Debt Management Review

[JulesH]

Hi

I'd be really grateful for any advice.

I am with a debt management company and have received notice that my annual review is due. Last year's review was awful, we were over their budget maximums in quite a few areas and as they have not increased their maximum limits due to rising costs of fuel, food and petrol, this year is going to be a lot worse.

Last year we were over budget on pet spending by over double and had to send a lot of proof that our dog depended on the spend for health reasons, this was not just vet bills, but reports on pathology findings, dietary testing, insurance reports, the lot.

We were in debt to around £60,000 and 2 years on now owe £48,000 which I'm quite proud of. My OH has recently had a pay rise and I really would like to take the children on a break somewhere cheap and cheerful, have some money to treat the family with. We obviously couldn't afford it for the last 2 years.

I want to pay the debt back and I'd like to do it before 10 years, but surely if I'm committted to pay it all back and not just write it off, I should be entitled to a life that doesn't involve having to go without a few tiny tiny luxuries like a break?

Can the debt management organisation take ALL of the pay rise? And if not how do I negotiate?

[Never-In-Doubt]

Re: Debt Management Review

Of course you're entitled to a life - just tell the DMP what you said above and if they don't like it tell them you'll go to another one that listens to what you want!

Who is your DMP out of interest, I do hope it is not a paid one or I'll then be suggesting you ditch them anyway - as they are free!

[JulesH]

Re: Debt Management Review

Hi

The DM Co is CCCS. I pay them £500 per month which means I will make full payment in 10 years (they tell me this is the max time allowed). They refused to accept our food shopping budget last year and we had to argue for ages to increase it by £30 a month, but looking at the planner from last year there was a budget for school and work meals that equated to a maximum of £94 a month that we never put an amount into,hence our food shopping bill being 'over-budget'.

We take packed lunches and so put the cost into the food shopping budget when it (I now realise) should have gone into the school/work meals, I'm shocked that this wasn't taken into consideration last year.

I've been told not to tell them about changes in circumstance, it seems wrong to lie, and I guess they'll be asking for bank statements and pay slips (can't remember if they did last time), but wrong to to have to continue this way for another 8 years. If they asked for half of the pay rise, I could deal with it.

I was told not to go near paid management companies? Is that not right and would they be any more reasonable?

It's getting difficult not to be purile if they're going to tighten the noose, despite good behaviour. I'm really tempted to write back to them saying that I'm not available to do their review as I'm on holiday on Necker Island!! I resorted to such childish behaviour when being harangued by HSBC for 6 months prior to the DMP and offered to flog a kidney on E-bay to put towards the debt!!

[Never-In-Doubt]

Re: Debt Management Review

Hiya

I actually meant do not use a paid one, you're on CCCS which is free so thats good.

Its not a case of arguing the toss with them, you just say I'll pay this and that's that - they do not rule your life, you rule it! Out of interest are any of the debts old, I mean like 10+ years old? if so you could always consider UE as an alternative....?

Once on your DMP then you should have agreed a monthly amount, tell them you're not sending in any more I&E forms, you're paying what you're paying and that is the end of it. They can't do much! Just stop talking to them and deal in writing, and simply say "I'll pay the £500 per month, you divvy it out - no more I&E or payslips / bank statements either!"

If anything do it yourself, then you don't have to send anything to anyone!

[Riz]

Re: Debt Management Review

They can't do much! Just stop talking to them and deal in writing, and simply say "I'll pay the £500 per month, you divvy it out - no more I&E or payslips / bank statements either!"

Possible that they might cancel the DMP. CCCS can be a bit "stroppy" at times.

As said, worse case scenarios is that you manage it yourself.

Not sure how true it is, but I hear a fair bit (anecdotally) that PayPlan is a bit more forgiving with their 'interpretation' of the allowances.

[Never-In-Doubt]

Re: Debt Management Review

Possible that they might cancel the DMP. CCCS can be a bit "stroppy" at times.

Yea true, forgot about that - but like you say there's always PayPlan after consideration of a DIY job

[JulesH]

Re: Debt Management Review

OMG you would say that to them? That's actually very funny, I though we were all terrible people and needed to bow and scrape to do penance to the mighty banks. If I voted for you as prime minister would you penalise them for their mistakes as they do us, or would you be frightened that they would threaten to leave the UK for more 'cowed' countries that allow them to run amock?

Not sure what a UE is? Can you tell me more?

I have a friend who went bankrupt 2 years ago and is really happy now and another on an IVA with protection and goals in sight. I can't really do either as CCCS say I don't qualify and I have shared ownership on my home (no equity) but I work from home and can't risk losing it.

