that they tend to get things rolling quicker but that is the only difference I would say.

Debt Management is good when it is possible to repay the debt in a reasonable period of time - anything over sven years and I would say IVAs or bankruptcy would be better options to look at (but not if you have a home with a lot of equity in it.) DMPs can be joint whereas IVAs and bankruptcies are individual.

Remortgaging and making full and final lump sum payments are used in both companies - you get the benefit of a reduced pay-off but of course it is now secured on the home.

You lose nothing by going through the financial statement with either company either - this just puts you in the position where you know the best options for your situation.

Let us know how you get on.
By stickywicket
#6996 Thanks Sarah.

A few more things:

When do I start sending out letters and token payments to my creds?

What effect does this process have on my credit record in the real world - not that I'll be wanting credit, but I'd like to know what happens

What happens to our overdraft? Obviously I'm getting another account set up at a seperate bank but we are well into our o/d where we are at present...

Also, how accommodating are the budget plans - I want to give as much as pssible to the dmp of course but we have to beable to live, not just survive...?

Thanks again folks.
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By JaneClack
#7013 In brief your credit rating SHOULD be pants. I say this as some people do seem to be able to get further credit - at HIGH rates of interest whilst doing a DMP. It does them no favours at all I have to say as a couple of years later they are asking to include these!

Both CCCS and Payplan try to work on a realistic budget based loosely on British Banking Guidelines so that people can live and not just exist. However there is nothing for savings, holidays etc built in.

Your overdraft would become just another creditor.

You can make token payments - of at least £1 - as soon as you like if you are going into a plan. This means that the creditors are seeing something and know you are acknowdging the debt. What no one can promise is that they will stop phoning you or freeze interest straightaway.

Hope that is clear!!
By stickywicket
#7019 Thanks again, but I want to follow up my thought -

If I start to make tokens right now, before my dmp is up properly, is there not a risk that one or more creditor would get scared and come on strong for full payment, or send out bailiffs or send me to court or something? I know the dmp is not binding and so I'm scared that by starting the token payments and alerting them before it's even agreed, they might go all nasty?

This is a real worry!

Or am I just worried over nothing?
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By JaneClack
#7026 They are no more likely to go for a judgment or send to DCAs now than when you are in a DMP. People in CCCS and Payplan do get judgments - it is a fact of life. They do get passed to DCAs too - another fact of life. But you have to ask yourself what is the alternative - it is either pay the full contractual payment, sell the house and pay the debts or accept that your credit raiting is going to be affected and have enough to live on?

Bailiffs can only come out IF you have had a judgment and have not paid the installment order that should have been set up. Bailiffs are there to enforce court orders but you do get the chance to tell the courts how much you can reasonably pay.