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[SOLD] Debt! Anyone got a good solution?

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Guest Pauly
Why are people picking on Rich for this comment?

 

Because it's a pointless answer and not a solution to the problem since I'm already in debt. Plus I'd already said that I was asking for advice and not tactless smart arsed remarks that would be of no use to me whatsoever. :roll:

 

Cheers for the other comments though. Appreciated. :thumbsup:

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Hi Pauly, I dont know if this would help but I have a DMP (debt management plan) with a company called CCCS.

 

CCCS (consumer credit counselling service) are a charity run company so you pay no extra money to them and they do not make a profit out of your struggles.

 

CCCS will organise for you to speak to a counsellor and this counsellor goes through with you all your outgoings and expenditure to find out what your surplus of salary is, but the best thing about this is they take into account things like newspapers, magazines, trips to the cinema, how much you spend on lunch, how much you spend on clothes, childrens pocket money etc etc.

 

For example my difficulties arose when I was had to cut my working hours from full time to part time because my son was having a few problems, obviously with the cut in pay my outgoings were now exceeding my income so having outgoings of over £300 a month was difficult to say the least.

 

After I found out about CCCS and I contacted them and spoke to a counsellor and went through my finances, I now as a result only pay £57 a month instead of £300, and okay it may take me 22 years to pay it all off, but the fact is I can afford £57 a month and I dont mind paying that for as long as it takes.

 

CCCS were able to contact all my creditors and get the interest stopped, they were also able to ensure no baliffs or threatening letters were sent out, they explained to me that baliffs have no rights whatsoever to enter your property without your permission and they can intimidate the hell out of you but they have absolutely no rights at all.

 

She said that creditors can refuse to except the DMP as much as they like but the fact is that if this went to court and the courts can see you have made attempts to repay through CCCS which are a recognised charity, the creditors will have to pay all the court costs for wasting time.

 

Because CCCS are a charity run debt managing service most creditors know about them and accept their debt management plans.

 

I get sent regular statements from CCCS and every year they call me to review my circumstances and to go through my outgoings with me.

 

This has really worked for me with my circumstances so I highly recommend them.

 

http://www.cccs.co.uk

 

Hope this helps you.

 

Jo

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I tried the wecanwriteitoff.com that you suggested we call, and what a result. I now pay my debts in one payment, much lower than what I was paying. I was a bit unsure at the time, as people have aways advised me that debt management makes matters worse. But my interest has stopped on my cards, and the payments is something I can afford, the advisors are very helpful and they kept me completely informed of what was happeing. This was a god send thankyou.:thumbsup:

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Credit Consumer counselling service. That's all I can say. They are excellent. Cut up your cards, and learn to get your stuff with cash. Iv'e lived and learnt. Thankfully I didn't lose everything, or too much, but would never get back into the deadly financial spiral again. Way too stressful. By the way the CCCS is a charity, charges nothing, and it really helps as long as you want to change your ways and can admit it's a problem and you are not coping.

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I tried the wecanwriteitoff.com that you suggested we call, and what a result. I now pay my debts in one payment, much lower than what I was paying. I was a bit unsure at the time, as people have aways advised me that debt management makes matters worse. But my interest has stopped on my cards, and the payments is something I can afford, the advisors are very helpful and they kept me completely informed of what was happeing. This was a god send thankyou.:thumbsup:

 

They are a fee-charging outfit though - each payment they take 10% of the difference between your old and new (total) repayments for themselves. Then at the end they take 15% of the (total?) saving that theyve made you. Oh..and they take your first months payment in its entirety (as a setup fee)

 

Frankly theres plenty of charity-based organisations who will help you for nothing. And in addition, these companies do not do anything that a motivated individual couldnt do themselves in any case - with tons of excellent advice/instruction also available for free.

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Firstly Do NOT USE a debt company that charges a fee.You will need as much as possible to go to your creditors.