[Never-In-Doubt]

Re: Debt Management Review

Hiya

I am serious, they (CCCS) are appointed by you, they get funded by the Gvt for it - lol, you are in control, not them - tell them as it is and if they don't like then tell them to pissoff....

Regards your mate, they need help - BR 2 years ago and now on an IVA - I'b be careful, that could get them in a lot of bother not least with possible future BR restrictions

As for yourself, consider UE - its what we specialise in - see here and pick some random threads that explain it ---> Unenforceability - allaboutFORUMS

The user diaries are here - very interesting reading ---> Unenforceability Diaries - allaboutFORUMS

[MrsD]

Re: Debt Management Review

Jules

We were in a DMP with CCCS and left due to the unreasonable demands made on us to pay the banks back. they thought that I shouldn't be feeding my adult son who is a uni and that's when I had a screaming fit and told them where to stick their DMP. We are doing UE and its going very well.
However, I am well aware that UE is not for everybody but you have to realise that CCCS are facilitors between you and your creditors, they are not the boss and their remit is to HELP you, not make life so difficult that it is impossible to live, because believe me if that's the case, then the DMP will fail, you cannot live like a monk and nun for 10 years, it just doesn't happen.

Would it help if you posted up your budget for us to have a look at? We have a pretty good idea what you are allowed by CCCS and then you have to decide whether to look at UE or go back to CCCS and be calm and assertive and TELL them what your budget is going to be. Honestly it is the only way to conduct a dMP.
We'll help all we can but you have to be prepared to stand up to them and tell them how its going to be, and you can complain about how you are treated, I certainly did!

[Riz]

Re: Debt Management Review

Regards your mate, they need help - BR 2 years ago and now on an IVA - I'b be careful, that could get them in a lot of bother not least with possible future BR restrictions

No. I think they meant 2 separate people.

One BR. The other now in an IVA.

[Never-In-Doubt]

Re: Debt Management Review

If I voted for you as prime minister would you penalise them for their mistakes as they do us, or would you be frightened that they would threaten to leave the UK for more 'cowed' countries that allow them to run amock?

I would close them all down and tell banks to do things properly and write to debtors seeking resolution that was fair to both, or to write the debt off.

I am the UK's no1 bank hater remember..... In fact I detest banks and DCA's.

I can't really do either as CCCS say I don't qualify and I have shared ownership on my home (no equity) but I work from home and can't risk losing it.

Eh? Its not for them to tell you if you qualify, if you're skint and want to go BR to start again/afresh then you can do, a DMP company doesn't control that - you do!

As for an IVA, there are slight rules but if you're working and have disposable income etc then you can apply, of course! The last option is our favourite, unenforceability!

This way we beat the banks into submission using their own dodgy paperwork (or lack of lawful paperwork) against them!

[Never-In-Doubt]

Re: Debt Management Review

No. I think they meant 2 separate people.

One BR. The other now in an IVA.

Sorreeeee (skulks back off to the corner)

[Riz]

Re: Debt Management Review

I have a friend who went bankrupt 2 years ago and is really happy now and another on an IVA with protection and goals in sight. I can't really do either as CCCS say I don't qualify and I have shared ownership on my home (no equity) but I work from home and can't risk losing it.

If you have no, or minimal, equity then that doesn't always mean bankruptcy is a bad idea.

You wouldn't lose your home just for the sake of it. They would only want it sold if there was a fair chunk of equity that there was no other way of them getting their hands on. If some equity did accrue within 2-3 years, then you would have the chance for you or someone else to buy it back rather than selling the house.

Might be worth seeking advice on that from somewhere other than CCCS.

As a last resort, anyway.

[JulesH]

Re: Debt Management Review

Typed a huge response and lost it! I am quite dumb, but more tired so bear with me!

Thankyou to everyone, I came screaming to the site at the end of my tether and posted before looking about. Obviously this is the place to learn and will rectify this as soon as possible. evenlessdopey I hope your son appreciates you (I'm a mum too). I racked up a lot of student debt, despite being one of the last to receive full fee funding, not having a car, private jet or anything of the sort. I had 3 jobs and a book list fee that totalled over £100 a term. By the time I left uni, the thought of ever being out of debt was pushed firmly to the back of my mind and the next 15 years were spent marvelling at the interest I was paying.

I will look around the site for all the information you have linked and to find out more about how you guys work as it's comfy here. THANK YOU all.

[JulesH]

Re: Debt Management Review

Rizzle, you know this happened to girl I worked with. She spent 6 months crying her heart out that she was losing her children their home and turned up one morning grinning saying that she had bought her house back for £1500. I couldn't believe it.

We bought our half of the house 5 years ago. There is no equity in it at all I'd imagine, however, there would be interest in it from buyers as there is a shortage of shared ownership housing in the area. I guessed that the bank would flog it.