Author Topic: Home Owner, large unsecured debt  (Read 22224 times)

Richard

  • Jr. Member
  • **
  • Posts: 18
Re: Home Owner, large unsecured debt
« Reply #30 on: May 16, 2011, 04:46:41 PM »
Quote
Hi Richard, That is great news. Did you go with the CCCS in the end?

Yes i did. So far, they have dealt with everything very smoothly and professionally.

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Home Owner, large unsecured debt
« Reply #31 on: May 17, 2011, 06:11:53 PM »
Pleased to hear it Richard :)
Debt Expert & Author
beatmydebt.com

Richard

  • Jr. Member
  • **
  • Posts: 18
Re: Home Owner, large unsecured debt
« Reply #32 on: Sep 13, 2011, 10:01:44 AM »
Just a little update on my personal situation. Despite sending a second letter, 3 companies have failed to respond in any meaningful way to my letters, apart from standard letters they send out. However this aside, the DMP is excellent and has taken all of the stress out of the situation.

Although it may be some time before i am debt free, i can only reiterate that i would highly recommend this course of action to anyone in a similar situation to me and i only wish i had taken this course of action sooner rather than believing i "would find a way out".


James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Home Owner, large unsecured debt
« Reply #33 on: Sep 13, 2011, 10:09:38 AM »
Hi there Richard
 
Glad to hear that you are getting on well with your DMP. Out of interest, how many of your creditors have stopped their interest charges so far and how many are still adding interest?
Debt Expert & Author
beatmydebt.com

Richard

  • Jr. Member
  • **
  • Posts: 18
Re: Home Owner, large unsecured debt
« Reply #34 on: Sep 16, 2011, 09:55:53 AM »
of the 8 creditors, 4 have responded and frozen the interest, 3 have not responded to either of my letters and Northern Rock have accepted a lower payment but will continue to add interest.

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Home Owner, large unsecured debt
« Reply #35 on: Sep 16, 2011, 11:52:05 AM »
I think that is pretty much to be expected with a DMP Richard. The key question is based on the monthly payments is your overall debt going down each month? If so the plan is working. If not, ultimately you will have to change something otherwise the debts will continue to spiral.
Debt Expert & Author
beatmydebt.com

Soki Tomb

  • *
  • Posts: 1
Re: Home Owner, large unsecured debt
« Reply #36 on: Sep 20, 2011, 06:48:48 PM »
Whatever you do, don't pay good money for a commercial debt rescheduling plan - debt charities like Citizens Advice will help you for free and their level of professionalism and integrity is extremely high.  There are also ways to avoid or evade debt but the debt collection industry obviously is not in favour of publicising these; and debt charities are beholden either to the government or the debt industry for funding so they won't help either.
 
I have written a book about the subject.

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Home Owner, large unsecured debt
« Reply #37 on: Sep 21, 2011, 09:47:16 AM »
I am not sure I am in agreement with everything you say in your post Soki. It is absolutely right that you can get debt management services for free. However, the two main companies who provide that service are Payplan and the CCCS. Payplan is a commmercial organisation and CCCS is a charity. The CAB offer advice and sometimes help with letter writing but unlike the CCCS or payplan, they do not manage the negotiations or ongoing DMP plan on behalf of the person in debt which is often what is required.
 
You also mention ways to avoid or evade debt. I am not sure what you mean by this. I have been helping people with debt problems for nearly 15 years and have also written a book about the subject. It is available for free [** sorry, no personal contact invitations allowed **]. I have to say that I am yet to come across any ways that you can avoid paying your debt. I would be very interested to understand what you mean. Can you expand?
 
Your point about the debt charities being beholdent to the government / debt industry is also interesting. If you are talking about CCCS, they are actually funded by the creditors themselves (not the government). I am sure that they would argue that they are not beholden to the creditors however I do agree that this arguement does seem particularly weak given that that is where their funding comes from.
Debt Expert & Author
beatmydebt.com

Richard

  • Jr. Member
  • **
  • Posts: 18
Re: Home Owner, large unsecured debt
« Reply #38 on: Sep 21, 2011, 02:00:24 PM »
I think that is pretty much to be expected with a DMP Richard. The key question is based on the monthly payments is your overall debt going down each month? If so the plan is working. If not, ultimately you will have to change something otherwise the debts will continue to spiral.

it has not even been 6 months since the DMP was put in place, so as you say i believe some companies refusing to play ball is to be expected. I wrote a second letter in August, and will check the September statements to see if the 'ignorant' companies have frozen their interest.

Incidentally, for arguments sake lets say 2 creditors refuse to acknowledge my letters and continue to charge interest. Should i not just pay them a reduced token sum of £1 every month, and then pay the companies who are playing ball the surplus? I know common concensus is to always pay the highest interest first, but this seems counter-intuitive with a DMP, as i would much rather pay extra money to the companies who are giving me a break and freezing the interest.