Pay plan require you to have about£250 at the end of the month, after your living expenses,(disposable income) to pay your creditors before they will take your case,

Go to the CAB and get a "DebtPack"..and ask for help.

Basically, you write to all your creditors telling them you are having difficulty with your debt and asking them to freeze interest (a holding letter)

You then prepare income /expenditure sheets for YOUR use only

You then send EVERY creditor a financial statement using the info you have prepared on the income /expenditure sheets

You then make a PRO RATA offer to each creditor based on the debt owed to each, using your disposable income

So, if you owe one creditor £2,000 and another £20,000 you have to pay the latter 10 times the former.

You cannot under this arrangement choose to pay one creditor more than the PRO RATA amount even if they try to persuade you otherwise.

Once they have all agreed to this arrangement if you miss a payment to any of the creditors even by one day all bets are off and you may be in the sh*t.

The creditor may, after a few months, ask for another financial statement to ensure that your financial position hasn't changed

GO TO THE CAB, you have nothing to lose and you are not the only one they see.

Hope this helps.

Dave

 

edit

I think payplan only take on debts over £5k.

Living expenses have to be reasonable....eg. they probably won't agree to you spending £50 a week on fags and drink.

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my brother has tried to get a top up on his mortgage for home improvements. only to find that he has a default notice from a credit card. he says it is totally his fault that it got there (bury head in sand springs to mind)! hoe long will he have this for any one know?

 

 

Limitations Act on consumer credit contracts is 6 years so it's a case of damage limitation and get in touch with the finance people as rapidly as possible to sort it out.

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The only other comment I'd add to all of this excellent advice is to ensure you make your loan repayments as close as possible to the receipt of the monthly update because the accrued interest will be less.

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My sister used a non fee charging company b4 wecanwriteitoff.com and basicallly you get what you pay for. Yes they are fee charging but the service I received in comparison to the CCCS what second to none. They saved me somewhere inthe region of £600 per mopnth, so paying them £60 per month for their service wasnt an issue. This is much much lower than the interest I was being charged on my cards before, so what If I have to pay I am still saving £540 per month. These people at the CCCS and other charitable organsations havnt really got a valid reason for giving you the sort of service you get from wecanwriteitoff.com, as they dont make any money, so if u want to leave them "Big Deal" they aren't loosing any money. :thumbsup:

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Firstly Do NOT USE a debt company that charges a fee.You will need as much as possible to go to your creditors.

Pay plan require you to have about£250 at the end of the month, after your living expenses,(disposable income) to pay your creditors before they will take your case,

Go to the CAB and get a "DebtPack"..and ask for help.

Basically, you write to all your creditors telling them you are having difficulty with your debt and asking them to freeze interest (a holding letter)

You then prepare income /expenditure sheets for YOUR use only

You then send EVERY creditor a financial statement using the info you have prepared on the income /expenditure sheets

You then make a PRO RATA offer to each creditor based on the debt owed to each, using your disposable income

So, if you owe one creditor £2,000 and another £20,000 you have to pay the latter 10 times the former.

You cannot under this arrangement choose to pay one creditor more than the PRO RATA amount even if they try to persuade you otherwise.

Once they have all agreed to this arrangement if you miss a payment to any of the creditors even by one day all bets are off and you may be in the sh*t.

The creditor may, after a few months, ask for another financial statement to ensure that your financial position hasn't changed

GO TO THE CAB, you have nothing to lose and you are not the only one they see.

Hope this helps.

Dave

 

edit

I think payplan only take on debts over £5k.

Living expenses have to be reasonable....eg. they probably won't agree to you spending £50 a week on fags and drink.

 

 

The only problem my sister had with the Citizens advice, is that the lady she dealt with didnt really specialise in one particular area, she can give you advice on debt/drugs/law, but a debt company specialise in one area. This is what you pay for proffessional advice, I would always recommend a fee paying company and pay for the help

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How many people have been back to their creditors to discuss losing the payment protection? and succeeded?

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