Can someone point me in the right direction?

[Shineyangel]

I was just wondering if anyone can point me in the right direction?

I've tried debt consolidation loans which only make problems 10x worse in my experience.

In my searches for other solutions, I've looked at IVAs (don't qualify), Debt Releif Orders (don't qualify due to having a car worth £1200), and can't afford to go bankrupt. Is there anything out there to help? I have about 7.5k worth of debt, and am currently scraping by on income support/child tax credits. Should I just whack the side wing of my car to cause £250 worth of damage to make it worth less? It is a serious thought now lol. CAB haven't exactly been helpful with this (I basically got 'told off' for having to go on income support after building up debt, which I would have carried on working if I could.) Oh.. and I didn't take protection out on any of the debt.

I would really appreciate any replies or advice.

[loobyloo85]

The debt management plan is another option for you.
There are free of charge DMPs out there.
You would just need to contact them, give them details of your debts and your incoem and expenditure. They would then gain all of the outstanding balances on the accounts and write to your creditors about the DMP. You would then need to set up a DD or SO with the DMP to make your monthly payments to (you would need a minimum surplus of £50), and these payments would get distributed to your creditors each month on a pro rata basis.
I do believe DMPs are a good, flexible option to get you back on your feet and more in control. You will not have the stress of having to deal with letters, legal action and making payments as the DMP would do it all on your behalf x

[postggj]

have you used the consumer credit counseling service

cab will help with the into

not my first choice but are legit

[GottaDoit]

The cccs are quite good, they are a charity funded by the banks and don't charge for anything, with a debt management plan they will deal with all your creditors on your behalf so all the nasty letters should stop.

Last time I spoke to them the deal was a minimum of £5 per creditor and if you can't afford that they will send you forms which you complete yourself and send to each creditor with a proposal to pay as little as £1 to each. Just having it all listed on the cccs forms is often enough for them to accept it but not always. If you can afford £5 per creditor it's best to let the cccs do it all for you. Check out their web site for more details. They can also give advice on bankruptcy (and help with fees) if that is the right option for you.

Good luck

[roofovermyhead]

Hi I've been advised by the CCCS to do the same. ( Pay £1.00) I'm waiting for the parachute account which they reccomended to become active. What I'm trying to understand is: how binding the DMP is on the creditors and how long it can be in place for before they are allowed to reasonably take action to increase the payments, or find some othe rmeans of demanding money.

They CCCS gave the impression the creditors would accept this as a temoprary solution for a few months. It would be worth knowing what other
options there are for the future.

[GottaDoit]

Firstly a DMP is only really worth doing if you really think your situation will improve within a year or 2 at the most, and you'll eventually be able to repay the debt in full, agree a settlement figure (less than that owed), or get the account back to an agreed monthly payment for the loan term. The last option will probably not be available if they have already terminated your original account/agreement and passed it to a DCA.

Secondly a DMP does not bind any creditor to anything. It's simply an "informal" agreement to make low monthly payments until your situation improves. This is the case whether you do it yourself, with the advice of and using the forms supplied by the cccs, or by letting the cccs do it all for you. The creditors have no obligation to accept the lower payment amount and could take action against you at any time.

However (and it is a big "However"). The fact is, if you agree to pay something towards the debt each month (even if it is just £1), you accept that the debt is yours and that you are taking the matter seriously, you always reply to them when they contact you (this can be by post only, you don't need to give out your phone number), and you always make some sort of payment every month without fail, they will "almost never" take any legal action against you. This is the advice I was given by the cccs on several different occasions and my own experience - I never had any legal action against me in 4 years of struggling and making token payments.

Although they "can" take action against you they never really want to. It's a pain for them to deal with, time consuming, and expensive if they get nowhere anyway. Also if you've completed a financial budget plan, made a repayment proposal, and it all looks both realistic and fair, then there is no advantage for them in taking any action.

As far as a creditor petitioning for your bankruptcy, this rarely happens. It's just too expensive for them and they rarely get a decent amount of money for their time, money and effort.

I had a cccs DMP I managed myself for nearly 3 years (should have given up after a year ) and in most cases (even where the loan balance was nearly £20k) they accepted £1 per month for all that time, no questions asked. In my experience, if you have a cccs number and send them the relevant forms they "usually" agree to very small payments. Not always though and people like Moorcroft can get quite nasty. It's just scare tactics though to get you to pay more than you can really afford. My advice is stick to your guns and don't leave yourself short. They're unlikely to take any action or send someone to your door if you are paying them something each month.

I hope this helps but please bear in mind that this is all just my experience, my opinions, and advice I've received from the cccs. What worked for me may not work for you (but it should really).