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Home Owner, large unsecured debt
« Reply #39 on: Sep 21, 2011, 04:39:45 PM »
My understanding is that you are working with the CCCS Richard and they are managing your plan for you. This being the case then I do not think they will allow you to make preferential payments to one or more of your creditors over others. I might be wrong so it is worth checking.
 
Having said that if you are managing the plan yourself, the DMP is informal and so you can pretty much do what you like as far as payments are concerned. Paying more to those who have stopped interest is an idea that I must say I like. Rewarding those who are helping you by paying them quickest seems more than fair. You just have to keep an eye on the others to make sure that they do not start anything untoward like taking further legal action against you in the form of a CCJ.
Debt Expert & Author
beatmydebt.com

Richard

  • Jr. Member
  • **
  • Posts: 18
Re: Home Owner, large unsecured debt
« Reply #40 on: Sep 21, 2011, 05:02:13 PM »
yes, CCCS are managing my plan for me, but i would have no problem managing it myself should i feel they are not acting in my best interests. Incidentally, when a situation arrises such as mine where someone cannot pay what they owe, is there any reason creditors do not immediatly go for a CCJ??

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Home Owner, large unsecured debt
« Reply #41 on: Sep 29, 2011, 11:33:06 AM »
Hi Richard, Did you speak to the CCCS? Will they be willing to let you overpay the creditors who have frozen their interest? I would be very interested to hear the outcome.
 
In terms of your question about creditors going immediately for a CCJ you have to ask whether it will actually do any good verses the costs involved. Most creditors want to try and get you paying back what you can first without the cost of applying for a CCJ where they are likely to receive exactly the same payments each month anyway or perhaps even less when the court can see the whole picture and the other creditors involved (given you complete and return the admission form correctly).
Debt Expert & Author
beatmydebt.com

Richard

  • Jr. Member
  • **
  • Posts: 18
Re: Home Owner, large unsecured debt
« Reply #42 on: Dec 19, 2011, 10:42:58 AM »
I did speak to CCCS about overpaying the interest freezers, however they refused. I'm quite happy to let them manage the debt for me in the short term, however i can't help but feel if i had the time and inclination i would be slightly better off managing the debts myself.

The bottom line is tho that my debt is under control, most lenders are playing ball and those who are not will surely fall into line eventually.

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: Home Owner, large unsecured debt
« Reply #43 on: Dec 19, 2011, 02:47:10 PM »
Hi Richard
 
Just as I suspected re the CCCS not allowing you to make preferential payments. Worth asking though. If your debt is under control and you are comfortable with how things are being handled that is the main thing. Just make sure you keep an eye on any creditors who are continuing to add interest. If this continues to happen you should keep raising it with the CCCS. They should be doing all they can to make sure interest is frozen. It is not true to say that eventually these creditors will simply fall into line. It is far more likely that if creditors continue to add interest and no one chellenges them, they will happily continue on this track for ever. It would not be the first time.
Debt Expert & Author
beatmydebt.com

Richard

  • Jr. Member
  • **
  • Posts: 18
Re: Home Owner, large unsecured debt
« Reply #44 on: Jan 29, 2016, 08:23:46 AM »
I have an update on my debt situation, and also a question.


Since agreeing my debt management plan, I have been paying around £200 a month to reduce my debt through a DMP. However, around 18 months ago, I began a master's degree and without much hassle I managed to reduce my payments to £40 a month for the 12 month duration of my MSc.


So, fast-forward to Jan 2016, and my MSc lead to a funded PhD that will be 3 years in duration, that pays me around £1150 a month. This leaves me around £300 p/m in disposable income. Due to a family bereavement, I was also left £4000.


During the 5 years i have been on my DMP, most of the debts have been sold on to other companies, some of them more than once. My unsecured debt is around £25k to various creditors (debts between £2k and £8k) and £25k in unsecured debt with my mortgage company.


I'd be interested in negotiating "full and final" settlement on some/all of my debt. However, I'm also pretty happy paying £40 a month on a DMP, with my DMC not getting back in touch to do a review since I finished my MSc. I would guess my best option right now is to keep quiet, saving as much money as I can each month to give me a greater sum of money to negotiate settlements? As I don't have a lot of disposable income, I also prefer to keep my £4k inheritance separate in case of emergencies.


So, I'm just looking for some feedback on my situation. In addition, should I decide to offer "full and final" settlements, should I do it through my DMP, or directly with my creditors on an individual basis?? Considering my current level of payment, level of debt and amount of time I've been on a DMP, i was going to start at 10p in the pound and go from there. I also assume my mortgage company won't negotiate much on the unsecured debt, as they always have the house as leverage.